Interim report
Page 1
1 Stock Code:8046 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors’ Review Report For the Six Months Ended June 30, 2025 and 2024 Address: 7F., No. 390, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City Telephone: (02)27122211 The independent auditors’ review r eport and the accompanying consolidated financial statements a re 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 r eport and consolidated financial statements, the Chinese version shall prevail.
Page 2
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 of estimation uncertainty 12 (6) Explanation of significant accounts 12～33 (7) Related-party transactions 33～37 (8) Pledged assets 38 (9) Commitments and contingencies 38 (10) Losses Due to Major Disasters 38 (11) Subsequent Events 38 (12) Other 38～39 (13) Other disclosures (a) Information on significant transactions 40 (b) Information on investees 41 (c) Information on investment in mainland China 41 (14) Segment information 42
Page 3
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 a s of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, as well as the changes in equity and cash flows for the six months ended June 30, 2025 and 2024, 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 3 4, “I nterim 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.
Page 4
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 June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 3 4, “I nterim Financial Reporting” e ndorsed 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 Jhang, Jhao-Wun. KPMG Taipei, Taiwan (Republic of China) August 6, 2025 Notes to Readers The accompanying consolidated financial statements a re intended only to present the consolidated s tatement 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 r eport and the accompanying consolidated financial statements a re 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 r eport and consolidated financial statements, the Chinese version shall prevail.
Page 5
4 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets June 30, 2025, December 31 and June 30, 2024 (Expressed in Thousands of New Taiwan Dollars) June 30, 2025 December 31, 2024 June 30, 2024 Assets Amount % Amount % Amount % Current assets: 1100 Cash and cash equivalents (note 6(a)) $ 7,133,991 12 8,480,692 14 11,844,114 17 1120 Current financial assets at fair value through other comprehensive income 104,411 - 106,358 - 172,270 - 1170 Notes and accounts receivable, net (notes 6(b) and (m)) 7,710,768 13 6,941,633 11 6,545,766 10 1180 Accounts receivable due from related parties (notes 6(b), (m) and 7) 50,850 - 54,613 - 46,944 - 1200 Other receivables (note 6(c)) 127,954 - 120,280 - 619,715 1 1210 Other receivables due from related parties (notes 6(c) and 7) 21,095 - 1,574 - 14,552 - 1310 Inventories (note 6(d)) 4,601,222 8 4,100,848 7 3,919,540 6 1470 Prepayments and other current assets (note 6(a)) 169,587 - 869,156 1 213,621 - Total current assets 19,919,878 33 20,675,154 33 23,376,522 34 Non-current assets: 1550 Investments accounted for using equity method (note 6(e)) 439,071 1 459,726 1 481,130 1 1600 Property, plant and equipment (note 6(f)) 36,821,468 62 39,990,692 64 42,107,083 62 1755 Right-of-use assets (notes 6(g) and 7) 1,361,896 3 1,488,927 2 1,592,488 2 1840 Deferred tax assets 584,441 1 313,941 - 403,326 1 1900 Other non-current assets 12,328 - 9,971 - 9,933 - Total non-current assets 39,219,204 67 42,263,257 67 44,593,960 66 Total assets $ 59,139,082 100 62,938,411 100 67,970,482 100 June 30, 2025 December 31, 2024 June 30, 2024 Liabilities and equity Amount % Amount % Amount % Current liabilities: 2130 Current contract liabilities (note 6(m)) $ 2,218,144 4 2,218,144 4 2,218,144 3 2170 Accounts payable 1,494,474 3 1,295,788 2 1,712,689 3 2180 Accounts payable to related parties (note 7) 249,566 - 221,757 - 282,533 1 2216 Dividends payable 646,166 1 - - 3,553,910 5 2219 Other payables 1,446,886 3 2,154,852 4 1,732,040 3 2220 Other payables to related parties (note 7) 44,558 - 40,306 - 64,935 - 2230 Current tax liabilities 34 - 315,597 1 66 - 2281 Current lease liabilities (note 6(h)) 1,113 - 4,693 - 4,673 - 2282 Current lease liabilities, related parties (notes 6(h) and 7) 263,822 - 258,467 - 253,331 - 2300 Other current liabilities 179,449 - 154,671 - 207,799 - Total current liabilities 6,544,212 11 6,664,275 11 10,030,120 15 Non-current liabilities: 2527 Non-current contract liabilities (note 6(m)) 4,406,130 8 5,515,202 9 6,624,274 10 2570 Deferred tax liabilities 2,891,361 5 2,985,727 5 3,411,642 5 2581 Non-current lease liabilities (note 6(h)) - - - - 1,113 - 2582 Non-current lease liabilities, related parties (notes 6(h) and 7) 1,091,920 2 1,216,311 2 1,321,328 2 2640 Net defined benefit liability, non-current 714,034 1 926,779 1 1,089,972 2 2645 Guarantee deposits received 181,698 - 179,737 - 308,155 - Total non-current liabilities 9,285,143 16 10,823,756 17 12,756,484 19 Total liabilities 15,829,355 27 17,488,031 28 22,786,604 34 Equity (note 6(k)): 3100 Ordinary shares 6,461,655 11 6,461,655 10 6,461,655 9 3200 Capital surplus 18,125,632 31 18,125,632 29 18,125,615 27 3310 Legal reserve 8,504,731 14 8,473,910 14 8,473,910 12 3320 Special reserve 324,428 - 1,112,574 2 1,112,574 2 3350 Unappropriated retained earnings 11,732,240 20 11,601,037 18 11,259,003 16 3400 Other equity interest (1,838,959) (3) (324,428) (1) (248,879) - Total equity 43,309,727 73 45,450,380 72 45,183,878 66 Total liabilities and equity $ 59,139,082 100 62,938,411 100 67,970,482 100 See accompanying notes to consolidated financial statements.
Page 6
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 six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share) For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Amount % Amount % Amount % Amount % 4000 Operating revenue (notes 6(m) and 7) $ 9,582,919 100 8,120,606 100 18,040,951 100 15,221,178 100 5000 Operating costs (notes 6(d), (f), (g), (h), (i), (n) and 7) 8,814,108 92 7,937,110 98 16,841,857 93 15,418,149 101 Gross profit (loss) from operations 768,811 8 183,496 2 1,199,094 7 (196,971) (1) Operating expenses (notes 6(f), (g), (h), (i), (n) and 7): 6100 Selling expenses 84,286 1 66,915 1 163,930 1 157,097 1 6200 Administrative expenses 318,446 3 323,552 4 635,994 4 646,910 4 6000 Total operating expenses 402,732 4 390,467 5 799,924 5 804,007 5 6900 Net operating income (loss) 366,079 4 (206,971) (3) 399,170 2 (1,000,978) (6) Non-operating income and expenses (notes 6(e), (f), (h), (o) and 7): 7100 Interest income 50,572 - 71,040 1 99,012 - 143,700 1 7010 Other income 70,682 1 181,625 2 126,188 1 371,792 2 7020 Other gains and losses (702,708) (7) 129,742 2 (584,677) (3) 413,454 3 7050 Finance costs (3,512) - (4,454) - (7,261) - (9,006) - 7060 Share of profit of associates accounted for using equity method (7,693) - 8,639 - (2,871) - 19,248 - Total non-operating income and expenses (592,659) (6) 386,592 5 (369,609) (2) 939,188 6 7900 (Loss) profit before tax (226,580) (2) 179,621 2 29,561 - (61,790) - 7950 Less: Tax expense (benefit) (note 6(j)) (39,151) - 61,024 1 9,517 - (27,967) - 8200 (Loss) profit (187,429) (2) 118,597 1 20,044 - (33,823) - 8300 Other comprehensive income (notes 6(e), (j) and (k)): 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income (5,243) - (34,154) - (1,947) - (65,013) - 8320 Share of other comprehensive income of associates accounted for using equity method 502 - (4,477) - 1,453 - (13,035) - 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 (4,741) - (38,631) - (494) - (78,048) - 8360 Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation (2,200,945) (23) 246,058 3 (1,892,546) (10) 1,177,179 8 8399 Less: income tax related to components of other comprehensive income that will be reclassified to profit or loss (440,189) (5) 49,212 1 (378,509) (2) 235,436 2 Components of other comprehensive income that will be reclassified to profit or loss (1,760,756) (18) 196,846 2 (1,514,037) (8) 941,743 6 8300 Other comprehensive income, net (1,765,497) (18) 158,215 2 (1,514,531) (8) 863,695 6 8500 Total comprehensive income $ (1,952,926) (20) 276,812 3 (1,494,487) (8) 829,872 6 Earnings per share (note 6(l)) 9750 Basic earnings per share $ (0.29) 0.18 0.03 (0.05) 9850 Diluted earnings per share $ (0.29) 0.18 0.03 (0.05) See accompanying notes to consolidated financial statements.
Page 7
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 six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) Other equity interest Ordinary share Capital surplus Legal reserve Special reserve Unappropriated retained earnings Exchange differences on translation of foreign financial statements Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income Total Total equity Balance at January 1, 2024 $ 6,461,655 18,125,615 7,857,185 761,647 15,814,388 (1,056,659) (55,915) (1,112,574) 47,907,916 Loss for the six months ended June 30, 2024 - - - - (33,823) - - - (33,823) Other comprehensive income for the six months ended June 30, 2024 - - - - - 941,743 (78,048) 863,695 863,695 Total comprehensive income for the six months ended June 30, 2024 - - - - (33,823) 941,743 (78,048) 863,695 829,872 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) Balance at June 30, 2024 $ 6,461,655 18,125,615 8,473,910 1,112,574 11,259,003 (114,916) (133,963) (248,879) 45,183,878 Balance at January 1, 2025 $ 6,461,655 18,125,632 8,473,910 1,112,574 11,601,037 (95,298) (229,130) (324,428) 45,450,380 Profit for the six months ended June 30, 2025 - - - - 20,044 - - - 20,044 Other comprehensive income for the six months ended June 30, 2025 - - - - - (1,514,037) (494) (1,514,531) (1,514,531) Total comprehensive income for the six months ended June 30, 2025 - - - - 20,044 (1,514,037) (494) (1,514,531) (1,494,487) Appropriation and allocation of earnings: Legal reserve appropriated - - 30,821 - (30,821) - - - - Reversal of special reserve - - - (788,146) 788,146 - - - - Cash dividends of ordinary share - - - - (646,166) - - - (646,166) Balance at June 30, 2025 $ 6,461,655 18,125,632 8,504,731 324,428 11,732,240 (1,609,335) (229,624) (1,838,959) 43,309,727 See accompanying notes to consolidated financial statements.
Page 8
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 six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) For the six months ended June 30, 2025 2024 Cash flows from operating activities: Profit (loss) before tax $ 29,561 (61,790) Adjustments: Adjustments to reconcile profit: Depreciation expense 3,373,987 3,217,301 Interest expense 7,261 9,006 Interest income (99,012) (143,700) Share of loss (profit) of associates accounted for using equity method 2,871 (19,248) Loss (gain) on disposal of property, plant and equipment 6,154 (337) Reversal of impairment loss on non-financial assets - (75) Unrealized foreign exchange loss (gain) 209,066 (43,680) Total adjustments to reconcile profit 3,500,327 3,019,267 Changes in operating assets and liabilities: Changes in operating assets: (Increase) decrease in notes and accounts receivable (including related parties) (972,449) 330,332 (Increase) decrease in other receivables (including related parties) (10,721) 41,422 Increase in inventories (495,018) (26,305) Decrease in prepayments 101,951 18,332 Total changes in operating assets (1,376,237) 363,781 Changes in operating liabilities: Decrease in contract liabilities (1,109,072) (383,007) Increase (decrease) in accounts payable (including related parties) 226,524 (1,066,796) Decrease in other payables (including related parties) (703,714) (985,369) Increase in other current liabilities 24,778 48,993 Decrease in net defined benefit liabilities (212,745) (22,672) Total changes in operating liabilities (1,774,229) (2,408,851) Total changes in operating assets and liabilities (3,150,466) (2,045,070) Total adjustments 349,861 974,197 Cash inflow generated from operations 379,422 912,407 Interest received 100,822 136,598 Interest paid (7,261) (9,006) Income taxes paid (318,062) (872,256) Net cash flows from operating activities 154,921 167,743 Cash flows used in investing activities: Acquisition of property, plant and equipment (1,261,839) (1,326,722) Proceeds from disposal of property, plant and equipment 6,213 6,666 Decrease in other financial assets 604,246 277,922 (Increase) decrease in other non-current assets (2,357) 5,503 Net cash flows used in investing activities (653,737) (1,036,631) Cash flows used in financing activities: Increase in guarantee deposits received 1,876 104,565 Payment of lease liabilities (132,464) (130,902) Net cash flows used in financing activities (130,588) (26,337) Effect of exchange rate changes on cash and cash equivalents (717,297) 409,541 Net decrease in cash and cash equivalents (1,346,701) (485,684) Cash and cash equivalents at beginning of period 8,480,692 12,329,798 Cash and cash equivalents at end of period $ 7,133,991 11,844,114 See accompanying notes to consolidated financial statements.
Page 9
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 Six Months Ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified) (1) Company history Nan Ya Printed Circuit Board Corporation “t he 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” m ain 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 August 6, 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 Group h as initially adopted the f ollowing n ew amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025: ● Amendments to IAS21 “Lack of Exchangeability” ● Amendments to IFRS 9 and IFRS 7 “A mendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7 (b) The impact of IFRS Accounting Standards endorsed 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, 2026, would not have a significant impact on its consolidated financial statements: ● IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts” ● Amendments to IFRS 9 and IFRS 7 “A mendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7 ● Annual Improvements to IFRS Accounting Standards—Volume 11 ● Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (Continued)
Page 10
9 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (c) The impact of IFRS Accounting Standards 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 Interpretations Content of amendment Effective date per IASB IFRS 18 “Presentation and Disclosure in Financial Statements” The new standard introduces three categories of income and expenses, two income statement 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 ‘o perating 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. January 1, 2027 (Continued)
Page 11
10 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Standards or Interpretations Content of amendment Effective date per IASB IFRS 18 “Presentation and Disclosure in Financial Statements” ● 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. January 1, 2027 The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation. The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements: ● Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture” ● IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (4) Summary of material accounting policies (a) Statement of compliance The accompanying consolidated f inancial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as "the Regulations") and IAS 34 “Interim Financial Reporting” which was endorsed by the FSC. These consolidated interim financial statements do not include all disclosures required for full annual consolidated financial statements under International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations as endorsed by the FSC (hereinafter referred to as IFRS endorsed by the FSC). Except as described below, the significant accounting policies adopted in the accompanying consolidated financial statements are the same as those in the consolidated financial statements as of and for the year ended December 31, 2024. Please refer to note 4 of the consolidated financial statements as of and for the year ended December 31, 2024 relevant information. (Continued)
Page 12
11 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (b) Basis of consolidation (i) List of subsidiaries in the consolidated financial statements include: Percentage of ownership (%) Investor Name of subsidiary Business activity June 30, 2025 December 31, 2024 June 30, 2024 The Company NPUC Selling and other services %100 %100 %100 The Company NPHK Selling and investing in electronic products %100 %100 %100 NPHK NPKC Producing and selling PCB %100 %100 %100 (ii) Subsidiaries excluded from the consolidated financial statements: None. (c) Provision A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation in the future. Carbon fees levied in accordance with Taiwan's Climate Change Response Act and Regulations Governing the Collection of Carbon Fees are recognized when the annual greenhouse gas emissions are probably to exceed the threshold, and the amount is estimated based on the proportion of greenhouse gas emissions that have occurred as of the reporting date divided by the total annual greenhouse gas emissions. (d) Employee benefits The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. (e) Income taxes The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Accounting Standards 34 “ Interim Financial Reporting”. Income tax expenses for the period are best estimated by multiplying the pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the manegement,and allocated to current and deferred taxes based on its proportionate size. Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time the asset or liability is recovered or settled, and should be recognized directly in equity or other comprehensive income as tax expense. (Continued)
Page 13
12 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “I nterim Financial Reporting” e ndorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024. (6) Explanation of significant accounts Except as described below, the description of significant accounts in the accompanying consolidated financial statements is not materially different from those in the consolidated financial statements as of and for the year ended December 31, 2024. Please refer to note 6 of the consolidated financial statements as of and for the year ended December 31, 2024 for relevant information. (a) Cash and cash equivalents June 30, 2025 December 31, 2024 June 30, 2024 Cash on hand $ 11 - 3 Cash in banks 685,083 1,609,676 1,356,140 Time deposits 2,708,256 3,681,921 8,902,302 Cash equivalents 3,740,641 3,189,095 1,585,669 $ 7,133,991 8,480,692 11,844,114 As of December 31, 2024, the time deposits over three months of the Group amounted to $604,246, have been reclassified to prepayments and other current assets. As of June 30, 2025 and 2024, respectively, no such circumstances were present. Please refer to note 6(p) for the interest rate risk and sensitivity analysis of the consolidated financial assets and liabilities of the Group. (Continued)
Page 14
13 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (b) Notes and accounts receivables June 30, 2025 December 31, 2024 June 30, 2024 Notes receivable $ 12,472 24,071 4,348 Accounts receivable－non-related parties 7,721,300 6,940,566 6,564,422 Accounts receivable－related parties 50,850 54,613 46,944 Less: Loss allowance (23,004) (23,004) (23,004) $ 7,761,618 6,996,246 6,592,710 As of June 30, 2025, December 31 and June 30, 2024, the Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes receivable and accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information. June 30, 2025 Notes and Accounts receivables gross carrying amount Weighted average loss rate Loss allowance provision Current $ 7,668,154 0.293% 22,449 Past due within 3 months 115,120 0.482% 555 Past due 3 to 6 months 1,348 0% - $ 7,784,622 23,004 December 31, 2024 Notes and Accounts receivables gross carrying amount Weighted average loss rate Loss allowance provision Current $ 6,839,040 0.290% 19,853 Past due within 3 months 179,678 1.747% 3,139 Past due 3 to 6 months 532 2.256% 12 $ 7,019,250 23,004 (Continued)
Page 15
14 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements June 30, 2024 Notes and Accounts receivables gross carrying amount Weighted average loss rate Loss allowance provision Current $ 6,541,016 0.334% 21,879 Past due within 3 months 65,099 1.383% 900 Past due 3 to 6 months 9,595 2.345% 225 Past due 6 to 12 months 4 0.000% - $ 6,615,714 23,004 The movements in the allowance for notes and accounts receivable were as follows: For the six months ended June 30, 2025 2024 Balance at the end of the period (i.e. balance at the beginning of the period) $ 23,004 23,004 As of June 30, 2025, December 31 a nd June 30, 2024, the Group d id not provide any notes and accounts receivable as collateral for its loans. (c) Other receivables June 30, 2025 December 31, 2024 June 30, 2024 Other receivables－related parties $ 21,095 1,574 14,552 Tax refund receivable 98,438 93,882 579,901 Others 29,516 26,398 39,814 $ 149,049 121,854 634,267 For further credit risk information, please refers to note 6(p). (d) Inventories June 30, 2025 December 31, 2024 June 30, 2024 Finished goods $ 288,041 320,084 505,112 Work in process 2,794,631 2,338,946 2,131,168 Raw materials 1,073,433 970,028 811,370 Supplies 445,117 471,790 471,890 $ 4,601,222 4,100,848 3,919,540 (Continued)
Page 16
15 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements The details of costs of sales were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Inventory that has been sold $ 7,923,114 6,879,587 15,016,165 13,247,124 Write-down of inventories (Reversal of write- downs) (304) 2,193 (697) 2,256 Unapportioned manufacturing expenses 891,298 1,055,330 1,826,389 2,168,769 $ 8,814,108 7,937,110 16,841,857 15,418,149 For the six months ended June 30, 2025, net realizable value of inventories has increased due to the increase in market price, the reversal of write-downs amounted to $697. For the six months ended June 30, 2024, the write-down of inventories amounted to $2,256. As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any inventories as collateral for its loan. (e) Investments accounted for using the equity method The components of the investments accounted for using the equity method were as follows: June 30, 2025 December 31, 2024 June 30, 2024 Associates $ 439,071 459,726 481,130 The Group’s financial information on investments accounted for using the equity method that are individually insignificant was as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Attributable to the Group: Net (loss) income $ (7,693) 8,639 (2,871) 19,248 Other comprehensive income 502 (4,477) 1,453 (13,035) Total comprehensive income $ (7,191) 4,162 (1,418) 6,213 As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any investments accounted for using the equity method as collateral for its loans. (Continued)
Page 17
16 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (f) Property, plant and equipment The cost and accumulated depreciation and impairment of the property, plant and equipment of the Group were as follows: Building Machinery and equipment Vehicles Miscellaneous equipment Unfinished construction and equipment pending acceptance Total Cost: Balance as of January 1, 2025 $ 4,686,068 69,236,324 22,943 6,246,365 7,525,360 87,717,060 Additions - 142,790 882 15,650 1,102,517 1,261,839 Disposals - (657,437) (621) (20,003) - (678,061) Reclassification - 3,472,111 (524) 454,904 (3,926,491) - Effect of exchange rate changes (203,930) (2,660,747) (288) (19,748) (4,381) (2,889,094) Balance as of June 30, 2025 $ 4,482,138 69,533,041 22,392 6,677,168 4,697,005 85,411,744 Balance as of January 1, 2024 $ 4,509,673 66,306,779 23,337 6,121,650 8,312,379 85,273,818 Additions - 121,895 297 33,368 1,171,162 1,326,722 Disposals - (572,881) (849) (12,431) - (586,161) Reclassification 58,916 1,180,487 - 51,600 (1,291,003) - Effect of exchange rate changes 113,807 1,469,260 153 10,839 7,474 1,601,533 Balance as of June 30, 2024 $ 4,682,396 68,505,540 22,938 6,205,026 8,200,012 87,615,912 Accumulated depreciation and impairment: Balance as of January 1, 2025 $ 3,263,791 40,403,704 13,942 4,044,931 - 47,726,368 Depreciation for the period 68,608 3,021,925 992 148,045 - 3,239,570 Disposals - (645,358) (621) (19,715) - (665,694) Reclassification - (43) (524) 567 - - Effect of exchange rate changes (150,131) (1,542,585) (210) (17,042) - (1,709,968) Balance as of June 30, 2025 $ 3,182,268 41,237,643 13,579 4,156,786 - 48,590,276 Balance as of January 1, 2024 $ 3,012,110 35,363,801 12,622 3,778,651 - 42,167,184 Depreciation for the period 84,786 2,859,504 1,009 137,894 - 3,083,193 Reversal of impairment loss - (75) - - - (75) Disposals - (566,896) (849) (12,087) - (579,832) Reclassification - 220 - (220) - - Effect of exchange rate changes 77,882 751,670 120 8,687 - 838,359 Balance as of June 30, 2024 $ 3,174,778 38,408,224 12,902 3,912,925 - 45,508,829 Carrying amounts: Balance as of June 30, 2025 $ 1,299,870 28,295,398 8,813 2,520,382 4,697,005 36,821,468 Balance as of December 31, 2024 $ 1,422,277 28,832,620 9,001 2,201,434 7,525,360 39,990,692 Balance as of June 30, 2024 $ 1,507,618 30,097,316 10,036 2,292,101 8,200,012 42,107,083 For gains and losses on disposals, please refer to note 6(o). (Continued)
Page 18
17 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (g) Right-of-use assets The Group leases assets including land and buildings, as recognized right-of-use assets. Information about leases for which the Group as a lessee was presented below: Land Buildings Total Cost: Balance as of January 1, 2025 $ 429,889 2,178,168 2,608,057 Write off - (24,582) (24,582) Change in an index of lease payment 11,499 - 11,499 Effect of exchange rate changes (3,075) - (3,075) Balance as of June 30, 2025 $ 438,313 2,153,586 2,591,899 Balance as of January 1, 2024 $ 419,435 2,135,615 2,555,050 Additions - 9,284 9,284 Change in an index of lease payment 8,682 - 8,682 Effect of exchange rate changes 1,717 - 1,717 Balance as of June 30, 2024 $ 429,834 2,144,899 2,574,733 Accumulated depreciation: Balance as of January 1, 2025 $ 236,648 882,482 1,119,130 Depreciation for the period 38,277 96,140 134,417 Write off - (22,931) (22,931) Effect of exchange rate changes (613) - (613) Balance as of June 30, 2025 $ 274,312 955,691 1,230,003 Balance as of January 1, 2024 $ 163,316 684,542 847,858 Depreciation for the period 36,418 97,690 134,108 Effect of exchange rate changes 279 - 279 Balance as of June 30, 2024 $ 200,013 782,232 982,245 Carrying amount: Balance as of June 30, 2025 $ 164,001 1,197,895 1,361,896 Balance as of December 31, 2024 $ 193,241 1,295,686 1,488,927 Balance as of June 30, 2024 $ 229,821 1,362,667 1,592,488 (Continued)
Page 19
18 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (h) Lease liabilities The carrying amount of the lease liabilities was as follows: June 30, 2025 December 31, 2024 June 30, 2024 Current $ 264,935 263,160 258,004 Non-current $ 1,091,920 1,216,311 1,322,441 For the maturity analysis, please refer to note 6(p). The amounts recognized in profit or loss were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Interest on lease liabilities $ 3,512 4,108 7,190 8,351 Variable lease payment not included in the measurement of lease liabilities; expenses relating to short-term leases; expenses relating to leases of low-value assets $ 10,019 8,004 19,702 16,354 The amounts recognized in the statement of cash flows for the Group were as follows: For the six months ended June 30, 2025 2024 Total cash outflow for leases $ 159,356 155,607 (i) Real estate leases The Group leases land and buildings to be used for its office space and plants, which typically runs for a period of 2 to 10 years. (Continued)
Page 20
19 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Other leases The Group leases machinery and equipment with contract periods within a year. These leases are short-term leases or leases of low-value items. The Group has elected not to recognize its right-of-use assets and lease liabilities for these leases. (i) Employee benefits (i) Defined benefit plan Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023. The pension expenses recorded were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Operating costs $ 4,368 5,061 8,735 10,124 Selling expenses 154 208 309 410 Administrative expenses 698 828 1,396 1,659 $ 5,220 6,097 10,440 12,193 (ii) Defined contribution plan The pension costs contributed to the related authority were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Operating costs $ 116,121 111,565 236,558 217,465 Selling expenses 1,938 1,977 4,004 3,987 Administrative expenses 7,357 15,066 15,072 29,301 $ 125,416 128,608 255,634 250,753 (Continued)
Page 21
20 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (j) Income tax (i) The details of income tax (benefit) expense were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Current income tax expense (benefit) $ 3,229 23,229 30,594 (26,612) Deferred income tax (benefit) expense (42,380) 37,795 (21,077) (1,355) Total income tax (benefit) expense $ (39,151) 61,024 9,517 (27,967) The details of income tax (benefit) expense under other comprehensive income were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Components of other comprehensive income that will be reclassified to profit or loss: Exchange differences on translation of foreign financial statements $ (440,189) 49,212 (378,509) 235,436 (ii) The Company’ s tax returns for the year through 2022 were assessed by the ROC tax authorities. (iii) As of June 30, 2025, the Group is subject to the global minimum top-up tax under Pillar Two tax legislation. During the year 2025, the Group’s subsidiary operating in Hong Kong enacted and implemented income inclusion rules in accordance with Pillar Two requirements, with the domestic minimum top-up tax becoming effective on January 1 of the same year. Based on an analysis of Hong Kong’s tax regime and the applicable effective tax rates, the Group does not expect the top-up tax to have a material impact. The Group will continue to closely monitor and assess legislative developments in the jurisdictions where its subsidiaries operate. Any impact arising from the top-up tax will be recognized as current income tax expense, as appropriate. (Continued)
Page 22
21 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (k) Capital and other equity interest Except for those described below, there were no material changes in equity for the six months ended June 30, 2025 and 2024. Please refer to note 6(k) of the consolidated financial statements for the year ended December 31, 2024 for other relevant disclosures. (i) Capital surplus The components of capital surplus were as follows: June 30, 2025 December 31, 2024 June 30, 2024 Paid-in capital in excess of par value $ 17,874,841 17,874,841 17,874,841 Employee stock options 250,434 250,434 250,434 Others 357 357 340 $ 18,125,632 18,125,632 18,125,615 (ii) Retained earnings According to the rules of the Company’ s articles, the Company’ s annual net earnings, after providing for income tax and covering the losses of previous years, is first set aside for legal reserve at the rate of 10% thereof. In addition, a special reserve in accordance with applicable laws and regulations shall also be set aside. The remainder plus the undistributed earnings of the previous years are distributed or left undistributed the board of directors prepares a shareholder dividend distribution plan, in which the cash dividend distribution plan authorizes the board of directors to distribute with more than two-thirds of the directors present and a resolution of more than half of the directors present, and report to the shareholders' meeting; the stock dividend distribution plan is submitted to the shareholders' meeting for resolution on distribution. The Company adopts three kinds of dividend distribution policies, which are cash dividends, capitalization of earnings, and capital surplus. The net earnings after deducting the legal reserve and special reserve may first be distributed by way of cash dividends which shall be equal to at least fifty percent of the Company’s total dividend distribution every year. The capitalization of earnings and capital surplus shall not exceed fifty percent of the total dividends. (Continued)
Page 23
22 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Earnings distribution The 2024 and 2023 earnings distribution had been approved during the board meetings held on February 27, 2025 and February 29, 2024, respectively, as follows: 2024 2023 Dividends per share (NTD) Amount Dividends per share (NTD) Amount Dividends distributed to common shareholders: Cash $ 1.00 646,166 5.50 3,553,910 (iii) Other equity interest (net of tax) Exchange differences on translation of foreign financial statements Unrealized gains (losses) on financial assets at fair value through other comprehensive income Total Balances as of January 1, 2025 $ (95,298) (229,130) (324,428) Exchange differences on translation of foreign operations (1,514,037) - (1,514,037) Unrealized gains (losses) on financial assets at fair value through other comprehensive income - (1,947) (1,947) Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates accounted for using equity method - 1,453 1,453 Balances as of June 30, 2025 $ (1,609,335) (229,624) (1,838,959) Balances as of January 1, 2024 $ (1,056,659) (55,915) (1,112,574) Exchange differences on translation of foreign operations 941,743 - 941,743 Unrealized gains (losses) on financial assets at fair value through other comprehensive income - (65,013) (65,013) Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates accounted for using equity method - (13,035) (13,035) Balances as of June 30, 2024 $ (114,916) (133,963) (248,879) (Continued)
Page 24
23 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (l) Earnings per share Calculation of earnings per share for the six months ended June 30, 2025 and 2024 was as follows: (i) Basic earnings per share 1) Net (loss) profit attributable to equity shareholders of the Company For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Net (loss) profit attributable to equity shareholders of the Company $ (187,429) 118,597 20,044 (33,823) 2) Weighted average number of ordinary shares outstanding For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Weighted average number of ordinary shares outstanding (in thousands of shares) 646,166 646,166 646,166 646,166 (ii) Diluted earnings per share 1) Net (loss) profit attributable to equity shareholders of the Company (diluted) For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Net (loss) profit attributable to equity shareholders of the Company (diluted) $ (187,429) 118,597 20,044 (33,823) (Continued)
Page 25
24 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements 2) Weighted average number of ordinary shares outstanding (diluted) For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Weighted average number of ordinary shares outstanding (basic) (in thousands of shares) 646,166 646,166 646,166 646,166 Effects of dilutive potential ordinary shares Effects of employee stock compensation (in thousands of shares) - - 1 - Weighted average number of ordinary shares outstanding (diluted) (in thousands of shares) 646,166 646,166 646,167 646,166 (m) Revenue from contracts with customers (i) Disaggregation of revenue For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Primary geographical markets: Taiwan $ 3,396,059 2,689,402 6,516,065 4,970,888 USA 535,271 564,425 1,052,895 1,372,493 Mainland China 3,458,880 3,758,553 6,911,194 6,560,308 Korea 531,700 283,913 1,021,681 595,075 Other countries 1,661,009 824,313 2,539,116 1,722,414 $ 9,582,919 8,120,606 18,040,951 15,221,178 (Continued)
Page 26
25 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Major products: Printed circuit board $ 9,335,875 7,867,043 17,579,737 14,807,612 Others 247,044 253,563 461,214 413,566 $ 9,582,919 8,120,606 18,040,951 15,221,178 (ii) Contract balances June 30, 2025 December 31, 2024 June 30, 2024 Notes receivable $ 12,472 24,071 4,348 Accounts receivable－non-related parties 7,721,300 6,940,566 6,564,422 Accounts receivable－related parties 50,850 54,613 46,944 Less: Loss allowance (23,004) (23,004) (23,004) $ 7,761,618 6,996,246 6,592,710 June 30, 2025 December 31, 2024 June 30, 2024 Contract liabilities－unearned sales $ 6,624,274 7,733,346 8,842,418 June 30, 2025 December 31, 2024 June 30, 2024 Current $ 2,218,144 2,218,144 2,218,144 Non-current 4,406,130 5,515,202 6,624,274 $ 6,624,274 7,733,346 8,842,418 For details on notes and accounts receivable and allowance for impairment, please refer to note 6(b). The contract liabilities primarily relate to the advance consideration received from customers, for which revenue will be recognized when products are delivered to customers. The amount of revenue recognized for the six months ended June 30, 2025 and 2024 that were included in the contract liability balance at the beginning of the period were $1,109,072 and $939,243, respectively. (Continued)
Page 27
26 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (n) Employee compensation On May 27, 2025, the Company resolved at the shareholders’ m eeting to amend its Articles of Incorporation. According to the amended Articles of Incorporation, if there is profit for the year, 0.05% to 0.5% of the profit before deducting employee compensation for the year should be set aside as employee compensation; among which, 0.03% to 0.3% of the profit before deducting employee compensation for the year should be set aside for salary adjustments or employee compensation for entry-level employees. When the Company incurs an accumulated deficit, the Company should reserve in advance to cover the accumulated deficit. Prior to the amendment, the Articles of Incorporation stipulated that if there is a profit for the year, the Company should set aside 0.05% to 0.5% of the pre-tax earnings before deducting the employees' remuneration for the year as employee compensation. However, if there are accumulated deficits, the Company should reserve an amount to cover such deficits. The (reserved) estimated remunerations to employees amounted to $(455), $0, $58 and $0 for the three months and six months ended June 30, 2025 and 2024, respectively. These amounts were estimated using the Company's net income before tax before the remunerations to employees for each period, deducting the accumulated losses and then multiplying the remaining amount by the proposed percentage which is stated under the Company's Article of Incorporation. These remunerations were expensed under operating costs or expenses for the period. Related information would be available on the Market Observation Post System website. For the years ended December 31, 2024 and 2023, the remunerations to employees amount to $323 and $14,385, respectively, which were paid in cash. There was no difference from the actual distribution. Related information can be accessed from the Market Observation Post System website. (o) Non-operating income and expenses (i) Interest income The details of interest income were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Interest income from bank deposits $ 37,301 62,952 72,963 124,962 Other interest income 13,271 8,088 26,049 18,738 $ 50,572 71,040 99,012 143,700 (Continued)
Page 28
27 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Other income The details of other income were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Rental income $ 10,429 9,257 19,756 21,688 Government grants 271 94,569 660 208,203 Others 59,982 77,799 105,772 141,901 $ 70,682 181,625 126,188 371,792 (iii) Other gains and losses The details of other gains and losses were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 (Losses) gains on disposal of property, plant and equipment $ (2,785) 815 (6,154) 337 Net foreign exchange (losses) gains (698,538) 129,966 (574,366) 414,529 Reversal of impairment loss on property, plant and equipment - - - 75 Others (1,385) (1,039) (4,157) (1,487) $ (702,708) 129,742 (584,677) 413,454 (iv) Finance costs The details of finance costs were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Interest expense $ 3,512 4,454 7,261 9,006 (Continued)
Page 29
28 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (p) Financial instruments Except for the contention mentioned below, there was no significant change with regard to the fair value and exposure risks of credit risk, liquidity risk and market risk on financial instruments. Please refer to note 6(p) of the consolidated financial statements for the year ended December 31, 2024 for the related information. (i) Liquidity risk The following table shows the remaining contractual maturities of financial liabilities, including estimated interest payments : Carrying amount Contractual cash flow Within 6 months 6-12 months 1-2 years 2-5 years Over 5 years June 30, 2025 Non-derivative financial liabilities Accounts payable (including related parties) $ 1,744,040 1,744,040 1,744,040 - - - - Dividends payable 646,166 646,166 646,166 - - - - Other payables (including related parties) 1,491,444 1,491,444 1,491,444 - - - - Lease liabilities (including current portion) 1,356,855 1,398,808 139,169 138,051 219,391 601,465 300,732 $ 5,238,505 5,280,458 4,020,819 138,051 219,391 601,465 300,732 December 31, 2024 Non-derivative financial liabilities Accounts payable (including related parties) $ 1,517,545 1,517,545 1,517,545 - - - - Other payables (including related parties) 2,195,158 2,195,158 2,195,158 - - - - Lease liabilities (including current portion) 1,479,471 1,528,339 139,612 137,136 253,910 598,609 399,072 $ 5,192,174 5,241,042 3,852,315 137,136 253,910 598,609 399,072 June 30, 2024 Non-derivative financial liabilities Accounts payable (including related parties) $ 1,995,222 1,995,222 1,995,222 - - - - Dividends payable 3,553,910 3,553,910 3,553,910 - - - - Other payables (including related parties) 1,796,975 1,796,975 1,796,975 - - - - Lease liabilities (including current portion) 1,580,445 1,636,086 137,596 135,119 269,120 605,084 489,167 $ 8,926,552 8,982,193 7,483,703 135,119 269,120 605,084 489,167 It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. (Continued)
Page 30
29 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Currency risk 1) Exposure to foreign currency risk The Group’s significant exposure to foreign currency risk was as follows: June 30, 2025 Foreign currency Exchange rate New Taiwan Dollars Financial assets Monetary items USD $ 248,514 29.9020 7,431,052 EUR 499 34.0964 17,025 JPY 35,463 0.2011 7,132 CNY 3 4.1770 12 Financial liabilities Monetary items USD 6,148 29.9020 183,847 JPY 660,612 0.2011 132,849 December 31, 2024 Foreign currency Exchange rate New Taiwan Dollars Financial assets Monetary items USD $ 305,817 32.7810 10,024,975 EUR 629 34.0652 21,426 JPY 40,051 0.2087 8,359 CNY 550 4.5602 2,508 Financial liabilities Monetary items USD 7,073 32.7810 231,847 EUR 18 34.0652 613 JPY 733,361 0.2087 153,052 (Continued)
Page 31
30 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements June 30, 2024 Foreign currency Exchange rate New Taiwan Dollars Financial assets Monetary items USD $ 252,376 32.4500 8,189,585 EUR 682 34.8339 23,773 JPY 7,071 0.2025 1,432 CNY 165 4.5532 749 Financial liabilities Monetary items USD 11,096 32.4500 360,054 EUR 25 34.8339 885 JPY 331,304 0.2025 67,089 CNY 50 4.5532 228 2) Sensitivity analysis The Group’s exposure to foreign currency risk arises from the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable and other receivables, loans, accounts payable and other payables which are denominated in foreign currencies. A 1% depreciation or appreciation of the NTD against the USD, EUR, JPY and CNY as of June 30, 2025 and 2024 would have increased or decreased the net income before tax by $71,385 and $77,873 for the six months ended June 30, 2025 and 2024, respectively. The analysis is performed on the same basis for both periods. 3) Foreign exchange gain and loss on monetary items Due to the variety of functional currencies, the Group disclosed its aggregated foreign exchange gains (losses); the Group’s f oreign exchange gains, including realized and unrealized, for the six months ended June 30, 2025 and 2024 w ere the net exchange (losses) gains of $(574,366) and $414,529, respectively. (iii) Interest rate analysis The Group’s exposure to interest rate risk arising from financial assets and liabilities is described in the liquidity risk section of this note. (Continued)
Page 32
31 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements The sensitivity analysis is based on the risk exposure to interest rates of the derivative and non-derivative financial instruments on the reporting date. For floating rate instruments, the sensitivity analysis assumes the liabilities bearing variable interest rates are outstanding for the whole year. A 1% increase or decrease in interest rate, as assessed by the management, with all the other factors remaining constant, for the six months ended June 30, 2025 and 2024, will have no significant impact on the Group’s profit. (iv) Fair value of information 1) Fair value of financial instruments The carrying amount of the Group’s financial assets and liabilities is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required: June 30, 2025 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets at fair value through other comprehensive income Domestic listed stocks $ 104,411 104,411 - - 104,411 Financial assets measured by amortized cost Cash and cash equivalents 7,133,991 - - - - Notes and accounts receivable, net (including related parties) 7,761,618 - - - - Other receivables (including related parties) 50,611 - - - - Total $ 15,050,631 104,411 - - 104,411 Financial liabilities measured by amortized cost Accounts payable (including related parties) $ 1,744,040 - - - - Dividends payable 646,166 - - - - Other payables (including related parties) 1,491,444 - - - - Lease liabilities (including current portion) 1,356,855 - - - - Total $ 5,238,505 - - - - (Continued)
Page 33
32 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2024 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets at fair value through other comprehensive income Domestic listed stocks $ 106,358 106,358 - - 106,358 Financial assets measured by amortized cost Cash and cash equivalents 8,480,692 - - - - Notes and accounts receivable, net (including related parties) 6,996,246 - - - - Other receivables (including related parties) 27,972 - - - - Other financial assets (recognized as other current assests) 604,246 - - - - Total $ 16,215,514 106,358 - - 106,358 Financial liabilities measured by amortized cost Accounts payable (including related parties) $ 1,517,545 - - - - Other payables (including related parties) 2,195,158 - - - - Lease liabilities (including current portion) 1,479,471 - - - - Total $ 5,192,174 - - - - June 30, 2024 Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial assets at fair value through other comprehensive income Domestic listed stocks $ 172,270 172,270 - - 172,270 Financial assets measured by amortized cost Cash and cash equivalents 11,844,114 - - - - Notes and accounts receivable, net (including related parties) 6,592,710 - - - - Other receivables (including related parties) 54,366 - - - - Total $ 18,663,460 172,270 - - 172,270 Financial liabilities measured by amortized cost Accounts payable (including related parties) $ 1,995,222 - - - - Other payables (including related parties) 1,796,975 - - - - Dividends payable 3,553,910 - - - - Lease liabilities (including current portion) 1,580,445 - - - - Total $ 8,926,552 - - - - (Continued)
Page 34
33 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (q) Financial risk management There were no significant changes in the Group's financial risk management objective and policy since December 31, 2024. Please refer to the detailed disclosure on financial risk management in note 6(q) of the consolidated financial statements for the year ended December 31, 2024. (r) Capital management The objectives, policies and processes of capital management of the Group has been applied consistently with those d escribed i n t he consolidated financial statements for the year ended December 31, 2024. Please refer to note 6(r) of the consolidated financial statements as of and for the year ended December 31, 2024, for the detailed disclosure on capital manangement. (s) Investing and financing activities not affecting current cash flow The Group’s investing and financing activities which did not affect the current cash flow for the six months ended June 30, 2025 and 2024 were as follows: (i) For right-of-use assets under leases, please refer to note 6(g). (ii) Reconciliation of liabilities arising from financing activities were as follows: Non-cash changes January 1, 2025 Cash flows Foreign exchange movement Acquisition Changes in lease payments June 30, 2025 Lease liabilities (including current portion) $ 1,479,471 (132,464) - 11,499 (1,651) 1,356,855 Non-cash changes January 1, 2024 Cash flows Foreign exchange movement Acquisition Changes in lease payments June 30, 2024 Lease liabilities (including current portion) $ 1,693,381 (130,902) - 17,966 - 1,580,445 (7) Related-party transactions (a) Parent company and ultimate controlling party Nan Ya Plastics Corporation is both the parent company and the ultimate controlling party of the Group. It owns 66.97% of all shares outstanding of the Company, and has issued the consolidated financial statements available for public use. (Continued)
Page 35
34 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (b) Names and relationship with related parties The followings are entities that have had transactions with the Group during the periods covered in the consolidated financial statements. Name of related party Relationship with the Group Nan Ya Plastics Corporation (NYPC) The parent company Formosa Advanced Technologies Co., Ltd. (FATC) The Group’s associates Nan Ya Electronic Materials (Kunshan) Co., Ltd. (NEMK) The Group’s parent company is the ultimate controlling parent of the company Nan Ya Electric (Nantong) Co., Ltd. (NENC) The Group’s parent company is the ultimate controlling parent of the company Formosa Plastics Corporation (FPC) The Group’s parent company is the company’s board of director Formosa Biomedical Technology Corporation The Group’s parent company is a board of director of the company Wellink Technology Co., Ltd. (WTC) The Group’s parent company is the ultimate controlling parent of the company (c) Significant related-party transactions (i) Operating revenues Significant sales to related parties were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Associates $ 117,072 151,375 282,285 355,149 Other related parties 288 111 499 237 $ 117,360 151,486 282,784 355,386 The sales price from related parties is not significantly different from non-related general parties. The normal credit term with the companies above is collection on open account 70 days. There is no collateral received among related parties accounts receivable and there is no need to estimate loss allowance. (Continued)
Page 36
35 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Receivables from related parties The balances of accounts receivable from related parties were as follows: Account Relationship June 30, 2025 December 31, 2024 June 30, 2024 Accounts receivable due from related parties Associates $ 50,737 54,568 46,875 Accounts receivable due from related parties Other related parties 113 45 69 $ 50,850 54,613 46,944 (iii) Purchases from related parties Significant purchases from related parties were as follows: For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 The parent company $ 433,105 422,923 852,027 773,453 Other related parties NEMK 222,347 199,647 364,157 351,066 WTC 33,472 52,395 67,164 86,009 Others 35,571 24,249 74,600 47,016 $ 724,495 699,214 1,357,948 1,257,544 The purchase price from related parties is not significantly different from non-related general parties. The normal credit term with the related parties above is collected on open account 30 days, on open account 60 days, on open account 90 days and on the day following the day of approving payment, respectively. (Continued)
Page 37
36 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (iv) Payables to related parties The details of accounts payable to related parties were as follows: Account Relationship June 30, 2025 December 31, 2024 June 30, 2024 Accounts payable to related parties The parent company $ 141,456 145,372 158,163 Accounts payable to related parties Other related parties NEMK 82,257 47,428 82,398 Accounts payable to related parties WTC 15,120 20,289 34,259 Accounts payable to related parties Others 10,733 8,668 7,713 $ 249,566 221,757 282,533 (v) Property transaction The Group purchased fixed assets from the parent company with the acquisition price of $111,160 for the six months ended June 30, 2025. As of June 30, 2025, the Group still had unpaid payables accounted for as other payables to related parties amounting to $22,232. (vi) Dividends Other receivables due from related parties June 30, 2025 December 31, 2024 June 30, 2024 Associates－FATC $ 19,237 - 11,940 (vii) Lease of property, plant and equipment 1) The lease revenue of the Group f rom leasing its property, plant and equipment to its related parties, accounted for as other income, were as follows: Lease revenue For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 The parent company $ 3,173 3,109 6,346 6,218 (Continued)
Page 38
37 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements The rentals charged to related parties are determined based on the local market prices and monthly rentals, depending on the contract. As of June 30, 2025, December 31 and June 30, 2024, all rentals have been collected by the Group. 2) The rental expenses of the Group's property, plant and equipment leased from its related parties were as follows: The Group entered into different lease agreements with its parent company for its Taipei office, as well as its factories and employee dormitories, both located at Luchu Dist., Taoyuan City and Shulin Dist., New Taipei City, with monthly rental fees based on the local market prices within their respective vicinities. For the three months and six months ended June 30, 2025 and 2024, the above rentals amounting to $8,998, $7,769, $17,622 and $15,863, respectively, were recognized as expenses. For the three months and six months ended June 30, 2025 and 2024, the amount of $3,506, $4,086, $7,175 and $8,298 was recognized as interest expense. As of June 30, 2025, December 31 and June 30, 2024 the balance of lease liabilities amounting to $1,355,742, $1,474,778 a nd $1,574,659 respectively. The Group added a right-of-use asset amounting to $0 a nd $9,284, for the six months ended June 30, 2025 and 2024, respectively. (viii) Others The Group bought utilities such as steam, water and electricity from other related parties-Nan Ya Electronic Materials (Kunshan) Co., Ltd. a mounting to$65,182, $79,199, $172,226 a nd $182,492, for the three months and six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, December 31 a nd June 30, 2024, the Group s till had unpaid payables accounted for as other payables to related parties amounting to $22,326, $40,306 and $64,935, respectively. For the three months and six months ended June 30, 2025 and 2024, the Group provides sewage treatment service to Nan Ya Electronic Materials (Kunshan) Co., Ltd. and receives $5,576, $5,830, $10,181 a nd $11,473, respectively. As of June 30, 2025, December 31 a nd June 30, 2024, the Group still had uncollected receivables accounted for as other receivables due from related parties amounting to $1,858, $1,574 and $2,612, respectively. (d) Key management personnel compensation Key management personnel compensation comprised For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 Short-term employee benefits $ 6,573 7,180 12,979 14,625 (Continued)
Page 39
38 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (8) Pledged assets: None (9) Commitments and contingencies (a) The outstanding letters of credit for the importation of raw materials by the Group were as follows: June 30, 2025 December 31, 2024 June 30, 2024 Outstanding letters of credit for the importation of raw materials $ - 92,037 3,390 (b) The endorsements by the bank were as follows: June 30, 2025 December 31, 2024 June 30, 2024 The guarantee for customs $ 26,000 26,000 22,000 The guarantee for letters of credit $ 39,500 39,500 48,000 (10) Losses Due to Major Disasters: None (11) Subsequent Events: None (12) Other (a) A summary of current-period employee benefits, and depreciation by function, was as follows: For the three months ended June 30, 2025 For the three months ended June 30, 2024 Operating costs Operating expenses Total Operating costs Operating expenses Total Employee benefits Salaries 1,735,618 176,498 1,912,116 1,613,208 162,441 1,775,649 Labor and health insurance 147,820 14,367 162,187 145,913 18,865 164,778 Pension expenses 120,489 10,147 130,636 116,626 18,079 134,705 Remuneration of directors - 1,600 1,600 - 1,610 1,610 Other personnel expenses 54,623 4,416 59,039 55,646 6,807 62,453 Depreciation expenses 1,685,249 6,492 1,691,741 1,613,411 6,963 1,620,374 (Continued)
Page 40
39 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements For the six months ended June 30, 2025 For the six months ended June 30, 2024 Operating costs Operating expenses Total Operating costs Operating expenses Total Employee benefits Salaries 3,333,552 356,903 3,690,455 3,164,700 335,782 3,500,482 Labor and health insurance 298,200 29,225 327,425 291,229 37,457 328,686 Pension expenses 245,293 20,781 266,074 227,589 35,357 262,946 Remuneration of directors - 3,100 3,100 - 3,110 3,110 Other personnel expenses 110,131 9,018 119,149 109,717 13,463 123,180 Depreciation expenses 3,360,840 13,147 3,373,987 3,204,200 13,101 3,217,301 (b) The seasonality of operation The operation of the Group is not influenced by seasonality and periodicity. (Continued)
Page 41
40 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (13) Other disclosures (a) Information on significant transactions The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group: (i) Loans to other parties:None (ii) Guarantees and endorsements for other parties: None (iii) Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included) : None (iv) Related-party transactions for purchases and sales with amounts exceeding the lower of $100 million or 20% of the capital stock: (in thousands of New Taiwan Dollars) Transaction details Transactions with terms different from others Notes/Accounts receivable (payable) Name of company Related party Nature of relationship Purchase/ (Sale) Amount Percentage of total purchases/(sales) Payment terms Unit price Payment terms Ending balance Percentage of total notes/accounts receivable (payable) Note The Company NYPC Parent company Purchase 838,757 %14.47 O/A 30 days - - (136,053) (10.57)% - The Company NPKC Subsidiary of the Company Purchase 2,076,277 %35.82 O/A 30 days - - (322,174) (25.03)% Note The Company FATC Associates (sale) (146,664) %(1.09) O/A 70 days - - 18,116 0.33% - NPKC The Company Parent company (sale) (2,076,277) %(30.94) O/A 30 days - - 322,174 12.73% Note NPKC FATC Associates (sale) (135,621) %(2.02) O/A 70 days - - 32,621 1.29% - NPKC NEMK Same chairman Purchase 364,157 %9.14 O/A 60 days - - (82,257) (10.55)% - Note: The transactions listed in the left have been written off during the preparation of the consolidated financial statements. (v) Receivables from related parties with amounts exceeding the lower of $100 million or 20% of the capital stock: (in thousands of New Taiwan Dollars) Name of Nature of Turnover Overdue Amounts received in Loss company Counter-party relationship Ending balance rate Amount Action taken subsequent period Allowance NPKC The Company (Note) Parent company 322,174 12.14 - 322,174 - Note : The above transactions listed have been written off during the preparation of the consolidated financial statements. (vi) Business relationships and significant intercompany transactions: (in thousands of New Taiwan Dollars) Nature of Intercompany transactions No. Name of company Name of counter-party relationship Account name Amount Trading terms Percentage of the consolidated net revenue or total assets 1 NPKC The Company 2 Sales 2,076,277 O/A 30 days 11.51% 1 NPKC The Company 2 Accounts receivable due from related parties 322,174 O/A 30 days 0.54% Note 1: Numbers are filled in as follows 1. 0 represents the parent company 2. Subsidiaries are numbered from 1 Note 2: Classifications of relation with counterparty are listed as follows: 1. Parent to subsidiary 2. Subsidiary to parent 3. Between subsidiaries Note 3: Only data related to sales and accounts receivable of all the intercompany transactions and business contact are disclosed. The related purchase and accounts payable are not stated. Note 4:The transactions listed above have been written off during the preparation of the consolidated financial statements. (Continued)
Page 42
41 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (b) Information on investees The following is the information on investees for the six months ended June 30, 2025 (excluding information on investees in Mainland China): (in thousands of shares and New Taiwan Dollars) Main Original investment amount Balance as of June 30, 2025 Net income Share of Name of investor Name of investee Location businesses and products June 30, 2025 December 31, 2024 Shares (in thousands) Percentage of ownership Carrying amount (losses) of investee profits/(losses) of investee Note The Company NPHK HK Business of electronic products 8,595,674 8,595,674 2,152,020 %100.00 20,379,444 (515,245) (515,245) Note1 The Company NPUC USA Customer sales promotion 3,479 3,479 1,000 %100.00 21,318 993 993 Note1 The Company FATC TW Assembling testing and producing modules for IC 472,968 472,968 13,267 %3.00 439,071 (69,874) (2,871) Note2 Note1: The transactions listed in the left have been written off during the preparation of the consolidated financial statements. Note2: Investee company accounted for using equity method. (c) Information on investment in mainland China (i) The names of investees in Mainland China, the main businesses and products, and other information: (in thousands of New Taiwan Dollars) Main Total Accumulated outflow of Investment flows Accumulated outflow of Net Accumulated Name of investee businesses and products amount of paid-in capital Method of investment investment from Taiwan as of January 1, 2025 Outflow Inflow investment from Taiwan as of June 30, 2025 income (losses) of the investee Percentage of ownership Investment income (losses) Carrying amount remittance of earnings in current period NPKC Production and marketing of PCBs 8,592,495 (Note 1) 8,592,495 - - 8,592,495 (515,637) 100.00% (515,637) (Note 2) 20,364,527 1,948,560 Note 1: NPKC in Mainland China is invested through a company established in a third region. Note 2: Investment income or loss is recognized according to the financial statements reviewed by the CPA of the Taiwanese parent company. Note3: The transaction listed above has been written off during the preparation of the consolidated financial statements. (ii) Limitation on investment in Mainland China: (in thousands of New Taiwan Dollars) Accumulated Investment in Mainland China as of June 30, 2025 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment (Note) 8,592,495 8,592,495 - Note: The Industrial Development Bureau of the MOEA issued a letter to the Company stating that it qualifies under Section 12 of the Statute for Upgrading Industries. (iii) Significant transactions: Please refer to “Information on significant transactions” for direct or indirect significant transactions (written off during the preparation of the consolidated financial statements), between the Company and its investees in Mainland China for the six months ended June 30, 2025. (Continued)
Page 43
42 NAN YA PRINTED CIRCUIT BOARD CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (14) Segment information: The information and reconciliation of operating segments of the Group are as follows: For the three months ended June 30, 2025 Domestic American Asian Adjustments and elimination Total Revenue: From external clients $ 6,991,632 - 2,591,287 - 9,582,919 Intersegments 2,768 8,329 1,029,952 (1,041,049) - Total revenue $ 6,994,400 8,329 3,621,239 (1,041,049) 9,582,919 Income/Loss of reportable segments $ (226,915) 1,143 (130,877) 130,069 (226,580) For the three months ended June 30, 2024 Domestic American Asian Adjustments and elimination Total Revenue: From external clients $ 5,206,102 - 2,914,504 - 8,120,606 Intersegments 978 9,209 1,082,322 (1,092,509) - Total revenue $ 5,207,080 9,209 3,996,826 (1,092,509) 8,120,606 Income/Loss of reportable segments $ 147,467 889 51,461 (20,196) 179,621 For the six months ended June 30, 2025 Domestic American Asian Adjustments and elimination Total Revenue: From external clients $ 13,407,490 - 4,633,461 - 18,040,951 Intersegments 3,892 16,064 2,076,277 (2,096,233) - Total revenue $ 13,411,382 16,064 6,709,738 (2,096,233) 18,040,951 Income/Loss of reportable segments $ 29,129 1,425 (515,245) 514,252 29,561 For the six months ended June 30, 2024 Domestic American Asian Adjustments and elimination Total Revenue: From external clients $ 10,224,000 - 4,997,178 - 15,221,178 Intersegments 1,229 15,886 1,981,913 (1,999,028) - Total revenue $ 10,225,229 15,886 6,979,091 (1,999,028) 15,221,178 Income/Loss of reportable segments $ (43,058) 1,414 (124,343) 104,197 (61,790) Domestic American Asian Adjustments and elimination Total Assets of reportable segments June 30, 2025 $ 58,128,883 21,353 21,792,613 (20,803,767) 59,139,082 December 31, 2024 $ 61,871,968 22,349 24,295,119 (23,251,025) 62,938,411 June 30, 2024 $ 66,228,591 21,670 27,052,358 (25,332,137) 67,970,482 Liabilities of reportable segments June 30, 2025 $ 14,819,156 35 1,351,955 (341,791) 15,829,355 December 31, 2024 $ 16,421,588 - 1,448,692 (382,249) 17,488,031 June 30, 2024 $ 21,044,713 66 2,092,059 (350,234) 22,786,604