Nan Ya Plastics Reports Record-Breaking Q2 2026 Earnings, EPS Hits All-Time High

Release Date: July 10, 2027 Statement Date: July 9, 2027 Statement Time: 13:30:41 Company Code: 1303 Company Name: Nan Ya Plastics Corporation Subject: Announcement of the Company's Consolidated Financial Results for Q2 2026 Relevant Clause: Item 51 Factual Date: July 9, 2027

Details: 1. Factual Date: July 9, 2027 2. Company Name: Nan Ya Plastics Corporation 3. Relationship with Company (Please enter 'Company' or 'Subsidiary'): Company 4. Cross-shareholding Ratio: Not applicable 5. Reason for Occurrence: Announcement of the Company's Consolidated Financial Results for Q2 2026 6. Response Measures: None 7. Other Matters to be Disclosed (If the subject of the event or resolution is a publicly issued company or above, this major information also meets the provisions of Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act regarding matters having significant impact on shareholders' equity or securities prices):

I. Comparison of Q2 2026 Consolidated Earnings with Q1 2026: Nan Ya Plastics reached an operational peak in Q2 2026, achieving a record-high quarterly EPS of NT$3.37 and a first-half EPS of NT$5.17. The global AI wave has prompted cloud providers to invest heavily in building hyperscale data centers, causing a surge in demand for high-end materials across the supply chain. In the PCB sector, a comprehensive shortage has emerged across the entire series of materials—including fiberglass cloth (yarn), copper foil, copper-clad laminates (CCL), and ABF substrates—unprecedented in both upstream and downstream segments. This has not only spurred industry-wide investment in high-end material development but also triggered a resource crowding-out effect, spreading shortages and price hikes to mid-tier and basic materials.

Nan Ya has actively advanced the development and certification of high-end materials with significant results. Leveraging its leading production capacity, the company has successfully balanced in-house use and external sales while simultaneously advancing profitability across high-end, mid-tier, and basic products. Through continuous technical integration of advanced resins, specialty fiberglass, and high-end copper foil, Nan Ya has optimized the formulations of products like copper-clad laminates, fully capitalizing on its vertical integration advantage to drive substantial profit growth in electronic materials.

Additionally, chemical products benefited from inventory gains amid geopolitical conflicts and strong EG production and sales performance in the U.S., while polyester products saw improved market conditions and growth in electronic film applications, turning operating profit positive in Q2. Plastic processing products also contributed stable profit growth.

On the investment front, Nanya Technology benefited from an expanded memory supply-demand gap, leading to rapid profit growth, while Formosa Plastics Corporation also saw slightly higher earnings compared to the previous quarter. As a result, Nan Ya achieved robust results in both core operations and non-operating income, with profits not only significantly surpassing the previous quarter (up 87.7%) but also reaching an all-time high. Details are as follows:

(1) Consolidated revenue reached NT$83.65 billion, an increase of NT$15.05 billion (volume difference +NT$5.22 billion, price difference +NT$9.83 billion) or 21.9% compared to Q1 2026. The significant revenue growth in electronic materials was primarily driven by the accelerated development of AI and related industries, which boosted both sales volume and prices. Additionally, rising product quotations due to Middle East tensions, peak season demand for bottle-grade pellets, increased local procurement in the U.S. market, and higher orders for electronic polyester films and plastic construction products contributed to revenue growth in chemical, polyester, and plastic processing segments compared to Q1.

(2) Pre-tax profit reached NT$30.76 billion, an increase of NT$14.68 billion compared to Q1 2026: 1. Operating profit was NT$11.42 billion, an increase of NT$7.68 billion compared to Q1 2026: Electronic materials actively developed materials for AI servers, high-performance computing, and high-end networking, while increasing production utilization and raising product prices, leading to substantial profit growth. Chemical products, amid transportation disruptions caused by the Middle East conflict, raised product prices according to market trends, enjoyed inventory gains, and ensured full-capacity operation of the U.S. EG production line, turning overall operations from loss to profit. Polyester products, driven by the development of electronic films, peak season demand for bottle-grade pellets, and increased U.S. orders, also turned profitable. Plastic processing products made stable contributions, with operating net profit margins rising quarter-on-quarter.

2. Equity-method investment gains amounted to NT$19.09 billion, an increase of NT$6.97 billion compared to the previous quarter: (1) Formosa Plastics Corporation: NT$4.80 billion (impacting EPS by NT$0.61), an increase of NT$0.09 billion from the previous quarter. (2) Nanya Technology: NT$13.64 billion (impacting EPS by NT$1.72), an increase of NT$6.01 billion from the previous quarter. (3) Taisco Industries: -NT$0.5 billion (impacting EPS by -NT$0.01), a decrease of NT$0.3 billion from the previous quarter. (4) Mailiao Power: NT$3.3 billion (impacting EPS by NT$0.04), an increase of NT$3.1 billion from the previous quarter. (5) Formosa Olefins (USA): NT$7.1 billion (impacting EPS by NT$0.09), an increase of NT$5.8 billion from the previous quarter.

3. Foreign exchange loss was NT$0.05 billion, a deterioration of NT$4.9 billion compared to Q1 2026. This was mainly due to the appreciation of the New Taiwan Dollar against the U.S. dollar in Q2 2026, whereas it depreciated in Q1.

4. Dividend income increased by NT$3.6 billion compared to the previous quarter (current quarter: NT$1.5 billion from Formosa Plastics, NT$1.0 billion from Port Company, NT$0.8 billion from Formosa Chemicals; none in the previous quarter).

5. Miscellaneous income from interest, asset disposals, scrap auctions, fund valuations, government subsidies, and rental income totaled NT$1.6 billion in gains.

(3) Net profit attributable to owners of the parent for Q2 2026 was NT$26.75 billion, with EPS of NT$3.37, setting a new historical high.

II. Comparison of H1 2026 Consolidated Earnings with H1 2025: Nan Ya Plastics achieved an H1 2026 EPS of NT$5.17, a dramatic improvement from a loss of NT$0.46 in the same period last year, not only exiting losses but also setting a new historical high. This was primarily due to the rapid development of AI, with major cloud giants expanding capital expenditures at an astonishing pace based on optimistic expectations for future computing power demand, leading to extreme shortages of materials such as ABF substrates, copper-clad laminates, and fiberglass cloth (yarn). In response to industry trends, Nan Ya actively entered the AI and peripheral supply chain, with benefits increasingly evident, causing electronic materials profits to grow exponentially and becoming the core driver of operations.

Additionally, chemical products saw improved operations due to higher product prices and inventory gains driven by the Middle East conflict. Polyester products benefited from increased local procurement in the U.S. market, leading to higher profits. Plastic processing products also saw profit growth due to a warming engineering construction market. On the investment side, both Nanya Technology and Formosa Plastics Corporation reported significantly increased operating profits, contributing substantial investment income. As a result, both core operations and investment income rose simultaneously, with H1 2026 EPS of NT$5.17 surpassing the previous high of NT$5.13 in H1 2021, achieving a new peak. Details are as follows:

(1) Consolidated revenue reached NT$152.24 billion, an increase of NT$20.98 billion (volume difference +NT$5.34 billion, price difference +NT$15.64 billion) or 16.0% compared to H1 2025. The strongest growth came from electronic materials, which, while fully developing AI product lines, also maintained market share in broad consumer products, resulting in electronic materials accounting for over 50% of total revenue, making a significant contribution.

(2) Pre-tax profit reached NT$46.84 billion, an increase of NT$50.22 billion compared to H1 2025: 1. Operating profit was NT$15.16 billion, an increase of NT$13.82 billion compared to H1 2025: Electronic materials focused on product upgrades and increased production utilization, achieving profits far exceeding the same period last year. Chemical products saw generally higher selling prices, improving operations. Polyester products benefited from successful development of electronic and optical films and improved market conditions with reduced low-price dumping, leading to significantly higher profits. Plastic processing products operated stably, with product profits growing moderately with market conditions.

2. Equity-method investment gains amounted to NT$31.21 billion, an increase of NT$33.74 billion compared to H1 2025: (1) Formosa Plastics Corporation: NT$9.52 billion (impacting EPS by NT$1.20), an increase of NT$10.40 billion compared to H1 2025. (2) Nanya Technology: NT$21.27 billion (impacting EPS by NT$2.68), an increase of NT$23.04 billion compared to H1 2025. (3) Taisco Industries: -NT$0.7 billion (impacting EPS by -NT$0.01), an improvement of NT$0.1 billion compared to H1 2025. (4) Mailiao Power: NT$3.5 billion (impacting EPS by NT$0.04), an increase of NT$0.5 billion compared to H1 2025. (5) Formosa Olefins (USA): NT$8.4 billion (impacting EPS by NT$0.11), an increase of NT$2.1 billion compared to H1 2025.

3. Foreign exchange gain was NT$4.8 billion, an improvement of NT$24.2 billion compared to H1 2025. This was mainly due to the depreciation of the New Taiwan Dollar against the U.S. dollar in H1 2026, whereas it appreciated in H1 2025, resulting in a relatively favorable position.

4. Miscellaneous income from interest, asset disposals, scrap auctions, fund valuations, government subsidies, and rental income totaled NT$2.4 billion in gains.

(3) Net profit attributable to owners of the parent for H1 2026 was NT$41.01 billion, with EPS of NT$5.17, setting a new historical high.