YFY : 2023Q2 Consolidated Financial Statements

YFY Inc. and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2023 and 2022 and Independent Auditors' Review Report

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders

YFY Inc.

Introduction

We have reviewed the accompanying consolidated balance sheets of YFY Inc. and its subsidiaries (collectively referred to as the "Group") as of June 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three and six months ended June 30, 2023 and 2022, the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2023 and 2022, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". 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

As disclosed in Notes 13 and 14 to the consolidated financial statements, the financial statements of some non-significant subsidiaries and investments accounted for using the equity method included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2023 and 2022, the combined total assets of these non-significant subsidiaries were NT$21,770,678 thousand and NT$26,212,765 thousand, respectively, representing 15% and 19%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$6,349,372 thousand and NT$8,396,842 thousand, respectively, representing 9% and 12%, respectively, of the consolidated total liabilities; for the three and six months ended June 30, 2023 and 2022, the amounts of combined comprehensive income of these non-significant subsidiaries were a loss of NT$53,713 thousand, a loss of NT$263,225 thousand, a gain of NT$35,706 thousand, and a gain of NT$680,741 thousand, respectively, representing 5%, 22%, 6% and 16%, respectively, of the consolidated total comprehensive income. As of June 30, 2023 and 2022, the carrying amounts of the above mentioned investments accounted for using the equity method were NT$119,100 thousand and NT$147,621 thousand, respectively; for the three and six months ended June 30, 2023 and 2022,

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the amounts of comprehensive income (loss) of investments accounted for using the equity method were a gain of NT$2,747 thousand, a loss of NT$2,508 thousand, a loss of NT$4,006 thousand and a loss of NT$15,517 thousand, respectively.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused 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 of June 30, 2023 and 2022, its consolidated financial performance for the three months ended June 30, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Chih-Ming Shao and Hui-Min Huang.

Deloitte & Touche

Taipei, Taiwan

Republic of China

August 11, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with 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 applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

			June 30, 2023						December 31, 2022				June 30, 2022
ASSETS			Amount	%					Amount	%					Amount	%
CURRENT ASSETS (Note 4)
Cash and cash equivalents (Note 6)	$	9,472,277		7		$	8,698,263	6		$	8,228,185		6
Current financial assets at fair value through profit or loss (Note 7)			1,226,419		1					914,843	1					2,686,764		2
Current financial assets at fair value through other comprehensive income (Notes 8
and 29)			9,007,467		6					7,967,004	6					7,935,052		6
Current financial assets at amortized cost (Note 9)			3,266,281		2					3,045,337	2					3,612,150		3
Notes receivable, net (Notes 10, 21 and 30)			2,755,789		2					2,842,143	2					2,825,550		2
Accounts receivable, net (Notes 10 and 21)			11,073,039		8					12,120,124	9					12,643,351		9
Accounts receivable due from related parties, net (Notes 21 and 29)			71,042	-					64,230	-					59,257		-
Current inventories (Note 11)			12,056,823		9					11,872,315		8					11,482,125		8
Current biological assets (Note 12)			3,234,538	2					3,255,711	2					3,291,734		2
Prepayments			2,068,526		2					2,198,126	2					1,537,081		1
Other current financial assets (Note 30)			465,420		-					827,945	1					675,657		1
Other current assets, others (Note 29)			1,926,634		1					651,794	-					1,480,769	1
Total current assets			56,624,255	40					54,457,835		39				56,457,675		41
NON-CURRENT ASSETS (Note 4)
Non-current financial assets at fair value through other comprehensive income (Notes 8
and 29)			18,873,550		13					18,132,758	13				17,405,853		13
Non-current financial assets at amortized cost (Note 9)			1,622,054		1					1,918,107	1					819,233		1
Investments accounted for using equity method (Note 14)			7,340,088		5					7,466,226	5					6,203,015	4
Property, plant and equipment (Notes 15 and 30)			47,977,820		34					49,015,451		35				49,466,397		36
Right-of-use assets (Notes 16 and 30)			2,200,365		2					2,097,384	2					2,076,973		1
Investment property, net (Notes 17 and 29)			3,932,290		3					3,958,773	3					3,491,584		2
Goodwill			528,394		-					521,064	-					504,722		-
Deferred tax assets			310,511		-					305,525	-					331,093		-
Prepayments for business facilities (Notes 15 and 17)			1,221,461		1					712,614	1					1,097,729		1
Net defined benefit asset, non-current (Note 19)			626,487		1					576,233	1					789,936		1
Other non-current assets, others (Note 30)			318,820		-					310,354	-					324,407		-
Total non-current assets			84,951,840		60					85,014,489		61				82,510,942		59
TOTAL ASSETS	$	141,576,095		100		$	139,472,324		100	$	138,968,617		100
LIABILITIES AND EQUITY
CURRENT LIABILITIES (Note 4)
Current borrowings (Notes 18 and 30)	$	11,869,068		9		$	8,812,071	7		$	12,998,808		9
Short-term notes and bills payable (Note 18)			16,841,672		12					2,723,116	2					9,515,175		7
Current financial liabilities at fair value through profit or loss (Note 7)			19,390	-					45,843	-					44,995		-
Current contract liabilities (Note 21)			447,825	-					496,039	-					554,246		1
Notes and accounts payable			10,068,119		7					10,759,751		8					11,257,621		8
Accounts payable to related parties (Note 29)			65,345	-					110,870	-					79,924		-
Other payables, others (Note 15)			5,616,653		4					4,124,484	3					7,497,678		5
Current tax liabilities			365,253		-					484,546	-					657,268		1
Current lease liabilities (Note 16)			218,679		-					203,868	-					182,221		-
Long-term liabilities, current portion (Notes 18 and 30)			-		-					-		-					300,000		-
Other current liabilities, others (Note 29)			1,241,856		1					1,237,851	1					1,389,942		1
Total current liabilities			46,753,860		33					28,998,439		21				44,477,878		32
NON-CURRENT LIABILITIES (Note 4)
Non-current portion of non-current borrowings (Notes 18 and 30)			21,019,364		15					36,344,562		26				23,693,464	17
Deferred tax liabilities			3,568,358		3					3,565,188	3					3,608,057		3
Non-current lease liabilities (Note 16)			577,133		-					514,916	-					496,602		-
Net defined benefit liability, non-current (Note 19)			6,017	-					7,814	-					41,421		-
Other non-current liabilities, others			413,405		-					448,012	-					416,423		-
Total non-current liabilities			25,584,277	18					40,880,492		29				28,255,967		20
Total liabilities			72,338,137		51					69,878,931		50				72,733,845		52
EQUITY ATTRIBUTABLE TO OWNERS OF PARENT (Notes 4, 20, 25 and 27)
Share capital			16,603,715		12					16,603,715		12				16,603,715		12
Capital surplus			3,726,041		2					3,459,112	2					3,348,899		3
Retained earnings			21,255,440		15					22,536,470		16				21,385,016		15
Other equity interest			12,502,914	9					12,037,107		9					11,126,320		8
Total equity attributable to owners of parent			54,088,110		38					54,636,404		39				52,463,950		38
NON-CONTROLLING INTERESTS			15,149,848		11					14,956,989		11				13,770,822		10
Total equity			69,237,958		49					69,593,393		50				66,234,772		48
TOTAL LIABILITIES AND EQUITY	$	141,576,095	100		$	139,472,324		100	$	138,968,617		100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated August 11, 2023)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

		For the Three Months Ended June 30					For the Six Months Ended June 30
	2023			2022			2023			2022
		Amount	%				Amount	%				Amount	%				Amount	%
OPERATING REVENUE
(Notes 4, 21 and 29)
Net sales revenue	$ 16,084,398		89	$ 17,556,109	87	$ 31,627,488	89	$ 34,594,099	87
Other operating revenue, net		2,039,773	11	2,509,978		13	4,028,083	11	5,287,666	13
Total operating revenue		18,124,171		100	20,066,087	100	35,655,571	100	39,881,765	100
OPERATING COSTS (Notes 11,
22 and 29)
Cost of sales	14,338,400		79	15,053,990	75	28,207,693	79	29,856,035	75
Other operating costs		1,527,658		9	1,950,754		10	3,043,676	9	4,023,622	10
Total operating costs		15,866,058		88	17,004,744	85	31,251,369	88	33,879,657	85
GAINS (LOSSES) ON
CHANGES IN FAIR VALUE
LESS COSTS TO SELL OF
BIOLOGICAL ASSETS
(Notes 4 and 12)	322	-	(1,070)	-	8	-	(956)	-
GROSS PROFIT FROM
OPERATIONS	2,258,435		12	3,060,273		15	4,404,210	12	6,001,152	15
OPERATING EXPENSES
(Notes 22 and 29)
Selling expenses	1,360,808		7	1,430,604		7	2,628,269	7	2,858,495	7
Administrative expenses	956,469		5	911,581	4	1,884,518	5	1,841,208	4
Research and development
expenses		132,413		1	148,719	1	260,010	1	300,679	1
Total operating expenses		2,449,690		13	2,490,904		12	4,772,797	13	5,000,382	12
NET OPERATING INCOME
(LOSS)	(191,255)	(1)	569,369	3	(368,587)	(1)	1,000,770	3
NON-OPERATING INCOME
AND EXPENSES
Finance costs, net (Notes 4
and 22)	(248,634)	(1)	(194,642)	(1)	(546,399)	(2)	(328,809)	(1)
Share of profit of associates
accounted for using equity
method, net (Notes 4 and 14)	394,232		2	382,185	2	671,687	2	606,507	2
Interest income	80,801	-	52,637	-	195,487	1	84,954	-
Rent income (Notes 17 and 29)	16,531	-	12,880	-	32,835	-	25,527	-
Dividend income	56,545	-	48,396	-	56,545	-	48,406	-
Other income, others	142,991		1	109,099	1	249,940	1	167,434	-
Gains (losses) on disposals of
property, plant and
equipment	(4,127)	-	4,762	-	3,581	-	4,436	-
Gains on disposals of
investment property	58,344	-	133,414	1	58,970	-	133,414	-
Gains on financial assets or
liabilities at fair value
through profit or loss
(Note 4)	475,350		3	482,755	2	392,775	1	407,580	1
Miscellaneous disbursements	(7,086)	-	(5,807)	-	(17,766)	-	(19,661)	-
Foreign exchange losses
(Note 32)	(428,908)	(2)	(616,060)	(3)	(306,090)	(1)	(532,366)	(1)
Total non-operating
income and expenses		536,039		3	409,619	2	791,565	2	597,422	1
																				(Continued)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

			For the Three Months Ended June 30						For the Six Months Ended June 30
			2023						2022						2023						2022
			Amount	%					Amount	%					Amount	%					Amount	%
PROFIT FROM CONTINUING
OPERATIONS BEFORE TAX	$	344,784		2	$	978,988	5	$	422,978	1	$	1,598,192	4
TAX EXPENSE (Notes 4 and 23)			(176,996)	(1)				(293,612)	(2)				(263,089)	(1)				(509,971)	(1)
PROFIT FROM CONTINUING
OPERATIONS			167,788		1				685,376	3				159,889	-				1,088,221	3
OTHER COMPREHENSIVE
INCOME (LOSS) (Notes 4
and 20)
Components of other
comprehensive income that
will not be reclassified to
profit or loss:
Unrealized gains (losses)
from investments in equity
instruments measured at
fair value through other
comprehensive income			959,716		5				(1,793,655)	(9)				538,722	2				1,701,397	4
Share of other
comprehensive income
(loss) of associates
accounted for using equity
method			55,879	-				(265,975)	(1)				109,335	-				(117,998)	-
Components of other
comprehensive income that
will be reclassified to profit
or loss:
Exchange differences on
translation			(89,848)	-				154,552	1				(99,055)	-				1,369,118	4
Share of other
comprehensive income
(loss) of associates
accounted for using equity
method			19,554	-				16,341	-				(68,424)	-				153,853	-
Other comprehensive
income (loss), net			945,301		5				(1,888,737)	(9)				480,578	2				3,106,370	8
TOTAL COMPREHENSIVE
INCOME (LOSS)	$	1,113,089	6	$	(1,203,361)	(6)	$	640,467	2	$	4,194,591	11
PROFIT (LOSS),
ATTRIBUTABLE TO:
Profit, attributable to owners of
parent	$	190,347		1	$	519,073	2	$	193,184	-	$	763,519	2
Profit (loss), attributable to
non-controlling interests			(22,559)	-				166,303	1				(33,295)	-				324,702	1
		$	167,788		1	$	685,376	3	$	159,889	-	$	1,088,221	3
COMPREHENSIVE INCOME
(LOSS), ATTRIBUTABLE
TO:
Comprehensive income,
attributable to owners of
parent	$	1,138,977		6	$	(1,228,400)	(6)	$	663,423	2	$	3,699,258	10
Comprehensive income,
attributable to
non-controlling interests			(25,888)	-				25,039	-				(22,956)	-				495,333	1
		$	1,113,089		6	$	(1,203,361)	(6)	$	640,467	2	$	4,194,591	11
																								(Continued)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended June 30			For the Six Months Ended June 30
	2023		2022		2023		2022
	Amount	%		Amount	%		Amount	%		Amount	%
EARNINGS PER SHARE
(Note 24)
Basic earnings per share	$0.12		$0.31		$0.12		$0.46
Diluted earnings per share	$0.12		$0.31		$0.12		$0.46

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated August 11, 2023)

(Concluded)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

																					Equity Attributable to Owners of Parent
																																										Other Equity
														Capital Surplus																									Unrealized Gains
									Differences																																	(Losses) on
									Between																														Exchange	Financial Assets
								Consideration and																												Differences on	Measured at Fair
								Carrying Amount	Changes in																Retained Earnings					Translation of	Value Through
		Share Capital				of Subsidiaries	Ownership																		Unappropriated							Foreign		Other
		Shares (In						Acquired or	Interests in	Consolidation															Retained							Financial	Comprehensive				Non-controlling
		Thousands)		Amount		Disposed	Subsidiaries			Excess		Others		Total		Legal Reserve	Special Reserve		Earnings		Total		Statements		Income		Total		Interests	Total Equity
BALANCE AT JANUARY 1, 2022	1,660,372		$	16,603,715		$	1,778,263	$	1,023,927	$	293,124		$	193,204		$	3,288,518	$	4,429,367	$	4,000,001	$	14,490,398	$	22,919,766		$	(2,185,616 )	$	10,575,017	$	51,201,400	$	14,604,732	$	65,806,132
Appropriation of 2021 earnings
Legal reserve appropriated	-			-				-			-				-			-			-				465,605			-			(465,605 )		-					-			-			-			-			-
Cash dividends of ordinary share	-			-				-			-				-			-			-				-			-			(2,490,557 )		(2,490,557 )				-			-			(2,490,557 )		-			(2,490,557 )
Reversal of special reserve	-			-				-			-				-			-			-				-			(4,981 )		4,981			-					-			-			-			-			-
Cash dividends distributed by subsidiaries	-			-				-			-				-			-			-				-			-			-			-					-			-			-			(1,320,982 )		(1,320,982 )
Changes in equity of associates accounted for using equity method	-			-				-			-				-			39,151			39,151				-			-			9		9					-			-			39,160			1,838			40,998
Other changes in capital surplus	-			-				-			-				-			(16 )		(16 )			-			-			-			-					-			-			(16 )		-			(16 )
Difference between consideration and carrying amount of subsidiaries
acquired or disposed	-			-				(5,096 )		-				-			-			(5,096 )			-			-			-			-					-			-			(5,096 )		508			(4,588 )
Changes in ownership interests in subsidiaries	-			-				-			26,342				-			-			26,342				-			-			-			-					(6,541 )		-			19,801			(10,607 )		9,194
Profit for the six months ended June 30, 2022	-			-				-			-				-			-			-				-			-			763,519			763,519					-			-			763,519			324,702			1,088,221
Other comprehensive income for the six months ended June 30, 2022		-			-				-			-				-			-			-				-			-			-			-					1,342,306		1,593,433		2,935,739		170,631			3,106,370
Total comprehensive income for the six months ended June 30, 2022		-			-				-			-				-			-			-				-			-			763,519			763,519					1,342,306		1,593,433		3,699,258		495,333			4,194,591
Disposal of investments in equity instruments designated at fair value
through other comprehensive income		-			-				-			-				-			-			-				-			-			192,279			192,279					-			(192,279 )		-			-			-
BALANCE AT JUNE 30, 2022		1,660,372		$	16,603,715		$	1,773,167	$	1,050,269		$	293,124		$	232,339		$	3,348,899	$	4,894,972	$	3,995,020	$	12,495,024	$	21,385,016			$	(849,851 )	$	11,976,171	$	52,463,950	$	13,770,822	$	66,234,772
BALANCE AT JANUARY 1, 2023	1,660,372		$	16,603,715		$	1,867,508	$	1,052,665	$	293,124		$	245,815		$	3,459,112	$	4,894,972	$	3,995,020	$	13,646,478	$	22,536,470		$	(357,174 )	$	12,394,281	$	54,636,404	$	14,956,989	$	69,593,393
Appropriation of 2022 earnings
Legal reserve appropriated	-			-				-			-				-			-			-				211,224			-			(211,224 )		-					-			-			-			-			-
Cash dividends of ordinary share	-			-				-			-				-			-			-				-			-			(1,494,334 )		(1,494,334 )				-			-			(1,494,334 )		-			(1,494,334 )
Reversal of special reserve	-			-				-			-				-			-			-				-			(2,483 )		2,483			-					-			-			-			-			-
Cash dividends distributed by subsidiaries	-			-				-			-				-			-			-				-			-			-			-					-			-			-			(557,974 )		(557,974 )
Changes in equity of associates accounted for using equity method	-			-				-			-				-			8,857			8,857				-			-			(1,701 )		(1,701 )				-			-			7,156			336			7,492
Other changes in capital surplus	-			-				-			-				-			(14 )		(14 )			-			-			-			-					-			-			(14 )		-			(14 )
Difference between consideration and carrying amount of subsidiaries
acquired or disposed	-			-				4,000			-				-			-			4,000				-			-			-			-					604			-			4,604			13,192			17,796
Changes in ownership interests in subsidiaries	-			-				-			254,086				-			-			254,086				-			-			-			-					16,785			-			270,871			760,261			1,031,132
Profit (loss) for the six months ended June 30, 2023	-			-				-			-				-			-			-				-			-			193,184			193,184					-			-			193,184			(33,295 )		159,889
Other comprehensive income for the six months ended June 30, 2023		-			-				-			-				-			-			-				-			-			-			-					(103,510 )		573,749			470,239			10,339			480,578
Total comprehensive income for the six months ended June 30, 2023		-			-				-			-				-			-			-				-			-			193,184		193,184					(103,510 )		573,749			663,423			(22,956 )		640,467
Disposal of investments in equity instruments designated at fair value
through other comprehensive income		-			-				-			-				-			-			-				-			-			21,821			21,821					-			(21,821 )		-			-			-
BALANCE AT JUNE 30, 2023		1,660,372		$	16,603,715		$	1,871,508	$	1,306,751	$	293,124		$	254,658		$	3,726,041	$	5,106,196	$	3,992,537	$	12,156,707	$	21,255,440		$	(443,295 )	$	12,946,209	$	54,088,110	$	15,149,848	$	69,237,958

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated August 11, 2023)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

		For the Six Months Ended
		June 30
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES, INDIRECT
METHOD
Profit before tax	$ 422,978		$	1,598,192
Adjustments to reconcile profit (loss)
Depreciation and amortization expenses	2,215,959			2,178,547
Expected credit loss (gain)	25,297			(29,153)
Net gain on financial assets or liabilities at fair value through profit
or loss	(392,775)		(407,580)
Finance costs	546,399			328,809
Interest income	(195,487)		(84,954)
Dividend income	(56,545)		(48,406)
Share-based payments	3,155			6,422
Share of profit of associates accounted for using equity method	(671,687)		(606,507)
Gain on disposal of property, plant and equipment	(3,581)		(4,436)
Gain on disposal of investment properties	(58,970)		(133,414)
Loss on disposal of investments	30			-
Reversal of impairment loss on non-financial assets	(3,219)		-
Write-downs of inventories (reversed)	(24,991)		15,630
Unrealized foreign exchange loss	139,638			643,195
Loss (gain) arising from changes in fair value less costs to sell of
biological assets	(8)		956
Gain from lease modification	(247)		(6)
Changes in operating assets and liabilities
Decrease in current financial assets at fair value through profit or
loss, mandatorily measured at fair value	140,039			931,885
Decrease in notes receivable, net	111,275			1,763,068
Decrease in accounts receivable, net	1,130,380			870,845
Decrease (increase) in accounts receivable due from related parties,
net	(6,812)		12,146
Decrease (increase) in current inventories	(122,999)		417,412
Increase in current biological assets	(53,812)		(35,334)
Decrease in prepayments	146,499			7,427
Decrease (increase) in other current assets, others	(197,636)		78,424
Decrease in financial liabilities held for trading	(83,416)		(175,478)
Increase (decrease) in current contract liabilities	(45,983)		22,314
Decrease in notes and accounts payable	(774,938)		(1,558,253)
Increase (decrease) in accounts payable to related parties	(45,525)		22,912
Decrease in other payable, others	(507,778)		(671,829)
Decrease in other current liabilities, others	(8,425)		(122,020)
Decrease in net defined benefit liability, non-current		(52,051)		(74,760)
Cash inflow generated from operations		1,574,764			4,946,054
Interest received	189,510			87,790
Dividends received	1,365			7,547

(Continued)

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YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

			For the Six Months Ended
			June 30
			2023			2022
Interest paid	$	(561,870)	$	(323,979)
Income taxes paid			(507,464)		(1,273,901)
Net cash flows generated from operating activities			696,305			3,443,511
CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other
comprehensive income			(1,251,478)		(149,706)
Proceeds from disposal of financial assets at fair value through other
comprehensive income			10,829			116,442
Decrease in financial assets at amortized cost			39,827			373,359
Proceeds from disposal of investments accounted for using equity
method			10,348			-
Acquisition of property, plant and equipment			(1,758,556)		(2,336,271)
Proceeds from disposal of property, plant and equipment			16,378			12,503
Acquisition of use-of-right assets			(71,367)		-
Acquisition of investment properties			-			(311)
Proceeds from disposal of investment properties			64,742			190,910
Decrease (increase) in other financial assets			368,379			(305,696)
Increase in other non-current assets, others			(42,299)		(47,359)
Net cash flows used in investing activities			(2,613,197)		(2,146,129)
CASH FLOWS GENERATED FROM FINANCING ACTIVITIES
Increase in current borrowings			3,035,199			2,757,883
Increase in short-term notes and bills payable			14,118,556			219,018
Repayments of long-term debt	(15,325,198)		(2,585,681)
Payments of lease liabilities			(126,493)		(106,358)
Decrease in other non-current liabilities, others			(15,752)		(48,931)
Change in non-controlling interests			981,415			(29,304)
Overdue dividends paid			(14)		(16)
Net cash flows generated from financing activities			2,667,713			206,611
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS			23,193			190,102
NET INCREASE IN CASH AND CASH EQUIVALENTS			774,014			1,694,095
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD			8,698,263		6,534,090
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	9,472,277		$	8,228,185

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated August 11, 2023)

(Concluded)

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