YFY : 2023Q3 Consolidated Financial Statements

YFY Inc. and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 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 September 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of changes in equity and cash flows for the nine months ended September 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 14 and 15 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 September 30, 2023 and 2022, the combined total assets of these non-significant subsidiaries were NT$28,190,026 thousand and NT$34,054,389 thousand, respectively, representing 20% and 24%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$8,162,007 thousand and NT$10,045,139 thousand, respectively, representing 12% and 14%, respectively, of the consolidated total liabilities; for the three and nine months ended September 30, 2023 and 2022, the amounts of combined comprehensive income of these non-significant subsidiaries were a gain of NT$441,113 thousand, a gain of NT$953,590 thousand, a gain of NT$476,819 thousand and a gain of NT$1,634,331 thousand, respectively, representing 18%, 27%, 15% and 21%, respectively, of the consolidated total comprehensive income. As of September 30, 2023 and 2022, the carrying amounts of the above mentioned investments accounted for using the equity method were NT$132,201 thousand and NT$140,577 thousand, respectively; for the three and nine months ended September 30, 2023

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and 2022, the amounts of comprehensive income (loss) of investments accounted for using the equity method were a loss of NT$914 thousand and a loss of NT$3,821 thousand, a loss of NT$4,920 thousand and a loss of NT$19,338 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 has 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 September 30, 2023 and 2022, its consolidated financial performance for the three months ended September 30, 2023 and 2022, and its consolidated financial performance and consolidated cash flows for the nine months ended September 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

November 13, 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)

			September 30, 2023				December 31, 2022				September 30, 2022
ASSETS			Amount	%					Amount	%					Amount	%
CURRENT ASSETS (Note 4)
Cash and cash equivalents (Note 6)	$	9,322,412		7		$	8,698,263	6		$	9,419,988		7
Current financial assets at fair value through profit or loss (Note 7)			1,299,726		1					914,843	1					1,167,703		1
Current financial assets at fair value through other comprehensive income (Notes 8
and 30)			9,197,256		7					7,967,004	6					8,228,024		6
Current financial assets at amortized cost (Note 9)			3,271,117		2					3,045,337	2					2,472,484		2
Notes receivable, net (Notes 11, 22 and 31)			2,564,769		2					2,842,143	2					2,777,214		2
Accounts receivable, net (Notes 11 and 22)			11,632,002		8					12,120,124	9					13,114,759		9
Accounts receivable due from related parties, net (Notes 22 and 30)			103,417		-					64,230	-					54,603		-
Current inventories (Note 12)			11,481,565		8					11,872,315		8					11,814,691		8
Current biological assets (Note 13)			3,446,486	2					3,255,711	2					3,353,409		2
Prepayments			2,021,174		1					2,198,126	2					1,874,953		1
Other current financial assets (Note 31)			528,004		-					827,945	1					910,648		1
Other current assets, others (Note 30)			1,081,915		1					651,794	-					882,424	1
Total current assets			55,949,843		39					54,457,835		39				56,070,900		40
NON-CURRENT ASSETS (Note 4)
Non-current financial assets at fair value through profit or loss (Note 7)			117,095		-					-		-					-		-
Non-current financial assets at fair value through other comprehensive income (Notes 8
and 30)			18,652,437		13					18,132,758		13				17,860,902		13
Non-current financial assets at amortized cost (Note 9)			1,691,428		1					1,918,107	1					1,542,825		1
Investments accounted for using equity method (Note 15)			7,953,021		6					7,466,226	5					7,014,549		5
Property, plant and equipment (Notes 16, 30 and 31)			48,842,245		34					49,015,451		35				48,978,209		35
Right-of-use assets (Notes 17 and 31)			2,324,413		2					2,097,384	2					2,120,637		1
Investment property, net (Notes 16, 18 and 30)			4,127,319		3					3,958,773	3					3,988,355		3
Goodwill			546,648		-					521,064	-					538,380		-
Deferred tax assets			324,022		-					305,525	-					316,870		-
Prepayments for business facilities (Note 16)			947,114		1					712,614	1					1,118,612		1
Net defined benefit asset, non-current (Note 20)			644,938		1					576,233	1					801,936		1
Other non-current assets, others (Note 31)			329,133		-					310,354	-					309,540		-
Total non-current assets			86,499,813	61					85,014,489		61				84,590,815		60
TOTAL ASSETS	$	142,449,656		100		$	139,472,324		100	$	140,661,715		100
LIABILITIES AND EQUITY
CURRENT LIABILITIES (Note 4)
Current borrowings (Notes 19 and 31)	$	11,526,708		8		$	8,812,071	7		$	9,639,792		7
Short-term notes and bills payable (Note 19)			19,210,751		14					2,723,116	2					11,018,218		8
Current financial liabilities at fair value through profit or loss (Note 7)			10,096	-					45,843	-					23,664		-
Current contract liabilities (Note 22)			531,926		-					496,039	-					504,306		-
Notes and accounts payable			9,967,475	7					10,759,751		8					11,201,540		8
Accounts payable to related parties (Note 30)			60,295	-					110,870	-					112,819		-
Other payables, others (Note 16)			4,218,738		3					4,124,484	3					3,999,848	3
Current tax liabilities			341,290		-					484,546	-					609,496		1
Current lease liabilities (Note 17)			270,116		-					203,868	-					200,680		-
Long-term liabilities, current portion (Notes 19 and 31)			-		-					-		-					300,000		-
Other current liabilities, others (Notes 10 and 30)			1,284,893		1					1,237,851	1					1,458,974		1
Total current liabilities			47,422,288		33					28,998,439		21				39,069,337		28
NON-CURRENT LIABILITIES (Note 4)
Non-current portion of non-current borrowings (Notes 19 and 31)			18,678,420		13					36,344,562		26				26,401,705		19
Deferred tax liabilities			3,570,960		3					3,565,188	3					3,610,923		3
Non-current lease liabilities (Note 17)			610,182		1					514,916	-					509,894		-
Net defined benefit liability, non-current (Note 20)			4,633	-					7,814	-					39,662		-
Other non-current liabilities, others			445,073		-					448,012	-					434,331		-
Total non-current liabilities			23,309,268		17					40,880,492		29				30,996,515		22
Total liabilities			70,731,556	50					69,878,931		50				70,065,852		50
EQUITY ATTRIBUTABLE TO OWNERS OF PARENT (Notes 4, 21 and 26)
Share capital			16,603,715		12					16,603,715		12				16,603,715		12
Capital surplus			3,750,571		2					3,459,112	2					3,468,619		3
Retained earnings			22,397,751		16					22,536,470		16				22,842,352		16
Other equity interest			13,510,175		9					12,037,107	9					12,827,329		9
Total equity attributable to owners of parent			56,262,212		39					54,636,404		39				55,742,015		40
NON-CONTROLLING INTERESTS			15,455,888		11					14,956,989		11				14,853,848	10
Total equity			71,718,100		50					69,593,393		50				70,595,863		50
TOTAL LIABILITIES AND EQUITY	$	142,449,656		100		$	139,472,324		100	$	140,661,715		100
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated November 13, 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 September 30					For the Nine Months Ended September 30
	2023			2022				2023			2022
		Amount	%				Amount	%				Amount	%				Amount	%
OPERATING REVENUE
(Notes 4, 22 and 30)
Net sales revenue	$ 16,330,319	88	$ 17,847,395		87	$ 47,957,807	89	$ 52,441,494	87
Other operating revenue, net		2,155,708		12	2,557,122			13	6,183,791	11	7,844,788	13
Total operating revenue		18,486,027	100	20,404,517		100	54,141,598	100	60,286,282	100
OPERATING COSTS (Notes 12,
23 and 30)
Cost of sales	14,347,433	78	15,761,569		77	42,555,126	78	45,617,604	75
Other operating costs		1,659,525		9	1,922,739			10	4,703,201	9	5,946,361	10
Total operating costs		16,006,958	87	17,684,308		87	47,258,327	87	51,563,965	85
LOSSES ON CHANGES IN
FAIR VALUE LESS COSTS
TO SELL OF BIOLOGICAL
ASSETS (Notes 4 and 13)	(303)	-	(14)		-	(295)	-	(970)	-
GROSS PROFIT FROM
OPERATIONS	2,478,766		13	2,720,195			13	6,882,976	13	8,721,347	15
OPERATING EXPENSES
(Notes 23 and 30)
Selling expenses	1,451,103		8	1,437,530			7	4,079,372	8	4,296,025	7
Administrative expenses	978,824	5	971,588		4	2,863,342	5	2,812,796	5
Research and development
expenses		143,057		1	159,159		1	403,067	1	459,838	1
Total operating expenses		2,572,984	14	2,568,277			12	7,345,781	14	7,568,659	13
NET OPERATING INCOME
(LOSS)	(94,218)	(1)	151,918		1	(462,805)	(1)	1,152,688	2
NON-OPERATING INCOME
AND EXPENSES
Finance costs, net (Notes 4
and 23)	(272,505)	(2)	(249,769)		(1)	(818,904)	(2)	(578,578)	(1)
Share of profit of associates
accounted for using equity
method, net (Notes 4 and 15)	388,246		2	682,801		3	1,059,933	2	1,289,308	2
Interest income	114,560		1	80,640		-	310,047	1	165,594	-
Rent income (Notes 18 and 30)	16,189	-	15,411		-	49,024	-	40,938	-
Dividend income	785,589		4	941,973		5	842,134	2	990,379	2
Other income, others	142,187		1	137,500		1	392,127	1	304,934	1
Gains (losses) on disposals of
property, plant and
equipment	(2,251)	-	(1,946)		-	1,330	-	2,490	-
Gains on disposals of
investment property	75,606	-	28		-	134,576	-	133,442	-
Gains on financial assets or
liabilities at fair value
through profit or loss
(Note 4)	104,081		1	498,458		2	496,856	1	906,038	2
Miscellaneous disbursements	(7,554)	-	(9,917)		-	(25,320)	-	(29,578)	-
Net gains (losses) on foreign
currency exchange (Note 33)	157,459		1	(402,727)		(2)	(148,631)	-	(935,093)	(2)
Total non-operating
income and expenses		1,501,607		8	1,692,452			8	2,293,172	5	2,289,874	4
																					(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 September 30						For the Nine Months Ended September 30
			2023						2022							2023						2022
			Amount	%					Amount	%					Amount	%					Amount	%
PROFIT FROM CONTINUING
OPERATIONS BEFORE TAX	$	1,407,389	7	$	1,844,370			9	$	1,830,367	4	$	3,442,562	6
TAX EXPENSE (Notes 4 and 24)			(183,414)	(1)				(130,754)		(1)				(446,503)	(1)				(640,725)	(1)
PROFIT FROM CONTINUING
OPERATIONS			1,223,975	6				1,713,616			8				1,383,864	3				2,801,837	5
OTHER COMPREHENSIVE
INCOME (Notes 4 and 21)
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			(280,936)	(1)				469,112		2				257,786	1				2,170,509	3
Share of other
comprehensive income of
associates accounted for
using equity method			40,778	-				73,510		1				150,113	-				(44,488)	-
Components of other
comprehensive income that
will be reclassified to profit
or loss:
Exchange differences on
translation			1,327,608		7				1,218,193		6				1,228,553	2				2,587,311	4
Gains on hedging
instruments			(3,996)	-				-		-				(3,996)	-				-	-
Share of other
comprehensive income of
associates accounted for
using equity method			164,233	1				47,050		-				95,809	-				200,903	1
Other comprehensive
income, net			1,247,687		7				1,807,865			9				1,728,265	3				4,914,235	8
TOTAL COMPREHENSIVE
INCOME	$	2,471,662		13	$	3,521,481			17	$	3,112,129	6	$	7,716,072	13
PROFIT, ATTRIBUTABLE TO:
Profit, attributable to owners of
parent	$	1,133,821		6	$	1,462,015		7	$	1,327,005	3	$	2,225,534	4
Profit, attributable to
non-controlling interests			90,154	-				251,601		1				56,859	-				576,303	1
		$	1,223,975		6	$	1,713,616			8	$	1,383,864	3	$	2,801,837	5
COMPREHENSIVE INCOME,
ATTRIBUTABLE TO:
Comprehensive income,
attributable to owners of
parent	$	2,149,572		11	$	3,134,128			15	$	2,812,995	5	$	6,833,386	11
Comprehensive income,
attributable to
non-controlling interests			322,090	2				387,353		2				299,134	1				882,686	2
		$	2,471,662		13	$	3,521,481			17	$	3,112,129	6	$	7,716,072	13
																									(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 September 30			For the Nine Months Ended September 30
		2023				2022				2023				2022
	Amount	%		Amount	%		Amount	%		Amount	%
EARNINGS PER SHARE
(Note 25)	$	0.68		$	0.88		$	0.80		$	1.34
Basic earnings per share
Diluted earnings per share	$	0.68		$	0.88		$	0.80		$	1.34

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

(With Deloitte & Touche review report dated November 13, 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
														Capital Surplus																									Other Equity
									Differences																																Unrealized Gains
									Between																																	(Losses) on
								Consideration																														Exchange	Financial Assets
								and Carrying																												Differences on	Measured at Fair
									Amount of	Changes in																Retained Earnings					Translation of	Value Through
		Share Capital		Subsidiaries	Ownership																		Unappropriated							Foreign		Other	Gains (Losses) on
		Shares						Acquired or	Interests in	Consolidation															Retained							Financial	Comprehensive			Hedging				Non-controlling
	(In Thousands)		Amount		Disposed	Subsidiaries			Excess		Others		Total		Legal Reserve	Special Reserve		Earnings		Total		Statements		Income		Instruments		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	-			-				-			-				-			-			-				-			-			-			-					-			-				-			-			(1,330,944 )		(1,330,944 )
Changes in equity of associates accounted for using equity method	-			-				-			-				-			60,917			60,917				-			-			(11,243 )		(11,243 )				370			-				-			50,044			2,350			52,394
Other changes in capital surplus	-			-				-			-				-			(26 )		(26 )			-			-			-			-					-			-				-			(26 )		-			(26 )
Difference between consideration and carrying amount of subsidiaries
acquired or disposed	-			-				85,492			-				-			-			85,492				-			-			-			-					36,905			-				-			122,397			586,200			708,597
Changes in ownership interests in subsidiaries	-			-				-			33,718				-			-			33,718				-			-			(1,806 )		(1,806 )				(6,541 )		-				-			25,371			108,824			134,195
Profit for the nine months ended September 30, 2022	-			-				-			-				-			-			-				-			-			2,225,534		2,225,534				-			-				-			2,225,534		576,303			2,801,837
Other comprehensive income for the nine months ended September 30,
2022	-			-				-			-				-			-			-				-			-			-			-					2,472,547		2,135,305			-			4,607,852		306,383			4,914,235
Total comprehensive income for the nine months ended September 30,
2022	-			-				-			-				-			-			-				-			-			2,225,534		2,225,534				2,472,547		2,135,305			-			6,833,386		882,686			7,716,072
Disposal of investments in equity instruments designated at fair value
through other comprehensive income		-			-				-			-				-			-			-				-			-			200,658			200,658					-			(200,658 )			-			-			-			-
BALANCE AT SEPTEMBER 30, 2022		1,660,372		$	16,603,715		$	1,863,755	$	1,057,645		$	293,124		$	254,095		$	3,468,619	$	4,894,972	$	3,995,020	$	13,952,360	$	22,842,352			$	317,665		$	12,509,664		$	-		$	55,742,015	$	14,853,848	$	70,595,863
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	-			-				-			-				-			-			-				-			-			-			-					-			-				-			-			(559,142 )		(559,142 )
Changes in equity of associates accounted for using equity method	-			-				-			-				-			14,177			14,177				-			-			(1,701 )		(1,701 )				-			-				-			12,476			583			13,059
Other changes in capital surplus	-			-				-			-				-			(18 )		(18 )			-			-			-			-					-			-				-			(18 )		-			(18 )
Difference between consideration and carrying amount of subsidiaries
acquired or disposed	-			-				4,000			-				-			-			4,000				-			-			-			-					604			-				-			4,604			26,300			30,904
Changes in ownership interests in subsidiaries	-			-				-			273,300				-			-			273,300				-			-			-			-					16,785			-				-			290,085			732,024			1,022,109
Profit for the nine months ended September 30, 2023	-			-				-			-				-			-			-				-			-			1,327,005		1,327,005				-			-				-			1,327,005		56,859			1,383,864
Other comprehensive income for the nine months ended September 30,
2023	-			-				-			-				-			-			-				-			-			-			-					1,148,483		339,848				(2,341 )		1,485,990		242,275			1,728,265
Total comprehensive income for the nine months ended September 30,
2023	-			-				-			-				-			-			-				-			-			1,327,005		1,327,005				1,148,483		339,848				(2,341 )		2,812,995		299,134			3,112,129
Disposal of investments in equity instruments designated at fair value
through other comprehensive income		-			-				-			-				-			-			-				-			-			30,311			30,311					-			(30,311 )			-			-			-			-
BALANCE AT SEPTEMBER 30, 2023		1,660,372		$	16,603,715		$	1,871,508	$	1,325,965	$	293,124		$	259,974		$	3,750,571	$	5,106,196	$	3,992,537	$	13,299,018	$	22,397,751		$	808,698		$	12,703,818	$	(2,341 )	$	56,262,212	$	15,455,888	$	71,718,100

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

(With Deloitte & Touche review report dated November 13, 2023)

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YFY INC. AND SUBSIDIARIES

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

		For the Nine Months Ended
		September 30
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES, INDIRECT
METHOD
Profit before tax	$ 1,830,367	$ 3,442,562
Adjustments to reconcile profit (loss)
Depreciation and amortization expenses	3,342,605		3,232,066
Expected credit loss (gain)	33,658		(22,967)
Net gain on financial assets or liabilities at fair value through profit
or loss	(496,856)	(906,038)
Finance costs	818,904		578,578
Interest income	(310,047)	(165,594)
Dividend income	(842,134)	(990,379)
Share-based payments	4,377		9,131
Share of profit of associates accounted for using equity method	(1,059,933)	(1,289,308)
Gain on disposal of property, plant and equipment	(1,330)	(2,490)
Gain on disposal of investment properties	(134,576)	(133,442)
Gain on disposal of investments	(64)	-
Reversal of impairment loss on non-financial assets	(6,477)	-
Write-downs of inventories (reversed)	(50,403)	18,077
Unrealized foreign exchange loss (gain)	(51,976)	1,038,379
Loss arising from changes in fair value less costs to sell of biological
assets	295		970
Loss (gain) from lease modification	516		(48)
Changes in operating assets and liabilities
Decrease in current financial assets at fair value through profit or
loss, mandatorily measured at fair value	137,249		3,032,290
Decrease in notes receivable, net	397,312	1,948,492
Decrease in accounts receivable, net	818,429	841,347
Decrease (increase) in accounts receivable due from related parties,
net	(39,187)	16,800
Decrease in current inventories	619,991		265,538
Increase in current biological assets	(125,917)	(64,397)
Decrease (increase) in prepayments	221,379		(274,310)
Decrease (increase) in other current assets, others	(105,334)	477,770
Decrease in financial liabilities held for trading	(150,897)	(244,425)
Increase (decrease) in current contract liabilities	25,427		(42,715)
Decrease in notes and accounts payable	(1,070,095)	(2,157,607)
Increase (decrease) in accounts payable to related parties	(50,575)	55,807
Decrease in other payable, others	(133,908)	(520,730)
Decrease in other current liabilities, others	(116,108)	(302,845)
Decrease in net defined benefit liability, non-current		(71,886)	(88,519)
Cash inflow generated from operations		3,432,806		7,751,993
Interest received	301,927		167,185
Dividends received	1,679,649		1,581,326
				(Continued)
- 8 -

YFY INC. AND SUBSIDIARIES

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

			For the Nine Months Ended
			September 30
			2023			2022
Interest paid	$	(834,250)	$	(572,979)
Income taxes paid			(699,967)		(1,637,344)
Net cash flows generated from operating activities			3,880,165			7,290,181
CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other
comprehensive income			(1,494,685)		(416,527)
Proceeds from disposal of financial assets at fair value through other
comprehensive income			11,147			116,452
Decrease in financial assets at amortized cost			82,222			803,273
Acquisition of investments accounted for using equity method			(9,278)		-
Proceeds from disposal of investments accounted for using equity
method			10,348			-
Acquisition of property, plant and equipment			(2,594,874)		(3,031,584)
Proceeds from disposal of property, plant and equipment			30,477			16,354
Acquisition of use-of-right assets			(71,844)		-
Acquisition of investment properties			(278,976)		-
Proceeds from disposal of investment properties			222,803			222,983
Decrease (increase) in other financial assets			330,505			(492,725)
Increase in other non-current assets, others			(67,100)		(55,247)
Net cash flows used in investing activities			(3,829,255)		(2,837,021)
CASH FLOWS GENERATED FROM (USED IN) FINANCING
ACTIVITIES
Net increase (decrease) in current borrowings			2,649,692			(670,368)
Increase in short-term notes and bills payable			16,487,635			1,722,061
Proceeds from (repayments of) long-term debt			(17,666,142)		122,546
Payments of lease liabilities			(208,505)		(167,534)
Increase (decrease) in other non-current liabilities, others			1,600			(76,860)
Cash dividends paid			(1,494,334)		(2,490,557)
Change in non-controlling interests			499,323			(439,206)
Overdue dividends paid			(18)		(26)
Net cash flows generated from (used in) financing activities			269,251			(1,999,944)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS			303,988			432,682
						(Continued)

- 9 -