SCHEDULE 1

NAM TAI ELECTRONICS, INC.

STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)


	Year ended December 31,
	2010			2011			2012
General and administrative expenses*	$	(2,763	)	$	(2,374	)	$	(1,729	)
Other income, net		23			1,186			15,165
Interest income on loan to a subsidiary		11,568			7,721			4,818
Interest income		233			725			1,421

Income before income tax		9,061			7,258			19,675
Income tax expenses		—			—			—

Income before share of net profits of subsidiaries, net of taxes		9,061			7,258			19,675
Share of net profits (losses) of subsidiaries, net of taxes		5,945			(6,753	)		47,246

Net income attributable to Nam Tai shareholders	$	15,006		$	505		$	66,921
Other comprehensive income		—			—			—

Comprehensive income attributable to Nam Tai shareholders	$	15,006		$	505		$	66,921


* Amount of share-based compensation expense included in general and administrative expenses	$	95		$	112		$	547

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

BALANCE SHEETS

(In thousands of U.S. dollars)


	December 31,
	2011			2012
ASSETS
Current assets:
Cash and cash equivalents	$	66,218		$	68,568
Fixed deposits maturing over three months		34,825			49,182
Prepaid expenses and other receivables		504			276
Amounts due from subsidiaries		38,545			29,566

Total current assets		140,092			147,592
Property, plant and equipment, net		4,487			4,221
Loan to a subsidiary—non-current		93,108			93,108
Investments in subsidiaries		98,945			146,191

Total assets	$	336,632		$	391,112

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables	$	1,881		$	1,438
Dividend payable		12,545			26,882

Total liabilities		14,426			28,320

Shareholders’ equity:
Common shares ($0.01 par value—authorized 200,000,000 shares, issued and outstanding 44,803,735 shares as at December 31, 2011 and 2012)		448			448
Additional paid-in capital		287,055			287,602
Retained earnings		34,711			74,750
Accumulated other comprehensive loss		(8	)		(8	)

Total shareholders’ equity		322,206			362,792

Total liabilities and shareholders’ equity	$	336,632		$	391,112

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands of U.S. dollars, except share and per share data)


	Common Shares Outstanding		Common Shares Amount		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Total Shareholders’ Equity
Balance at January 1, 2010		44,803,735	$	448	$	285,264	$	40,706		$	(8	)	$	326,410
Equity-settled share-based payment		—		—		95		—			—			95
Deemed contribution of services		—		—		1,584		—			—			1,584
Net income		—		—		—		15,006			—			15,006
Cash dividends ($0.20 per share)		—		—		—		(8,961	)		—			(8,961	)

Balance at December 31, 2010		44,803,735	$	448	$	286,943	$	46,751		$	(8	)	$	334,134
Equity-settled share-based payment		—		—		112		—			—			112
Net income		—		—		—		505			—			505
Cash dividends ($0.28 per share)		—		—		—		(12,545	)		—			(12,545	)

Balance at December 31, 2011		44,803,735	$	448	$	287,055	$	34,711		$	(8	)	$	322,206

Equity-settled share-based payment		—		—		547		—			—			547
Net income		—		—		—		66,921			—			66,921
Cash dividends ($0.60 per share)		—		—		—		(26,882	)		—			(26,882	)

Balance at December 31, 2012		44,803,735	$	448	$	287,602	$	74,750		$	(8	)	$	362,792

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)


	Year ended December 31,
	2010			2011			2012
Cash flows from operating activities:
Net income attributable to Nam Tai shareholders	$	15,006		$	505		$	66,921

Adjustments to reconcile net income attributable to Nam Tai shareholders to net cash provided by operating activities:
Share of net (profits) losses of subsidiaries, net of taxes		(5,945	)		6,753			(47,246	)
Depreciation		—			221			266
Loss on disposal of property, plant and equipment		1			—			—
Share-based compensation expenses		95			112			547
Changes in current assets and liabilities:
(Increase) decrease in prepaid expenses and other receivables		(133	)		(371	)		228
Increase (decrease) in accrued expenses and other payables		658			231			(443	)

Net cash provided by operating activities	$	9,682		$	7,451		$	20,273


Cash flows from investing activities:
Purchase of property, plant and equipment		—			(4,708	)		—
(Increase) decrease in deposit for purchase of property, plant and equipment		(433	)		433			—
Decrease (increase) in fixed deposits maturing over three months		12,903			(34,825	)		(14,357	)
(Increase) decrease in amounts due from subsidiaries		(21,729	)		(5,682	)		8,979

Net cash used in investing activities	$	(9,259	)	$	(44,782	)	$	(5,378	)


Cash flows from financing activities:
Decrease in amounts due to subsidiaries		(3,488	)		(11,194	)		—
Proceeds from loan to a subsidiary		—			35,371			—
Dividend paid		—			(8,961	)		(12,545	)

Net cash (used in) provided by financing activities	$	(3,488	)	$	15,216		$	(12,545	)


Net (decrease) increase in cash and cash equivalents		(3,065	)		(22,115	)		2,350
Cash and cash equivalents at beginning of year		91,398			88,333			66,218

Cash and cash equivalents at end of year	$	88,333		$	66,218		$	68,568

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

NOTE TO SCHEDULE 1

(in thousands of U.S. dollars)

Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, changes in financial position and results and operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25% of consolidated net assets as of end of the most recently completed fiscal year. As of December 31, 2012, $350,256 of the restricted capital and reserves are not available for distribution, and as such, the condensed financial information of the Company has been presented for the years ended December 31, 2010, 2011 and 2012.

During the years ended December 31, 2010, 2011 and 2012, no cash dividend was declared and paid by subsidiaries to the Company.