SCHEDULE 1

NAM TAI ELECTRONICS, INC.

STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)


	Year ended December 31,
	2011			2012			2013
General and administrative expenses*	$	(2,374	)	$	(1,729	)	$	(2,073	)
Other income, net		1,186			15,165			12,215
Interest income on loan to a subsidiary		7,721			4,818			5,005
Interest income		725			1,421			2,626

Income before income tax		7,258			19,675			17,773
Income tax expenses		—			—			—

Income before share of net profits of subsidiaries, net of income tax		7,258			19,675			17,773
Share of net (losses) profits of subsidiaries, net of income tax		(6,753	)		47,246			(17,476	)

Net income attributable to Nam Tai shareholders	$	505		$	66,921		$	297
Other comprehensive income		—			—			—

Comprehensive income attributable to Nam Tai shareholders	$	505		$	66,921		$	297


* Amount of share-based compensation expense included in general and administrative expenses	$	112		$	547		$	1,536

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

BALANCE SHEETS

(In thousands of U.S. dollars)


	December 31,
	2012			2013
ASSETS
Current assets:
Cash and cash equivalents	$	68,568		$	40,535
Fixed deposits maturing over three months		49,182			64,975
Prepaid expenses and other receivables		276			2,829
Amounts due from subsidiaries		29,566			33,392

Total current assets		147,592			141,731
Property, plant and equipment, net		4,221			3,967
Loan to a subsidiary—non current		93,108			93,108
Investments in subsidiaries		146,191			128,715

Total assets	$	391,112		$	367,521

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables	$	1,438		$	509
Dividend payable		26,882			3,622

Total liabilities		28,320			4,131

Shareholders’ equity:
Common shares ($0.01 par value—authorized 200,000,000 shares, issued and outstanding 44,803,735 and 45,272,735 shares as at December 31, 2012 and 2013)		448			453
Additional paid-in capital		287,602			291,731
Retained earnings		74,750			71,214
Accumulated other comprehensive loss		(8	)		(8	)

Total shareholders’ equity		362,792			363,390

Total liabilities and shareholders’ equity	$	391,112		$	367,521

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, 2011		44,803,735	$	448	$	286,943	$	46,751		$	(8	)	$	334,134
Equity-settled share-based payment		—		—		112		—			—			112
Net income		—		—		—		505			—			505
Cash dividends declared ($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 declared ($0.60 per share)		—		—		—		(26,882	)		—			(26,882	)

Balance at December 31, 2012		44,803,735	$	448	$	287,602	$	74,750		$	(8	)	$	362,792
Shares issued on exercise of options		469,000		5		2,593		—			—			2,598
Equity-settled share-based payment		—		—		1,536		—			—			1,536
Net income		—		—		—		297			—			297
Cash dividends declared ($0.08 per share)		—		—		—		(3,622	)		—			(3,622	)
Cash dividends paid		—		—		—		(211	)		—			(211	)

Balance at December 31, 2013		45,272,735	$	453	$	291,731	$	71,214		$	(8	)	$	363,390

SCHEDULE 1

NAM TAI ELECTRONICS, INC.

STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)


	Year ended December 31,
	2011			2012			2013
Cash flows from operating activities:
Net income attributable to Nam Tai shareholders	$	505		$	66,921		$	297

Adjustments to reconcile net income attributable to Nam Tai shareholders to net cash provided by operating activities:
Share of net losses (profits) of subsidiaries, net of taxes		6,753			(47,246	)		17,476
Depreciation		221			266			111
Share-based compensation expenses		112			547			1,536
Changes in current assets and liabilities:
(Increase) decrease in prepaid expenses and other receivables		(371	)		228			(2,553	)
Increase (decrease) in accrued expenses and other payables		231			(443	)		(929	)

Net cash provided by operating activities	$	7,451		$	20,273		$	15,938


Cash flows from investing activities:
Purchase of property, plant and equipment		(4,708	)		—			—
Decrease in deposit for purchase of property, plant and equipment		433			—			—
Increase in fixed deposits maturing over three months		(34,825	)		(14,357	)		(15,793	)
(Increase) decrease in amounts due from subsidiaries		(5,682	)		8,979			(3,683	)

Net cash used in investing activities	$	(44,782	)	$	(5,378	)	$	(19,476	)


Cash flows from financing activities:
Decrease in amounts due to subsidiaries		(11,194	)		—			—
Proceeds from loan to a subsidiary		35,371			—			—
Dividend paid		(8,961	)		(12,545	)		(27,093	)
Proceeds from shares issued on exercise of options		—			—			2,598

Net cash provided by (used in) financing activities	$	15,216		$	(12,545	)	$	(24,495	)


Net (decrease) increase in cash and cash equivalents		(22,115	)		2,350			(28,033	)
Cash and cash equivalents at beginning of year		88,333			66,218			68,568

Cash and cash equivalents at end of year	$	66,218		$	68,568		$	40,535

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, 2013, $353,270 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, 2011, 2012 and 2013.

During the years ended December 31, 2011, 2012 and 2013, no cash dividend was declared and paid by subsidiaries to the Company.