SCHEDULE 1

NAM TAI PROPERTY INC.

STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)


	Year ended December 31,
	2012			2013			2014
General and administrative expenses*	$	(1,729	)	$	(2,073	)	$	(715	)
Other income (expense), net		15,165			12,215			(135,374	)
Interest income on loan to a subsidiary		4,818			5,005			—
Interest income		1,421			2,626			4,732
Interest expense		—			—			(61	)

Income (loss) before income tax		19,675			17,773			(131,418	)
Income tax expenses		—			—			—

Income (loss) before share of net profits of subsidiaries, net of income tax		19,675			17,773			(131,418	)
Share of net profits (losses) subsidiaries, net of income tax		47,246			(17,476	)		105,830

Net income (loss) attributable to Nam Tai shareholders	$	66,921		$	297		$	(25,588	)
Other comprehensive income		—			—			—

Comprehensive income (loss) attributable to Nam Tai shareholders	$	66,921		$	297		$	(25,588	)


* Amount of share-based compensation expense included in general and administrative expenses	$	547		$	1,536		$	309

SCHEDULE 1

NAM TAI PROPERTY INC.

BALANCE SHEETS

(In thousands of U.S. dollars)


	December 31,
	2013			2014
ASSETS
Current assets:
Cash and cash equivalents	$	40,535		$	56,099
Short term investment		64,975			73,505
Prepaid expenses and other receivables		2,829			4,026
Amounts due from subsidiaries		33,392			10,037

Total current assets		141,731			143,667
Property, plant and equipment, net		3,967			3,693
Loan to a subsidiary—non current		93,108			—
Investments in subsidiaries		128,715			234,545

Total assets	$	367,521		$	381,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables	$	509		$	881
Dividend payable		3,622			3,409
Bank loan		—			40,000
Amounts due to subsidiaries		—			20,663

Total liabilities		4,131			64,953

Shareholders’ equity:
Common shares ($0.01 par value—authorized 200,000,000 shares, issued and outstanding 45,272,735 and 42,618,322 shares as at December 31, 2013 and 2014)		453			426
Additional paid-in capital		291,731			274,276
Retained earnings		71,214			42,258
Accumulated other comprehensive loss		(8	)		(8	)

Total shareholders’ equity		363,390			316,952

Total liabilities and shareholders’ equity	$	367,521		$	381,905

SCHEDULE 1

NAM TAI PROPERTY 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, 2012		44,803,735		$	448		$	287,055		$	34,711		$	(8	)	$	322,206
Stock-based compensation expenses		—			—			547			—			—			547
Net income		—			—			—			66,921			—			66,921
Cash dividends declared ($0.28 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
Stock-based compensation expenses		—			—			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
Shares issued on exercise of options		15,000			—			89			—			—			89
Cancellation of shares		(2,669,413	)		(27	)		(17,853	)		—			—			(17,880	)
Stock-based compensation expenses								309									309
Net loss		—			—			—			(25,588	)		—			(25,588	)
Cash dividends declared ($0.08 per share)		—			—			—			(3,409	)		—			(3,409	)
Cash dividends reversal		—			—			—			41			—			41

Balance at December 31, 2014		42,618,322		$	426		$	274,276		$	42,258		$	(8	)	$	316,952

SCHEDULE 1

NAM TAI PROPERTY INC.

STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)


	Year ended December 31,
	2012			2013			2014
Cash flows from operating activities:
Net income (loss) attributable to Nam Tai shareholders	$	66,921		$	297		$	(25,588	)

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		(47,246	)		17,476			(105,830	)
Depreciation		266			111			—
Share-based compensation expenses		547			1,536			309
Cancellation of loan and interest owing by subsidiary		—			—			133,354
Changes in current assets and liabilities:
Decrease (increase) in prepaid expenses and other receivables		228			(2,553	)		(1,197	)
(Decrease) increase in accrued expenses and other payables		(443	)		(929	)		53

Net cash provided by operating activities	$	20,273		$	15,938		$	1,101


Cash flows from investing activities:
Increase in short term investment		(14,357	)		(15,793	)		(8,530	)
Decrease (increase) in amounts due from subsidiaries		8,979			(3,683	)		4,046

Net cash used in investing activities	$	(5,378	)	$	(19,476	)	$	(4,484	)


Cash flows from financing activities:
Proceeds from bank loan		—			—			40,000
Share repurchase program		—			—			(17,561	)
Dividend paid		(12,545	)		(27,093	)		(3,581	)
Proceeds from shares issued on exercise of options		—			2,598			89

Net cash (used in) provided by financing activities	$	(12,545	)	$	(24,495	)	$	18,947


Net increase (decrease) in cash and cash equivalents		2,350			(28,033	)		15,564
Cash and cash equivalents at beginning of year		66,218			68,568			40,535

Cash and cash equivalents at end of year	$	68,568		$	40,535		$	56,099

SCHEDULE 1

NAM TAI PROPERTY 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 the end of the most recently completed fiscal year. As of December 31, 2014, $343,719 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, 2012, 2013 and 2014.

During the years ended December 31, 2012, 2013 and 2014, no cash dividend was declared and paid by subsidiaries to the Company.