TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT JUNE 30, 2020 AND 2019

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

		June 30, 2020			December 31, 2019		June 30, 2019
Assets	Notes	AMOUNT	%		AMOUNT	%	AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	\$ 1,987,626	9	\$	1,233,407	6	\$ 1,246,352	5
Financial assets at fair value through	6(2)
profit or loss - current		2,225,342	10		2,581,509	12	1,164,332	5
Current financial assets at amortised	6(3)
cost, net		7,051,329	32		7,910,482	37	10,805,014	48
Notes receivable, net	6(4)	524	-		3,054	-	3,246	-
Accounts receivable, net	6(4)	1,315,397	6		1,478,531	7	1,739,440	8
Accounts receivable due from	7
related parties, net		6	-		8	-	-	-
Other receivables		103,600	1		124,077	1	106,004	-
Inventories, net	6(5)	3,068,658	14		2,062,659	10	1,784,775	8
Other current assets		12,228	-		17,973	-	13,526	-
Total Current Assets		15,764,710	72		15,411,700	73	16,862,689	74
Non-current assets
Non-current financial assets at fair	6(2)
value through profit or loss		535,000	2		-	-	-	-
Non-current financial assets at fair	6(6)
value through other comprehensive
income		115,043	1		114,164	1	168,290	1
Non-current financial assets at	6(3)
amortised cost		145,781	1		148,527	1	-	-
Investments accounted for using	6(7)
equity method		92,091	-		97,434	-	97,110	1
Property, plant and equipment, net	6(8) and 8	2,341,969	11		2,438,154	12	2,542,209	11
Right-of-use assets	6(9) and 7	209,358	1		241,050	1	263,102	1
Investment property, net	6(11)	2,616,481	12		2,610,292	12	2,618,498	12
Deferred tax assets		65,167	-		75,859	-	62,358	-
Other non-current assets	6(12)	46,407	-		63,610	-	80,172	-
Total Non-current Assets		6,167,297	28		5,789,090	27	5,831,739	26
Total Assets		\$ 21,932,007	100	\$	21,200,790	100	\$ 22,694,428	100

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan Dollars) (The consolidated balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

(Continued)

			June 30, 2020		December 31, 2019		June 30, 2019
Liabilities and Equity	Notes		AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
Financial liabilities at fair value	6(2)
through profit or loss - current		\$	68	-	\$ -	-	\$ 3,711	-
Accounts payable			1,049,870	5	1,005,350	5	1,074,952	5
Accounts payable - related parties	7		40,396	-	52,828	-	52,474	-
Other payables	6(16)		2,145,191	10	267,116	1	2,370,039	10
Current tax liabilities			177,033	1	83,705	1	151,229	1
Current lease liabilities	7		52,267	-	53,945	-	52,343	-
Other current liabilities			64,297	-	38,635	-	17,154	-
Total Current Liabilities			3,529,122	16	1,501,579	7	3,721,902	16
Non-current liabilities
Deferred tax liabilities			150,530	1	155,482	1	182,369	1
Non-current lease liabilities	7		39,284	-	83,697	-	82,444	1
Other non-current liabilities			56,140	-	53,184	-	55,478	-
Total Non-current Liabilities			245,954	1	292,363	1	320,291	2
Total Liabilities			3,775,076	17	1,793,942	8	4,042,193	18
Equity attributable to owners of
parent
Share capital	6(14)
Common stock			4,290,617	20	4,307,617	21	4,307,617	19
Capital surplus	6(15)
Capital surplus			3,945,276	18	4,346,854	20	4,346,775	19
Retained earnings	6(16)
Legal reserve			4,683,878	21	4,510,981	21	4,510,981	20
Special reserve			130,902	1	61,572	-	61,572	-
Unappropriated retained earnings			5,270,568	24	6,427,300	30	5,459,144	24
Other equity interest	6(17)
Other equity interest		(	164,310)(	1)(	130,902)	- (	33,854)	-
Treasury shares	6(14)		-	- (	116,574)	-	-	-
Total Equity			18,156,931	83	19,406,848	92	18,652,235	82
Significant contingent liabilities and	9
unrecognized contract commitments
Total Liabilities and Equity		\$	21,932,007	100	\$ 21,200,790	100	\$ 22,694,428	100

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan Dollars) (The consolidated balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan Dollars, except for earnings per share) (UNAUDITED)

Three months ended June 30				Six months ended June 30
			2020		2019		2020			2019
Items	Notes		AMOUNT	%	AMOUNT	%	AMOUNT	%		AMOUNT	%
Operating Revenue	6(18) and 7	\$	2,485,718	100	\$ 3,163,909	100	\$ 5,706,128	100	\$	6,843,828	100
Operating Costs	6(5)(22) and 7 (		1,897,993) (	77) (	2,470,677) (	78) (	4,295,037) (	75) (		5,448,146) (	79)
Gross Profit			587,725	23	693,232	22	1,411,091	25		1,395,682	21
Operating Expenses	6(22)
Sales and marketing expenses		(	174,681) (	7) (	224,704) (	7) (	384,742) (	7) (		438,119) (	7)
Administrative expenses Research and development expenses		( (	70,082) ( 33,042) (	3) ( 1) (	68,376) ( 32,822) (	2) ( 1) (	224,864) ( 74,108) (	4) ( 1) (		151,412) ( 74,016) (	2) 1)
Reversal of impairment loss determined	6(4)
in accordance with IFRS 9			88	-	758	-	139	-		833	-
Total operating expenses		(	277,717) (	11) (	325,144) (	10) (	683,575) (	12) (		662,714) (	10)
Operating Profit			310,008	12	368,088	12	727,516	13		732,968	11
Non-operating Income and Expenses
Interest income	6(19)		21,243	1	59,885	2	45,468	1		116,909	2
Other income	6(20)		9,866	-	10,487	-	19,364	-		21,477	-
Other gains and losses	6(21)	(	14,089)	-	92,419	3	110,338	2		123,454	2
Net gain from derecognizing financial	6(3)
assets measured at amortised cost			3,196	-	4,277	-	8,995	-		8,388	-
Finance costs	6(9)	(	505)	- (	362)	- (	1,022)	- (		653)	-
Share of loss of associates and joint	6(7)
ventures accounted for using the equity
method		(	3,850)	- (	3,681)	- (	4,932)	- (		8,691)	-
Total non-operating income and expenses			15,861	1	163,025	5	178,211	3		260,884	4
Profit before Income Tax			325,869	13	531,113	17	905,727	16		993,852	15
Income tax expense	6(23)	(	61,262) (	2) (	101,237) (	3) (	177,000) (	3) (		196,307) (	3)
Profit for the Period		\$	264,607	11	\$ 429,876	14	\$ 728,727	13	\$	797,545	12
Other Comprehensive Income (Loss)
Components of other comprehensive
income (loss) that will not be
reclassified to profit or loss
Unrealized gain (loss) on financial	6(6)(17)
assets at fair value through other
comprehensive income		\$	7,032	- (\$	2,976)	-	\$ 879	-	\$	5,135	-
Share of other comprehensive (loss)
income of associates and joint ventures
accounted for using the equity method Components of other comprehensive			-	-	-	- (	411)	-		479	-
income (loss) that will be reclassified
to profit or loss
Exchange differences on translation of	6(17)
foreign financial statements		(	27,664) (	1)	878	- (	42,859) (	1)		28,227	-
Income tax related to components of	6(17)(23)
other comprehensive income that will be
reclassified to profit or loss			5,533	- (	174)	-	8,572	- (		5,644)	-
Other Comprehensive (Loss) Income for
the Period Total Comprehensive Income		(\$ \$	15,099) ( 249,508	1) (\$ 10	\$ 2,272) 427,604	- (\$ 14	\$ 33,819) ( 694,908	1) 12	\$ \$	28,197 825,742	- 12
Net profit attributable to:
Owners of parent		\$	264,607	11	\$ 429,876	14	\$ 728,727	13	\$	797,545	12

Comprehensive income attributable to: Owners of parent		\$	249,508	10	\$ 427,604	14	\$ 694,908	12	\$	825,742	12

Earnings Per Share (in dollars)	6(24)
Basic earnings per share		\$		0.62	\$	1.00	\$	1.70	\$		1.85
Diluted earnings per share		\$		0.62	\$	1.00	\$	1.70	\$		1.85

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of New Taiwan Dollars) (UNAUDITED)

							Equity attributable to owners of the parent
				Capital Surplus			Retained Earnings			Other Equity Interest
	Notes	Common stock	Additional paid-in capital	Donated assets received	Net assets from merger	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gain or loss on financial assets at fair value through other comprehensive income	Treasury shares	Total equity
Six months ended June 30, 2019
Balance at January 1, 2019		\$ 4,307,617	\$ 4,565,999	\$ 4,106	\$ 35,128	\$ 4,302,782	\$ 47,247	\$ 6,778,995	(\$ 77,165 )	\$ 15,593	\$ -	\$ 19,980,302
Net income for the period		-	-	-	-	-	-	797,545	-	-	-	797,545
Other comprehensive income	6(6)(17)	-	-	-	-	-	-	479	22,583	5,135	-	28,197
Total comprehensive income		-	-	-	-	-	-	798,024	22,583	5,135	-	825,742
Appropriation and distribution of 2018 earnings	6(16)
Legal reserve		-	-	-	-	208,199	-	( 208,199 )	-	-	-	-
Cash dividends		-	-	-	-	-	-	( 1,895,351 )	-	-	-	( 1,895,351 )
Special reserve		-	-	-	-	-	14,325	( 14,325 )	-	-	-	-
Cash payment from capital surplus	6(16)	-	( 258,458 )	-	-	-	-	-	-	-	-	( 258,458 )
Balance at June 30, 2019		\$ 4,307,617	\$ 4,307,541	\$ 4,106	\$ 35,128	\$ 4,510,981	\$ 61,572	\$ 5,459,144	(\$ 54,582 )	\$ 20,728	\$ -	\$ 18,652,235
Six months ended June 30, 2020
Balance at January 1, 2020		\$ 4,307,617	\$ 4,307,541	\$ 4,185	\$ 35,128	\$ 4,510,981	\$ 61,572	\$ 6,427,300	(\$ 138,461 )	\$ 7,559	(\$ 116,574 )	\$ 19,406,848
Net income for the period		-	-	-	-	-	-	728,727	-	-	-	728,727
Other comprehensive income (loss) 6(6)(17)		-	-	-	-	-	-	( 411 ) (	34,287 )	879	-	( 33,819 )
Total comprehensive income (loss)		-	-	-	-	-	-	728,316	( 34,287 )	879	-	694,908
Appropriation and distribution of 2019 earnings	6(16)
Legal reserve		-	-	-	-	172,897	-	( 172,897 )	-	-	-	-
Cash dividends		-	-	-	-	-	-	( 1,544,622 )	-	-	-	( 1,544,622 )
Special reserve		-	-	-	-	-	69,330	( 69,330 )	-	-	-	-
Cash payment from capital surplus	6(16)	-	( 386,156 )	-	-	-	-	-	-	-	-	( 386,156 )
Purchase of treasury stock	6(14)	-	-	-	-	-	-	-	-	-	( 14,047 ) (	14,047 )
Cancellation of treasury stock		( 17,000 ) (	15,422 )	-	-	-	-	( 98,199 )	-	-	130,621	-
Balance at June 30, 2020		\$ 4,290,617	\$ 3,905,963	\$ 4,185	\$ 35,128	\$ 4,683,878	\$ 130,902	\$ 5,270,568	(\$ 172,748 )	\$ 8,438	\$ -	\$ 18,156,931

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan Dollars)

(UNAUDITED)

			Six months ended June 30
	Notes		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		\$	905,727	\$	993,852
Adjustments
Adjustments to reconcile profit (loss)
Net (gain) loss on financial assets at fair value through profit	6(2)(21)
or loss		(	40,965 )		10,571
Share of loss of associates and joint ventures accounted for	6(7)
using the equity method			4,932		8,691
Gain on reversal of expected credit loss	6(4)	(	139 )	(	833 )
Loss on disposal of property, plant and equipment	6(21)		38		-
Depreciation	6(22)		130,508		128,982
Interest income	6(19)	(	45,468 )	(	116,909 )
Interest expense	6(9)		1,022		653
Changes in operating assets and liabilities
Changes in operating assets
Financial assets mandatorily measured at fair value through
profit or loss			361,114	(	1,080,765 )
Notes receivable			2,530	(	2,373 )
Accounts receivable			163,333		408,770
Accounts receivable - related parties			2		-
Other receivables Inventories		(	15,530 1,005,999 )	(	12,756 ) 1,399,413
Other current assets			5,745		8,687
Changes in operating liabilities
Accounts payable			44,520	(	112,347 )
Accounts payable - related parties		(	12,432 )		12,599
Other payables		(	52,702 )	(	48,998 )
Other current liabilities			48,985	(	6,222 )
Other non-current liabilities			2,956		186
Cash inflow generated from operations			529,237		1,591,201
Interest received			50,415		110,956
Income tax paid		(	69,360 )	(	153,550 )
Net cash flows from operating activities			510,292		1,548,607
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of non-current financial assets at fair value through
profit or loss		(	500,000 )		-
Proceeds from disposal of financial assets at amortised cost			3,736,828		3,530,657
Acquisition of financial assets at amortised cost		(	2,880,958 )	(	5,190,114 )
Acquisition of property, plant and equipment	6(8)	(	15,926 )	(	30,301 )
Acquisition of investment property		(	1,082 )		-
Decrease (increase) in other non-current financial assets			4,787	(	6,595 )
Net cash flows from (used in) investing activities			343,649	(	1,696,353 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of lease liabilities Purchase of treasury stock		( (	45,998 ) 37,371 )	(	49,090 ) -
Net cash flows used in financing activities		(	83,369 )	(	49,090 )
Effect of exchange rate changes		(	16,353 )		13,451
Net increase (decrease) in cash and cash equivalents			754,219	(	183,385 )
Cash and cash equivalents at beginning of period			1,233,407		1,429,737
Cash and cash equivalents at end of period		\$	1,987,626	\$	1,246,352

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars,

except as otherwise indicated)

(UNAUDITED)

1. HISTORY AND ORGANIZATION

Transcend Information, Inc. (the "Company") was incorporated under the provisions of the Company Law of the Republic of China (R.O.C.) in August 1989. The main activities of the Company and its subsidiaries (collectively referred herein as the "Group") are manufacturing, processing and sales of computer software and hardware, peripheral equipment and other computer components. The Securities and Futures Commission of the Republic of China had approved the Company's shares to be listed on the Taiwan Stock Exchange and the shares started trading on May 3, 2001.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on August 6, 2020.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC")

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

	Effective date
	by International
	Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1 and IAS 8, 'Disclosure initiative-definition of material'	January 1, 2020
Amendments to IFRS 3, 'Definition of a business'	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS 7, 'Interest rate benchmark reform'	January 1, 2020
Amendments to IFRS 16, 'Covid-19-related rent concessions'	June 1, 2020

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

None.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

	Effective date
	by International
	Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 4, 'Extension of the temporary exemption from applying IFRS 9'	January 1, 2021
Amendments to IFRS 3, 'Reference to the conceptual framework'	January 1, 2022
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets	To be determined
between an investor and its associate or joint venture'	by International Accounting Standards Board

IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IAS 1, 'Classification of liabilities as current or non- current'	January 1, 2023
Amendments to IAS 16, 'Property, plant and equipment: proceeds before intended use'	January 1, 2022
Amendments to IAS 37, 'Onerous contracts - cost of fulfilling a contract'	January 1, 2022
Annual improvements to IFRS Standards 2018-2020	January 1, 2022

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2019, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the International Accounting Standard 34, 'Interim financial reporting' as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2019.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligations.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain

critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:

Basis for preparation of these consolidated financial statements is the same as that for the preparation of the consolidated financial statements as of and for the year ended December 31, 2019.

				Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	June 30, 2020	December 31, 2019	June 30, 2019	Description
Transcend Taiwan	Saffire Investment Ltd. (Saffire)	Investment holding company	100	100	100
〞	Transcend Japan Inc. (Transcend Japan)	Wholesale and import of computer memory modules and peripheral products	100	100	100
〞	Transcend Information Inc. (Transcend USA)	Wholesale and import of computer memory modules and peripheral products	100	100	100	Note
〞	Transcend Korea Inc. (Transcend Korea)	Wholesale and import of computer memory modules and peripheral products	100	100	100	"
Saffire Investment Ltd.	Memhiro Pte. Ltd. (Memhiro)	Investment holding company	100	100	100
Memhiro Pte. Ltd.	Transcend Information Europe B.V. (Transcend Europe)	Wholesale and import of computer memory modules and peripheral products	100	100	100	Note
〞	Transcend Information Trading GmbH, Hamburg (Transcend Germany)	Wholesale and import of computer memory modules and peripheral products	100	100	100	"
〞	Transcend Information (Shanghai), Ltd. (Transcend Shanghai)	Manufacture and sales of computer memory modules, storage products and disks	100	100	100	"
〞	Transtech Trading (Shanghai) Co., Ltd. (Transtech Shanghai)	Wholesale, agent, import and export and retail of computer memory modules, storage products and computer components	100	100	100	"
〞	Transcend Information (Hong Kong), Ltd. (Transcend Hong Kong)	Wholesale and import of computer memory modules and peripheral products	100	100	100	"

B. Subsidiaries included in the consolidated financial statements:

Note: The financial statements of insignificant subsidiary as of and for the six months ended June 30, 2020 and 2019 were not reviewed by the independent auditors.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustment for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

There was no significant change during this period. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2019 for related information.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	June 30, 2020	December 31, 2019	June 30, 2019
Cash on hand and petty cash	\$ 725	\$ 699	\$ 617
Checking accounts and demand	1,986,901	1,232,708	1,245,735
deposits	\$ 1,987,626	\$ 1,233,407	\$ 1,246,352

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

B. The Group has no cash and cash equivalents pledged to others.
(2) Financial assets and liabilities at fair value through profit or loss

Items	June 30, 2020	December 31, 2019	June 30, 2019
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	\$ 2,199,435	\$ 2,499,764	\$ 1,069,941
Financial products	17,093	73,061	90,427
Non-hedging derivatives	-	-	1,180
Valuation adjustments	8,814	8,684	2,784
	\$ 2,225,342	\$ 2,581,509	\$ 1,164,332
Financial liabilities mandatorily measured at fair value through profit or loss
Non-hedging derivatives	\$ 68	\$ -	\$ 3,711

Items	June 30, 2020	December 31, 2019	June 30, 2019
Non-current items: Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	\$ 500,000	\$	-	\$ -
Valuation adjustments	35,000		-	-
	\$ 535,000	\$	-	\$ -

A. Amounts recognized in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

	Three months ended June 30,
		2020		2019
Financial assets and liabilities mandatorily measured at fair value through profit or loss
Beneficiary certificates	\$	37,453	\$		735
Financial products		234			990
Non-hedging derivatives	(	68) (			13,733)
	\$	37,619	(\$		12,008)
		Six months ended June 30,
		2020		2019
Financial assets and liabilities mandatorily measured at fair value through profit
or loss
Beneficiary certificates	\$	40,680	\$		823
Financial products		353			2,339
Non-hedging derivatives	(	68) (			13,733)
	\$	40,965	(\$		10,571)

B. The Group entered into contracts relating to derivative financial assets /liabilities which were not accounted for under hedge accounting. The information is listed below:

	June 30, 2020
	Contract amount
Derivative financial liabilities	(Notional principal)	(In thousands)	Contract period
Forward foreign exchange contracts
-Sell USD / Buy NTD	USD	\$ 2,000	2020/6/18~2020/7/30
		June 30, 2019
	Contract amount
Derivative financial liabilities	(Notional principal)	(In thousands)	Contract period
Forward foreign exchange contracts -Sell USD / Buy NTD	USD	\$ 3,136	2019/5/22~2019/8/1
Derivative financial liabilities
Forward foreign exchange contracts
-Sell USD / Buy NTD	USD	11,624	2019/4/24~2019/8/29

There was no such transaction as of December 31, 2019.

C. The Group entered into forward foreign exchange contracts to sell USD to hedge exchange rate risk. However, these forward foreign exchange contracts are not accounted for under hedge accounting.
D. The Group has no financial assets at fair value through profit or loss pledged to others.
E. The Group associates with Fubon Bank (China) and Industrial and Commercial Bank of China which have high credit quality for the financial products. The valuation of impairment is based on the 12-month expected credit losses model.

(3) Financial assets at amortised cost

Items	June 30, 2020	December 31, 2019		June 30, 2019
Current items:
Time deposits with original maturity of more than three months	\$ 6,636,509	\$	6,843,336	\$ 10,357,479
Bonds with repurchase	414,820		1,067,146	447,535
agreement	\$ 7,051,329	\$	7,910,482	\$ 10,805,014
Non-current items:
Foreign currency bonds	\$ 145,781	\$	148,527	\$ -

	Three months ended June 30,
	2020
Interest income	\$ 20,115	\$	57,756
Gain on disposal	3,196		4,277
	\$ 23,311	\$	62,033
	Six months ended June 30,
	2020		2019
Interest income	\$ 43,166	\$	113,899
Gain on disposal	8,995		8,388
	\$ 52,161	\$	122,287

A. Amounts recognized in profit or loss in relation to financial assets at amortised cost are listed below:

B. The Group has no financial assets at amortised cost pledged to others as collateral.
C. The Group used the forecastability of Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of debt instruments on June 30, 2020, December 31, 2019 and June 30, 2019, and considered guarantee for repurchase agreement held by the Group to estimate expected credit loss. The Group does not expect material credit loss after assessment.
D. The Group transacts time deposits with reputable domestic and foreign banks, and the counterparties of the debt instrument investments are Yuanta Asset Management Limited, Yuanta Securities Co., Ltd., International Bills Finance Corporation, Standard Chartered Bank, and BNP Paribas. The Group's counterparties have good credit quality, and the impairment loss is assessed using a 12-month expected credit loss approach.
(4) Notes and accounts receivable

		June 30, 2020	December 31, 2019	June 30, 2019
Notes receivable	\$	524	\$ 3,054	\$ 3,246
Accounts receivable	\$	1,320,269	\$ 1,484,002	\$ 1,762,532
Less: Loss allowance	(	4,872) (	5,471) (	23,092)
	\$	1,315,397	\$ 1,478,531	\$ 1,739,440

A. As of June 30, 2020, December 31, 2019 and June 30, 2019, the estimated sales discounts and allowances were \$61,544, \$101,785 and \$96,783, respectively. Since the sales discounts and allowances met the requirements for offset of financial liabilities and financial assets, the net amounts were shown under accounts receivable.

	June 30, 2020
		Accounts receivable		Notes receivable
Not past due Up to 30 days	\$	1,186,204 115,293	\$	524
31 to 90 days		4,166		- -
91 to 180 days		321		-
Over 180 days		14,285		-
	\$	1,320,269	\$	524
			December 31, 2019
		Accounts receivable		Notes receivable
Not past due	\$	1,181,994	\$	3,054
Up to 30 days		271,457		-
31 to 90 days		8,521		-
91 to 180 days		490		-
Over 180 days		21,540		-
	\$	1,484,002	\$	3,054
			June 30, 2019
		Accounts receivable		Notes receivable
Not past due	\$	1,477,217	\$	3,246
Up to 30 days		209,870		-
31 to 90 days		18,243		-
91 to 180 days		14,122		-
Over 180 days		43,080		-
	\$	1,762,532	\$	3,246

B. The ageing analysis of accounts receivable and notes receivable is as follows:

The above ageing analysis was based on past due date.

C. The Group has credit insurance that covers accounts receivable from major customers. Should bad debts occur, the Group will receive 90% of the losses resulting from non-payment.
D. As of June 30, 2020, December 31, 2019 and June 30, 2019, notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2019, the balance of notes receivable and accounts receivable from contracts with customers amounted to \$2,173,055.
E. As at June 30, 2020, December 31, 2019 and June 30, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes receivable were \$524, \$3,054 and \$3,246, respectively; the maximum exposure to credit risk in respect of the amount that best represents the Group's accounts receivable were \$1,315,397, \$1,478,531 and \$1,739,440, respectively.
F. The Group classifies customers' accounts receivable in accordance with the credit rating of the customer. The Group applies the simplified approach to estimate expected credit loss under the provision matrix basis.
G. The Group wrote-off the financial assets, which cannot reasonably be expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On June 30, 2020, December 31, 2019 and June 30, 2019, the Group has no written-off financial assets that are still under recourse procedures.
H. The Group used historical and timely information to assess the loss rate of accounts receivable. On June 30, 2020, December 31, 2019 and June 30, 2019, the provision matrix is as follows:

	Not past due	1-180 days past due	Over 180 days past due	Total
June 30, 2020 Expected loss rate	0.009%~0.5%	0.05%~62%	25%~100%
Total book value	\$ 1,186,204	\$ 119,780	\$ 14,285	\$ 1,320,269
	Not past due	1-180 days past due	Over 180 days past due	Total
December 31, 2019
Expected loss rate	0.011%~0.9%	0.06%~59%	25%~100%
Total book value	\$ 1,181,994	\$ 280,468	\$ 21,540	\$ 1,484,002
	Not past due	1-180 days past due	Over 180 days past due	Total
June 30, 2019
Expected loss rate	0.006%~0.3%	0.03%~60%	60%~100%
Total book value	\$ 1,477,217	\$ 242,235	\$ 43,080	\$ 1,762,532

I. The balance of allowance for loss and movements are as follows:

	2020
		Accounts receivable		Notes receivable
At January 1	\$	5,471	\$	-
Reversal of impairment	(	139)		-
Write-offs	(	222)		-
Reclassified to overdue receivables	(	178)		-
Effect of exchange rate changes	(	60)		-
At June 30	\$	4,872	\$	-
		2019
		Accounts receivable		Notes receivable
At January 1	\$	24,627	\$	-
Reversal of impairment	(	833)		-
Reclassified to overdue receivables	(	880)		-
Effect of exchange rate changes		178		-
At June 30	\$	23,092	\$	-

J. The Group does not hold any collateral as security.

(5) Inventories

			June 30, 2020
			Allowance for
	Cost		valuation loss	Book value
Raw materials	\$ 2,149,708	(\$	35,459)	\$ 2,114,249
Work in progress	579,883	(	1,637)	578,246
Finished goods	380,430	(	4,267)	376,163
	\$ 3,110,021	(\$	41,363)	\$ 3,068,658
			December 31, 2019
			Allowance for
	Cost		valuation loss	Book value
Raw materials	\$ 1,301,090	(\$	25,263)	\$ 1,275,827
Work in progress	335,478	(	471)	335,007
Finished goods	454,874	(	3,049)	451,825
	\$ 2,091,442	(\$	28,783)	\$ 2,062,659
			June 30, 2019
			Allowance for
	Cost		valuation loss	Book value
Raw materials	\$ 1,016,205	(\$	28,987)	\$ 987,218
Work in progress	421,080	(	2,826)	418,254
Finished goods	391,403	(	12,100)	379,303
	\$ 1,828,688	(\$	43,913)	\$ 1,784,775

A. The cost of inventories recognized as expense for the period:

	Three months ended June 30,
A		2020		2019
Cost of goods sold	\$	1,887,744	\$	2,485,019
Loss on (gain on reversal of) decline in
market value of inventory		10,249	(	14,342)
	\$	1,897,993	\$	2,470,677
		Six months ended June 30, 2020		2019
Cost of goods sold	\$	4,282,457	\$	5,500,487
Revenue from disposal of scraps Loss on (gain on reversal of) decline in		-	(	16,363)
market value of inventory		12,580	(	35,978)
	\$	4,295,037	\$	5,448,146

The gain on reversal of decline in market value of inventory for the three months and six months ended June 30, 2019 was due to the Group's disposal of slow-moving inventory.

B. No inventories were pledged to others.

Items	June 30, 2020		December 31, 2019	June 30, 2019
Non-current items:
Equity instruments
Listed stocks	\$ 105,480	\$	105,480	\$	146,437
Others	1,125		1,125		1,125
	106,605		106,605		147,562
Valuation adjustments	8,438		7,559		20,728
	\$ 115,043	\$	114,164	\$	168,290

(6) Non-current financial assets at fair value through other comprehensive income

A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to \$115,043, \$114,164 and \$168,290 as at June 30, 2020, December 31, 2019 and June 30, 2019, respectively. In addition, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was the aforementioned fair values.

B. The Group has no disposal of equity investments for the six months ended June 30, 2020 and 2019.

C. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

		Three months ended June 30,
		2020		2019
Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income (loss)	\$	7,032	(\$		2,976)
		Six months ended June 30,
		2020		2019
Equity instruments at fair value through other comprehensive income Fair value change recognized in other
comprehensive income	\$	879	\$		5,135

D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(7) Investments accounted for using equity method

Investee Company	June 30, 2020		December 31, 2019	June 30, 2019
Taiwan IC Packaging Corp.	\$ 92,091	\$	97,434	\$	97,110

A. The basic information of the associate that is material to the Group is as follows:

	Principal		Shareholding ratio
Associate	place of	June	December	June	Nature of	Method of
name	business	30, 2020	31, 2019	30, 2019	relationship	measurement
Taiwan IC	Taiwan	12.74%	12.74%	12.74%	Note	Equity method
Packaging
Corp.

Note: Taiwan IC Packaging Corp. is engaged in IC packaging and testing and is the upstream supplier in the IT and semiconductor industries. In order to reach synergy of vertical integration, Taiwan IC Packaging Corp. processesthe raw materials provided by the Group into relevant semi-finished goods.
B. The summarized financial information of the associate that is material to the Group is as follows: Balance sheet

	Taiwan IC Packaging Corp.
		June 30, 2020		December 31, 2019		June 30, 2019
Current assets	\$	914,025	\$	902,115	\$	912,167
Non-current assets		1,168,033		1,187,726		1,184,054
Current liabilities	(	272,079) (		237,849) (		243,752)
Non-current liabilities	(	86,505) (		88,566) (		89,594)
Total net assets	\$	1,723,474	\$	1,763,426	\$	1,762,875
Share in associate's net assets		219,596		224,686		224,616
Net equity differences	(	127,505) (		127,252) (		127,506)
	\$	92,091	\$	97,434	\$	97,110

Statement of comprehensive income

	Taiwan IC Packaging Corp.
		Three months ended June 30,
		2020		2019
Revenue	\$	258,605	\$	290,939
Loss for the period from continuing
operations	(	29,966) (		11,933)
Total comprehensive loss	(\$	29,966) (\$		11,933)
Dividends received from associates	\$	-	\$	-
	Taiwan IC Packaging Corp.
		Six months ended June 30,
A		2020		2019
Revenue	\$	532,519	\$	540,446
Loss for the period from continuing
operations	(\$	39,952) (\$		51,211)
Total comprehensive loss	(\$	39,952) (\$		51,211)
Dividends received from associates	\$	-	\$	-

C. Share of loss of associates accounted for using the equity method is as follows:

	Three months ended June 30,
Investee Company		2020	2019
Taiwan IC Packaging Corp.	(\$	3,850) (\$		3,681)
		Six months ended June 30,
Investee Company		2020	2019
Taiwan IC Packaging Corp.	(\$	4,932) (\$		8,691)

D. The Group's investment in Taiwan IC Packaging Corporation has quoted market price. The fair value of Taiwan IC Packaging Corporation was \$169,829, \$187,366 and \$152,750 as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively.

(8) Property, plant and equipment

	2020
		Land		Buildings and structures		Machinery		Vehicles		Office equipment	Others	Total
At 1 January
Cost	\$	727 072 ,	\$	2 582 168 , ,	\$	479 560 ,	\$	25 ,696	\$	30 700 ,	\$ \$ 58 042 ,	3 903 238 , ,
Accumulated depreciation		- (		1 144 423) , ,	(	245 826) ,	(	8 ,675)	(	23 730) ( ,	42 430) ( ,	1 465 084) , ,
	\$	727 072 ,	\$	1 437 745 , ,	\$	233 734 ,	\$	17 021 ,	\$	6,970	\$ \$ 15 ,612	2 438 154 , ,

Opening book January 1 net amount as at	\$	727 072 ,	\$	1 437 745 , ,	\$	233 734 ,	\$	17 021 ,	\$	6,970	\$ \$ 15 ,612	2 438 154 , ,
Additions (including transfers)		-		5 564 ,		3 187 ,		675		1 417 ,	5 083 ,	15 926 ,
Disposals		-		- (		38)		-		-	- (	38)
Depreciation charge		- (		52 753) ,	(	36 ,654)	(	2 057) ,	(	1 259) ( ,	3 595) ( ,	96 318) ,
Net exchange differences	(	612)	(	14 834) ,	(	98)	(	54)	(	89) (	68) (	15 755) ,
Closing book 30 June net amount as at	\$	726 460 ,	\$	1 375 722 , ,	\$	200 131 ,	\$	15 585 ,	\$	7 039 ,	\$ \$ 17 032 ,	2 341 969 , ,
At June 30
Cost	\$	726 460 ,	\$	2 554 297 , ,	\$	427 237 ,	\$	26 257 ,	\$	31 191 ,	\$ \$ 55 104 ,	3 820 546 , ,
Accumulated depreciation		- (		1 178 575) , ,	(	227 106) ,	(	10 ,672)	(	24 152) ( ,	38 072) ( ,	1 478 577) , ,
	\$	726 460 ,	\$	1 375 722 , ,	\$	200 131 ,	\$	15 585 ,	\$	039 7 ,	\$ \$ 17 032 ,	2 341 969 , ,

	2019
				Buildings and						Office
		Land		structures		Machinery		Vehicles		equipment		Others	Total
At January 1
Cost	\$	728 476 ,	\$	2 625 296 , ,	\$	472 258 ,	\$	23 992 ,	\$	32 908 ,	\$	\$ 60 874 ,	3 943 804 , ,
Accumulated depreciation		- (		1 065 760) , ,	(	207 764) ,	(	5 218) ,	(	24 081) ,	(	41 488) ( ,	1 344 311) , ,
	\$	728 476 ,	\$	559 536 1 , ,	\$	264 494 ,	\$	18 774 ,	\$	8 827 ,	\$	\$ 19 386 ,	599 2 493 , ,
Opening book 1 January net amount as at	\$	728 476 ,	\$	1 559 536 , ,	\$	264 494 ,	\$	18 774 ,	\$	8 827 ,	\$	\$ 19 386 ,	2 599 493 , ,
Additions (including transfers)		-		2 415 ,		25 388 ,		-		81		2 417 ,	30 301 ,
Depreciation charge		- (		54 339) ,	(	38 851) ,	(	1 939) ,	(	1 501) ,	(	4 196) ( ,	100 826) ,
exchange differences Net		4 109 ,		9 813 ,	(	774)	(	6)		66		33	13 241 ,
Closing book 30 June net amount as at	\$	732 585 ,	\$	1 517 425 , ,	\$	250 257 ,	\$	16 829 ,	\$	7 473 ,	\$	\$ 17 640 ,	2 542 209 , ,
30 At June
Cost	\$	732 585 ,	\$	2 644 395 , ,	\$	485 360 ,	\$	24 003 ,	\$	33 310 ,	\$	\$ 62 578 ,	3 982 231 , ,
Accumulated depreciation		- (		1 126 970) , ,	(	235 103) ,	(	7 174) ,	(	25 837) ,	(	44 938) ( ,	1 440 022) , ,
	\$	732 585 ,	\$	1 517 425 , ,	\$	250 257 ,	\$	16 829 ,	\$	7 473 ,	\$	\$ 17 640 ,	2 542 209 , ,

A. The relevant assets of the Group recognized as property, plant and equipment are all for self-use.

B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(9) Leasing arrangements-lessee

A. The Group leases various assets including land, buildings, and business vehicles. Rental contracts are typically made for periods of 1 to 11 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amounts of right-of-use assets and the depreciation charge are as follows:

	June 30, 2020	December 31, 2019		June 30, 2019
	Carrying amount	Carrying amount		Carrying amount
Land	\$ 154,003	\$ 175,858		\$ 199,873
Buildings	54,119	63,145		60,571
Transportation equipment (business vehicles)	1,236		2,047	2,658
	\$ 209,358	\$ 241,050		\$ 263,102
		Three months ended June 30,
		2020		2019
		Depreciation charge		Depreciation charge
Land	\$	9,760	\$	3,705
Buildings		4,085		4,331
Transportation equipment (business vehicles)		154		263
	\$	13,999	\$	8,299
		Six months ended June 30,
		2020		2019
		Depreciation charge		Depreciation charge
Land	\$	19,534	\$	13,267
Buildings		8,272		8,642
Transportation equipment (business vehicles)		377		527
	\$	28,183	\$	22,436

C. For the three months and six months ended June 30, 2020 and 2019, the additions to right-of-use assets were \$0, \$109,907, \$313 and \$109,907, respectively.

D. Information on profit or loss in relation to lease contracts is as follows:

	Three months ended June 30,
	2020	2019
Items affecting profit or loss
Interest expense on lease liabilities	\$ 505	\$		375
Expense on short-term lease contracts	3,119			959
Expense on leases of low-value assets	375			405
	Six months ended June 30,
	2020		2019
Items affecting profit or loss
Interest expense on lease liabilities	\$ 1,022	\$		653
Expense on short-term lease contracts	5,470			1,918
Expense on leases of low-value assets	758			800

E. For the six months ended June 30, 2020 and 2019, the Group's total cash outflow for leases were \$52,226 and \$51,808, respectively.
(10) Leasing arrangements-lessor
A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To protect the lessor's ownership rights on the leased assets, leased assets may not be used as security for borrowing purposes.
B. For the three months and six months ended June 30, 2020 and 2019, the Group recognized rent income in the amount of \$9,866, \$10,487, \$19,364 and \$21,477, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

	June 30, 2020		December 31, 2019		June 30, 2019
2020	\$ 20,459	2020	\$ 36,348	2019	\$ 18,339
2021	26,028	2021	21,828	2020	36,348
2022	3,900	2022	-	2021	21,828
	\$ 50,387		\$ 58,176		\$ 76,515

(11) Investment property

			2020
	Land		Buildings and structures	Total
At January 1
Cost	\$ 2,268,726	\$	446,392	\$ 2,715,118
Accumulated depreciation	-	(	104,826) (	104,826)
	\$ 2,268,726	\$	341,566	\$ 2,610,292
Opening net book amount as at
January 1	\$ 2,268,726	\$	341,566	\$ 2,610,292
Additions (including transfers)	-		13,498	13,498
Depreciation charge	-	(	6,007) (	6,007)
Net exchange differences	-	(	1,302) (	1,302)
Closing net book amount as at
June 30	\$ 2,268,726	\$	347,755	\$ 2,616,481
At June 30
Cost	\$ 2,268,726	\$	455,655	\$ 2,724,381
Accumulated depreciation	-	(	107,900) (	107,900)
	\$ 2,268,726	\$	347,755	\$ 2,616,481

			2019
	Land		Buildings and structures	Total

At January 1 Cost	\$ 2,268,726	\$	452,380	\$ 2,721,106
Accumulated depreciation	-	(	97,527) (	97,527)
	\$ 2,268,726	\$	354,853	\$ 2,623,579

Opening net book amount as at January 1	\$ 2,268,726	\$	354,853	\$ 2,623,579
Depreciation charge	-	(	5,720) (	5,720)
Net exchange differences	-		639	639
Closing net book amount as at
June 30	\$ 2,268,726	\$	349,772	\$ 2,618,498
At June 30
Cost	\$ 2,268,726	\$	451,491	\$ 2,720,217
Accumulated depreciation	-	(	101,719) (	101,719)
	\$ 2,268,726	\$	349,772	\$ 2,618,498

A. Rental income from the investment property and direct operating expenses arising from investment property are shown below:

	Three months ended June 30,
	2020	2019
Rental income from investment property	\$ 9,866	\$ 10,487
Direct operating expenses arising from investment property that generated rental income	\$ 2,864	\$ 2,645
Direct operating expenses arising from investment property that did not generate rental income	\$ 175	\$ 215
	Six months ended June 30,
A	2020	2019
Rental income from investment property Direct operating expenses arising from	\$ 19,364	\$ 21,477
investment property that generated rental income	\$ 5,650	\$ 5,293
Direct operating expenses arising from investment property that did not
generate rental income	\$ 357	\$ 428

B. The fair value of the investment property held by the Group was \$5,102,769, \$5,107,125 and \$4,651,836 as of June 30, 2020, December 31, 2019 and June 30, 2019, respectively, which was based on the transaction prices of similar properties in the same area.
C. No investment property was pledged to others.

(12) Other non-current assets

	June 30, 2020	December 31, 2019	June 30, 2019
Guarantee deposits paid	\$ 31,851	\$ 31,543	\$ 29,972
Prepayments for business facilities	-	16,926	39,149
Others	14,556	15,141	11,051
	\$ 46,407	\$ 63,610	\$ 80,172

(13) Pensions

A. Defined benefit plan
(a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.
(b) For the aforementioned pension plan, the Group recognized pension costs of \$136, \$173, \$284 and \$346 for the three months and six months ended June 30, 2020 and 2019, respectively.
(c) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2020 amount to \$1,415.
B. Defined contribution plans
(a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) Transcend Shanghai, Transtech Shanghai and Transcend Hong Kong have defined contribution plans. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on a certain percentage of employees' monthly salaries and wages, ranging from 12.5% to 20%. Other than the monthly contributions, the Group has no further obligations.
(c) Transcend Japan, Transcend Korea, Transcend USA, Transcend Europe and Transcend Germany have defined contribution plans. Monthly contributions are based on a certain percentage of employees' monthly salaries and wages and are recognized as pension costs accordingly. Other than the monthly contributions, the Group has no further obligations.
(d) The pension costs under the defined contribution pension plans of the Group for the three months and six months ended June 30, 2020 and 2019 were \$10,022, \$10,353, \$20,650 and \$21,221, respectively.

(14) Share capital

A. As of June 30, 2020, the Company's authorized capital was \$5,000,000, consisting of 500 million shares of ordinary stock (including 25 million shares reserved for employee stock options), and the paid-in capital was \$4,290,617 with par value of \$10 per share. All proceeds from shares issued have been collected.

Movements in the number of the Company's ordinary shares (shares in thousands) outstanding are as follows:

		2020	2019
At January 1		429,248	430,762
Purchase of treasury shares	(	186)	-
At June 30		429,062	430,762

B. Treasury shares

(a) To enhance the Company's credit rating and stockholders' equity, on November 7, 2019, the Board of Directors resolved to repurchase and retire 3 million ordinary shares. The repurchase period is from November 8, 2019 to January 7, 2020, and the price ranged between \$49 and \$97 in dollars per share. The details are as follows:

		Numbers of shares	Carrying
Name of company holding the shares	Reason for reacquisition	(in thousands)	amount
The Company	Enhance the Company's credit	1,700	\$ 130,621
	rating and stockholders'
	equity

On March 5, 2020, the Board of Directors during its meeting resolved to retire treasury shares for capital reduction with the effective date set on March 31, 2020. The registration was completed on April 15, 2020.

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company's issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares to enhance the Company's credit rating and the stockholders' equity should be retired within six months of acquisition.

(15) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paidin capital each year. Capital surplus shall not be used to cover accumulated deficit unless the legal reserve is insufficient.

(16) Retained earnings

A. In accordance with the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and to offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. The Company shall also set aside special reserve in accordance with the regulations. On the premise that there is no effect on the Company's normal operations and no violation of regulations, the Company shall reserve certain amount for maintaining stability of dividends. The remainder, if any, is distributable earnings to be appropriated as resolved by stockholders at the stockholders'meeting. The Board of Directors is authorized by the shareholders to resolve the appropriation of cash dividends and cash payment from capital surplus by a resolution adopted by a majority vote at its meeting attended by twothirds of the total number of directors, which will then be reported to the shareholders.
B. The Company distributes dividends taking into consideration the Company's economic environment, growth phases, future demands of funds, long-term financial planning and the cash flow needs of stockholders. Cash dividends shall account for at least 5% of the total dividends distributed.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
E. The cash appropriation of earnings and cash payment from capital surplus for the years ended December 31, 2019 and 2018 have been resolved at the shareholders' meeting on June 19, 2020 and June 12, 2019, respectively. Details are summarized below:

		Year ended December 31, 2019			Year ended December 31, 2018
			Dividends per					Dividends per
		Amount		share (in dollars)		Amount		share (in dollars)
Legal reserve Special reserve Cash dividends	\$ \$	172,897 69,330 1,544,622 1,786,849	\$	3.60	\$ \$	208,199 14,325 1,895,351 2,117,875	\$	4.40
Cash payment from		Amount		Cash payment per share (in dollars)		Amount		Cash payment per share (in dollars)
capital surplus	\$	386,156	\$	0.90	\$	258,458	\$	0.60

Actual distribution of retained earnings for 2018 was in agreement with the amounts resolved at the stockholders' meeting. The appropriation for cash dividends from 2019 earnings and cash payment from capital surplus have been resolved by the Board of Directors during its meeting on March 5, 2020, and reported to the shareholders on June 19, 2020. Related liabilities were shown as other payables.

(17) Other equity items

			2020
	Unrealized gain or loss on valuation		Exchange differences on translation of foreign financial statements		Total
At January 1	\$ 7,559	(\$	138,461) (\$		130,902)
Revaluation - gross	879		-		879
Currency translation differences	-	(	42,859) (		42,859)
Effect from income tax At June 30	\$ - 8,438	(\$	8,572 172,748) (\$		8,572 164,310)
			2019
	Unrealized		Exchange differences on translation of
	gain or loss		foreign financial
	on valuation		statements		Total
At January 1	\$ 15,593	(\$	77,165) (\$		61,572)
Revaluation - gross	5,135		-		5,135
Currency translation differences	-		28,227		28,227
Effect from income tax	-	(	5,644) (		5,644)
At June 30	\$ 20,728	(\$	54,582) (\$		33,854)
(18) Operating revenue
			Three months ended June 30,
		2020		2019
Sales revenue	\$		\$ 2,485,718		3,163,909
			Six months ended June 30,
		2020		2019

Sales revenue \$ 5,706,128 \$ 6,843,828

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods at a point in time in the following geographical regions:

			Electronic products
Three months ended	Taiwan	Asia	America	Europe	Others	Total
June 30, 2020 Revenue from external customer contracts	\$ 564,201	\$ 978,455	\$ 304,433	\$ 523,811	\$ 114,818	\$ 2,485,718
			Electronic products
Six months ended	Taiwan	Asia	America	Europe	Others	Total
June 30, 2020 Revenue from external
customer contracts	\$ 1,403,768	\$ 2,031,555	\$ 611,636	\$ 1,306,024	\$ 353,145	\$ 5,706,128
			Electronic products
Three months ended	Taiwan	Asia	America	Europe	Others	Total
June 30, 2019
Revenue from external customer contracts	\$ 642,054	\$ 1,114,345	\$ 297,440	\$ 900,377	\$ 209,693	\$ 3,163,909
			Electronic products
Six months ended June 30, 2019	Taiwan	Asia	America	Europe	Others	Total
Revenue from external customer contracts	\$ 1,448,086	\$ 2,381,774	\$ 604,215	\$ 1,911,262	\$ 498,491	\$ 6,843,828

B. The delay of the Group's sales orders has a knock-on effect on the overall revenue due to Covid-19 in the first half of 2020. However, there is no significant impact to the scope and price of the service contracts as the Group negotiated with customers and continuously invests in the manufacture of products for the subsequent shipments.
C. Contract assets and liabilities

The Group has no revenue-related contract assets and liabilities.

(19) Interest income

	Three months ended June 30,
	2020	2019
Interest income from bank deposits	\$ 1,088	\$ 2,099
Interest income from financial assets measured
at amortised cost	20,115	57,756
Other interest income	40	30
	\$ 21,243	\$ 59,885
	Six months ended June 30,
	2020	2019
Interest income from bank deposits	\$ 2,222	\$ 2,955
Interest income from financial assets measured
at amortised cost	43,166	113,899
Other interest income	80	55
	\$ 45,468	\$ 116,909

(20) Other income

	Three months ended June 30,
	2020		2019
Rental income	\$	\$ 9,866	10,487
		Six months ended June 30,
	2020		2019
Rental income	\$	\$ 19,364	21,477

(21) Other gains and losses

0			Three months ended June 30,
		2020	2019
Net gain (loss) on financial assets and
liabilities at fair value through profit or loss	\$	37,619	(\$	12,008)
Net currency exchange (loss) gain	(	39,688)		98,085
Others	(	12,020)		6,342
	(\$	14,089)	\$	92,419
			Six months ended June 30,
		2020	2019

		2020		2019
Loss on disposal of property, plant and equipment	(\$	38)	\$	-
Net gain (loss) on financial assets and
liabilities at fair value through profit or loss		40,965	(	10,571)
Net currency exchange gain		226		126,903
Royalty refund		62,738		-
Others		6,447		7,122
	\$	110,338	\$	123,454

(22) Expenses by nature

		Three months ended June 30,
		2020		2019
Wages and salaries	\$	264,451	\$	285,526
Labor and health insurance fees		28,849		32,120
Pension costs		10,158		10,526
Other personnel expenses		11,579		14,694
Depreciation on property, plant and equipment (including investment
property and right-of-use assets)		64,253		61,555
A	Six months ended June 30,			2019
		2020
Wages and salaries Labor and health insurance fees	\$	602,488	\$	598,709
Pension costs		58,095 20,934		64,462 21,567
Other personnel expenses		25,812		29,583
Depreciation on property, plant and equipment (including investment
property and right-of-use assets)		130,508		128,982

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall not be lower than 1% for employees' compensation and shall not be higher than 0.2% for directors' and supervisors' remuneration.
B. For the three months and six months ended June 30, 2020 and 2019, employees' compensation was accrued at \$3,421, \$5,505, \$9,457 and \$10,345, respectively; while directors' remuneration was accrued at \$479, \$770, \$1,324 and \$1,448, respectively. The aforementioned amounts were recognized in salary expenses.

The employees' compensation and directors' remuneration were estimated and accrued based on 1% and 0.2% of distributable profit of current period for the six months ended June 30, 2020.

The difference between employees' compensation and directors' remuneration as resolved by the Board of Directors and the amounts recognized in the 2019 financial statements by \$714 and \$206, respectively, will be adjusted in profit or loss for 2020. The directors' and supervisors' remuneration for 2019 have yet to be paid.

Information about employees' compensation and directors' remuneration of the Company as approved at the meeting of Board of Directors and resolved by the stockholders at their meeting will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(23) Income tax

A. Income tax expense
(a) Components of income tax expense:

		Three months ended June 30,
		2020		2019
Current tax:
Current tax on profits for the period	\$	78,333	\$	85,049
Prior year income tax underestimation
(overestimation)		1,576	(	6,171)
Total current tax		79,909		78,878
Deferred tax:
Origination and reversal of temporary
differences	(	18,647)		22,359
Total deferred tax	(	18,647)		22,359
Income tax expense	\$	61,262	\$	101,237

	Six months ended June 30,
	2020		2019
Current tax:
Current tax on profits for the period Prior year income tax underestimation	\$ 160,737	\$	177,361
(overestimation)	1,951	(	6,090)
Total current tax	162,688		171,271
Deferred tax:
Origination and reversal of temporary
differences	14,312		25,036
Total deferred tax	14,312		25,036
Income tax expense	\$ 177,000	\$	196,307

(b) The income tax relating to components of other comprehensive income is as follows:

	Three months ended June 30,
		2020		2019
Exchange differences on translation of foreign financial statements	(\$	5,533)	\$		174
A		Six months ended June 30,
		2020		2019
Exchange differences on translation of foreign financial statements	(\$	8,572)	\$		5,644

B. The Company's income tax returns through 2018 have been assessed and approved by the Tax Authority.

(24) Earnings per share

	Three months ended June 30, 2020
		Profit after tax	Weighted-average common shares outstanding (in thousands)		Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	\$	264,607	429,062	\$	0.62
Diluted earnings per share Profit attributable to ordinary	\$
shareholders of the parent Assumed conversion of all dilutive		264,607	429,062
potential ordinary shares Employees' compensation Profit attributable to ordinary		-	379
shareholders of the parent plus assumed conversion of all
dilutive potential ordinary shares	\$	264,607	429,441	\$	0.62
			Six months ended June 30, 2020
			Weighted-average
			common shares outstanding		Earnings per share
		Profit after tax	(in thousands)		(in dollars)
Basic earnings per share Profit attributable to ordinary shareholders of the parent	\$	728,727	429,066	\$	1.70
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	\$	728,727	429,066
Assumed conversion of all dilutive potential ordinary shares
Employees' compensation Profit attributable to ordinary		-	397
shareholders of the parent plus assumed conversion of all
dilutive potential ordinary shares	\$	728,727	429,463	\$	1.70

	Three months ended June 30, 2019
		Profit after tax	Weighted-average common shares outstanding (in thousands)		Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	\$	429,876	430,762	\$	1.00
Diluted earnings per share Profit attributable to ordinary
shareholders of the parent Assumed conversion of all dilutive potential ordinary shares	\$	429,876	430,762
Employees' compensation		-	442
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all
dilutive potential ordinary shares	\$	429,876	431,204	\$	1.00
			Six months ended June 30, 2019
		Profit after tax	Weighted-average common shares outstanding (in thousands)		Earnings per share (in dollars)
Basic earnings per share Profit attributable to ordinary
shareholders of the parent	\$	797,545	430,762	\$	1.85
Diluted earnings per share Profit attributable to ordinary
shareholders of the parent	\$	797,545	430,762
Assumed conversion of all dilutive potential ordinary shares
Employees' compensation Profit attributable to ordinary		-	481
shareholders of the parent plus assumed conversion of all
dilutive potential ordinary shares	\$	797,545	431,243	\$	1.85

(25) Supplemental cash flow information

Financing activities with no cash flow effects:

	Six months ended
		June 30, 2020
Cash dividends	\$	1,544,622
Cash payment from capital surplus		386,156
Less: Shown as other payables	(	1,930,778)
Financing cash flows	\$	-

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Taiwan IC Packaging Corporation	Associate accounted for using equity method
Won Chin Investment Inc. (Won Chin)	Major stockholder
Cheng Chuan Technology Development Inc.	Major stockholder
(Cheng Chuan) (Note)

Note: Cheng Chuan is no longer a related party of the Group since March 5, 2020.

(2) Significant transactions and balances with related parties

A. Operating revenue

	Three months ended June 30,
		2020		2019
Sales of goods Associates accounted for using the equity method	\$	544	\$		1,002
		Six months ended June 30,
		2020		2019
Sales of goods Associates accounted for using the equity
method	\$	1,175	\$		1,002

The sales prices charged to related parties are approximate to those charged to third parties. The credit term to Taiwan IC Packaging Corporation is 30 days after receipt of goods. The credit term to third parties is 30 to 60 days after monthly billings.

B. Purchases

	Three months ended June 30,
		2020		2019
Purchases of goods Associates accounted for using the equity	\$		\$
method		61,402		65,973
		Six months ended June 30,
		2020		2019
Purchases of goods
Associates accounted for using the equity method	\$	119,035	\$	117,985

The purchase prices charged by related parties are approximate to those charged by third parties. The payment term from Taiwan IC Packaging Corporation is 30 days after monthly billings. The payment term from third parties is 30 to 45 days after monthly billings.

C. Receivables from related parties:

	June 30, 2020		December 31, 2019		June 30, 2019
Accounts receivable: Associates accounted for
using equity method	\$	6	\$	8	\$ -

The receivables from related parties arise mainly from sale transactions. The credit term to Taiwan IC Packaging Corporation is 30 days after receipt of goods. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

D. Payables to related parties

	June 30, 2020	December 31, 2019	June 30, 2019
Accounts payable
Associates accounted for
using equity method	\$ 40,396	\$ 52,828	\$ 52,474

The payables to related parties arise mainly from purchase transactions and are due 30 days after monthly billings. The payables bear no interest.

E. Leasing arrangements - lessee

The Company signed a land lease contract with its major stockholders, Won Chin and Cheng Chuan, to build a new plant on the leased land with a lease term of 3 years from June 12, 2019 to June 11, 2022. The annual rental payment is \$37,058 (excluding tax), which was determined based on the average rent of land near the leased land shown in the appraisal report issued by Sinyi Real Estate Appraisers Firm. Rent was paid on the contract date and becomes payable on the same date each following year until the end of the lease. As of June 30, 2020 (Only the balance of Won Chin is disclosed), December 31, 2019 and June 30, 2019, the balance of related right-of-use assets amounted to \$49,145, \$88,521, and \$106,834 while lease liabilities amounted to \$25,483, \$73,050 and \$72,472, respectively.

(3) Key management compensation

	Three months ended June 30,
		2020		2019
Salaries and other employee benefits	\$	11,064	\$	7,076
		Six months ended June 30,
		2020		2019
Salaries and other employee benefits	\$	19,694	\$	13,406

8. PLEDGED ASSETS

The Group's assets pledged as collateral are as follows:

		Book value
Pledged assets	June 30, 2020	December 31, 2019	June 30, 2019	Pledge purpose
Property, plant and	\$ 149,017	\$ 150,499	\$ 158,409	Collateral for general
equipment				credit limit granted by
				financial institutions

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

As of June 30, 2020, except for the provision of endorsements and guarantees mentioned in Note 13(1) B and the lease contract described in Note 6(9), there are no other significant commitments.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

None.

12. OTHERS

(1) Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group's own funds are currently sufficient, daily operations can create stable cash inflows, and there are no significant capital expenditure plans in the short term. Except for obtaining loans to reduce the exchange rate exposure, the Group has sufficient funds to cover its own needs. Debt financing is not necessary.

(2) Financial instruments

A. Financial instruments by category

	June 30, 2020	December 31, 2019	June 30, 2019
Financial assets
Financial assets mandatorily measured
at fair value through profit or loss	\$ 2,760,342	\$ 2,581,509	\$ 1,164,332
Financial assets at fair value through
other comprehensive income	115,043	114,164	168,290
Financial assets at amortised cost
Cash and cash equivalents	1,987,626	1,233,407	1,246,352
Financial assets at amortised cost	7,197,110	8,059,009	10,805,014
Notes receivable	524	3,054	3,246
Accounts receivable (including related
parties)	1,315,403	1,478,539	1,739,440
Other receivables	103,600	124,077	106,004
Refundable deposits	31,851	31,543	29,972
	\$ 13,511,499	\$ 13,625,302	\$ 15,262,650
	June 30, 2020	December 31, 2019	June 30, 2019
Financial liabilities
Financial liabilities mandatorily
measured at fair value through profit
or loss	\$ 68	\$ -	\$ 3,711
Financial liabilities at amortised cost
Accounts payable (including related
parties)	1,090,266	1,058,178	1,127,426
Other payables	2,145,191	267,116	2,370,039
	\$ 3,235,525	\$ 1,325,294	\$ 3,501,176
Lease liabilities	\$ 91,551	\$ 137,642	\$ 134,787

B. Financial risk management policies

There was no significant change during this period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019 for related information.

C. Significant financial risks and degrees of financial risks

There is no significant change except for the following information. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019 for the related information.

(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities.
ii. The Group's businesses involve some non-functional currency operations (the Company's functional currency: NTD; the subsidiaries' functional currencies: JPY, KRW, USD, EUR, GBP and RMB, etc.). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	June 30, 2020
			Foreign
	Foreign		Currency
	Currency		Amount	Exchange rate		Book value
Financial assets	USD:NTD	\$	95,187	29.63	\$	2,820,391
	EUR:NTD		2,610	33.27		86,835
	JPY:NTD		128,380	0.2751		35,317
	USD:EUR		5,906	0.8906		174,995
	USD:JPY		1,011	107.7063		29,956
	USD:HKD		732	7.7505		21,689
	GBP:EUR		1,201	1.0950		43,752
Financial liabilities	USD:NTD	\$	28,398	29.63	\$	841,433
			December 31, 2019
			Foreign
	Foreign		Currency
	Currency		Amount	Exchange rate		Book value
Financial assets	USD:NTD	\$	129,528	29.98	\$	3,883,249
	JPY:NTD		1,051,209	0.2760		290,134
	EUR:NTD		4,963	33.59		166,707
	GBP:NTD		1,045	39.36		41,131
	HKD:NTD		6,000	3.849		23,094
	USD:EUR		4,319	0.8925		129,484
	USD:HKD		971	7.7890		29,111
	USD:JPY		759	108.6232		22,755
Financial liabilities	USD:NTD	\$	27,029	29.98	\$	810,329

	June 30, 2019
	Foreign		Foreign Currency
	Currency		Amount	Exchange rate		Book value
Financial assets	USD:NTD	\$	237,197	31.0600	\$	7,367,339
	EUR:NTD		7,702	35.3800		272,497
	JPY:NTD		1,331,376	0.2886		384,235
	USD:EUR		2,982	0.8779		92,621
	GBP:EUR		622	1.1133		24,501
	USD:JPY		1,391	107.6230		43,204
	USD:HKD		1,017	7.8125		31,588
Financial liabilities	USD:NTD	\$	28,170	31.0600	\$	874,960

The information on total exchange (loss) gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three months and six months ended June 30, 2020 and 2019 is provided in Note 6(21). Sensitivity analysis relating to foreign exchange rate risks is primarily for financial reporting period-end date of foreign currency monetary item. If the New Taiwan dollar exchange rate to the U.S. dollar increases or decreases by 1%, the Group's net income will decrease or increase by \$19,790 and \$64,924 for the six months ended June 30, 2020 and 2019, respectively.

Cash flow and fair value interest rate risk

i. The Group's principal interest-bearing assets are cash and cash equivalents and financial assets at amortised cost. Cash and cash equivalents are due within twelve months. Financial assets at amortised cost are maintained at fixed rates. Therefore, it is assessed that there is no significant cash flow interest rate risk.
ii. The Group has not used any financial instruments to hedge its interest rate risk.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost.
ii. The Group manages its credit risk taking into consideration the entire group's concern. According to the Group's credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. To control internal risk, the Group assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.
iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 180 days.
iv. The Group adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:
(i) If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
(ii) For investments in bonds that are traded over the counter, if any external credit rating agency rates these bonds as investment grade, the credit risk of these financial assets is low.
v. If the credit rating grade of an investment target degrades two scales, there has been a significant increase in credit risk on that instrument since initial recognition.
vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vii. For details of credit risk in relation to accounts receivable and notes receivable, please refer to Note 6(4).
viii. For details of credit risk in relation to debt instrument investments measured at amortised cost, please refer to Note 6(3).
(3) Fair value information
A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks and beneficiary certificates is included in Level 1.
- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group's investment in non-hedging derivatives is included in Level 2.
- Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment in equity investment without active market, financial products and investment property is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(11).
C. Financial instruments not measured at fair value Except for those listed in the table below, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, accounts payable and other payables are approximate to their fair values.
D. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

June 30, 2020	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Beneficiary certificates	\$ 2,743,179	\$ -	\$ -	\$ 2,743,179
Financial products	-	-	17,163	17,163
Financial assets at fair value through
other comprehensive income
Equity securities	113,918	-	1,125	115,043
	\$ 2,857,097	\$ -	\$ 18,288	\$ 2,875,385
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss	\$	\$ 68	\$	\$ 68
Non-hedging derivatives	-		-
December 31, 2019	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss	\$ 2,505,073	\$	\$	\$ 2,505,073
Beneficiary certificates Financial products	-	- -	- 76,436	76,436
Financial assets at fair value through
other comprehensive income
Equity securities	113,039	-	1,125	114,164
	\$ 2,618,112	\$ -	\$ 77,561	\$ 2,695,673
June 30, 2019	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Beneficiary certificates	\$ 1,070,394	\$ -	\$ -	\$ 1,070,394
Financial products Non-hedging derivatives	- -	- 1,180	92,758 -	92,758 1,180
Financial assets at fair value through
other comprehensive income
Equity securities	167,165	-	1,125	168,290
	\$ 1,237,559	\$ 1,180	\$ 93,883	\$ 1,332,622
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss Non-hedging derivatives	\$	\$ 3,711	\$	\$ 3,711
	-		-

E. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the closing price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily listed stocks classified as financial assets at fair value through other comprehensive income and beneficiary certificates classified as financial assets at fair value through profit or loss.
F. For the six months ended June 30, 2020 and 2019, there was no transfer between Level 1 and Level 2.
G. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants. Forward exchange contracts are usually valued based on the current forward exchange rate.
H. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
I. The financial products purchased for the six months ended June 30, 2020 and 2019 were categorised to Level 3.
J. Finance segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and frequently review the fair value.
K. The qualitative information of significant unobservable inputs to valuation model used in Level 3 fair value measurement is as follows: financial products are income investments, and the judgements of their valuation technique and significant unobservable inputs are based on the cash flow of individual contract.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: None.
B. Provision of endorsements and guarantees to others: Please refer to table 1.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding NT\$300 million or 20% of the Company's paid-in capital: Please refer to table 3.
E. Acquisition of real estate reaching NT\$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT\$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to relate parties reaching NT\$100 million or 20% of the Company's paid-in capital or more: Please refer to table 4.
H. Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China):Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 6.
(4) Major shareholders information

Major shareholders information: Please refer to table 9.

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Chairman of the Board of Directors who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

2020		2019

2,485,718	\$	3,163,909
264,607	\$	429,876

2020		2019
5,706,128	\$	6,843,828
728,727	\$	797,545
		Six months ended June 30,

(3) Reconciliation for segment income (loss)

Sales between segments are carried out at arm's length. The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

Provision of endorsements and guarantees to others

Six months ended June 30, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

			Party being		Maximum				Ratio of		Provision of
			endorsed/guaranteed	Limit on	outstanding	Outstanding			accumulated		endorsements/	Provision of	Provision of
				endorsements/	endorsement/	endorsement/		Amount of	endorsement/	Ceiling on total	guarantees by	endorsements/	endorsements/
			Relationship with	guarantees	guarantee	guarantee	Actual	endorsements/	guarantee amount	amount of	parent	guarantees by	guarantees to
			the endorser/	provided for a	amount as of	amount at	amount	guarantees	to net asset value	endorsements	company to	subsidiary to	the party in
Number	Endorser/	Company	guarantor	single party	June 30,	June 30,	drawn down	secured with	of the endorser/	/guarantees	subsidiary	parent	Mainland
(Note 1)	guarantor	name	(Note 2)	(Note 3)	2020 (Note 4)	2020 (Note 5)	(Note 6)	collateral	guarantor company	provided (Note 7)	(Note 8)	company	China	Footnote
0	Transcend	Transcend	2	\$ 3,631,386	\$ 560,200	\$ 550,200	\$ -	-	3	\$ 7,262,772	Y	-	-	-
	Taiwan	Japan Inc.			(JPY \$2,000,000)	(JPY \$2,000,000)
					(In thousands)	(In thousands)

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(a) The Company is '0'.

(b) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:

(a) Having business relationship

(b) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(c) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

(d) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.

(e) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.

(f) Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

(g) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: Not exceeding 20% of the Company's net asset value. (\$18,156,931*20%=\$3,631,386)

Note 4: The maximum outstanding endorsement/guarantee amount during and as of June 30, 2020 is JPY\$2,000,000 (In thousands).

Note 5: The amount was approved by the Board of Directors.

Note 6: The actual amount of endorsement drawn down is \$0.

Note 7: Not exceeding 40% of the Company's net asset value. (\$18,156,931*40%=\$7,262,772)

Note 8: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

June 30, 2020

Table 2 Expressed in thousands of NTD

(Except as otherwise indicated)

						As of June 30, 2020
	Marketable securities	Relationship with the General			Book value			Footnote
Securities held by	(Note 1)	securities issuer (Note 2)	ledger account	Number of shares	(Note 3)	Ownership (%)	Fair value	(Note 4)
Transcend Taiwan	Stocks
	Dramexchange Tech Inc.	-	Non-current financial assets at fair value through other comprehensive income	60,816	\$ 1,125	1	\$ 1,125	-
	Fubon Financial Holding Co., Ltd. Preferred Shares B	-	"	1,758,000	113,918	-	113,918	-
					\$ 115,043
	Beneficiary certificates
	Taishin 1699 Money Market Fund	-	Current financial assets at fair value through profit or loss	147,441,571	\$ 2,008,051	-	\$ 2,008,051	-
	Capital Money Market Fund	-	"	12,325,669	200,128 \$ 2,208,179	-	200,128	-
	Yuanta Taiwan High-yield Leading Company Fund B	-	Non-current financial assets at fair value through profit or loss	50,000,000	\$ 535,000	-	\$ 535,000	-
	Bonds
	International Bills Finance Corporation	-	Current financial assets at amortised cost	-	\$ 414,820	-	\$ -	-
	Standard Chartered Bank	-	Non-current financial assets at amortised cost	-	\$ 72,501	-	\$ -	-
	BNP Paribas	-	"	-	73,280 \$ 145,781	-	-	-
Transcend Information (Shanghai), Ltd.	Financial products
	Financial products of Industrial and Commercial Bank of China	-	Current financial assets at fair value through profit or loss	-	\$ 17,163	-	\$ 17,163	-

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 'Financial instruments'.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital

	Six months ended June 30, 2020
Table 3													Expressed in thousands of NTD
													(Except as otherwise indicated)
	Marketable	General		Relationship with	Balance as at January 1, 2020		Addition (Note 3)				Disposal (Note 3)		Balance as at June 30, 2020
Investor	securities (Note 1)	ledger account	Counterparty (Note 2)	the investor (Note 2)	Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain on disposal	Number of shares	Amount
Transcend Taiwan	Taishin 1699 Money Market Fund	Current financial assets at fair value through profit or loss	-			- 184,410,796 \$ 2,499,764	14,694,969 \$	200,000	51,664,194 \$	702,313 \$	700,329 \$	1,984	147,441,571 \$ 1,999,435
	Capital Money Market Fund	"	-	-	-	-	30,841,673	500,000	18,516,004	300,261	300,000	261	12,325,669	200,000
	Yuanta Taiwan High-yield Leading Company Fund B	Non-current financial assets at fair value through profit or loss	-	-	-	-	50,000,000	500,000	-	-	-	-	50,000,000	500,000

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT\$300 million or 20% of paid-in capital or more.

Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT\$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more

Six months ended June 30, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

								Differences in transaction terms compared to
					Transaction			third party transactions (Note 1)			Notes/accounts receivable (payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Sales (purchases)	Amount	Percentage of total sales (purchases)	Credit term	Unit price	Credit term	Balance		Percentage of total notes/accounts receivable (payable)	Footnote
Transcend Taiwan	Transcend Japan Inc.	The Company's subsidiary	Sales \$	349,940	6	120 days after monthly billings	No significant difference	30 to 60 days after monthly billings to third parties	\$	121,009	10	-
"	Transcend Information Europe B.V.	Subsidiary of Memhiro	"	249,022	5	"	"	"		11,318	1	-
"	Transcend Information, Inc.	The Company's subsidiary	"	268,520	5	"	"	"		19,471	2	-
"	Transcend Korea Inc.	The Company's subsidiary	"	135,092	2	"	"	"		9,443	1	-
"	Transtech Trading (Shanghai) Co., Ltd.	Subsidiary of Memhiro	"	274,408	5	"	"	"		103,044	9	-
"	Transcend Information (H.K) Ltd.	Subsidiary of Memhiro	"	120,277	2	"	"	"		18,679	2	-
"	Transcend Information Trading GmbH, Hamburg	Subsidiary of Memhiro	"	216,389	4	"	"	"		11,470	1	-
"	Taiwan IC Packaging Corporation	Associate accounted for using equity method	(Purchase)	(119,035)	(2)	30 days after monthly billings	"	30 to 45 days after monthly billings to third parties	(	40,396)	(3)	-

Note 1:The Company's sales to subsidiaries were equivalent to subsidiaries' purchases from the Company; accordingly, the Company did not disclose the information on subsidiaries' purchases from the Company.

Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more

Six months ended June 30, 2020

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

			Balance as at						Amount collected
		Relationship	June 30,			Overdue receivables			subsequent to the	Allowance for
Creditor	Counterparty	with the counterparty	2020	Turnover rate		Amount	Action taken		balance sheet date	doubtful accounts
Transcend Taiwan	Transcend Japan Inc.	Subsidiary of the Company	\$ 121,009	4.35 \$		-		- \$	59,975	-
"	Transtech Trading (Shanghai) Co., Ltd.	Subsidiary of Memhiro	103,044	4.96		-		-	62,844	-
Transcend Information (Shanghai), Ltd.	Transcend Taiwan	Ultimate parent company	393,821		-	393,821		-		- -

Significant inter-company transactions during the reporting period

Six months ended June 30, 2020

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

						Transaction
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Transcend Taiwan	Transcend Japan Inc.	1	Sales	\$ 349,940	There is no significant difference in unit price from those to third parties.	6
"	"	Transcend Information Europe B. V.	"	"	249,022	"	4
"	"	Transcend Information, Inc.	"	"	268,520	"	5
"	"	Transcend Korea Inc.	"	"	135,092	"	2
"	"	Transtech Trading (Shanghai) Co., Ltd.	"	"	274,408	"	5
"	"	Transcend Information (H.K) Ltd.	"	"	120,277	"	2
"	"	Transcend Information Trading GmbH, Hamburg	"	"	216,389	"	4
"	"	Transcend Japan Inc.	"	Accounts Receivable	121,009	120 days after monthly billings	1
"	"	Transcend Information (Shanghai), Ltd.	"	Accounts Payable	(393,821)	"	(2)
1	Transcend Information Europe B. V.	Transcend Information Trading GmbH, Hamburg	3	Sales	83,438	There is no significant difference in unit price from those to third parties.	1

(Individual transactions not exceeding 1% of the consolidated total revenue and total assets are not disclosed.)

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(a) Parent company is "0".

(b) Subsidiaries were numbered from 1.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(a) Parent company to subsidiary.

(b) Subsidiary to parent company.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Information on investees

Six months ended June 30, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investment

											income
										Net profit (loss)	(loss) recognized
										of the investee	by the Company
				Initial investment amount			Shares held as at June 30, 2020			for the six months	for the six months
				Balance as at	Balance as at					ended	ended June 30,
				June 30,	December 31,					June 30,	2020
Investor	Investee	Location	Main business activities	2020	2019	Number of shares	Ownership (%)	Book value		2020	(Note 1)	Footnote
Transcend Taiwan	Saffire Investment Ltd.	B.V.I.	Investments holding company	\$ 1,202,418 \$	1,202,418	36,600,000	100	\$ 1,614,040	(\$	7,258)	(\$ 7,258)	Note 2
	Transcend Japan Inc.	Japan	Wholesale of computer memory modules and peripheral products	89,103	89,103	6,400	100	250,842	(	2,606)	( 2,606)	Note 2
	Transcend Information, Inc.	United States of America	Wholesale of computer memory modules and peripheral products	38,592	38,592	625,000	100	192,934		5,227	5,227	Note 2
	Transcend Korea Inc.	Korea	Wholesale of computer memory modules and peripheral products	6,132	6,132	40,000	100	56,998	(	1,085)	( 1,085)	Note 2
	Taiwan IC Packaging Corp.	Taiwan	Packaging of Semi-conductors	354,666	354,666	21,928,036	12.74	92,091	(	39,952)	( 4,932)	Note 5
Saffire Investment Ltd.	Memhiro Pte Ltd.	Singapore	Investments holding company	1,156,920	1,156,920	55,132,000	100	1,575,811	(	7,692)	( 7,692)	Note 3
Memhiro Pte Ltd.	Transcend Information Europe B.V.	Netherlands	Wholesale of computer memory modules and peripheral products	1,693	1,693	100	100	211,520	(	10,681)	( 10,679)	Note 4
	Transcend Information Trading GmbH, Hamburg	Germany	Wholesale of computer memory modules and peripheral products	2,288	2,288	-	100	143,787		29,580	29,580	Note 4
	Transcend Information (H.K.) Ltd.	Hong Kong	Wholesale of computer memory modules and peripheral products	7,636	7,636	2,000,000	100	23,721		1,713	1,713	Note 4

Note 1: The Company does not directly recognize the investment income (loss) except for the subsidiaries directly held.

Note 3: Subsidiary of Saffire.

Note 4: Subsidiary of Memhiro.

Note 5: Please refer to Note 6 (7).

Note 2: Subsidiary of the Company.

Information on investments in Mainland China

Six months ended June 30, 2020

Table 8 Expressed in thousands of NTD

(Except as otherwise indicated)

					Amount remitted from
			Investment	Accumulated amount of remittance from Taiwan to Mainland China	Taiwan to Mainland China/Amount remitted back to Taiwan for the six months ended June 30, 2020 Remitted to	Remitted	Accumulated amount of remittance from Taiwan to Mainland China	Net income (loss) of investee for the six months ended	Ownership held by the Company	Investment income (loss) recognized by the Company for the six months ended	Book value of investments in Mainland China	Accumulated amount of investment income remitted back to
Investee in			method	as of January 1,	Mainland	back to	as of June 30,	June 30,	(direct or	June 30,	as of	Taiwan as of
Mainland China	Main business activities	Paid-in capital	(Note 1)	2020	China	Taiwan	2020	2020	indirect)	2020 (Note 2)	June 30, 2020	June 30, 2020	Footnote
Transcend Information (Shanghai), Ltd.	Manufacture and sales of computer memory modules, storage products and disks	\$ 1,134,178	2	\$ 1,134,178	-	-	\$ 1,134,178 (\$	28,822)	100	(\$ 28,822) \$	1,143,764 \$	1,464,028	-
Transtech Trading (Shanghai) Co., Ltd.	Wholesale, agent, import and export and retail of computer memory modules, storage products and computer components	16,310	2	16,310	-	-	16,310	257	100	257	31,081	-	-
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Transcend Information (Shanghai), Ltd. Transtech Trading	\$ 1,134,178 \$	1,134,178	\$ -
(Shanghai) Co., Ltd.	16,310 \$ 1,150,488 \$	16,310	- 1,150,488 \$ 10,894,159

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area (Memhiro Pte Ltd.), which then invested in Mainland China. (3) Others.

Note 2: The recognition basis of gain and loss on investment was the financial statements which were not reviewed by independent auditors. Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Transcend Information, Inc. and Subsidiaries Major shareholders information June 30, 2020

Table 9

	Shares
Name of major shareholders	Number of shares held	Shareholding ratio
Won Chin Investment Inc.	74,783,600	17.42
Wan An Technology Inc.	33,480,854	7.80
Cheng Chuan Technology Development Inc.	32,971,701	7.68
Wan Min Investment Inc.	29,711,397	6.92
Wan Chuan Investment Inc.	29,505,896	6.87

AI assistant

Transcend — Audit Report / Information 2020

52092_rns_2020-12-30_de2e559e-a0be-44be-b24f-0e1cdae84125.pdf

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT JUNE 30, 2020 AND 2019

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan Dollars) (The consolidated balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan Dollars) (The consolidated balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in thousands of New Taiwan Dollars, except for earnings per share) (UNAUDITED)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of New Taiwan Dollars) (UNAUDITED)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of New Taiwan Dollars)

TRANSCEND INFORMATION, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2020 AND 2019

(UNAUDITED)

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(3) Financial assets at amortised cost

(5) Inventories

Statement of comprehensive income

(8) Property, plant and equipment

(9) Leasing arrangements-lessee

(11) Investment property

(12) Other non-current assets

(13) Pensions

(14) Share capital

B. Treasury shares

(15) Capital surplus

(16) Retained earnings

(17) Other equity items

Sales revenue \$ 5,706,128 \$ 6,843,828

(20) Other income

(21) Other gains and losses

(22) Expenses by nature

(23) Income tax

(24) Earnings per share

(25) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant transactions and balances with related parties

A. Operating revenue

B. Purchases

C. Receivables from related parties:

E. Leasing arrangements - lessee

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(1) Capital risk management

(2) Financial instruments

A. Financial instruments by category

Cash flow and fair value interest rate risk

13. SUPPLEMENTARY DISCLOSURES

(3) Information on investments in Mainland China

14. SEGMENT INFORMATION

(3) Reconciliation for segment income (loss)

Provision of endorsements and guarantees to others

Six months ended June 30, 2020

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

June 30, 2020

Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital

Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more

Six months ended June 30, 2020

Receivables from related parties reaching NT\$100 million or 20% of paid-in capital or more

Six months ended June 30, 2020

Significant inter-company transactions during the reporting period

Six months ended June 30, 2020

Information on investees

Six months ended June 30, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Information on investments in Mainland China

Transcend Information, Inc. and Subsidiaries Major shareholders information June 30, 2020

More from Transcend

Transcend Audit Report / Information 2020