Transcend — Audit Report / Information 2021

Dec 31, 2021

TRANSCEND INFORMATION, INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2021 AND 2020

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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.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR21000371

To the Board of Directors and Shareholders of Transcend Information, Inc.

Opinion

We have audited the accompanying parent company only balance sheets of Transcend Information, Inc. as at December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Company’s 2021 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matters for the Company’s 2021 parent company only financial statements are stated as follows:

Valuation of inventories

Description

Refer to Notes 4(12), 5(2) and 6(5) to the financial statements for the information on the Company’s inventory accounting policy, estimates and assumptions and allowance for inventory valuation losses.

The percentage of the Company’s inventories to total assets is material and the Company applies judgements and estimates in determining the net realizable value of inventories at the balance sheet date. The Company mainly produces DRAM and flash memory. As these products have a short life cycle and belong to a highly competitive industry, the market prices change frequently. Since the Company’s inventories and the allowance for inventory valuation losses are material to the financial statements, the valuation of inventories has been identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

• A. Obtained an understanding of the Company’s operations and industry. Assessed the reasonableness of the policy and procedures to recognize allowance for inventory valuation losses.

• B. Obtained an understanding of the Company’s inventory control procedures. Reviewed annual inventory count plan and observed the annual physical count of inventory in order to assess the effectiveness of internal controls over inventory.

• C. Obtained relevant evaluation reports of inventory and tested the logic and accuracy of information to assess the reasonableness of allowance for inventory valuation losses.

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Estimation of allowance for sales discount

Description

In consideration of business volume, the Company provides a variety of business incentives to specific customers or products, and based on that, the Company can estimate the allowance for sales discount monthly. Refer to Notes 4(23) and 6(4) to the parent company only financial statements for the information on the estimation of allowance for sales discount.

Since the contracts are numerous and the result could affect the net revenue in the parent company only financial statements, the estimation of allowance for sales discount has been identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

• A. Obtained an understanding of the Company’s operations, industry and the procedures to recognize allowance for sales discount.

• B. Obtained an understanding of the Company’s sales procedures and interviewed management to assess the appropriateness of sales allowance contracts and internal control over estimation of allowance.

• C. Obtained the evaluation list of allowance for sales discount, and tested material sales allowance contracts and recalculated it to assess the reasonableness of allowance determined by the Company.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

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Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• A. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• E. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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• F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Lin, Chun-Yao Chen, Chin-Chang

For and on behalf of PricewaterhouseCoopers, Taiwan

March 3, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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TRANSCEND INFORMATION, INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4) 6(4) 7 6(5) 6(2) 6(6) 6(7) 6(8) 6(9) and 7 6(11) 6(23) 6(12)	December 31, 2021 AMOUNT % $ 1,659,848 7 1,506,595 7 5,480,400 24 2,499 - 1,137,589 5 275,729 1 105,235 - 5,614,563 25 1,160 - 15,783,618 69 111,599 1 629,576 3 2,114,375 9 1,435,144 7 15,263 - 2,560,275 11 38,943 - 41,774 - 6,946,949 31 $ 22,730,567 100	December 31, 2020	December 31, 2020
		AMOUNT $ 1,659,848 1,506,595 5,480,400 2,499 1,137,589 275,729 105,235 5,614,563 1,160 15,783,618 111,599 629,576 2,114,375 1,435,144 15,263 2,560,275 38,943 41,774 6,946,949 $ 22,730,567	AMOUNT $ 399,574 3,510,998 5,450,000 759 810,648 404,360 70,135 3,075,423 916 13,722,813 744,922 111,000 2,156,258 1,540,175 51,893 2,566,019 29,125 27,473 7,226,865 $ 20,949,678	%
Current Assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Current financial assets at amortised cost, net Notes receivable, net Accounts receivable, net Accounts receivable due from related parties, net Other receivables Inventories, net Other current assets Total Current Assets Non-current Assets Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income Investments accounted for using equity method Property, plant and equipment, net Right-of-use assets Investment property, net Deferred tax assets Other non-current assets Total Non-current Assets Total Assets				2 17 26 - 4 2 - 14 -
				65
				4 1 10 8 - 12 - -
				35
				100

(Continued)

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TRANSCEND INFORMATION, INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity

December 31, 2021 December 31, 2020 Notes AMOUNT % AMOUNT % $ 1,363,844 6 $ 1,132,016 6 7 460,531 2 450,706 2 252,367 1 206,964 1 7 17,431 - 17,564 - 583,714 3 245,884 1 7 - - 36,815 - 68,268 - 24,572 - 2,746,155 12 2,114,521 10 6(23) 128,777 1 139,689 1 6(13) 20,800 - 23,442 - 149,577 1 163,131 1 2,895,732 13 2,277,652 11 6(14) 4,290,617 19 4,290,617 21 6(15) 3,730,914 16 3,945,369 19 6(16) 4,803,503 21 4,683,878 22 117,244 1 130,902 1 7,083,072 31 5,738,504 27 6(17) ( 190,515) ( 1) ( 117,244) ( 1 ) 19,834,835 87 18,672,026 89 9 11 $ 22,730,567 100 $ 20,949,678 100

Current Liabilities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Current tax liabilities Current lease liabilities Other current liabilities Total Current Liabilities Non-current Liabilities Deferred tax liabilities Other non-current liabilities Total Non-current Liabilities Total Liabilities Equity Share capital Common stock Capital surplus Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Other equity interest Total Equity Significant contingent liabilities and unrecognized contract commitments Significant events after the balance sheet date Total Liabilities and Equity

The accompanying notes are an integral part of these parent company only financial statements.

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TRANSCEND INFORMATION, INC. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars, except for earnings per share amount)

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(18) and 7 $ 13,747,158 100 $ 10,937,519 100 6(5)(22) and 7 ( 10,166,903) ( 74) ( 8,963,964) ( 82) 3,580,255 26 1,973,555 18 ( 10,106) - ( 16,106) - 16,106 - 25,422 - 3,586,255 26 1,982,871 18 6(22) ( 340,797) ( 2) ( 296,598) ( 3) ( 209,337) ( 2) ( 236,753) ( 2) ( 151,458) ( 1) ( 133,356) ( 1) 6(4) ( 1,382) - ( 1,029) - ( 702,974) ( 5) ( 667,736) ( 6) 2,883,281 21 1,315,135 12 6(19) 77,318 1 71,174 1 6(20) 37,253 - 38,721 - 6(21) and 7 72,068 - 134,937 1 6(3) - - 17,210 - 6(9) ( 243) - ( 823) - 6(7) 47,282 - ( 115,062) ( 1) 233,678 1 146,157 1 3,116,959 22 1,461,292 13 6(23) ( 583,665) ( 4) ( 263,557) ( 2) $ 2,533,294 18 $ 1,197,735 11 6(13) $ 2,344 - ($ 1,072) - 6(6)(17) 11,826 - ( 3,164) - 200 - ( 411) - 6(7)(17) ( 95,365) - 21,027 - 6(17)(23) 19,072 - ( 4,205) - ($ 61,923) - $ 12,175 - $ 2,471,371 18 $ 1,209,910 11 6(24) $ 5.90 $ 2.79 $ 5.90 $ 2.79

Operating Revenue Operating Costs Gross Profit Unrealized profit from sales Realized profit from sales Realized Gross Profit Operating Expenses Sales and marketing expenses Administrative expenses Research and development expenses Impairment loss determined in accordance with IFRS 9 Total operating expenses Operating Profit Non-operating Income and Expenses Interest income Other income Other gains and losses Net gain from derecognizing financial assets measured at amortized cost Finance costs Share of profit (loss) of subsidiaries, associates and joint ventures accounted for using the equity method Total non-operating income and expenses Profit before Income Tax Income tax expense Profit for the Year Other Comprehensive Income (Loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss Gains (losses) on remeasurements of defined benefit plans Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method Components of other comprehensive income (loss) that will be reclassified to profit or loss Exchange differences on translation of foreign financial statements Income tax related to components of other comprehensive income that will be reclassified to profit or loss Other Comprehensive (Loss) Income for the Year Total Comprehensive Income Earnings Per Share (in dollars) Basic earnings per share Diluted earnings per share

The accompanying notes are an integral part of these parent company only financial statements.

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TRANSCEND INFORMATION, INC. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2020 Balance at January 1, 2020 Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2019 earnings Legal reserve Cash dividends Special reserve Cash payment from capital surplus Expired unclaimed dividends recognized as capital surplus Purchase of treasury stock Cancellation of treasury stock Balance at December 31, 2020 Year ended December 31, 2021 Balance at January 1, 2021 Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2020 earnings Legal reserve Cash dividends Reversal of special reserve Cash payment from capital surplus Net gain on disposal of financial assets at fair value through other comprehensive income Expired unclaimed dividends recognized as capital surplus Balance at December 31, 2021	Notes		Common stock		Capital Reserves	Capital Reserves	Capital Reserves						Retained Earnings			Other Equity Interest	Other Equity Interest	Other Equity Interest	Treasury shares		Total equity
					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	a	Unrealized gain or loss on financial ssets at fair value through other comprehensive income
	6(6)(17) 6(16) 6(16) 6(14) 6(6)(17) 6(16) 6(16) 6(6)(17)	$ 4,307,617 - - - - - - - - - ( 17,000 ) $ 4,290,617 $ 4,290,617 - - - - - - - - - $ 4,290,617		$ 4,307,541 - - - - - - ( 386,156 ) - - ( 15,422 ) $ 3,905,963 $ 3,905,963 - - - - - - ( 214,531 ) - - $ 3,691,432			$ 4,185 - - - - - - - 93 - - $ 4,278 $ 4,278 - - - - - - - - 76 $ 4,354		$ 35,128 - - - - - - - - - - $ 35,128 $ 35,128 - - - - - - - - - $ 35,128		$ 4,510,981 - - - 172,897 - - - - - - $ 4,683,878 $ 4,683,878 - - - 119,625 - - - - - $ 4,803,503	$ 61,572 - - - - - 69,330 - - - - $ 130,902 $ 130,902 - - - - - ( 13,658 ) - - - $ 117,244		$ 6,427,300 1,197,735 ( 1,483 ) 1,196,252 ( 172,897 ) ( 1,544,622 ) ( 69,330 ) - - - ( 98,199 ) $ 5,738,504 $ 5,738,504 2,533,294 2,544 2,535,838 ( 119,625 ) ( 1,094,107 ) 13,658 - 8,804 - $ 7,083,072		($ 138,461 ) - 16,822 16,822 - - - - - - - ($ 121,639 ) ($ 121,639 ) - ( 76,293 ) ( 76,293 ) - - - - - - ($ 197,932 )	$ 7,559 - ( 3,164 ) ( 3,164 ) - - - - - - - $ 4,395 $ 4,395 - 11,826 11,826 - - - - ( 8,804 ) - $ 7,417		($ 116,574 ) - - - - - - - - ( 14,047 ) 130,621 $ - $ - - - - - - - - - - $ -	$ 19,406,848 1,197,735 12,175 1,209,910 - ( 1,544,622 ) - ( 386,156 ) 93 ( 14,047 ) - $ 18,672,026 $ 18,672,026 2,533,294 ( 61,923 ) 2,471,371 - ( 1,094,107 ) - ( 214,531 ) - 76 $ 19,834,835

The accompanying notes are an integral part of these parent company only financial statements.

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TRANSCEND INFORMATION, INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Unrealized profit from sales Realized profit from sales Net gain on financial assets at fair value through profit or loss Share of profit or loss of associates and joint ventures accounted for using the equity method Expected credit loss Depreciation Interest income Interest expense Dividend income Loss on disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Financial assets mandatorily measured at fair value through profit or loss Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Inventories Other current assets Changes in operating liabilities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Other non-current liabilities Cash inflow (outflow) generated from operations Dividends received Interest received Income tax paid Net cash flows from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of non-current financial assets at fair value through profit or loss Acquisition of non-current financial assets at fair value through profit or loss Proceeds from disposal of financial assets at amortised cost Acquisition of financial assets at amortised cost Proceeds from disposal of non-current financial assets at fair value through other comprehensive income Acquisition of non-current financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Acquisition of investment property (Increase) decrease in other non-current financial assets Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (including cash payment from capital surplus) Repayment of lease liabilities Expired unclaimed dividends recognized as capital surplus Purchase of treasury stock Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2021 2020 $ 3,116,959 $ 1,461,292 10,106 16,106 ( 16,106 ) ( 25,422 ) 6(2)(21) ( 84,375 ) ( 146,883 ) 6(7) ( 47,282 ) 115,062 6(4) 1,382 1,029 6(22) 164,702 170,349 6(19) ( 77,318 ) ( 71,174 ) 6(9) 243 823 6(6)(21) ( 6,787 ) ( 3,834 ) 6(21) - 2,098 2,011,865 ( 992,901 ) ( 1,740 ) 2,295 ( 328,323 ) 87,030 128,631 50,416 ( 39,148 ) 27,074 ( 2,539,140 ) ( 1,107,527 ) ( 244 ) 4,304 231,828 129,702 9,825 ( 6,658 ) 45,403 ( 4,503 ) ( 133 ) 256 43,696 21,142 ( 298 ) ( 868 ) 2,623,746 ( 270,792 ) 6,787 3,834 81,366 80,217 ( 247,493 ) ( 66,796 ) 2,464,406 ( 253,537 ) 841,021 - ( 130,785 ) ( 611,063 ) 2,500,000 6,226,353 ( 2,530,400 ) ( 3,800,000 ) 6(6) 54,426 - ( 561,176 ) - 6(8) ( 14,888 ) ( 23,654 ) 6(11) ( 2,409 ) ( 1,082 ) ( 14,301 ) 4,088 141,488 1,794,642 6(16) ( 1,308,638 ) ( 1,930,778 ) ( 37,058 ) ( 37,058 ) 76 93 - ( 37,371 ) ( 1,345,620 ) ( 2,005,114 ) 1,260,274 ( 464,009 ) 399,574 863,583 $ 1,659,848 $ 399,574

The accompanying notes are an integral part of these parent company only financial statements.

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TRANSCEND INFORMATION, INC. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)

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 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 parent company only financial statements were authorized for issuance by the Board of Directors on March 3, 2022.

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 2021 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June	January 1, 2021 January 1, 2021 April 1, 2021 (Note)

Note: Earlier application from January 1, 2021 is allowed by the FSC.

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

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

the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International
	Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment:	January 1, 2022
proceeds before intended use’
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 Company’s financial condition and financial performance based on the Company’s assessment.

(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:

==> picture [475 x 65] intentionally omitted <==

----- Start of picture text -----

Effective date by
International
Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between	To be determined
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
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2023
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising	January 1, 2023
from a single transaction’

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

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

• A. Except for the following items, the 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 Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5.

(3) Foreign currency translation

The financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Company’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

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• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within‘other gains and losses’.

• B. Translation of foreign operations

The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

• (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

• (c) All resulting exchange differences are recognized in other comprehensive income.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realized within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

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• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(7) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting. (Irrevocable election is separately classified, and needs to be disclosed when there is various election).

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

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(8) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Company’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.

(9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Financial assets impairment

For debt instruments measured at fair value through other comprehensive income and financial assets at amortised cost including accounts receivable that have a significant financing component, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

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(12) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on actual operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(13) Investments accounted for using equity method-subsidiaries and associates

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealized gains on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize losses proportionate to its ownership.

• D. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• E. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

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• F. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• G. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• H. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• I. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• J. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the nonconsolidated financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the nonconsolidated financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

(14) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

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• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 8 ~ 50 years Machinery and equipment 2 ~ 10 years Transportation equipment 3 ~ 5 years Office equipment and others 2 ~ 5 years

(15) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable; and

• (b) Variable lease payments that depend on an index or a rate.

The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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• C. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 10 ~ 55 years.

(17) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognized.

(18) Notes and accounts payable

Notes and accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(19) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

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B. Pensions

• (a) Defined contribution plan

For the defined contribution plan, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plan are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognized immediately in profit or loss.

• C. Employees’ compensation and directors’ and supervisors’ remuneration

• Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

(20) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology and research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(21) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s shares that have been issued, the consideration paid, excluding any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders.

(22) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(23) Revenue recognition

• A. Sales of goods

• (a) The Company manufactures and sells computer software and hardware, computer peripheral equipment, and computer component products. When the right of control is transferred to the customer, sales revenue is recognized. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

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• (b) Sales revenue is recognized based on the contract price, net of sales returns, volume discounts and estimated sales discount and allowances. The goods are often sold with volume discounts based on aggregate sales over a one-month period. Sales discounts and allowances are estimated and provided for based on customer contracts, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date and recognized as allowance for sales discounts. No element of financing is deemed present as the sales are made with a credit term of 30-60 days after monthly billing, which is consistent with market practice.

• (c) A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Incremental costs of obtaining a contract

Given that the contractual period lasts less than one year, the Company recognizes the incremental costs of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

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

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

Investment property

The Company uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment property only if the own use portion accounts for an insignificant portion of the property.

(2) Critical accounting estimates and assumptions

Valuation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory

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consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. The valuation of inventories is based on recent market price and demand of products in the future specific period, thus there might be significant changes in the valuation.

As of December 31, 2021, the carrying amount of inventories was $5,614,563.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and petty cash Checking accounts and demand deposits Time deposits	December 31,2021 December 31, 2020 68 $ 677 $ 1,572,900 398,897 86,880 - 1,659,848 $ 399,574 $

• A. The aforementioned time deposits pertain to high liquidity investments with maturity within three months.

• B. The Company 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.

• C. The Company has no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through profit or loss

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Valuation adjustments Non-current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Valuation adjustments	December 31,2021 1,501,948 $ 4,647 1,506,595 $ 100,976 $ 10,623 111,599 $	December 31,2020
		3,501,229 $ 9,769
		3,510,998 $
		611,063 $ 133,859
		744,922 $

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

Beneficiary certificates Non-hedging derivatives	Years ended December 31,	Years ended December 31,
	2021 84,375 $ - 84,375 $	2020
		145,108 $ 1,775
		146,883 $

• B. The Company has no financial assets at fair value through profit or loss pledged to others.

• (3) Financial assets at amortised cost

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Items December 31, 2021 December 31, 2020
----- End of picture text -----

Current items: Time deposits with original maturity of more than three months 5,480,400 $	5,450,000 $

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

below:
Interest income Gain on disposal	2021 2020 23,379 $ 63,217 $ - 17,210 23,379 $ 80,427 $ Years ended December 31,
		63,217 $ 17,210
		80,427 $

• B. The Company has no financial assets at amortised cost pledged to others as collateral.

• C. The Company 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 December 31, 2021 and 2020, and considered guarantee for repurchase agreement held by the Company to estimate expected credit loss. The Company does not expect material credit loss after assessment.

• D. The Company transacts time deposits with reputable domestic and foreign banks. The Company’s counterparties have good credit quality, and the impairment loss is assessed using a 12-month expected credit loss approach.

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(4) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance	December 31,2021 December 31,2020 2,499 $ 759 $ December 31,2021 December 31,2020 1,137,589 $ 812,398 $ - 1,750) ( 1,137,589 $ 810,648 $	December 31,2020
		759 $
		December 31,2020
		810,648 $

• A. As of December 31, 2021 and 2020, the estimated sales discounts and allowances were $31,410 and $41,562, 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.

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

Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days	Accounts receivable 943,522 $ 193,249 818 - - 1,137,589 $ December December	Notes receivable 31,2021
		2,499 $ - - - -
		2,499 $
		31,2020
	Accounts receivable 678,549 $ 126,678 4,114 - 3,057 812,398 $	Notes receivable
		759 $ - - - -
		759 $

The above ageing analysis was based on past due date.

• C. The Company has credit insurance that covers accounts receivable from major customers. Should bad debts occur, the Company will receive 90% of the losses resulting from non-payment.

• D. As of December 31, 2021 and 2020, notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2020, the balance of notes receivable and accounts receivable from contracts with customers amounted to $903,794.

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• E. As at December 31, 2021 and 2020, 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 Company’s notes receivable were $2,499 and $759, respectively; the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable were $1,137,589 and $810,648, respectively.

• F. The Company classifies customers’ accounts receivable in accordance with the credit rating of the customer. The Company applies the simplified approach to estimate expected credit loss under the provision matrix basis.

• G. The Company wrote-off the financial assets, which cannot reasonably be expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. On December 31, 2021 and 2020, the Company has no writtenoff financial assets that are still under recourse procedures.

• H. The Company used forecastability, historical and timely information to assess the loss rate of accounts receivable. On December 31, 2021 and 2020, the provision matrix is as follows:

December 31, 2021 Expected loss rate Total book value December 31, 2020 Expected loss rate Total book value	Not 1-180 days past due past due 0.006% 0.03%~12.93% 943,522 $ 194,067 $ Not 1-180 days past due past due 0.008% 0.04%~14.60% 678,549 $ 130,792 $	Over 180 days past due 25%~100% - $ Over 180 days past due 25%~100% 3,057 $	Total
			1,137,589 $ Total
			812,398 $

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

			2021	2021
		Accounts	receivable		Notes receivable
At January 1	$		1,750	$		-
Provision for impairment			1,246			-
Reclassified to overdue receivables	(		3,132)			-
Effect of exchange rate changes			136			-
At December 31	$		-	$		-

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			2020	2020
		Accounts	receivable		Notes receivable
At January 1	$		2,033	$	-
Provision for impairment			1,134		-
Reclassified to overdue receivables	(		178)		-
Reclassified to other income	(		1,134)		-
Effect of exchange rate changes	(		105)		-
At December 31	$		1,750	$	-

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

(5) Inventories

Raw materials Work in progress Finished goods Raw materials Work in progress Finished goods		December 31,2021
	Allowance for Cost valuation loss 4,555,175 $ 48,311) ($ 604,979 438) ( 506,929 3,771) ( 5,667,083 $ 52,520) ($ December 31,2020		Book value
			4,506,864 $ 604,541 503,158
			5,614,563 $
	Allowance for Cost valuation loss 2,161,744 $ 28,593) ($ 487,023 1,023) ( 461,818 5,546) ( 3,110,585 $ 35,162) ($		Book value
			2,133,151 $ 486,000 456,272
			3,075,423 $

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

Cost of goods sold Loss on decline in market value of inventory	Years ended December 31,	Years ended December 31,
	2021 10,149,545 $ 17,358 10,166,903 $	2020
		8,957,375 $ 6,589
		8,963,964 $

B. No inventories were pledged to others.

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

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Items December 31, 2021 December 31, 2020
Non-current items:
Equity instruments
Listed stocks $ 621,034 $ 105,480
Others 1,125 1,125
622,159 106,605
Valuation adjustments 7,417 4,395
$ 629,576 $ 111,000
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	Valuation adjustments 7,417 4,395 629,576 $ 111,000 $
A. B. C.	The Company 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 $629,576 and $111,000 as at December 31, 2021 and 2020, respectively. For the year ended December 31, 2021, the Company disposed equity investments whose fair value was $54,426, and the cumulative gain on disposal was transferred to retained earnings in the amount of $8,804. There was no such transaction for the year ended December 31, 2020. 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: 2021 2020 Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income (loss) 11,826 $ 3,164) ($ Cumulative gains reclassified to retained earnings due to derecognition 8,804 $ - $ Dividend income recognized in profit or loss Held at end of year 6,787 $ 3,834 $ Derecognized during the year - - 6,787 $ 3,834 $ Years ended December 31,

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

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(7) Investments accounted for using equity method

			2021			2020
At January 1		$	2,156,258		$	2,241,388
Share of profit or loss of investments accounted			47,282	(		115,062)
for using equity method
Decrease in unrealised profit from sales			6,000			9,316
Other comprehensive income			200	(		411)
Changes in other equity items (Note 6(17))	(		95,365)			21,027
At December 31		$	2,114,375		$	2,156,258
Investees		December31,2021			December31,2020
Subsidiaries:
Saffire Investment Ltd.		$	1,496,302		$	1,563,437
Transcend Japan Inc.			229,616			257,211
Transcend Information Inc.			184,082			180,982
Transcend Korea Inc.			55,861			58,904
Associates:
Taiwan IC Packaging Corp.			148,514			95,724
		$	2,114,375		$	2,156,258

A. Subsidiaries

Please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2021 for the information regarding the Company’s subsidiaries.

B. Associates

• (a) The basic information of the associate that is material to the Company is as follows:

Associate name Taiwan IC Packaging Corp.	Principal place of business Taiwan	December December Nature of 31,2021 31,2020 relationship 12.52% 12.74% Note Shareholdingratio	Method of measurement
		December 31,2021 12.52%
			Equity method

• 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. processes the raw materials provided by the Company into relevant semi-finished goods.

• (b) The Company held a 12.52% equity interest in Taiwan IC Packaging Corp., and is the company’s largest single shareholder. However, the Company does not hold the majority of the voting power during the shareholders’ meeting of Taiwan IC Packaging Corp. and the Company has no seat in the Board of Directors of Taiwan IC Packaging Corp., which indicate

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that the Company has no control ability to direct the relevant activities of Taiwan IC Packaging Corp. In addition, the Company’s chairman is the same with Taiwan IC Packaging Corp.; hence, the Company has significant influence over Taiwan IC Packaging Corp.

• (c) The summarized financial information of the associate that is material to the Company is as follows:

Balance sheet

		Taiwan IC PackagingCorp.	Taiwan IC PackagingCorp.	Taiwan IC PackagingCorp.
	December 31,2021		December 31, 2020
Current assets	$	1,408,762	$	942,507
Non-current assets		1,219,160		1,224,429
Current liabilities	(	374,580)	(	327,211)
Non-current liabilities	(	83,523)	(	85,765)
Total net assets	$	2,169,819	$	1,753,960
Share in associate’s net assets	$	271,661	$	223,480
Net equity differences	(	123,147)	(	127,756)
	$	148,514	$	95,724

Statement of comprehensive income

A Revenue Gain (loss) for the year from continuing operations Total comprehensive income (loss) Dividends received from associates	2021 2020 1,944,950 $ 1,210,125 $ 411,645 $ 11,040) ($ 409,917 $ 9,466) ($ - $ - $ Taiwan IC PackagingCorp. Years ended December 31,

• (d) Share of profit (loss) of associates accounted for using the equity method is as follows:

Investee Company Taiwan IC Packaging Corp.	2021 2020 52,590 $ 1,299) ($ Years ended December 31,

• (e) The Company’s investment in Taiwan IC Packaging Corporation has quoted market price. The fair value of Taiwan IC Packaging Corporation was $446,724 and $239,053 as of December 31, 2021 and 2020, respectively.

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(8) Property, plant and equipment

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions (including transfers) Depreciation charge Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation

Buildings and Office Land structures Machinery Vehicles equipment Others Total 601,268 $ 1,207,688 $ 389,642 $ 22,109 $ 4,691 $ 28,476 $ 2,253,874 $ - 467,122) ( 218,558) ( 9,315) ( 2,812) ( 15,892) ( 713,699) ( 601,268 $ 740,566 $ 171,084 $ 12,794 $ 1,879 $ 12,584 $ 1,540,175 $ 601,268 $ 740,566 $ 171,084 $ 12,794 $ 1,879 $ 12,584 $ 1,540,175 $ - 229 2,710 1,216 7,556 3,177 14,888 - 45,796) ( 62,196) ( 3,736) ( 2,184) ( 6,007) ( 119,919) ( 601,268 $ 694,999 $ 111,598 $ 10,274 $ 7,251 $ 9,754 $ 1,435,144 $ 601,268 $ 1,207,917 $ 355,091 $ 23,325 $ 10,485 $ 24,252 $ 2,222,338 $ - 512,918) ( 243,493) ( 13,051) ( 3,234) ( 14,498) ( 787,194) ( 601,268 $ 694,999 $ 111,598 $ 10,274 $ 7,251 $ 9,754 $ 1,435,144 $ 2021

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At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions (including transfers) Disposals Depreciation charge Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation			2020

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

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(9) Leasing arrangements-lessee

• A. The Company’s lease asset is land. Rental contracts are typically made for 3 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:

Land Land	December 31, 2021 December 31, 2020 Carrying amount Carryingamount 15,263 $ 51,893 $ 2021 2020 Depreciation charge Depreciation charge 36,630 $ 36,628 $ Years ended December 31,

• C. For the years ended December 31, 2021 and 2020, there were no additions to right-of-use assets.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Years ended December 31,
	2021 2020 243 $ 823 $ 4,984 5,207 770 847

• E. For the years ended December 31, 2021 and 2020, the Company’s total cash outflow for leases were $42,812 and $43,112, respectively.

(10) Leasing arrangements-lessor

• A. The Company 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, or a residual value guarantee was required.

• B. For the years ended December 31, 2021 and 2020, the Company recognized rent income in the amount of $37,253 and $38,721, respectively, based on the operating lease agreement, which does not include variable lease payments.

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C. The maturity analysis of the lease payments under the operating leases is as follows:

		December 31, 2021			December 31, 2020
2022	$	38,925	2021	$	23,725
2023		26,757	2022		3,900
2024		16,806	2023		400
2025		9,406	2024		-
2026		9,406	2025		-
	$	101,300		$	28,025

(11) Investment property

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Depreciation charge Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation		2021
	Buildings and Land structures Total 2,268,726 $ 365,009 $ 2,633,735 $ - 67,716) ( 67,716) ( 2,268,726 $ 297,293 $ 2,566,019 $ 2,268,726 $ 297,293 $ 2,566,019 $ - 2,409 2,409 - 8,153) ( 8,153) ( 2,268,726 $ 291,549 $ 2,560,275 $ 2,268,726 $ 367,418 $ 2,636,144 $ - 75,869) ( 75,869) ( 2,268,726 $ 291,549 $ 2,560,275 $		Total
			2,560,275 $

~36~

2020

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Depreciation charge Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation	Buildings and Land structures Total 2,268,726 $ 353,247 $ 2,621,973 $ - 61,513) ( 61,513) ( 2,268,726 $ 291,734 $ 2,560,460 $ 2,268,726 $ 291,734 $ 2,560,460 $ - 13,498 $ 13,498 $ - 7,939) ( 7,939) ( 2,268,726 $ 297,293 $ 2,566,019 $ 2,268,726 $ 365,009 $ 2,633,735 $ - 67,716) ( 67,716) ( 2,268,726 $ 297,293 $ 2,566,019 $

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

Rental income from investment property Direct operating expenses arising from investment property that generated rental income Direct operating expenses arising from investment property that did not generate rental income	Years ended December 31,	Years ended December 31,
	2021 37,253 $ 7,453 $ 701 $	2020
		38,721 $
		7,231 $
		708 $

B. The fair value of the investment property held by the Company was $5,505,217 and $5,146,932 as of December 31, 2021 and 2020, respectively, which was based on the transaction prices of similar properties in the same area.

• C. No investment property was pledged to others.

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(12) Other non-current assets

Guarantee deposits paid Prepayments for business facilities Others	December31,2021 14,868 $ 12,416 14,490 41,774 $	December 31, 2020 14,549 $ - 12,924
		27,473 $

(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) The amounts recognized in the balance sheet are as follows:

	December	31,2021		December 31,2020
Present value of defined benefit obligations	$	38,857	$	43,239
Fair value of plan assets	(	25,454)	(	26,678)
Net defined benefit liability	$	13,403	$	16,561

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(c) Movements in net defined benefit liabilities are as follows:

	Present value of	Present value of
	defined benefit			Fair value of		Net defined
		obligations		plan assets	benefit liability
2021
Balance at January 1	$	43,239	($	26,678)	$	16,561
Current service cost		608		-		608
Interest expense (income)		151	(	96)		55
		43,998	(	26,774)		17,224
Remeasurements:
Return on plan assets		-	(	369)	(	369)
(excluding amounts included
in interest income or expense)
Change in demographic assumptions		1,941		-		1,941
Change in financial assumptions	(	1,836)		-	(	1,836)
Experience adjustments	(	2,080)		-	(	2,080)
	(	1,975)	(	369)	(	2,344)
Pension fund contribution		-	(	1,477)	(	1,477)
Paid pension	(	3,166)		3,166		-
Balance at December 31	$	38,857	($	25,454)	$	13,403
	Present value of
	defined benefit			Fair value of		Net defined
		obligations		plan assets	benefit liability
2020
Balance at January 1	$	40,765	($	24,411)	$	16,354
Current service cost		431		-		431
Interest expense (income)		326	(	200)		126
		41,522	(	24,611)		16,911
Remeasurements:
Return on plan assets		-	(	802)	(	802)
(excluding amounts included
in interest income or expense)
Change in demographic assumptions		105		-		105
Change in financial assumptions		527		-		527
Experience adjustments		1,242		-		1,242
		1,874	(	802)		1,072
Pension fund contribution		-	(	1,422)	(	1,422)
Paid pension	(	157)		157		-
Balance at December 31	$	43,239	($	26,678)	$	16,561

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• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Years ended	December 31,
	2021 0.750% 1.625%	2020
		0.350%
		1.625%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase Decrease 0.25% 0.25% December 31, 2021 Effect on present value of defined benefit obligation 1,158) ($ 1,208 $ December 31, 2020 Effect on present value of defined benefit obligation 1,306) ($ 1,364 $ Discount rate	Increase Decrease 0.25% 0.25% 1,170 $ 1,127) ($ 1,315 $ 1,267) ($ Future salaryincreases

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

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The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2022 amount to $1,474.

• (g) As of December 31, 2021, the weighted average duration of the retirement plan is 12.4 years.

• B. Defined contribution plan

• 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.

The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2021 and 2020 were $34,271 and $34,696, respectively.

(14) Share capital

• A. As of December 31, 2021, 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:

At January 1 Purchase of treasury shares (retired) At December 31	2021 2020 429,062 429,248 - 186) ( 429,062 429,062

• B. Treasury shares

• (a) To enhance the Company’s credit rating and stockholders’ equity, on November 7, 2019, the Board of Directors resolved to acquire and retire 3 million ordinary shares. The acquisition 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:

Name of company holdingthe shares Reason for reacquisition The Company Enhance the Company’s credit rating and stockholders’ equity	Numbers of shares (in thousands) 1,700	Carryingamount
		$ 130,621

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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 the 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 two-thirds 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 for 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.

~42~

• 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. (a) The cash appropriations of earnings and cash payment from capital surplus for the years ended December 31, 2020 and 2019 have been resolved at the shareholders’ meeting on August 26, 2021 and June 19, 2020, respectively. Details are summarized below:

Amount Dividends per share(in dollars) Legal reserve 119,625 $ (Reversal of) special reserve 13,658) ( Cash dividends 1,094,107 2.55 $ 1,200,074 $ Cash payment per share Amount (in dollars) Cash payment from capital surplus 214,531 $ 0.50 $ Year ended December 31, 2020	Amount Dividends per share (in dollars) 172,897 $ 69,330 1,544,622 3.60 $ 1,786,849 $ Cash payment per share Amount (in dollars) 386,156 $ 0.90 $ Year ended December 31, 2019	Amount Dividends per share (in dollars) 172,897 $ 69,330 1,544,622 3.60 $ 1,786,849 $ Cash payment per share Amount (in dollars) 386,156 $ 0.90 $ Year ended December 31, 2019
		3.60 $ Cash payment per share (in dollars) 0.90 $

Actual distribution of retained earnings of 2020 and 2019 is in agreement with the amounts resolved at the stockholders’ meeting.

~43~

• (b) The appropriations of earnings and capital surplus for the year ended December 31, 2021 as proposed by the Board of Directors on March 3, 2022 are as follows:

Legal reserve Special reserve Cash dividends Total Cash payment from capital surplus	Dividends per share Amount (in dollars) 254,464 $ 73,270 $ 2,231,121 5.20 $ 2,558,855 $ Cash dividends Amount per share(in dollars) 343,249 $ 0.80 $ Year ended December 31,2021

Aforementioned proposal for the appropriations of 2021 earnings and capital surplus have not yet been resolved by the stockholders.

(17) Other equity items

				2021
				Exchange
				differences
		Unrealized	on translation of
		gain or loss	foreign financial
		on valuation		statements		Total
At January 1	$	4,395	($	121,639)	($	117,244)
Revaluation - gross		11,826		-		11,826
Revaluation transferred to retained earnings- gross	(	8,804)		-	(	8,804)
Currency translation differences		-	(	95,365)	(	95,365)
Effect from income tax		-		19,072		19,072
At December 31	$	7,417	($	197,932)	($	190,515)

~44~

				2020
				Exchange
				differences
		Unrealized		on translation of
		gain or loss		foreign financial
		on valuation		statements		Total
At January 1	$	7,559	($	138,461)	($	130,902)
Revaluation - gross	(	3,164)		-	(	3,164)
Currency translation differences		-		21,027		21,027
Effect from income tax		-	(	4,205)	(	4,205)
At December 31	$	4,395	($	121,639)	($	117,244)

(18) Operating revenue

	Years ended	December 31,	December 31,
	2021		2020
Sales revenue	13,747,158 $	$	10,937,519

• A. Disaggregation of revenue from contracts with customers

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

Year ended December 31,2021 Revenue from external customer contracts Year ended December 31,2020 Revenue from external customer contracts		Electronic products	Electronic products	Electronic products	Others 779,140 $ Others 863,481 $	Total
	Taiwan 3,400,049 $	Asia America Europe 4,982,120 $ 1,607,361 $ 2,978,488 $ Electronicproducts
						13,747,158 $
						Total
	Taiwan 2,521,695 $	Asia 3,853,319 $	America 1,032,850 $	Europe 2,666,174 $
						10,937,519 $

• B. The delay of the Company’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 Company negotiated with customers and continuously invests in the manufacture of products for the subsequent shipments.

• C. Contract assets and liabilities

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

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(19) Interest income

Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income	Years ended December 31,
	2021 2020 1,102 $ 2,741 $ 23,379 63,217 52,837 5,216 77,318 $ 71,174 $

(20) Other income

Rental income	2021 2020 37,253 $ 38,721 $ Years ended December 31,

(21) Other gains and losses

	0		Years ended	December 31,	December 31,
			2021		2020
Loss on disposal of property, plant and equipment		$	-	($	2,098)
Net gain on financial assets and liabilities at fair value through profit or loss			84,375		146,883
Net currency exchange loss		(	26,684)	(	34,871)
Dividend income			6,787		3,834
Others			7,590		21,189
		$	72,068	$	134,937

(22) Expenses by nature

Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Directors’ remuneration Depreciation on property, plant and equipment (including investment property)	Years ended December 31,	Years ended December 31,
	2021 808,487 $ 72,573 34,934 40,766 9,755 164,702	2020
		767,838 $ 69,488 35,253 41,598 7,626 170,349

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.

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• B. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $32,691 and $15,225, respectively; while directors’ remuneration was accrued at $4,577 and $2,131, respectively. The aforementioned amounts were recognized in salary expenses.

The employees’ compensation and directors’ remuneration were estimated and accrued based on 1% and 2% of distributable profit of current period for the year ended December 31, 2021. The employees’ compensation and directors’ remuneration resolved by the Board of Directors were $31,542 and $3,200, respectively, and the employees’ compensation will be distributed in the form of cash.

The difference between employees’ compensation and directors’ remuneration as resolved by the Board of Directors and the amounts recognized in the 2020 financial statements by $438 and $29, respectively, has been adjusted in profit or loss for 2021.

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:

		Years ended	December 31,
		2021	2020
Current tax:
Current tax on profits for the year	$	586,853	$	252,898
Prior year income tax (overestimation)
underestimation	(	1,530)		489
Total current tax		585,323		253,387
Deferred tax:
Origination and reversal of temporary
differences	(	1,658)		10,170
Total deferred tax	(	1,658)		10,170
Income tax expense	$	583,665	$	263,557

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

		Years ended	December31,
		2021	2020
Exchange differences on translation of
foreign financial statements	($	19,072)	$	4,205

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B. Reconciliation between income tax expense and accounting profit

								Years ended	Years ended	December31,	December31,	December31,	December31,
								2021					2020
	Income tax calculated by applying			statutory
	rate to the profit before tax						623,392 $				$			292,258
	Effects from tax exemption and	items
	disallowed by tax regulation					(			37,538)	(				28,597)
	Prior year income tax (overestimation)
	underestimation					(			1,530)					489
	Effect from investment tax credits					(			659)	(				593)
	Income tax expense						583,665 $				$			263,557
	Amounts of deferred tax assets	or		liabilities	as a		result of temporary differences						are as follows:
								2021
									Recognized in
									other
							Recognized in		comprehensive
				At January	1			profit or loss	income			At December 31
	Deferred income tax assets
	Amount of allowance for bad debts		$	1,609		($		1,609)	$		-		$	-
	that exceed the limit for tax
	purpose
	Pension provision amount in excess			5,137		(		162)			-			4,975
	of appropriation amount
	Royalty fees			4,342		(		2,171)			-			2,171
	Accrued hard drive recycling fees				-			1,794			-			1,794
	Unrealized sales discounts and			8,313		(		2,031)			-			6,282
	allowances
	Unrealized gross profit from sales			2,692		(		540)			-			2,152
	Unrealized loss on market value			7,032				3,472			-			10,504
	decline and obsolete and
	slow-moving inventories
	Currency translation differences				-			-		11,065				11,065
	Total		$	29,125		($		1,247)	$	11,065			$	38,943
	Deferred income tax liabilities
	Unrealized exchange gain	($		2,774)			$	1,845	$		-	($		929)
	Currency translation differences	(		8,007)				-			8,007			-
	Net gain on investment accounted	(		128,822)				1,060			-	(		127,762)
	for using equity method
	Others	(			86)			-			-	(		86)
	Total	($		139,689)			$	2,905	$		8,007	($		128,777)

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

~48~

						2020	2020	2020
								Recognized in
									other
					Recognized in			comprehensive
			At January1			profit or loss			income	At		December 31
Deferred income tax assets
Amount of allowance for bad debts		$	1,857	($		248)		$	-		$	1,609
that exceed the limit for tax
purpose
Unrealized exchange loss			30,166	(		30,166)			-			-
Pension provision amount in excess			5,310	(		173)			-			5,137
of appropriation amount
Royalty fees			-			4,342			-			4,342
Unrealized sales discounts and			10,088	(		1,775)			-			8,313
allowances
Unrealized gross profit from sales			6,138	(		3,446)			-			2,692
Unrealized loss on market value
decline and obsolete and
slow-moving inventories			5,715			1,317			-			7,032
Total		$	59,274	($		30,149)		$	-		$	29,125
Deferred income tax liabilities
Unrealized exchange gain		$	-	($		2,774)		$	-	($		2,774)
Currency translation differences	(		3,802)			-	(		4,205)	(		8,007)
Net gain on investment accounted	(		151,575)			22,753			-	(		128,822)
for using equity method
Others	(		86)			-			-	(		86)
Total	($		155,463)		$	19,979	($		4,205)	($		139,689)

D. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

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(24) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31,2021	Year ended December 31,2021	Year ended December 31,2021
	Weighted-average common shares Earnings outstanding per share Profit after tax (in thousands) (in dollars) 2,533,294 $ 429,062 5.90 $ 2,533,294 $ 429,062 - 485 2,533,294 $ 429,547 5.90 $ Year ended December 31,2020		Earnings per share (in dollars)
			5.90 $
			5.90 $
	Profit after tax 1,197,735 $ 1,197,735 $ - 1,197,735 $	Weighted-average common shares outstanding (in thousands) 429,064 429,064 366 429,430	Earnings per share (in dollars)
			2.79 $
			2.79 $

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

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Names of related parties Relationship with the Group
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Names of relatedparties	Relationshipwith the Group
Transcend Japan Inc.	Subsidiary
Transcend Information Inc.	Subsidiary
Transcend Korea Inc.	Subsidiary
Transcend Information Europe B.V.	Subsidiary
Transcend Information Trading GmbH	Subsidiary
Transcend Information (H.K.) Ltd.	Subsidiary
Transcend Information (Shanghai), Ltd. (Transcend Shanghai)	Subsidiary
Transtech Trading (Shanghai) Co., Ltd.	Subsidiary
Transcend Information (Hong Kong), Ltd.	Subsidiary
Taiwan IC Packaging Corporation	Associate accounted for using equity method
Won Chin Investment Inc. (Won Chin)	Other related party
Cheng Chuan Technology Development Inc.	Other related party
(Cheng Chuan)

(2) Significant transactions and balances with related parties

A. Operating revenue

Sales of goods －Subsidiary －Associates accounted for using the equity method	Years ended December31,	Years ended December31,
	2021 4,194,478 $ 1,393 4,195,871 $	2020
		3,392,429 $ 2,016
		3,394,445 $

The sales prices charged to related parties are approximate to those charged to third parties. The credit term to related parties was 120 days after monthly billings, excluding the credit term of 30 days after delivery to Taiwan IC Packaging Corporation, and the credit term to general customers was 30 to 60 days after monthly billings.

B. Purchases

Purchases of goods －Associates accounted for using the equity method	Years ended December 31,	Years ended December 31,
	2021 235,161 $	2020
		231,335 $

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The purchase prices charged by related parties are approximate to those charged by third parties. The payment term to the Company’s associate accounted for using equity method, Taiwan IC Packaging Corporation, is 30 days after monthly billings.

C. Accounts receivable

	December	31, 2021	December	31,2020
Receivables from related parties
－Subsidiary-Transcend Japan Inc.	$	78,741	$	139,509
－Subsidiary-Others		196,988		264,851
	$	275,729	$	404,360

The receivables from related parties arise mainly from sale transactions. The credit term to the Company’s associate accounted for using equity method, Taiwan IC Packaging Corporation, is 30 days after delivery. The credit term to subsidiaries is 120 days after monthly billings. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

D. Accounts payable

Payables to related parties －Subsidiary-Transcend Shanghai －Subsidiary-Others －Associates accounted for using the equity method	December 31,2021 408,198 $ 92 52,241 460,531 $	December 31,2020
		411,299 $ 1,991 37,416
		450,706 $

The payables to related parties arise mainly from purchase transactions, and information on the payment term is provided in Note 7(2) B. The payables bear no interest.

E. Other payables

Other payables －Subsidiary	December 31,2021 17,431 $	December 31,2020
		17,564 $

Other payables to related parties arise mainly from purchase of fixed assets and miscellaneous transactions. The other payables bear no interest.

F. Miscellaneous income

For the years ended December 31, 2021 and 2020, the expendables sold to related parties, which were recognized in non-operating income, amounted to $963 and $1,572, respectively.

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G. 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 December 31, 2021 and 2020, the balance of related right-of-use assets amounted to $15,263 and $51,893 while lease liabilities amounted to $0 and $36,815, respectively.

H. Endorsements and guarantees:

As of December 31, 2021 and 2020, information on the Company providing endorsements and guarantees to associates is provided in Note 13(1) B.

(3) Key management compensation

Salaries and other employee benefits	Years ended December 31,	Years ended December 31,
	2021 44,300 $	2020
		35,811 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

As of December 31, 2021, except for the provision of endorsements and guarantees mentioned in Note 7 and 13(1) B, there are no other significant commitments.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Information on distribution of 2021 earnings and cash dividends from capital surplus is provided in Note 6(16) E(b).

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12. OTHERS

(1) Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’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 Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company’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 Company has sufficient funds to cover its own needs. Debt financing is not necessary.

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables Refundable deposits Financial liabilities Financial liabilities at amortised cost Accounts payable (including related parties) Other payables (including related parties) Lease liabilities	December 31,2021 1,618,194 $ 629,576 1,659,848 5,480,400 2,499 1,413,318 105,235 14,868 10,923,938 $ December 31,2021 1,824,375 $ 269,798 2,094,173 $ - $	December 31,2020
		4,255,920 $ 111,000 399,574 5,450,000 759 1,215,008 70,135 14,549
		11,516,945 $
		December 31,2020
		1,582,722 $ 224,528
		1,807,250 $
		36,815 $

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B. Financial risk management policies

• (a) The objective of the Company’s risk management is to identify and analyse all the risks (including market risk, credit risk, liquidity risk and cash flow risk) by examining the impact of the macroeconomics, industrial developments, market competition and the Company’s business development so as to achieve the optimized risk position, to maintain adequate liquidity position and to centralize the management of all market risks.

• (b) To manage the Company’s assets, liabilities and expenditures efficiently and reach the risk management target in relation to decreasing the risk of exchange rate changes, the Company’s hedging strategy is using forward foreign currency transaction or foreign currency options. The Company operates hedging transaction based on the Company’s net position of assets, liabilities and future cash flows estimations in order to efficiently decrease the market price risk arising from foreign currency fluctuation.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company 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 Company’s businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

Foreign Currency Amount Exchange rate Financial assets Monetary items USD：NTD 104,786 $ 27.68 RMB：NTD 58,710 4.344 JPY：NTD 417,739 0.2405 EUR：NTD 2,617 31.32 Long-term equity investment accounted for using the equity method USD：NTD 60,708 $ 27.68 JPY：NTD 954,744 0.2405 KRW：NTD 2,377,021 0.0235 December 31,2021	December 31,2021	December 31,2021
		Exchange rate 27.68 4.344 0.2405 31.32 27.68 0.2405 0.0235	Book value (NTD)
			2,900,476 255,036 100,466 81,964 1,680,385 229,616 55,860

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Foreign Currency Amount Exchange rate December 31,2021 Financial liabilities Monetary items USD：NTD 41,900 $ 27.68 RMB：NTD 97,981 4.344 Foreign Currency Amount Exchange rate Financial assets Monetary items USD：NTD 25,784 $ 28.48 JPY：NTD 626,946 0.2763 EUR：NTD 4,649 35.02 RMB：NTD 48,343 4.377 KRW：NTD 763,739 0.0264 Long-term equity investment accounted for using the equity method USD：NTD 61,251 $ 28.48 JPY：NTD 930,912 0.2763 KRW：NTD 2,231,212 0.0264 Financial liabilities Monetary items USD：NTD 35,425 $ 28.48 RMB：NTD 97,981 4.377 December 31,2020	Book value (NTD)
	1,159,792 425,629 Book value (NTD)
	734,328 173,225 162,808 211,597 20,163 1,744,419 257,211 58,904 1,008,904 428,863

• iii. The information on total exchange (loss) gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2021 and 2020 is provided in Note 6(21).

• iv. 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 Company’s net income will decrease or increase by $17,407 and $2,746 for the years ended December 31, 2021 and 2020, respectively.

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Price risk

• i. The Company is exposed to equity securities price risk because of investments held by the Company and classified on the balance sheet as financial assets at fair value through profit or loss and other comprehensive income. The Company is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio.

• ii. The Company’s investments in listed and unlisted equity securities by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $16,182 and $42,559, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $6,296 and $1,110, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Company’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 Company 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 Company 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 Company manages its credit risk taking into consideration the entire group’s concern. According to the Company’s credit policy, each local entity in the Company 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 Company 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.

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• iii. The Company determines that the default occurs when the contract payments are past due over 180 days.

• iv. The Company 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).

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts, time deposits and monetary funds, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. As at December 31,

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2021 and 2020, the Company held money market position of $8,646,843 and $9,360,572, respectively, that are expected to readily generate cash inflows for managing liquidity risk.

• iii. The Company’s non-derivative financial liabilities are analysed based on the remaining period at the balance sheet date to the contractual maturity date and all the Company’s financial liabilities expire within one year.

(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 Company’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 Company’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 Company’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.

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• 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:

December 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificates Financial assets at fair value through other comprehensive income Equity securities December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificates Financial assets at fair value through other comprehensive income Equity securities	Level 1 1,618,194 $ 628,451 2,246,645 $ Level 1 4,255,920 $ 109,875 4,365,795 $	Level 2 - $ - - $ Level 2 - $ - - $	Level3 - $ 1,125 1,125 $ Level3 - $ 1,125 1,125 $	Total
				1,618,194 $ 629,576
				2,247,770 $
				Total
				4,255,920 $ 111,000
				4,366,920 $

• 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 Company 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.

• F. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

• G. There was no change in Level 3 financial instruments for the years ended December 31, 2021 and 2020.

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(4) Other matters

Due to the strong demand in the industrial chain and the use of its products in diverse applications this year, the Company’s orders from domestic and foreign customers were not impacted by the COVID-19 pandemic. The operation and production headquarters in Taiwan have activated the relevant contingency mechanisms, adopted high-standard COVID-19 preventive measures and monitored employees’ health condition on a daily basis. Overall, in 2021, the pandemic had no significant impact on the Group’s operations and financial performance and did not cause any suspension of work and production. Also, the Group has delivered good sales and profit performance.

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: None.

• 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.

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(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

None.

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Transcend Information, Inc.

Expressed in thousands of NTD (Except as otherwise indicated)

Provision of endorsements and guarantees to others

Year ended December 31, 2021

Table 1

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021(Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2021(Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements /guarantees provided(Note 7)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 8)	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Company name	Relationship with the endorser/ guarantor (Note 2)
0	Transcend Taiwan	Transcend Japan Inc.	2	3,966,967 $	$ 543,200 (JPY $2,000,000) (In thousands)	$ 481,000 (JPY $2,000,000) (In thousands)	- $	-	2	7,933,934 $	Y	-	-	-

• 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. ($19,834,835*20%=$3,966,967)

• Note 4: The maximum outstanding endorsement/guarantee amount during and as of December 31, 2021 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.( $19,834,835*40%=$7,933,934)

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

Table 1, Page 1

Table 2

Transcend Information, Inc.

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

December 31, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Transcend Taiwan	Stocks TrendForce Corporation Fubon Financial Holding Co., Ltd. Preferred Shares B Taiwan Semiconductor Manufacturing Co., Ltd. ASUSTek Computer Inc. Fubon Financial Holding Co., Ltd. Cathay Financial Holding Co. Ltd. AU Optronics Corporation Innolux Corporation Formosa Plastics Corporation Beneficiary certificates Taishin 1699 Money Market Fund Yuanta Taiwan Top 50 ETF	- - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income " " " " " " " " Current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss	60,816 1,758,000 380,000 410,000 1,067,016 200,000 200,000 200,000 262,000 110,142,508 767,000	1,125 $ 110,930 233,700 154,160 81,413 12,500 4,580 3,920 27,248	1 - - - - - - - - - -	1,125 $ 110,930 233,700 154,160 81,413 12,500 4,580 3,920 27,248 1,506,595 $ 111,599 $	- - - - - - - - - - -
					629,576 $
					1,506,595 $
					111,599 $

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.

Table 2, Page 1

Transcend Information, Inc.

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

Year ended December 31, 2021

Table 3 Investor	Marketable securities （Note 1）	General ledger account	Counterparty （Note 2）	Relationship with the investor （Note 2）	Balance as at January1,2021	Balance as at January1,2021	Addition （Note 3）	Addition （Note 3）		Disposal （Note 3）	Disposal （Note 3）		Balance as at December 31,2021 (Except as otherwise indicated) Expressed in thousands of NTD	Balance as at December 31,2021 (Except as otherwise indicated) Expressed in thousands of NTD
					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 Yuanta Taiwan High-yield Leading Company Fund B	Current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss	- -	- -	257,293,248 50,000,000	$ 3,501,229 500,000	109,792,580 -	$ 1,500,000 -	256,943,320 50,000,000	$ 3,511,865 680,350	$ 3,499,281 500,000	$ 12,584 180,350	110,142,508 -	$ 1,501,948 -

• 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.

Table 3, Page 1

Transcend Information, Inc.

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

Year ended December 31, 2021

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions (Note1)	Differences in transaction terms compared to third party transactions (Note1)	Notes/accountsreceivable (payable)	Notes/accountsreceivable (payable)	Footnote
			Sales (purchases)	Amount	Percentage of total sales (purchases)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Transcend Taiwan " " " " " " Transcend Information Europe B.V. Transcend Taiwan	Transtech Trading (Shanghai) Co., Ltd. Transcend Japan Inc. Transcend Information, Inc. Transcend Information Europe B.V. Transcend Korea Inc. Transcend Information Trading GmbH Transcend Information (H.K) Ltd. Transcend Information Trading GmbH Taiwan IC Packaging Corporation	Subsidiary of Memhiro The Company’s subsidiary The Company’s subsidiary Subsidiary of Memhiro The Company’s subsidiary Subsidiary of Memhiro Subsidiary of Memhiro Controlled by the same ultimate parent company Associate accounted for using equity method	Sales " " " " " " " (Purchase)	$ 1,196,974 710,838 627,401 594,935 387,849 378,089 298,392 138,609 ( 235,161)	9 5 5 4 3 3 2 20 (2)	120 days after monthly billings " " " " " " 30 days after delivery 30 days after monthly billings	No significant difference " " " " " " " "	30 to 60 days after monthly billings to third parties " " " " " " 7 to 60 days after delivery to third parties 30 to 45 days after monthly billings to third parties	$ 132,276 78,741 13,312 27,658 10,834 7,563 5,346 602 ( 52,241)	9 6 1 2 1 1 - 1 (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.

Table 4, Page 1

Table 5

Transcend Information, Inc.

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

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Transcend Taiwan Transcend Information (Shanghai), Ltd.	Transtech Trading (Shanghai) Co., Ltd. Transcend Taiwan	Subsidiary of Memhiro Ultimate parent company	$ 132,276 408,198	7.87 -	$ - 408,198	- -	$ 132,276 -	- -

Table 5, Page 1

Transcend Information, Inc.

Significant inter-company transactions during the reporting year

Year ended December 31, 2021

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

							(Except as otherwise indicated)
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 " " " " " " "	Transcend Taiwan " " " " " " "	Transtech Trading (Shanghai) Co., Ltd. Transcend Japan Inc. Transcend Information, Inc. Transcend Information Europe B.V. Transcend Korea Inc. Transcend Information Trading GmbH Transcend Information (H.K) Ltd. Transcend Information (Shanghai), Ltd.	1 " " " " " " "	Sales " " " " " " Accounts Payable	$ 1,196,974 710,838 627,401 594,935 387,849 378,089 298,392 408,198) (	There is no significant difference in unit price from those to third parties. " " " " " " 120 days after monthly billings	8 5 4 4 3 3 2 2) (

(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.

• (c) Subsidiary to subsidiaries.

• 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.

Table 6, Page 1

Transcend Information, Inc. Information on investees Year ended December 31, 2021

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2021	Shares held as at December 31,2021	Shares held as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognized by the Company for the year ended December 31, 2021(Note 1)	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Transcend Taiwan Saffire Investment Ltd. Memhiro Pte Ltd.	Saffire Investment Ltd. Transcend Japan Inc. Transcend Information, Inc. Transcend Korea Inc. Taiwan IC Packaging Corp. Memhiro Pte Ltd. Transcend Information Europe B.V. Transcend Information Trading GmbH Transcend Information (H.K.) Ltd.	B.V.I. Japan United States of America Korea Taiwan Singapore Netherlands Germany Hong Kong	Investment holdings Wholesale of computer memory modules and peripheral products Wholesale of computer memory modules and peripheral products Wholesale of computer memory modules and peripheral products Packaging of Semi-conductors Investment holdings Wholesale of computer memory modules and peripheral products Wholesale of computer memory modules and peripheral products Wholesale of computer memory modules and peripheral products	$ 1,202,418 89,103 38,592 6,132 354,666 1,156,920 1,693 2,288 7,636	$ 1,202,418 89,103 38,592 6,132 354,666 1,156,920 1,693 2,288 7,636	36,600,000 6,400 625,000 40,000 21,928,036 55,132,000 100 - 2,000,000	100 100 100 100 12.52 100 100 100 100	1,496,302 $ 229,616 184,082 55,861 148,514 1,463,177 220,732 112,428 29,868	23,916) ($ 6,218 8,448 3,942 411,645 24,050) ( 8,813 12,251 4,924	23,916) ($ 6,218 8,448 3,942 52,590 24,050) ( 8,813 12,251 4,924	Note 2 Note 2 Note 2 Note 2 Note 5 Note 3 Note 4 Note 4 Note 4

Note 1: The Company does not directly recognize the investment income (loss) except for the subsidiaries directly held. Note 2: Subsidiary of the Company.

Note 3: Subsidiary of Saffire. Note 4: Subsidiary of Memhiro. Note 5: Please refer to Note 6 (7).

Table 7, Page 1

Transcend Information, Inc.

Information on investments in Mainland China

Year ended December 31, 2021

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Table 8
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Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income (loss) of investee for the year ended December 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December 31, 2021(Note 2)	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Transcend Information (Shanghai), Ltd. Transtech Trading (Shanghai) Co., Ltd.	Manufacture and sales of computer memory modules, storage products and disks, and lease of self-owned buildings Wholesale, agent, import and export and retail of computer memory modules, storage products and computer components	$ 1,134,178 16,310	2 2	$ 1,134,178 16,310	- -	- -	$ 1,134,178 16,310	($ 74,909) 9,550	100 100	($ 74,909) 9,550	$ 1,048,836 46,360	$ 1,464,028 -	- -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	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 (Shanghai) Co., Ltd.	1,134,178 $ 16,310 1,150,488 $	1,134,178 $ 16,310 1,150,488 $	- $ - 11,900,901 $

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 gain and loss on investment recognized for the year was based on the financial statements that were audited by R.O.C. parent company’s CPA. Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Table 8, Page 1

Transcend Information, Inc.

Table 9

Major shareholders information

December 31, 2021

Name of major shareholders	Shares	Shares
	Number of shares held	Shareholdingratio
Won Chin Investment Inc. Wan An Technology Inc. Cheng Chuan Technology Development Inc. Wan Min Investment Inc. Wan Chuan Investment Inc.	74,783,600 34,142,854 32,971,701 29,726,397 29,505,896	17.42 7.95 7.68 6.92 6.87

Table 9, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 1

Statement 1
Items Petty cash and cash on hand Cash in banks -Checking accounts deposits -Demand deposits -Foreign currency deposits Time deposits	Summary		Amount
	USD 37,673 thousand, at exchange rate of $27.68 RMB 8,260 thousand, at exchange rate of $4.344 GBP 493 thousand, at exchange rate of $37.30 EUR 517 thousand, at exchange rate of $31.3200 JPY 66,097 thousand, at exchange rate of $0.2405 HKD 1,500 thousand, at exchange rate of $3.549 RMB 20,000 thousand, at exchange rate of $4.344		68 $ 283 438,143 1,042,778 35,882 18,393 16,201 15,896 5,324 86,880 1,659,848 $

Statement 1, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 2

Fair value Name Summary Number of shares Acquisition cost Price per share Total amount Taishin 1699 Money Market Fund Beneficiary certificates 110,142,508 $ 1,501,948 $ 13.6786 $ 1,506,595

Statement 2, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 3
Customer name	Summary		Amount	Note
A customer		$	132,324
B customer			73,238
Others				The balance of each customer
				has not exceeded 5% of the
			963,437	total accounts receivable.
			1,168,999
Less: Allowance for sales discounts		(	31,410)
Less: Loss allowance			-
		$	1,137,589

Statement 3, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF INVENTORIES DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 4

Amount

Items Raw materials Work in progress Finished goods Less: Allowance for inventory valuation loss	Summary Cost 4,555,175 $ 604,979 506,929 5,667,083 52,520) ( 5,614,563 $	Net realizable value 4,598,704 $ 687,706 712,925 5,999,335 $	Note
			Note 1 Note 2 Note 2

Note 1: The net realizable value of raw materials is the replacement cost. Note 2: The calculation of net realizable value is based on the last selling price, net of estimated costs of completion and selling expenses.

Statement 4, Page 1

TRANSCEND INFORMATION, INC.

MOVEMENT SUMMARY OF NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 5

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Changes
Opening balance in fair value Additions Reductions Ending balance Accumulated
Name Number of shares Amount Amount Number of shares Amount Number of shares Amount Number of shares Amount impairment Collateral Note
----- End of picture text -----

Stocks: TrendForce Corporation 60,816 Fubon Financial Holding Co., Ltd. Preferred Shares B 1,758,000 Yuanta Financial Holding Co., Ltd - Taiwan Semiconductor Manufacturing Co., Ltd. - ASUSTek Computer Inc. - Fubon Financial Holding Co., Ltd. - Cathay Financial Holding Co. Ltd. - AU Optronics Corporation - Innolux Corporation - Formosa Plastics Corporation -	1,125 $ - $ - 109,875 1,055 - - - 1,000,000 - 2,584) ( 380,000 - 3,191 410,000 - 2,555 1,342,016 - 41) ( 500,000 - 129 200,000 - 139 200,000 - 1,422) ( 262,000 111,000 $ 3,022 $	- $ - - $ 60,816 - - - 1,758,000 20,668 1,000,000) ( 20,668) ( - 236,284 - - 380,000 150,969 - - 410,000 91,651 275,000) ( 12,792) ( 1,067,016 24,703 300,000) ( 12,162) ( 200,000 4,451 - - 200,000 3,781 - - 200,000 28,670 - - 262,000 561,177 $ 45,622) ($	1,125 $ Not applicable None 110,930 " " - " " 233,700 " " 154,160 " " 81,413 " " 12,500 " " 4,580 " " 3,920 " " 27,248 " " 629,576 $

Statement 5, Page 1

TRANSCEND INFORMATION, INC.

MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 6

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Opening balance Additions Reductions Remeasurement Accumulated Ending balance
Number of shares Number of shares Number of shares Investment of defined translation Unrealised profit Number of shares Shareholding Market price or
Name of investee (in thousand shares) Amount (in thousand shares) Amount (in thousand shares) Amount income (loss) benefit plan adjustment from sales (in thousand shares) ratio Amount value per share Collateral
Saffire Investment Ltd. 36,600 $ 1,563,437 - - - - ($ 23,916) $ - ($ 49,338) $ 6,119 36,600 100% $ 1,496,302 $ 1,501,952 None
Transcend Japan Inc. 6 257,211 - - - - 6,218 - ( 34,142) 329 6 100% 229,616 232,777 "
Transcend Information Inc. 625 180,982 - - - - 8,448 - ( 5,201) ( 147) 625 100% 184,082 184,876 "
Transcend Korea Inc. 40 58,904 - - - - 3,942 - ( 6,684) ( 301) 40 100% 55,861 56,363 "
Taiwan IC Packaging Corp. 21,928 95,724 - - - - 52,590 200 - - 21,928 12.52% 148,514 446,724 "
$ 2,156,258 $ - $ - $ 47,282 $ 200 ($ 95,365) $ 6,000 $ 2,114,375
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Statement 6, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF ACCOUNTS PAYABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 7

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Vendor name Amount Note
A company $ 457,001
B company 258,787
C company 143,458
D company 112,449
E company 87,700
The balance of each vendor account has not
Others 304,449 exceeded 5% of the total accounts payable.
$ 1,363,844
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Statement 7, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF OPERATING COST YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 8 Items Amount Raw materials used Raw materials at beginning 2,161,744 $ Add: Materials purchased during the year 11,990,512 Others 795) ( Less: Raw materials at the end 4,555,175) ( Cost of raw materials sales 295,869) ( Reclassified as manufacture, selling and administrative and research and development expenses 36,041) ( Consumption of materials for the year 9,264,376 Direct labor 400,570 Overhead 383,743 Manufacturing Cost 10,048,689 Add: Work in progress at the beginning 487,023 Transfer from finished goods 1,527,814 Less: Work in progress at the end 604,979) ( Others 9) ( Finished goods cost 11,458,538 Add: Finished goods at the beginning 461,818 Less: Finished goods at the end 506,929) ( Transfer into work in progress 1,527,814) ( Reclassified as manufacture, selling and administrative and research and development expenses 31,706) ( Others 231) ( Cost of goods sold-finished goods 9,853,676 Cost of goods sold-materials 295,869 Inventory valuation loss 17,358 Operating cost 10,166,903 $

Note

Statement 8, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF MANUFACTURING EXPENSE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 9

Items Depreciation Maintenance fees Insurance expense Miscellaneous purchase Package fees Other expenses	Summary	Amount Note 132,562 $ 47,946 41,296 27,588 24,003 110,348 The balance of each expense account has not exceeded 5% of the total manufacturing expense. 383,743 $	Note

Statement 9, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF OPERATING EXPENSES YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 10

Items Wages and salaries Export expense Insurance expense Depreciation Tax Other expenses	Selling General and administrative expenses expenses 192,227 $ 97,504 $ 84,744 - 17,032 26,016 4 31,568 33 11,090 46,757 43,159 340,797 $ 209,337 $	Research and development expense 127,941 $ - 10,838 568 - 12,111 151,458 $	Total Note 417,672 $ 84,744 53,886 32,140 11,123 102,027 The balance of each expense account has not exceeded 5% of the total operating expenses. 701,592 $

Statement 10, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF EMPLOYEE BENEFIT EXPENSE AND DEPRECIATION BY FUNCTION YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 11

Statement 11
Function Nature	Year ended December 31, 2021			Year ended December 31, 2020
	Classified as	Classified as		Classified as	Classified as
	OperatingCosts	OperatingExpenses	Total	OperatingCosts	OperatingExpenses	Total
Employee benefit expense
Salaryexpenses	400,570 $	407,917 $	808,487 $	406,443 $	361,395 $	767,838 $
Labour and health insurance fees	37,116	35,457	72,573	37,216	32,272	69,488
Pension costs	17,967	16,967	34,934	18,880	16,373	35,253
Otherpersonnel expenses	25,310	15,456	40,766	26,503	15,095	41,598
Directors' remuneration	-	9,755	9,755	-	7,626	7,626
Depreciation	132,562	32,140	164,702	138,942	31,407	170,349

1. As at December 31, 2021 and 2020, the Company had 1,053 and 1,083 employees, respectively, both including 6 non-employee directors.

2. A company whose stock is listed for trading on the stock exchange shall additionally disclose the following information:

3. (1) Average employee benefit expense in current year was $914 thousand (‘total employee benefit expense in current year － total directors’

4. －

5. remuneration’ / ‘the number of employees in current year the number of non-employee directors’).

6. Average employee benefit expense in previous year was $849 thousand (‘total employee benefit expense in previous year － total directors’

7. －

8. remuneration’ / ‘the number of employees in previous year the number of non-employee directors’).

9. －

10. (2) Average employees salaries in current year was $772 thousand (total salaries in current year / ‘the number of employees in current year the number of non-employee directors’)

11. －

12. Average employees salaries in previous year was $713 thousand (total salaries in previous year / ‘the number of employees in previous year the number of non-employee directors’)

13. (3) Adjustment of average employees salaries was 8.27% (‘the average employee salaries in current year － the average employee salaries in previous year’ / the average employee salaries in previous year).

Statement 11, Page 1

TRANSCEND INFORMATION, INC.

DETAILS OF EMPLOYEE BENEFIT EXPENSE AND DEPRECIATION BY FUNCTION (Cont.) YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Statement 11

• (4) For the years ended December 31, 2021 and 2020, the Company has no supervisors’ remuneration. (Note)

• (5) Information on the Company’s remuneration policy is as follows: (including directors, supervisors, managers and employees)

Directors’ remuneration is determined based on the Company’s entire operating performance, future operating risk and development trend of industry taking into consideration individual director’s contribution to the Company’s performance and annual performance assessment result of individual director, and the Company grants a reasonable renumeration to directors. Under the Company’s Articles of Incorporation, the current year's earnings, if profit, net of accumulated deficits, if any, shall distribute not higher than 0.2% for directors’ remuneration. Related performance assessment and reasonableness of remuneration shall be reviewed and approved by the remuneration committee and the Board of Directors, and the remuneration policy will be reviewed and adjusted based on the actual operating condition and related regulations accordingly. Managers and employees’ remunerations are determined based on the pay level within the same industry and market practice, under the Company's Articles of Incorporation, the current year's earnings, if profit, net of accumulated deficits, if any, shall distribute not lower than 1% for employees’ remuneration taking into consideration annually personal working performance in order to determine the distributable amount. Employees’ remuneration and performance assessment and reasonableness of managers’ remuneration shall be reviewed and approved by the remuneration committee and the Board of Directors, which will be reviewed and adjusted based on the actual operating condition and related regulations accordingly.

Note: The Company has set up the audit committee to substitute supervisors; therefore, the company has no supervisors' remuneration.

Statement 11, Page 2