Transcend — Audit Report / Information 2022

Nov 11, 2022

TRANSCEND INFORMATION, INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2022 AND 2021

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For the convenience of readers and for information purpose only, the independent 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 independent auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR 22000435

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. (the “Company”) as at December 31, 2022 and 2021, 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, 2022 and 2021, 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 Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Independent 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 2022 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 2022 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 parent company only 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 material inventory storage location 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 discounts

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 discounts monthly. Refer to Notes 4(24) and 6(4) to the parent company only financial statements for the information on the estimation of allowance for sales discounts.

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 discounts 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 discounts.

• 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 discounts, 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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Independent 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 Standards on Auditing of 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 Standards on Auditing of the Republic of China, we exercise professional judgement and 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 audit. We remain solely responsible for our audit opinion of parent company only financial statements.

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.

Chen, Chin-Chang Lin, Yi-Fan

For and on behalf of PricewaterhouseCoopers, Taiwan March 2, 2023

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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 Standards on Auditing of 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, 2022 AND 2021

(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, 2022 AMOUNT % $ 1,812,082 9 - - 8,527,800 39 867 - 720,973 3 423,847 2 21,627 - 3,069,913 14 1,270 - 14,578,379 67 51,463 - 524,939 3 2,252,378 10 1,374,912 6 165,858 1 2,555,793 12 126,380 1 31,070 - 7,082,793 33 $ 21,661,172 100	December 31, 2021	December 31, 2021
		AMOUNT $ 1,812,082 - 8,527,800 867 720,973 423,847 21,627 3,069,913 1,270 14,578,379 51,463 524,939 2,252,378 1,374,912 165,858 2,555,793 126,380 31,070 7,082,793 $ 21,661,172	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	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at amortised cost - current Notes receivable, net Accounts receivable, net Accounts receivable due from related parties, net Other receivables Inventories Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred income tax assets Other non-current assets Total non-current assets Total assets				7 7 24 - 5 1 - 25 -
				69
				1 3 9 7 - 11 - -
				31
				100

(Continued)

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TRANSCEND INFORMATION, INC. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Liabilities and equity

December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % $ 471,713 3 $ 1,363,844 6 7 443,591 2 460,531 2 209,400 1 252,367 1 7 17,692 - 17,431 - 422,774 2 583,714 3 7 36,662 - - - 3,086 - 68,268 - 1,604,918 8 2,746,155 12 6(23) 376,445 2 128,777 1 7 113,163 - - - 6(13) 16,110 - 20,800 - 505,718 2 149,577 1 2,110,636 10 2,895,732 13 6(14) 4,290,617 20 4,290,617 19 6(15) 3,387,781 16 3,730,914 16 6(16) 5,057,967 23 4,803,503 21 190,514 1 117,244 1 6,981,474 32 7,083,072 31 6(17) ( 357,817) ( 2) ( 190,515) ( 1 ) 19,550,536 90 19,834,835 87 9 11 $ 21,661,172 100 $ 22,730,567 100

Current liabilities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Current income tax liabilities Lease liabilities - current Other current liabilities Total current liabilities Non-current liabilities Deferred income tax liabilities Lease liabilities - non-current 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 FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

Items

For the years ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(18) and 7 $ 11,386,995 100 $ 13,747,158 100 6(5)(22) and 7 ( 9,278,593) ( 81) ( 10,166,903) ( 74) 2,108,402 19 3,580,255 26 ( 3,455) - ( 10,106) - 10,106 - 16,106 - 2,115,053 19 3,586,255 26 6(22) ( 314,858) ( 3) ( 340,797) ( 2) ( 207,177) ( 2) ( 209,337) ( 2) ( 137,105) ( 1) ( 151,458) ( 1) 6(4) - - ( 1,382) - ( 659,140) ( 6) ( 702,974) ( 5) 1,455,913 13 2,883,281 21 6(3)(19) 96,934 1 77,318 1 6(20) 82,483 1 44,040 - 6(2)(21) and 7 217,979 2 65,281 - 6(9) ( 1,239) - ( 243) - 6(7) 1,214,903 10 47,282 - 1,611,060 14 233,678 1 3,066,973 27 3,116,959 22 6(23) ( 612,629) ( 6) ( 583,665) ( 4) $ 2,454,344 21 $ 2,533,294 18 6(13) $ 5,185 - $ 2,344 - 6(6)(17) ( 170,069) ( 1) 11,826 - 6(7) ( 219) - 200 - 6(7)(17) 892 - ( 95,365) - 6(17)(23) ( 178) - 19,072 - ($ 164,389) ( 1) ($ 61,923) - $ 2,289,955 20 $ 2,471,371 18 6(24) $ 5.72 $ 5.90 $ 5.71 $ 5.90

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 Expected credit impairment loss Total operating expenses Operating profit Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit 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 on remeasurements of defined benefit plans Unrealized (loss) gain on financial assets at fair value through other comprehensive income Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method Components of other comprehensive income (loss) that will be reclassified to profit or loss Financial statements translation differences of foreign operations Income tax related to components of other comprehensive income that will be reclassified to profit or loss Other comprehensive loss 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, 2022 AND 2021

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

For the 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 loss on disposal of financial assets at fair value through other comprehensive income Expired unclaimed dividends recognized as capital surplus Balance at December 31, 2021 For the year ended December 31, 2022 Balance at January 1, 2022 Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2021 earnings Legal reserve Cash dividends 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, 2022	Notes		Common stock		Capital Reserves	Capital Reserves	Capital Reserves						Retained Earnings	Retained Earnings		Other Equity Interest	Other Equity Interest	Other Equity Interest		Total equity
					Additional paid-in capital		Donated assets received		Net assets from merger		Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	f	Unrealised gains (losses) on financial assets at air value through other comprehensive income
	6(6)(17) 6(16) 6(16) 6(6)(17) 6(6)(17) 6(16) 6(16) 6(6)(17)		$ 4,290,617 - - - - - - - - - $ 4,290,617 $ 4,290,617 - - - - - - - - - $ 4,290,617	$ 3,905,963 - - - - - - ( 214,531 ) - - $ 3,691,432 $ 3,691,432 - - - - - - ( 343,249 ) - - $ 3,348,183			$ 4,278 - - - - - - - - 76 $ 4,354 $ 4,354 - - - - - - - - 116 $ 4,470		$ 35,128 - - - - - - - - - $ 35,128 $ 35,128 - - - - - - - - - $ 35,128		$ 4,683,878 - - - 119,625 - - - - - $ 4,803,503 $ 4,803,503 - - - 254,464 - - - - - $ 5,057,967	$ 130,902 - - - - - ( 13,658 ) - - - $ 117,244 $ 117,244 - - - - - 73,270 - - - $ 190,514		$ 5,738,504 2,533,294 2,544 2,535,838 ( 119,625 ) ( 1,094,107 ) 13,658 - 8,804 - $ 7,083,072 $ 7,083,072 2,454,344 4,966 2,459,310 ( 254,464 ) ( 2,231,121 ) ( 73,270 ) - ( 2,053 ) - $ 6,981,474		($ 121,639 ) - ( 76,293 ) ( 76,293 ) - - - - - - ($ 197,932 ) ($ 197,932 ) - 714 714 - - - - - - ($ 197,218 )	$ 4,395 - 11,826 11,826 - - - - ( 8,804 ) - $ 7,417 $ 7,417 - ( 170,069 ) ( 170,069 ) - - - - 2,053 - ($ 160,599 )		$ 18,672,026 2,533,294 ( 61,923 ) 2,471,371 - ( 1,094,107 ) - ( 214,531 ) - 76 $ 19,834,835 $ 19,834,835 2,454,344 ( 164,389 ) 2,289,955 - ( 2,231,121 ) - ( 343,249 ) - 116 $ 19,550,536

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

FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

(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 loss (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 Changes in assets and liabilities relating to operating activities Changes in assets relating to operating activities 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 liabilities relating to operating activities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Other non-current liabilities Cash inflow generated from operations Dividends received Interest received Income tax paid Net cash flows provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of non-current financial assets at fair value through profit or loss - non-current Acquisition of financial assets at fair value through profit or loss - non- current 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 Capital reduction and return of shares of investment accounted for using the equity method Acquisition of property, plant and equipment Acquisition of right-of-use assets Acquisition of investment property Increase in other non-current assets Dividends received Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (including cash payment from capital surplus) Payment of lease liabilities Expired unclaimed dividends recognized as capital surplus Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For theyears ended December 31 Notes 2022 2021 $ 3,066,973 $ 3,116,959 3,455 10,106 ( 10,106 ) ( 16,106 ) 6(2)(21) 17,262 ( 84,375 ) 6(7) ( 1,214,903 ) ( 47,282 ) 6(4) - 1,382 6(22) 154,169 164,702 6(19) ( 96,934 ) ( 77,318 ) 6(9) 1,239 243 6(6)(20) ( 35,592 ) ( 6,787 ) 1,508,314 2,011,865 1,632 ( 1,740 ) 416,616 ( 328,323 ) ( 148,118 ) 128,631 94,758 ( 39,148 ) 2,544,650 ( 2,539,140 ) ( 110 ) ( 244 ) ( 892,131 ) 231,828 ( 16,940 ) 9,825 ( 42,967 ) 45,403 261 ( 133 ) ( 65,182 ) 43,696 495 ( 298 ) 5,286,841 2,623,746 35,592 6,787 85,784 81,366 ( 613,516 ) ( 247,493 ) 4,794,701 2,464,406 41,155 841,021 - ( 130,785 ) 3,100,000 2,500,000 ( 6,147,400 ) ( 2,530,400 ) 6(6) 6,179 54,426 ( 71,611 ) ( 561,176 ) 6(7) 985,589 - 6(8)(25) ( 35,790 ) ( 14,888 ) ( 692 ) - 6(11) ( 4,082 ) ( 2,409 ) ( 1,712 ) ( 14,301 ) 6(7) 98,635 - ( 2,029,729 ) 141,488 6(16) ( 2,574,370 ) ( 1,308,638 ) ( 38,484 ) ( 37,058 ) 116 76 ( 2,612,738 ) ( 1,345,620 ) 152,234 1,260,274 1,659,848 399,574 $ 1,812,082 $ 1,659,848

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 FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

(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 FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 2, 2023.

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”) that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018 - 2020	January 1, 2022 January 1, 2022 January 1, 2022 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.

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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 2023 are as follows:

	Effective date by
	International
	Accounting
New Standards,Interpretations andAmendments	StandardsBoard
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.

(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:

New Standards,Interpretations andAmendments

Effective date by International Accounting StandardsBoard

Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 - comparative information’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’

To be determined by International Accounting Standards Board January 1, 2024 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

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

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.

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(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 parent company only 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 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 these parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

These parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and 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.

• (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.

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• (d) All foreign exchange gains and losses 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:

  • (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.

Otherwise they are classified as non-current assets.

• B. Liabilities that meet one of the following criteria are classified as 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;

• (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.

Otherwise they are classified as non-current liabilities.

(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. Time deposits that meet the above definition and are held for the purpose of meeting short-term cash commitments in

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operations are classified as cash equivalents.

(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.

• 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.

(8) Financial assets at amortised cost

The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(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 financial assets at amortised cost and accounts receivable that have a significant financing component, at each reporting date, the Company recognizes the impairment provision for 12 months

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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.

(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 the estimated costs necessary to make the sale.

(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% 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.

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• 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.

• 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 using 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. 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 parent company only 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 parent company only 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.

• 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

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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 Machinery and equipment Transportation equipment Office equipment and others

8 ~ 50 years 2 ~ 10 years 3 ~ 5 years 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.

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

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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) Offsetting financial assets and liabilities

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(20) 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.

B. Pensions

• (a) Defined contribution plan

For the defined contribution plan, the contributions are recognized as pension expenses when

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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’ remuneration

Employees’ compensation and directors’ 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.

(21) 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.

• 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

~21~

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.

(22) 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.

(23) 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.

(24) 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.

• (b) Sales revenue is recognized based on the contract price, net of sales returns, volume discounts and estimated sales discount. 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.

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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 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, 2022, the carrying amount of inventories was $3,069,913.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and petty cash Checking accounts and demand deposits Time deposits	December31,2022 42 $ 1,504,940 307,100 1,812,082 $	December31,2021
		68 $ 1,572,900 86,880
		1,659,848 $

• 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

==> picture [472 x 213] intentionally omitted <==

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

Items December 31, 2022 December 31, 2021
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
-
Beneficiary certificates $ $ 1,501,948
Valuation adjustments - 4,647
$ - $ 1,506,595
Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
Beneficiary certificates $ 61,481 $ 100,976
Valuation adjustments ( 10,018) 10,623
$ 51,463 $ 111,599
----- End of picture text -----

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

	For theyears ended	For theyears ended	December31,
	2022		2021
Beneficiary certificates	17,262) ($	$	84,375

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

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(3) Financial assets at amortised cost

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

Items December 31, 2022 December 31, 2021
----- End of picture text -----

Current items:
Time deposits with original maturity of more
than three months	$	8,527,800	$	5,480,400

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

below:
		For theyears ended		December31,
		2022		2021
Interest income	$	80,156	$	23,379

• 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, 2022 and 2021, 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.

(4) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance	December31,2022 867 $ December31,2022 720,973 $ - 720,973 $	December31,2021
		2,499 $
		December31,2021
		1,137,589 $ -
		1,137,589 $

• A. As of December 31, 2022 and 2021, the estimated sales discounts and allowances were $57,603 and $31,410, 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.

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

Not past due Up to 30 days 31 to 90 days	Accounts receivable 546,702 $ 174,271 - 720,973 $ December	Notes Accounts receivable receivable 867 $ 943,522 $ - 193,249 - 818 867 $ 1,137,589 $ 31,2022 December	Notes receivable 31,2021
			2,499 $ - - 2,499 $

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, 2022 and 2021, notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2021, the balance of notes receivable and accounts receivable from contracts with customers amounted to $813,157.

• E. As at December 31, 2022 and 2021, 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 $867 and $2,499, respectively; the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable were $720,973 and $1,137,589, 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, 2022 and 2021, 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, 2022 and 2021, the provision matrix is as follows:

December 31, 2022 Expected loss rate Total book value	Not past due 0.007% 546,702 $	1-180 days past due 0.04%~18.16% 174,271 $	Over 180 days past due 25%~100% - $	Total
				720,973 $

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December 31, 2021 Expected loss rate Total book value	Not past due 0.006% 943,522 $	1-180 days past due 0.03%~12.93% 194,067 $	Over 180 days past due 25%~100% - $	Total
				1,137,589 $

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		$	-	$	-

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

(5) Inventories

Raw materials Work in progress Finished goods	December31,2022
	Allowance for Cost valuation loss 2,743,592 $ 446,816) ($ 285,227 6,256) ( 528,468 34,302) ( 3,557,287 $ 487,374) ($	Bookvalue
		2,296,776 $ 278,971 494,166
		3,069,913 $

Raw materials Work in progress Finished goods		December31,2021
	Allowance for Cost valuation loss 4,555,175 $ 48,311) ($ 604,979 438) ( 506,929 3,771) ( 5,667,083 $ 52,520) ($		Bookvalue
			4,506,864 $ 604,541 503,158
			5,614,563 $

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

The cost of inventories recognized as expense for	the year:	the year:
Cost of goods sold Loss on decline in market value of inventory	For theyears ended December31,
	2022 8,843,739 $ 434,854 9,278,593 $	2021
		10,149,545 $ 17,358
		10,166,903 $

B. No inventories were pledged to others.

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(6) Financial assets at fair value through other comprehensive income - non-current

Items		December	31, 2022	December	31, 2021
Non-current items:
Equity instruments
Listed stocks		$	684,413	$	621,034
Others			1,125		1,125
			685,538		622,159
Valuation adjustments	(		160,599)		7,417
		$	524,939	$	629,576

• A. 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 $524,939 and $629,576 as at December 31, 2022 and 2021, respectively.

• B. For the years ended December 31, 2022 and 2021, the Company disposed equity investments whose fair value were $6,179 and $54,426, respectively and the cumulative gain on disposal was transferred to retained earnings in the amount of ($2,053) and $8,804, respectively.

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

2022 2021 Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive (loss) income 170,069) ($ 11,826 $ Cumulative (losses) gains reclassified to retained earnings due to derecognition 2,053) ($ 8,804 $ Dividend income recognized in profit or loss Held at end of year 35,592 $ 6,787 $ Derecognized during the year - - 35,592 $ 6,787 $ Forthe years endedDecember31,	Forthe years endedDecember31,	Forthe years endedDecember31,
		2021
		11,826 $
		8,804 $
		6,787 $ -
		6,787 $

• 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

			2022			2021
At January 1		$	2,114,375		$	2,156,258
Share of profit or loss of investments accounted			1,214,903			47,282
for using equity method
Dividends received from investments accounted
for using equity method	(		98,635)			-
Capital reduction and return of shares for using
equity method	(		985,589)			-
Decrease in unrealised profit from sales			6,651			6,000
Other comprehensive (loss) income	(		219)			200
Changes in other equity items			892	(		95,365)
At December 31		$	2,252,378		$	2,114,375
Investees		December31,2022			December 31, 2021
Subsidiaries:
Saffire Investment Ltd.		$	1,676,847		$	1,496,302
Transcend Japan Inc.			222,111			229,616
Transcend Information Inc.			153,808			184,082
Transcend Korea Inc.			62,902			55,861
Associates:
Taiwan IC Packaging Corporation			136,710			148,514
		$	2,252,378		$	2,114,375

A. Subsidiaries

Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2022 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	Principal place of business Taiwan	December December 31,2022 31,2021 12.50% 12.52% Shareholdingratio	Nature of relationship Note	Method of measurement
		December 31,2022 12.50%
Taiwan IC Packaging Corporation				Equity method

Note: Taiwan IC Packaging Corporation 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 Corporation processes the raw materials provided by the Company into relevant semi-finished goods.

~29~

• (b) The Company held a 12.5% equity interest in Taiwan IC Packaging Corporation, 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 Corporation and the Company has no seat in the Board of Directors of Taiwan IC Packaging Corporation, which indicate that the Company has no control ability to direct the relevant activities of Taiwan IC Packaging Corporation. In addition, the Company’s chairman is the same with Taiwan IC Packaging Corporation; hence, the Company has significant influence over Taiwan IC Packaging Corporation.

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

Balance sheet

			Taiwan ICPackaging Corporation	Taiwan ICPackaging Corporation	Taiwan ICPackaging Corporation	Taiwan ICPackaging Corporation
		December31,2022			December31,2021
Current assets		$	1,218,268		$	1,408,762
Non-current assets			1,151,953			1,219,160
Current liabilities	(		167,786)	(		374,580)
Non-current liabilities	(		75,327)	(		83,523)
Total net assets		$	2,127,108		$	2,169,819
Share in associate’s net assets		$	265,889		$	271,661
Net equity differences	(		129,179)	(		123,147)
		$	136,710		$	148,514

Statement of comprehensive income

Statement of comprehensive income
Share of profit (loss) of associates accounted for using the equity method is as follows: A 2022 2021 Revenue 1,223,212 $ 1,944,950 $ Profit for the year from continuing operations 84,128 $ 411,645 $ Total comprehensive income 96,327 $ 409,917 $ Dividends received from associates 21,885 $ - $ Taiwan ICPackaging Corporation Forthe years endedDecember31, Investee Company 2022 2021 Taiwan IC Packaging Corporation 10,081 $ 52,790 $ For theyears ended December31,	Taiwan ICPackaging Corporation
	Forthe years endedDecember31,
		2021
		1,944,950 $
		411,645 $
		409,917 $
		- $
	2022 10,081 $	2021
		52,790 $

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

(e) The Company’s investment in Taiwan IC Packaging Corporation has quoted market price. The fair value of Taiwan IC Packaging Corporation was $242,305 and $446,724 as of December 31, 2022 and 2021, respectively.

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(8) Property, plant and equipment

At January 1 Cost Accumulated depreciation At January 1 Additions (including transfers) Depreciation charge At December 31 At December 31 Cost Accumulated depreciation		2022

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At January 1 Cost Accumulated depreciation At January 1 Additions (including transfers) Depreciation charge At December 31 At December 31 Cost Accumulated depreciation				2021

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 leased asset is land. Rental contracts are typically made for 5 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, 2022 December 31, 2021 Carrying amount Carrying amount 165,858 $ 15,263 $ 2022 2021 Depreciation charge Depreciationcharge 37,167 $ 36,630 $ Forthe years endedDecember31,	December 31, 2022 December 31, 2021 Carrying amount Carrying amount 165,858 $ 15,263 $ 2022 2021 Depreciation charge Depreciationcharge 37,167 $ 36,630 $ Forthe years endedDecember31,
		Depreciationcharge
		36,630 $

• C. For the year ended December 31, 2022, the additions to right-of-use assets were $187,762. Refer to Note 7(2)E. for details. For the year ended December 31, 2021, there were no additions to rightof-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	For the years ended December 31,	For the years ended December 31,
	2022 1,239 $ 2,970 428	2021
		243 $ 4,984 770

• E. For the years ended December 31, 2022 and 2021, the Company’s total cash outflow for leases were $41,882 and $42,812, 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 5 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, 2022 and 2021, the Company recognized rent income in the amount of $46,891 and $37,253, 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, 2022			December 31, 2021
2023	$	58,970	2022	$	38,925
2024		37,943	2023		26,757
2025		22,309	2024		16,806
2026		12,664	2025		9,406
2027		815	2026		9,406
	$	132,701		$	101,300

(11) Investment property

At January 1 Cost Accumulated depreciation At January 1 Additions Depreciation charge At December 31 At December 31 Cost Accumulated depreciation		2022

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At January 1 Cost Accumulated depreciation At January 1 Additions Depreciation charge 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 $

• 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	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 46,891 $ 7,863 $ 701 $	2021
		37,253 $
		7,453 $
		701 $

• B. The fair value of the investment property held by the Company was $4,829,337 and $5,505,217 as of December 31, 2022 and 2021, respectively, which was based on the transaction prices of similar properties in the same area.

• C. No investment property was pledged to others.

• (12) Other non-current assets

Other non-current assets
Guarantee deposits paid Prepayments for business facilities Others	December31,2022 14,404 $ 2,912 13,754 31,070 $	December31,2021
		14,868 $ 12,416 14,490
		41,774 $

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(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	31,2022		December	31,2021
Present value of defined benefit obligations		$	36,584		$	38,857
Fair value of plan assets	(		29,193)	(		25,454)
Net defined benefit liability		$	7,391		$	13,403

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

		Present value of	Present value of
		defined benefit			Fair value of			Net defined
			obligations		planassets		benefitliability
2022
Balance at January 1		$	38,857	($	25,454)		$	13,403
Current service cost			550		-			550
Interest expense (income)			291	(	196)			95
			39,698	(	25,650)			14,048
Remeasurements:
Return on plan assets			-	(	2,071)	(		2,071)
(excluding amounts included
in interest income or expense)
Change in financial assumptions	(		2,630)		-	(		2,630)
Experience adjustments	(		484)		-	(		484)
	(		3,114)	(	2,071)	(		5,185)
Pension fund contribution			-	(	1,472)	(		1,472)
Balance at December 31		$	36,584	($	29,193)		$	7,391

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		Present value of	Present value of
		defined benefit			Fair value of			Net defined
			obligations		planassets		benefitliability
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)
Pension payment	(		3,166)		3,166			-
Balance at December 31		$	38,857	($	25,454)		$	13,403

• (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, 2022 and 2021 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 increase rate	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 1.400% 1.625%	2021
		0.750%
		1.625%

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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:

		Discountrate	Discountrate	Future salary	Future salary	increases
		Increase	Decrease	Increase		Decrease
		0.25%	0.25%	0.25%		0.25%
December 31, 2022
Effect on present value of
defined benefit obligation	($	1,023)	1,065 $	1,038 $	($	1,002)
December 31, 2021
Effect on present value of
defined benefit obligation	($	1,158)	1,208 $	1,170 $	($	1,127)

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.

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, 2023 amount to $1,476.

• (g) As of December 31, 2022, the weighted average duration of the retirement plan is 11.73 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, 2022 and 2021 were $33,234 and $34,271, respectively.

(14) Share capital

As of December 31, 2022, 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

~38~

issued have been collected. The Company’s ordinary shares outstanding at the beginning and at the end of the period were 429,062 thousand shares for the years ended December 31, 2022 and 2021.

(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 shareholders 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 shareholders. Cash dividends shall account for at least 5% of the total dividends distributed.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

~39~

• E. (a) The appropriations of earnings and cash payment from capital surplus for the years ended December 31, 2021 and 2020 have been resolved at the shareholders’ meeting on June 17, 2022 and August 26, 2021, respectively. Details are summarized below:

Legal reserve Appropriation for (reversal of) special reserve Cash dividends Cash payment from capital surplus	Amount Dividends per share (indollars) Amount Dividends per share (indollars) 254,464 $ 119,625 $ 73,270 13,658) ( 2,231,121 5.20 $ 1,094,107 2.55 $ 2,558,855 $ 1,200,074 $ Cash payment per share Cash payment per share Amount (indollars) Amount (indollars) 343,249 $ 0.80 $ 214,531 $ 0.50 $ December31,2021 December31,2020 For the year ended For the year ended	Amount Dividends per share (indollars) Amount Dividends per share (indollars) 254,464 $ 119,625 $ 73,270 13,658) ( 2,231,121 5.20 $ 1,094,107 2.55 $ 2,558,855 $ 1,200,074 $ Cash payment per share Cash payment per share Amount (indollars) Amount (indollars) 343,249 $ 0.80 $ 214,531 $ 0.50 $ December31,2021 December31,2020 For the year ended For the year ended	Amount Dividends per share (indollars) Amount Dividends per share (indollars) 254,464 $ 119,625 $ 73,270 13,658) ( 2,231,121 5.20 $ 1,094,107 2.55 $ 2,558,855 $ 1,200,074 $ Cash payment per share Cash payment per share Amount (indollars) Amount (indollars) 343,249 $ 0.80 $ 214,531 $ 0.50 $ December31,2021 December31,2020 For the year ended For the year ended	Amount Dividends per share (indollars) Amount Dividends per share (indollars) 254,464 $ 119,625 $ 73,270 13,658) ( 2,231,121 5.20 $ 1,094,107 2.55 $ 2,558,855 $ 1,200,074 $ Cash payment per share Cash payment per share Amount (indollars) Amount (indollars) 343,249 $ 0.80 $ 214,531 $ 0.50 $ December31,2021 December31,2020 For the year ended For the year ended
	Amount 254,464 $ 73,270 2,231,121 2,558,855 $ Amount 343,249 $
				2.55 $ Cash payment per share (indollars) 0.50 $

Actual distribution of retained earnings for 2021 and 2020 is in agreement with the amounts resolved at the shareholders’ meeting.

• (b) The appropriations of earnings and cash payment from capital surplus for the year ended December 31, 2022 as proposed by the Board of Directors on March 2, 2023 are as follows:

Legal reserve Special reserve Cash dividends Total Cash payment from capital surplus	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022
	Amount 245,726 $ 167,303 2,059,496 2,472,525 $ Amount 343,249 $	Dividends per share (indollars)
		4.80 $ Cash payment pershare (indollars)
		0.80 $

As of March 2, 2023, the above appropriations of 2022 earnings have not yet been resolved by the shareholders.

~40~

(17) Other equity items

					2022
					Exchange
					differences
			Unrealized		on translation of
			gain or loss		foreign financial
			onvaluation		statements		Total
At January 1		$	7,417	($	197,932)	($	190,515)
Revaluation adjustment	(		170,069)		-	(	170,069)
Revaluation transferred to retained earnings			2,053		-		2,053
Currency translation differences			-		892		892
Effect from income tax			-	(	178)	(	178)
At December 31	($		160,599)	($	197,218)	($	357,817)
					2021
					Exchange
					differences
			Unrealized		on translation of
			gain or loss		foreign financial
			onvaluation		statements		Total
At January 1		$	4,395	($	121,639)	($	117,244)
Revaluation adjustment			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)

(18) Operating revenue

Operating revenue
Sales revenue	For theyears ended December31,
	2022 11,386,995 $	2021
		13,747,158 $

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:

geographical regions:
For the year ended December31,2022 Revenue from external customer contracts		Electronicproducts			Others 733,096 $	Total
	Taiwan 2,803,949 $	Asia 3,528,324 $	America 1,798,453 $	Europe 2,523,173 $
						11,386,995 $

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==> picture [457 x 65] intentionally omitted <==

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

Electronic products
For the year ended Taiwan Asia America Europe Others Total
December 31, 2021
Revenue from external
customer contracts $ 3,400,049 $ 4,982,120 $ 1,607,361 $ 2,978,488 $ 779,140 $13,747,158
----- End of picture text -----

B. Contract assets and liabilities

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

(19) Interest income

Interest income
		For the years ended		December 31,
		2022		2021
Interest income from bank deposits	$	13,331	$	1,102
Interest income from financial assets measured
at amortised cost		80,156		23,379
Other interest income		3,447		52,837
	$	96,934	$	77,318

(20) Other income

Other income
Rental income Dividend income	For the years ended December 31,
	2022 46,891 $ 35,592 82,483 $	2021
		37,253 $ 6,787
		44,040 $

(21) Other gains and losses

Other gains and losses
	0			Forthe years ended		December31,
				2022		2021
Net currency exchange gain (loss)			$	226,573	($		26,684)
Net (loss) gain on financial assets and liabilities at fair value through profit or loss		(		17,262)			84,375
Others				8,668			7,590
			$	217,979	$		65,281

(22) Expenses by nature

Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Directors’ remuneration Depreciation charges (including investment property)	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 761,434 $ 70,724 33,879 39,797 1,993 154,169	2021
		808,487 $ 72,573 34,934 40,766 9,755 164,702

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• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 0.2% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2022 and 2021, employees’ compensation was accrued at $31,729 and $32,691, respectively; while directors’ remuneration was accrued at $0 and $4,577, respectively. The aforementioned amounts were recognized in salary expenses.

• C The employees’ compensation and directors’ remuneration were estimated and accrued based on 1% and 0% of distributable profit of current period for the year ended December 31, 2022. The employees’ compensation and directors’ remuneration resolved by the Board of Directors were $30,987 and $2,300, respectively, and the employees’ compensation will be distributed in the form of cash.

• D The difference between employees’ compensation and directors’ remuneration as resolved by the Board of Directors and the amounts recognized in the 2021 financial statements by $1,149 and $1,377, respectively, has been adjusted in profit or loss for 2022.

• E 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:

tax ome tax expense Components of income tax expense:
			Forthe years ended			December31,
			2022			2021
Current income tax:
Current income tax on profits for the year		$	452,853		$	586,853
Prior year income tax overestimation	(		277)	(		1,530)
Total current income tax			452,576			585,323
Deferred income tax:
Origination and reversal of temporary
differences			160,053	(		1,658)
Total deferred income tax			160,053	(		1,658)
Income tax expense		$	612,629		$	583,665

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

Financial statements translation differences of foreign operations	2022 2021 178 $ 19,072) ($ Forthe years endedDecember31,

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B. Reconciliation between income tax expense and accounting profit

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2022			2021
Income tax calculated by applying statutory
rate to the profit before tax		$	613,395		$	623,392
Effects from tax exemption and items
disallowed by tax regulation	(		6,174)	(		37,538)
Prior year income tax overestimation	(		277)	(		1,530)
Effect from investment tax credits	(		1,990)	(		659)
Withholding tax in other countries			7,675			-
Income tax expense		$	612,629		$	583,665

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

							2022	2022
								Recognized in
									other
					Recognized in			comprehensive
		At	January1			profit or loss			income		At	December 31
Deferred income tax assets
Pension provision amount in excess		$	4,975	($		166)		$	-		$	4,809
of appropriation amount
Royalty fees			2,171	(		2,171)			-			-
Accrued hard drive recycling fees			1,794	(		1,093)			-			701
Unrealized sales discounts and			6,282			5,239			-			11,521
allowances
Unrealized gross profit from sales			2,152	(		1,165)			-			987
Unrealized loss on market value			10,504			86,971			-			97,475
decline and obsolete and
slow-moving inventories
Financial statements translation
differences of foreign operations			11,065			-	(		178)			10,887
Total		$	38,943		$	87,615	($		178)		$	126,380
Deferred income tax liabilities
Unrealized exchange gain	($		929)	($		22,098)		$	-	($		23,027)
Net gain on investment accounted	(		127,762)	(		225,570)			-	(		353,332)
for using equity method
Others	(		86)			-			-	(		86)
Total	($		128,777)	($		247,668)		$	-	($		376,445)

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							2021
							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		$	1,609	($		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
Financial statements translation
differences of foreign operations			-			-		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)
Financial statements translation	(		8,007)			-		8,007			-
differences of foreign operations
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)

D. The Company’s income tax returns through 2020 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	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022
	Weighted-average common shares Earnings outstanding per share Profit aftertax (inthousands) (indollars) 2,454,344 $ 429,062 5.72 $ 2,454,344 $ 429,062 - 554 2,454,344 $ 429,616 5.71 $ Forthe yearendedDecember31,2021		Earnings per share (indollars)
			5.72 $
			5.71 $
	Profit aftertax 2,533,294 $ 2,533,294 $ - 2,533,294 $	Weighted-average common shares outstanding (inthousands) 429,062 429,062 485 429,547	Earnings per share (indollars)
			5.90 $
			5.90 $

~46~

(25) Supplemental cash flow information

Investing activities with partial cash payments

Purchase of property, plant and equipment Less: Transfer from prepayment for business facilities Cash paid during the year

		For the years ended	For the years ended	December 31,
		2022		2021
	$	48,206	$	14,888
(		12,416)		-
	$	35,790	$	14,888

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Transcend Japan Inc. Transcend Information Inc. Transcend Korea Inc. Transcend Information Europe B.V. Transcend Information Trading GmbH Transcend Information (H.K.) Ltd. Transcend Information (Shanghai), Ltd. (Transcend Shanghai) Transtech Trading (Shanghai) Co., Ltd. Transcend Information (Hong Kong), Ltd. Taiwan IC Packaging Corporation Won Chin Investment Inc. (Won Chin) Cheng Chuan Technology Development Inc. (Cheng Chuan)

Relationship with the Group Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate accounted for using equity method Other related party Other related party

(2) Significant transactions and balances with related parties

A. Operating revenue

Sales of goods －Subsidiary －Associates accounted for using the equity method	Forthe years endedDecember31,	Forthe years endedDecember31,
	2022 2,872,912 $ 1,309 2,874,221 $	2021
		4,194,478 $ 1,393
		4,195,871 $

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

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was 30 to 60 days after monthly billings.

B. Purchases

		For the years ended	For the years ended	December 31,
		2022		2021
Purchases of goods
－Associates accounted for using the equity
method	$	221,258	$	235,161

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

C. Accounts receivable

Receivables from related parties －Subsidiary - Transcend Japan Inc. －Subsidiary - Others	December31,2022 105,212 $ 318,635 423,847 $	December31,2021
		78,741 $ 196,988
		275,729 $

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	December31,2022 414,212 $ 1,937 27,442 443,591 $	December 31, 2021
		408,198 $ 92 52,241
		460,531 $

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.

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E. Other payables

Other payables －Subsidiary －Associates accounted for using the equity method	December31,2022 December31,2021 17,688 $ 17,431 $ 4 - 17,692 $ 17,431 $

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, 2022 and 2021, the expendables sold to related parties, which were recognized in non-operating income, amounted to $1,131 and $963, respectively.

G. Leasing arrangements - lessee

The Company signed a land lease contract with its related party, Won Chin and Cheng Chuan, with a lease term of 5 years from June 12, 2022 to June 11, 2027. The annual rental payment is $38,484 (in dollars) (excluding tax), which was determined based on the appraisal results of Yungcheng Real Estate Appraisers Firm and CCIS Real Estate Joint Appraisers Firm and renewed at $1,350 in dollar per square feet/month (tax included) after having a three-party negotiation. 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, 2022 and 2021, the balance of related right-of-use assets amounted to $165,858 and $15,263 while lease liabilities amounted to $149,825 and $0, respectively.

• H. Endorsements and guarantees:

As of December 31, 2022 and 2021, information on the Company providing endorsements and guarantees to associates is provided in Note 13(1) B.

(3) Key management compensation

Key management compensation
Salaries and other employee benefits	For theyears ended December31,
	2022 68,967 $	2021
		44,300 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

As of December 31, 2022, except for the provision of endorsements and guarantees mentioned in Note 7 and 13(1) B, there are no other significant commitments.

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10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Information on distribution of 2022 earnings and cash dividends from capital surplus is provided in Note 6(16) E(b).

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	December 31, 2022 51,463 $ 524,939 1,812,082 8,527,800 867 1,144,820 21,627 14,404 12,098,002 $	December31,2021
		1,618,194 $ 629,576 1,659,848 5,480,400 2,499 1,413,318 105,235 14,868
		10,923,938 $

~50~

	December	31,2022	December	31,2021
Financial liabilities
Financial liabilities at amortised cost
Accounts payable (including related	$	915,304	$	1,824,375
parties)
Other payables (including related
parties)		227,092		269,798
	$	1,142,396	$	2,094,173
Lease liabilities	$	149,825	$	-

• 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:

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Foreign Currency Amount Exchangerate Financial assets Monetary items USD：NTD 254,448 $ 30.71 RMB：NTD 23,994 4.408 JPY：NTD 474,455 0.2324 EUR：NTD 5,372 32.72 KRW：NTD 1,728,885 0.0246 Long-term equity investment accounted for using the equity method USD：NTD 59,611 $ 30.71 JPY：NTD 955,727 0.2324 KRW：NTD 2,556,992 0.0246 Financial liabilities Monetary items USD：NTD 13,052 $ 30.71 RMB：NTD 97,981 4.408 Foreign Currency Amount Exchangerate 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 Financial liabilities Monetary items USD：NTD 41,900 $ 27.68 RMB：NTD 97,981 4.344 December31,2021 December31,2022	December31,2022	December31,2022
			Book value (NTD)
			7,814,098 $ 105,766 110,263 175,772 42,531 1,830,655 $ 222,111 62,902 400,827 $ 431,900
		Exchangerate 27.68 4.344 0.2405 31.32 27.68 0.2405 0.0235 27.68 4.344	Book value (NTD)
			2,900,476 $ 255,036 100,466 81,964 1,680,385 $ 229,616 55,860 1,159,792 $ 425,629

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, 2022 and 2021 is provided in Note 6(21).

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• 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 $74,133 and $17,407 for the years ended December 31, 2022 and 2021, respectively.

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, 2022 and 2021 would have increased/decreased by $515 and $16,182, 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 $5,249 and $6,296, 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 receivables 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

~53~

account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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

• iv. 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.

• v. For details of credit risk in relation to accounts receivable and notes receivable, please refer to Note 6(4).

(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, 2022 and 2021, the Company held money market position of $10,339,882 and $8,646,843, 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.

~54~

• 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 (including related parties), other receivables, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values.

• D. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

December 31, 2022 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, 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	Level 1 51,463 $ 523,814 575,277 $ Level 1 1,618,194 $ 628,451 2,246,645 $	Level 2 - $ - - $ Level 2 - $ - - $	Level3 - $ 1,125 1,125 $ Level3 - $ 1,125 1,125 $	Total
				51,463 $ 524,939
				576,402 $
				Total
				1,618,194 $ 629,576
				2,247,770 $

• 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,

~55~

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 and beneficiary certificates classified as financial assets at fair value through profit or loss.

• F. For the years ended December 31, 2022 and 2021, there were no transfers between Level 1 and Level 2.

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

• H. There was no change in Level 3 financial instruments for the years ended December 31, 2022 and 2021.

• I. Financial segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and frequently review the fair value.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: Refer to table 1.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): 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: 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: Refer to table 4.

• 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: Refer to table 5.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to table 6.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Refer to table 7.

~56~

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) : Refer to table 8.

• (3) Information on investments in Mainland China

• A. Basic information: Refer to table 9.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to table 7.

(4) Major shareholders information

Major shareholders information: Refer to table 10.

14. SEGMENT INFORMATION

None.

~57~

Expressed in thousands of NTD

Transcend Information, Inc.

Provision of endorsements and guarantees to others

For the year ended December 31, 2022

Table 1

(Except as otherwise indicated)

Number (Note 1) Endorser/ guarantor	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2022(Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2022(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 Information, Inc.	Transcend Japan Inc. 2	3,910,107 $	$ 486,400 (JPY $2,000,000) (In thousands)	$ 464,800 (JPY $2,000,000) (In thousands)	- $	-	2	7,820,214 $	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. ($19,550,536*20%=$3,910,107)

• Note 4: The maximum outstanding endorsement/guarantee amount during and as of December 31, 2022 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.( $19,550,536*40%=$7,820,214)

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

Table 1, Page 1

Transcend Information, Inc.

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

December 31, 2022

Table 2

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 31,2022	As of December 31,2022	Footnote (Note 4)
	Number of shares	Book value (Note 3)	Ownership (%) Fair value
Transcend Information, Inc. Stocks TrendForce Corporation - Financial assets at fair value through other comprehensive income - non-current Fubon Financial Holding Co., Ltd. Preferred Shares B - " Taiwan Semiconductor Manufacturing Co., Ltd. - " MediaTek Inc. - " Fubon Financial Holding Co., Ltd. - " Cathay Financial Holding Co. Ltd. - " Yuanta Financial Holding Co., Ltd. - " CTBC Financial Holding Co., Ltd. - " Formosa Plastics Corporation - " ASUSTek Computer Inc. - " Beneficiary certificates Yuanta Taiwan Top 50 ETF - Financial assets at fair value through profit or loss - non-current	60,816 1,758,000 420,000 40,000 1,120,366 216,323 119,480 100,000 262,000 410,000 467,000	1,125 $ 101,085 188,370 25,000 63,077 8,653 2,593 2,210 22,741 110,085	1 1,125 $ - 101,085 - 188,370 - 25,000 - 63,077 - 8,653 - 2,593 - 2,210 - 22,741 - 110,085 - 51,463 $	- - - - - - - - - - -
		524,939 $
		51,463 $

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

For the year ended December 31, 2022

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Marketable securities （Note 1）	General ledger account	Counterparty （Note 2）	Relationship with the investor （Note 2）	Balance as at January1,2022	Balance as at January1,2022	Addition （Note 3）	Addition （Note 3）		Disposal （Note 3）	Disposal （Note 3）		Balance as at December 31,2022	Balance as at December 31,2022
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain on disposal	Number of shares	Amount
Transcend Information, Inc.	Taishin 1699 Money Market Fund	Financial assets at fair value through profit or loss - current	-	-	110,142,508	$ 1,501,948	-	$ -	110,142,508	$ 1,508,314	$ 1,501,948	$ 6,366	-	$ -

• 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

Table 4

Expressed in thousands of NTD

Transcend Information, Inc.

Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more

For the year ended December 31, 2022

(Except as otherwise indicated)

Real estate disposed by	Real estate	Transaction date or date of the event	Date of acquisition	Book value	Disposal amount	Status of collection of proceeds	Gain (loss) on disposal	Counterparty	Relationship with the seller	Reason for disposal	Basis or reference used in settingtheprice	Other commitments
Transcend Information (Shanghai), Ltd. "	Land use rights, buildings and accessories of 106/17 Hill, 2nd Neighborhood, Xidu Town, Fengxian, Shanghai Land use rights, buildings and accessories of No. 300, Lane 3111, Huancheng West Road, Shanghai Industrial Development Zone, 25/6 Hill, 2 Neighborhood, Xidu Town, Fengxian District, and 25/7 Hill, 2 Neighborhood, Xidu Town, Fengxian District	2021/11/26 2022/2/18	May 2005 to December 2010 May 2005 to January 2014	159,976 $ 358,772	508,726 $ 1,342,344	Note 2 1,342,344	345,801 $ 982,255	Shanghai Fengpu Industrial Park Fengxian Comprehensive Bonded Zone (Shanghai Minhang Export Processing Zone Development Co., Ltd.) Shanghai Fengpu Construction Development Co., Ltd.	- -	To cooperate with the government’s expropriation policy Activate assets and enhance working capital	In accordance with the Shanghai Fengpu Industrial Park expropriation policy and expropriation compensation agreement Note 3	- -

Note 1: Date of the event refers to the date of the Board of Directors’ resolution. Note 2: As of December 31, 2022, $457,854 had been collected. Note 3: The prices were determined in accordance with two valuation reports, amounting to RMB 391,970 thousand and RMB 385,610 thousand, respectively.

Table 4, 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

For the year ended December 31, 2022

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to thirdpartytransactions(Note)	Differences in transaction terms compared to thirdpartytransactions(Note)	Notes/accounts receivable(payable)	Notes/accounts receivable(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 Information, Inc. " " " " " " Transcend Information Europe B.V. Transcend Information, Inc.	Transtech Trading (Shanghai) Co., Ltd. Transcend Japan Inc. Transcend Information Europe B.V. Transcend Information Inc. 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 Subsidiary of Memhiro The Company’s subsidiary 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)	$ 672,568 464,600 412,950 466,470 309,457 387,584 159,283 100,490 ( 221,258)	6 4 3 4 3 3 1 18 (4)	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	$ 103,703 105,212 74,512 56,737 42,531 36,040 5,112 6,595 ( 27,442)	9 9 7 5 4 3 - 14 (3)	- - - - - - - - -

Note: 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 5, Page 1

Table 6

Transcend Information, Inc.

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

For the year ended December 31, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Transcend Information, Inc. " Transcend Information (Shanghai), Ltd.	Transcend Japan Inc. Transtech Trading (Shanghai) Co., Ltd. Transcend Information, Inc.	The Company’s subsidiary Subsidiary of Memhiro Ultimate parent company	$ 105,212 103,703 414,212	5.05 5.70 -	$ - - 414,212	- - -	$ 4,545 69,646 -	- - -

Table 6, Page 1

Transcend Information, Inc.

Expressed in thousands of NTD

Significant inter-company transactions during the reporting year

For the year ended December 31, 2022

Table 7

(Except as otherwise indicated)

Transaction

						Transaction	(Except as otherwise indicated)
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 " " " " " " " 1	Transcend Information, Inc. " " " " " " " Transcend Information Europe B.V.	Transtech Trading (Shanghai) Co., Ltd. Transcend Japan Inc. Transcend Information Europe B.V. Transcend Information Inc. Transcend Information Trading GmbH Transcend Korea Inc. Transcend Information (H.K) Ltd. Transcend Information (Shanghai), Ltd. Transcend Information Trading GmbH	1 " " " " " " " 3	Sales " " " " " " Accounts Payable Sales	$ 672,568 464,600 412,950 466,470 387,584 309,457 159,283 414,212) ( 100,490	There is no significant difference in unit price from those to third parties. " " " " " " 120 days after monthly billings There is no significant difference in unit price from those to third parties.	6 4 3 4 3 3 1 2) ( 1

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

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

• (a) Parent company is "0".

• (b) Subsidiaries were numbered from 1.

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

(a) Parent company to subsidiary.

• (b) Subsidiary to parent company.

• (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 7, Page 1

Transcend Information, Inc.

Information on investees

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2022

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2022	Shares held as at December 31,2022	Shares held as at December 31,2022	Net profit (loss) of the investee for the year ended December 31, 2022	Investment income (loss) recognized by the Company for the year ended December 31,2022	Footnote
				Balance as at December 31, 2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value
Transcend Information, Inc. Saffire Investment Ltd. Memhiro Pte Ltd.	Saffire Investment Ltd. Transcend Japan Inc. Transcend Information Inc. Transcend Korea Inc. Taiwan IC Packaging Corporation 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	$ 216,829 89,103 38,592 6,132 354,666 173,702 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	6,600,000 6,400 625,000 40,000 21,928,036 8,277,609 100 - 2,000,000	100 100 100 100 12.50 100 100 100 100	1,676,847 $ 222,111 153,808 62,902 136,710 1,632,726 234,933 122,747 35,697	1,174,872 $ 4,004 21,452 4,275 84,128 1,174,490 4,143 5,068 2,474	1,174,872 $ 4,004 21,452 4,275 10,300 1,174,490 4,143 5,068 2,474

Table 8, Page 1

Table 9

Transcend Information, Inc.

Information on investments in Mainland China

For the year ended December 31, 2022

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, 2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income (loss) of investee for the year ended December 31,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December 31, 2022(Note 2)	Book value of investments in Mainland China as of December 31,2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022	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	$ 150,787 16,310	2 2	$ 1,134,178 16,310	- -	(983,391) -	$ 150,787 16,310	$ 1,128,705 11,599	100 100	$ 1,128,705 11,599	$ 1,152,072 58,599	$ 1,464,028 -	Note 4 -

Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	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
167,097 $	1,150,488 $	11,730,322 $

• 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.

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.

Note 4: In June 2022, the shareholders of Transcend Information (Shanghai), Ltd. resolved to reduce its capital from US$34.6 million to US$4.6 million, and the proceeds from capital reduction was returned to Memhiro Pte Ltd., Saffire Investment Ltd., and the ultimate parent company, i.e. Transcend Information, Inc.

Table 9, Page 1

Transcend Information, Inc. Major shareholders information

Table 10

December 31, 2022

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 10, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2022

(Expressed in thousands of New Taiwan Dollars)

Statement 1

==> picture [488 x 15] intentionally omitted <==

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

Items Summary Amount
----- End of picture text -----

Petty cash and cash on hand Cash in banks - Checking accounts deposits - Demand deposits - Foreign currency deposits USD 42,960 thousand, at exchange rate of $30.71 Other foreign currency Time deposits USD 10,000 thousand, at exchange rate of $30.71	42 $ 3,922 173,473 1,319,286 8,259 307,100 1,812,082 $

Statement 1, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 2

==> picture [347 x 210] intentionally omitted <==

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

Customer name Summary Amount
A customer $ 64,936
B customer 54,729
C customer 54,349
D customer 52,384
Others
552,178
778,576
Less: Allowance for sales discounts ( 57,603)
-
Loss allowance
$ 720,973
----- End of picture text -----

Statement 2, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF INVENTORIES DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 3

Amount

Items Raw materials Work in progress Finished goods Less: Allowance for inventory valuation loss	Summary Cost 2,743,592 $ 285,227 528,468 3,557,287 487,374) ( 3,069,913 $	Net realizable value 2,296,776 $ 309,423 711,843 3,318,042 $	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, less the estimated cost of completion and the estimated costs necessary to make the sale.

Statement 3, Page 1

TRANSCEND INFORMATION, INC.

MOVEMENT SUMMARY OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 4

Statement 4
Name Stocks: TrendForce Corporation Fubon Financial Holding Co., Ltd. Preferred Shares B Yuanta Financial Holding Co., Ltd Taiwan Semiconductor Manufacturing Co., Ltd. MEDIATEK INC. ASUSTek Computer Inc. Fubon Financial Holding Co., Ltd. Cathay Financial Holding Co. Ltd. CTBC FINANCIAL HOLDING CO., LTD. AU Optronics Corporation Innolux Corporation Formosa Plastics Corporation	Changes in fairvalue Numberofshares Amount Amount 60,816 1,125 $ - $ 1,758,000 110,930 9,845) ( - - 349) ( 380,000 233,700 69,158) ( - - 16,474) ( 410,000 154,160 44,075) ( 1,067,016 81,413 18,336) ( 200,000 12,500 4,418) ( - - 586) ( 200,000 4,580 129) ( 200,000 3,920 139) ( 262,000 27,248 4,507) ( 629,576 $ 168,016) ($ Opening balance	Numberofshares Amount Numberofshares Amount - - $ - - $ - - - - 119,480 2,942 - - 40,000 23,828 - - 40,000 41,474 - - - - - - 53,350 - - - 16,323 571 - - 100,000 2,796 - - - - 200,000) ( 4,451) ( - - 200,000) ( 3,781) ( - - - - 71,611 $ 8,232) ($ Additions Reductions	Numberofshares Amount 60,816 1,125 $ 1,758,000 101,085 119,480 2,593 420,000 188,370 40,000 25,000 410,000 110,085 1,120,366 63,077 216,323 8,653 100,000 2,210 - - - - 262,000 22,741 524,939 $ Ending balance	Accumulated impairment Not applicable " " " " " " " " " " "	Collateral None " " " " " " " " " " "	Note
	Numberofshares 60,816 1,758,000 - 380,000 - 410,000 1,067,016 200,000 - 200,000 200,000 262,000	Numberofshares - - 119,480 40,000 40,000 - 53,350 16,323 100,000 - - -	Numberofshares 60,816 1,758,000 119,480 420,000 40,000 410,000 1,120,366 216,323 100,000 - - 262,000

Statement 4, Page 1

TRANSCEND INFORMATION, INC.

MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 5

Statement 5
Number of shares Name of investee (in thousand shares) Saffire Investment Ltd. 36,600 Transcend Japan Inc. 6 Transcend Information Inc. 625 Transcend Korea Inc. 40 Taiwan IC Packaging Corporation 21,928 Opening ba	Amount 1,496,302 $ 229,616 184,082 55,861 148,514 2,114,375 $ lance	Additions	Amount - $ - - - - - $	Number of shares (in thousand shares) Amount 30,000) ( 985,589) ($ - - - 76,750) ( - - - 21,885) ( 1,084,224) ($ Reductions	Investment income(loss)	Remeasurement of defined benefitplan	Accumulated translation adjustment	Unrealised profit from sales	Endingbalance			Market price or valueper share	Collateral
		Number of shares (in thousand shares) - - - - -							Number of shares (in thousand shares) 6,600 6 625 40 21,928	Shareholding ratio 100% 100% 100% 100% 12.50%	Amount
					1,174,872 $ 4,004 21,452 4,275 10,300 1,214,903 $	- $ - - - 219) ( 219) ($	15,095) ($ 7,754) ( 20,864 2,877 - 892 $	6,357 $ 3,755) ( 4,160 111) ( - 6,651 $			1,676,847 $ 222,111 153,808 62,902 136,710	1,676,139 $ 229,028 150,442 63,514 242,305	None " " " "
											2,252,378 $

Statement 5, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF ACCOUNTS PAYABLE DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 6

Vendor name A company B company C company D company E company Others	Amount Note 112,173 $ 96,655 55,934 48,091 36,456 122,404 The balance of each vendor account has not exceeded 5% of the total accounts payable. 471,713 $	Note

Statement 6, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF OPERATING COST FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 7

Statement 7
Items Amount Raw materials used Raw materials at beginning 4,555,175 $ Add: Materials purchased during the year 6,100,584 Others 1,918) ( Less: Raw materials at the end 2,743,592) ( Cost of raw materials sales 13,424) ( Reclassified as manufacture, selling and administrative and research and development expenses 41,752) ( Consumption of materials for the year 7,855,073 Direct labor 372,688 Overhead 337,687 Manufacturing Cost 8,565,448 Add: Work in progress at the beginning 604,979 Transfer from finished goods 1,499,880 Less: Work in progress at the end 285,227) ( Others 15) ( Finished goods cost 10,385,065 Add: Finished goods at the beginning 506,929 Less: Finished goods at the end 528,468) ( Transfer into work in progress 1,499,880) ( Reclassified as manufacture, selling and administrative and research and development expenses 34,493) ( Others 1,162 Cost of goods sold - finished goods 8,830,315 Cost of goods sold - materials 13,424 Inventory valuation loss 434,854 Operating cost 9,278,593 $	Note

Statement 7, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF MANUFACTURING EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 8

Items Summary Depreciation Maintenance fees Insurance expense Utilities expense Package fees Meal expenses Miscellaneous purchase Pensions Other expenses	Amount Note 121,635 $ 46,354 41,786 21,127 19,750 18,266 17,805 17,606 33,358 The balance of each expense account has not exceeded 5% of the total manufacturing expense. 337,687 $

Statement 8, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 9

Items Wages and salaries Export expense Insurance expense Depreciation Tax Other expenses	Selling expenses 179,265 $ 78,168 16,962 294 33 40,136 314,858 $	General and administrative expenses 101,338 $ - 25,578 31,864 11,268 37,129 207,177 $	Research and development expense 110,136 $ - 10,351 376 - 16,242 137,105 $	Total Note 390,739 $ 78,168 52,891 32,534 11,301 93,507 The balance of each expense account has not exceeded 5% of the total operating expenses. 659,140 $

Statement 9, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF EMPLOYEE BENEFIT AND DEPRECIATION BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 10

Statement 10
Function Nature	For theyear ended December 31, 2022			For theyear ended December 31, 2021
	Classified as OperatingCosts	Classified as OperatingExpenses	Total	Classified as OperatingCosts	Classified as OperatingExpenses	Total
Employee benefit expense
Salaryexpenses	372,688 $	388,746 $	761,434 $	400,570 $	407,917 $	808,487 $
Labour and health insurance fees	36,825	33,899	70,724	37,116	35,457	72,573
Pension costs	17,606	16,273	33,879	17,967	16,967	34,934
Otherpersonnel expenses	24,730	15,067	39,797	25,310	15,456	40,766
Directors’ remuneration	-	1,993	1,993	-	9,755	9,755
Depreciation	121,635	32,534	154,169	132,562	32,140	164,702

1. As at December 31, 2022 and 2021, the Company had 1,010 and 1,053 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 $902 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’).

Average employee benefit expense in previous year was $914 thousand (‘total employee benefit expense in previous year － total directors’

• －

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

• －

• (2) Average employees salaries in current year was $758 thousand (total salaries in current year / ‘the number of employees in current year the number of non-employee directors’)

• －

• Average employees salaries in previous year was $772 thousand (total salaries in previous year / ‘the number of employees in previous year the number of non-employee directors’)

• (3) Adjustment of average employees salaries was (1.81%) (‘the average employee salaries in current year － the average employee salaries in previous year’ / the average employee salaries in previous year).

Statement 10, Page 1

TRANSCEND INFORMATION, INC. DETAILS OF EMPLOYEE BENEFIT AND DEPRECIATION BY FUNCTION (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement 10

• (4) For the years ended December 31, 2022 and 2021, 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 10, Page 2