TSE: 2451

Transcend Information, Inc.
Annual Report 2023

Notice to readersThis English-version annual report is a summary translation of the Chinese version
and is not an official document of the shareholders’ meeting. If there is any
discrepancy between the English and Chinese versions, the Chinese version shallprevail.

Printed on May 16, 2024
Transcend Information, Inc. annual report is available at https://tw.transcend-info.com/about/stockholders
Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw/mops/web/t57sb01_q5

Spokesperson
Name: Chen, Po-Shou
Title: Sales Vice General manager
Tel: (02) 2792-8000 #7533
E-mail: ir@transcend-info.com
Deputy Spokesperson
Name: Yang, Dan-Ting
Title: Director of Marketing
Tel: (02) 2792-8000 #7533
E-mail: ir@transcend-info.com
Headquarters and Plant
Headquarters: No. 70, XingZhong Rd., NeiHu Dist., Taipei 114, Taiwan
Plant: No. 70, XingShan Rd., NeiHu Dist., Taipei 114, Taiwan
Tel: (02) 2792-8000
Fax: (02) 2792-3375 (Headquarters)(02) 2792-0517 (Plant)
Stock Transfer Agent
CTBC Bank Transfer Agency Department
Address: 5F., No.83, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei 100,
Taiwan (R.O.C.)
Tel: (02) 6636-5566
Website: http://www.ctbcbank.com
Auditors
PricewaterhouseCoopers Taiwan
Auditors: Chen,Chin-Chang, Lin, Yi-Fan
Address: 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 110, Taiwan
Tel: (02) 2729-6666
Website: http://www.pwc.com/tw
The name of any exchanges where the company's securities are tradedoffshore, and the method by which to access information on said offshore
securities: Not applicable
Corporate Website: https://tw.transcend-info.com/

1.

LETTER TO SHAREHOLDERS------------------------------------------------------------------------------------------ 1

2.

COMPANY PROFILE ------------------------------------------------------------------------------------------------------- 3
2.1.
2.2.

3.

DATE OF INCORPORATION -------------------------------------------------------------------------------------------------------- 3
COMPANY HISTORY --------------------------------------------------------------------------------------------------------------- 3
CORPORATE GOVERNANCE REPORT ------------------------------------------------------------------------------ 8

3.1.
3.2.
3.3.
3.4.
3.5.
3.6.

3.7.

3.8.
3.9.

4.

ORGANIZATION -------------------------------------------------------------------------------------------------------------------- 8
BACKGROUND INFORMATION ON DIRECTORS, GENERAL MANAGERS, VICE GENERAL MANAGERS,ASSISTANT MANAGERS AND HEADS OF VARIOUS DEPARTMENT AND BRANCHES --------------------------------------10
IMPLEMENTATION OF CORPORATE GOVERNANCE ---------------------------------------------------------------------------32
INFORMATION ON CPA FEES ----------------------------------------------------------------------------------------------------73
REPLACEMENT OF CPA ----------------------------------------------------------------------------------------------------------73
WHERE THE COMPANY'S CHAIRMAN, GENERAL MANAGER, OR ANY MANAGERIAL OFFICER IN CHARGE OFFINANCE OR ACCOUNTING MATTERS HAS IN THE MOST RECENT YEAR HELD A POSITION AT THE ACCOUNTINGFIRM OF ITS CERTIFIED PUBLIC ACCOUNTANT OR AT AN AFFILIATED ENTERPRISE OF SUCH ACCOUNTING FIRM,
THE NAME AND POSITION OF THE PERSON, AND THE PERIOD DURING WHICH THE POSITION WAS HELD, SHALLBE DISCLOSED. --------------------------------------------------------------------------------------------------------------------73
ANY TRANSFER OF EQUITY INTERESTS AND/OR PLEDGE OF OR CHANGE IN EQUITY INTERESTS BY A DIRECTOR,MANAGERIAL OFFICER, OR SHAREHOLDER WITH A STAKE OF MORE THAN 10 PERCENT DURING THE MOSTRECENT FISCAL YEAR AND DURING THE CURRENT FISCAL YEAR UP TO THE DATE OF PUBLICATION OF THISANNUAL REPORT. -----------------------------------------------------------------------------------------------------------------73
RELATIONSHIP INFORMATION, IF AMONG THE COMPANY'S TOP 10 SHAREHOLDERS ANY ONE IS A RELATEDPARTY, SPOUSE OR A RELATIVE WITHIN THE SECOND DEGREE OF KINSHIP OF ANOTHER --------------------------------75
THE TOTAL NUMBER OF SHARES AND TOTAL EQUITY STAKE HELD IN ANY SINGLE ENTERPRISE BY THE
COMPANY, ITS DIRECTORS, MANAGERIAL OFFICERS, AND ANY COMPANIES CONTROLLED EITHER DIRECTLY OR
INDIRECTLY BY THE COMPANY. -------------------------------------------------------------------------------------------------81

CAPITAL OVERVIEW ----------------------------------------------------------------------------------------------------- 82
4.1.
4.2.
4.3.
4.4.
4.5.
4.6.
4.7.
4.8.

5.

CAPITAL AND SHARES ------------------------------------------------------------------------------------------------------------82
STATUS OF CORPORATE BONDS ------------------------------------------------------------------------------------------------86
STATUS OF PREFERRED SHARES------------------------------------------------------------------------------------------------86
STAUTS OF OVERSEAS DEPOSITARY RECEIPTS -------------------------------------------------------------------------------86
STATUS OF EMPLOYEE STOCK OPTION ----------------------------------------------------------------------------------------86
STATUS OF NEW RESTRICTED EMPLOYEE SHARES --------------------------------------------------------------------------87
STATUS OF NEW SHARES ISSUANCE IN CONNECTION WITH MERGERS OR ACQUISITIONS ----------------------------90
IMPLEMENTATION OF THE CAPITAL ALLOCATION PLANS ------------------------------------------------------------------90
OPERATIONAL HIGHLIGHTS ----------------------------------------------------------------------------------------- 91

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.
6.

BUSINESS ACTIVITIES ------------------------------------------------------------------------------------------------------------91
MARKETS AND OVERVIEW OF PRODUCTION AND SALES ----------------------------------------------------------------- 101
THE NUMBER OF EMPLOYEES, AVERAGE SERVICE YEAR, AVERAGE AGE AND EDUCATIONAL LEVEL
DISTRIBUTION RATIO IN LAST TWO YEARS AND UP TO THE PUBLICATION DATE OF THIS ANNUAL REPORT ------ 110
ENVIRONMENTAL PROTECTION EXPENDITURES --------------------------------------------------------------------------- 111
LABOR RELATIONS ------------------------------------------------------------------------------------------------------------- 111
INFORMATION SECURITY MANAGEMENT ----------------------------------------------------------------------------------- 113
IMPORTANT CONTRACTS ------------------------------------------------------------------------------------------------------ 115
FINANCIAL INFORMATION ------------------------------------------------------------------------------------------ 116

6.1.
6.2.
6.3.
6.4.
6.5.
6.6.

CONDENSED BALANCE SHEET AND STATEMENT OF COMPREHENSIVE INCOME FOR THE MOST RECENT FIVEYEARS – BASED ON IFRS ----------------------------------------------------------------------------------------------------- 116
FINANCIAL ANALYSIS FOR THE MOST RECENT FIVE YEARS – BASED ON IFRS -------------------------------------- 120
AUDIT COMMITTEE’S REVIEW REPORT FOR THE MOST RECENT YEAR ------------------------------------------------ 125
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022, AND
INDEPENDENT AUDITORS’ REPORT------------------------------------------------------------------------------------------- 126
FINANCIAL STATEMENTS OF PARENT COMPANY ONLY FOR THE YEARS ENDED DECEMBER 31, 2023 AND
2022, AND INDEPENDENT AUDITORS’ REPORT ----------------------------------------------------------------------------- 198
THE COMPANY SHOULD DISCLOSE THE FINANCIAL IMPACT TO THE COMPANY IF THE COMPANY AND ITS
AFFILIATED COMPANIES HAVE INCURRED ANY FINANCIAL OR CASH FLOW DIFFICULTIES IN 2023 AND AS OF

THE DATE OF THIS ANNUAL REPORT. ---------------------------------------------------------------------------------------- 276

7.

REVIEW AND ANALYSIS OF FINANCIAL POSITION, FINANCIAL PERFORMANCE, AND
RISK MANAGEMENT --------------------------------------------------------------------------------------------------- 276
7.1.
7.2.
7.3.
7.4.
7.5.
7.6.
7.7.

8.

SPECIAL DISCLOSURE ------------------------------------------------------------------------------------------------ 286
8.1.
8.2.
8.3.
8.4.

9.

ANALYSIS OF FINANCIAL POSITION ------------------------------------------------------------------------------------------ 276
ANALYSIS OF FINANCIAL PERFORMANCE ----------------------------------------------------------------------------------- 277
ANALYSIS OF CASH FLOW ----------------------------------------------------------------------------------------------------- 279
THE EFFECT UPON FINANCIAL OPERATIONS OF ANY MAJOR CAPITAL EXPENDITURES DURING THE MOSTRECENT FISCAL YEAR --------------------------------------------------------------------------------------------------------- 279
REINVESTMENT POLICY FOR THE MOST RECENT FISCAL YEAR, THE MAIN REASONS FOR PROFITS OR
LOSSES GENERATED THEREBY, IMPROVEMENT PLANS, AND INVESTMENT PLANS FOR THE COMING YEAR------ 279
ANALYSIS OF RISK MANAGEMENT------------------------------------------------------------------------------------------- 280
OTHER MATERIAL MATTERS -------------------------------------------------------------------------------------------------- 284

INFORMATION OF AFFILIATED COMPANIES --------------------------------------------------------------------------------- 286
PRIVATE PLACEMENT OF SECURITIES IN 2023 AND AS OF THE DATE OF THIS ANNUAL REPORT --------------------- 289
STATUS OF THE COMPANY’S COMMON SHARES HELD AND DISPOSED BY SUBSIDIARIES IN 2023 AND AS OF
THE DATE OF THIS ANNUAL REPORT ----------------------------------------------------------------------------------------- 289
OTHER NECESSARY SUPPLEMENT -------------------------------------------------------------------------------------------- 289
LATEST MATTERS WITH MATERIAL IMPACTS ON SHAREHOLDERS’ INTERESTS OR
SECURITY PRICES INDICATED IN PARAGRAPH 3 SUBPARAGRAPH 2 OF ARTICLE 36 OF
THE SECURITIES AND EXCHANGE ACT IN 2023 AND AS OF THE DATE OF THIS ANNUALREPORT --------------------------------------------------------------------------------------------------------------------- 289

1.

Letter to Shareholders

Dear Shareholders,
Looking back at 2023, the memory market remained stagnant and overall market was sluggish,
similar to the condition in 2022. Major memory suppliers reduced production to ease the inventory
pressure. Amid this lifeless economic condition, Transcend flexibly adjusted inventory strategies
and procurement policies, along with high-efficiency manufacturing, to successfully fulfill clients’sales orders while maintaining good profit. The destocking approach and reduced production
started to take effect in the 4th quarter of 2023, leading to a gradual increase in DRAM and NAND
flash prices. In the rapidly changing market, Transcend took proactive measures and closelycollaborated with suppliers. With stable product supply, high production efficiency, and goodpricing strategy, Transcend achieved solid and stable business outcome. I would like to express mysincere gratitude to all the shareholders, suppliers, and employees.
2023 Business Report(1) 2023 Business Report, Financial Highlights & Analysis
Transcend’s consolidated revenue totaled NT$10.5 billion in 2023, a decrease of 13.4% fromthe previous year. Consolidated gross profit also decreased, totaling NT$1.89 billion, which is
25.4% higher than the last year. The net income reached NT$1.98 billion, a YoY decrease of
19.1%. Earnings per share were NT$4.63, calculated at the weighted average of outstanding
share capital of NT$4.3 billion. The overall business performance in 2023 was poorer
compared to 2022. In addition, equity attributable to owners of the Company reached NT$19.3
billion, accounting for 86.4% of total assets. The ratio of long-term capital to property, plantand equipment was 1,298%, the current ratio was 607%, the return on assets was 9.07%, andthe return on equities was 10.2%.
(2) Budget Execution
Transcend did not have public financial forecast.
(3) Research & Development
As a leading brand in memory products, Transcend never stops innovating and improving.
With the rapid development of generative AI, 5G networks, spatial computing, and electricvehicles, the demand for high-performance storage devices is also growing. Transcend has
continually developed embedded solutions and strategic products, including DDR5 5600
DRAM modules, U.2 NVMe SSDs, and PCIe SSDs. Transcend also adopted SLC Mode, TCG
Opal, and PLP technologies that provide more reliable storage solutions for business clients. In
retail markets, Transcend has consistently developed high-speed SSDs and high-performance
strategic products, such as the ESD410C portable SSD featuring IPX5 protection,
military-grade shock resistance, and USB 20Gbps rate, dual-connector mini portable SSD
ESD310, and M.2 2242/2230 SSDs-- the MTE410S, MTE400S, and MTE300S-- designed forgaming consoles and slim computers.
2024 Business Plan
(1) Main Strategies
With innovation and improvement in mind, Transcend regards top quality, good service, andefficient operation as its core management principles.
(2) Estimated Sales Volume-1-

The estimation is based on the forecast of overall economy in 2024, market trend, and potential
sales orders in the future.
Product
Estimated Sales Volume/Unit: Thousand pieces
DRAM+Flash products
25,000
Others3,000(3) Fundamental Sales Policies
a. DRAM Modules
Computers equipped with the latest Intel CPUs have entered mass production.
Consequently, the demand for consumer DDR5 DRAM modules is expected to surpass thatof DDR4 in the second half of 2024. In terms of industrial applications, the increasing
demand for AI servers will drive the growth in the delivery of server DRAM modules.
b. Flash Products
The economy in the first half of 2023 remained weak due to weak market demand and highinventory level. After implementing destocking measures and production adjustment, theprices of DRAM and NAND flash recovered, especially high-capacity consumer SSDs. For
industrial SSDs, deliveries have also increased as data center, AI, Big Data, 5G, and edge
computing continued to boom.
Impacts of Future Development, External Environment, Regulatory Environment, andOverall Operating Environment
Transcend focuses on its core business and prioritizes shareholders’ rights by actively engaging in
corporate governance and fully disclosing investment information. Transcend is also active insocial engagement in Taiwan, continuously sponsoring youth athletic activities such as the HighSchool Basketball League and High School Volleyball League. For the tenth consecutive year,
Transcend has been awarded the Sport Activists Awards, symbolizing its long-term dedication to
youth training and development. Additionally, since 2015, Transcend has initiated the Remote Area
Baseball Seed Program, aimed at supporting underprivileged school baseball teams and nurturing
more future sport stars for Taiwan.
With the rapid growth of generative AI, the IT industry is undergoing unprecedented revolution,
leading to higher demand for storage devices to support more sophisticated AI applications. In the
future, Transcend will continue to expand industrial and retail markets, developing the mostcompetitive products. While pursuing business success, Transcend will actively respond to ESG
trend by developing low power consumption DRAM modules and utilizing recyclable packaging
materials, achieving both environmental protection and business growth. We thank you for the trustand support you have placed in Transcend, and we are excited about a long and prosperous
relationship together.

Chairman: Shu, Chung-Won-2-

2. Company Profile
2.1. Date of Incorporation
Date of Incorporation: August 30, 1989.
2.2. Company History
Year
1989

-

1990

-

1991
1992

-

1993
1994

1995

1996

-

1997

-

1998

-

Milestones
Transcend Information, Inc. is founded by Peter Shu in Taipei,
Taiwan.
The first products offered are the “JetMate” laser printer driverand the “KeyPro” software protection system.
Authorized and paid-in capital: NT$ 10,000,000
Transcend USA opens in Los Angeles, California.
Transcend begins manufacturing Taiwan's earliest laser printercontroller for producing Chinese characters.
Transcend begins to offer PCRAM expansion cards for desktops.
Authorized and paid-in capital: increased to NT$ 20,000,000
Transcend opens its Hamburg, Germany office.
Transcend begins manufac turing software securit y solutions.
Authorized and paid-in capital: increased to NT$ 60,000,000
Transcend is recognized as one of Taiwan's remarkable Smalland Medium Enterprises (SMEs) for outstanding performance ininformation application.
Transcend begins to offer PCMCIA expansion products for
laptop computers.
Transcend's annual revenue totaled NT$1.5 billion, up 135%.
Authorized and paid-in capital: increased to NT$ 102,000,000
Transcend begins to offer PCMCIA flash card products.
Transcend's annual revenue totaled NT$2.4 billion, up 62%.
Authorized and paid-in capital: increased to NT$ 162,000,000
Transcend expands its European operations by opening an officein Rotterdam, the Netherlands.
Transcend launches proprietary memory products for fax
machines and video game consoles.
Transcend opens distribution centers and bonded factories,
facilitating foreign trade.
Transcend opens a branch office in Tokyo, Japan.
Transcend launches its first digital still camera memory
products.
Transcend is awarded ISO -9001 Certification.
Transcend merged Won Deng Co., Ltd. Authorized and paid-in
capital: increased to NT$ 182,000,000.
Executed capital increase through capitalization of retained earnings of NT$
182,000,000 and cash capital increase of NT$ 60,700,000. The authorized
and paid-in capital was increased to NT$ 424,700,000. In addition, theretroactive handling of public offering was performed.
Transcend receives the National Award of Outstanding SMEs.
Executed capital increase through capitalization of retained earnings of NT$
84,940,000 and capital increase through capitalization of capital reserves of
-3-

-

1999

-

2000

-

2001

-

2002

-

2003

-

2004
2005

2006

-

NT$ 42,470,000. The authorized and the paid-in capital was increased toNT$ 552,110,000.
Transcend begins offering PC13 3 and Rambus memory modules.
Transcend receives Taiwan's 2nd annual Rising Star Award foroutstanding performance in foreign trade.
Transcend opens its first two retail stores in Taipei.
Transcend's annual revenue totaled NT$4.3 billion, up 34%.
Executed capital increase through capitalization of retained earnings of NT$
331,266,000 and capital increase through capitalization of capital reserves of
NT$ 55,211,000. The authorized capital was NT$ 2,000,000,000 and thepaid-in capital was increased to NT$ 938,587,000.
Transcend opens its retail store in Hong Kong.
Transcend launches its first DDR memory products.
Transcend moves into E-commerce by offering on-line direct B2C sales ofTranscend-brand products in Taiwan.
Transcend's annual revenue totaled NT$5.74 billion, up 42%.
Executed capital increase through capitalization of retained earnings of NT$
328,505,450, capital increase through capitalization of capital reserves of
NT$ 46,929,350 and the cash capital increase of NT$ 10,978,200. The
authorized capital remains NT$ 2,000,000,000, and the paid-in capital wasincreased to NT$ 1,325,000,000.
Transcend holds its Initial Public Offering on the Taiwan Stock
Exchange.on May 3, 2001.
Executed capital increase through capitalization of retained earnings of NT$
331,250,000 and capital increase out of employee bonus of NT$ 8,870,000.
The authorized capital was increased to NT$ 2,500,000,000 and the paid-in
capital was increased to NT$ 1,665,120,000.
Transcend expands its product line to include Je tFlash USB flash
drives and card readers.
Executed capital increase through capitalization of retained earnings of NT$
340,880,000. The authorized capital was NT$ 2,500,000,000 and the paid-in
capital was increased to NT$ 2,006,000,000.
Transcend company headquarter is relocated to its large newfacilit y in Taipei's Neihu Technology District.
Transcend launches its StoreJet line of flash memory storage
products.
Transcend expands product line to include disk storage anddisplay systems.
Issuance of Eu ro-Convertible Bonds US$35,000,000.
Transcend's annual revenue totaled NT$9.52 billion, up 47%.
Transcend begins offering DDR2 memory modules andintroduces a number of multimedia products to the market.
Transcend's annual revenue totaled NT$14.59 bi llion, up 53%.
Transcend opens branch offices in Hertfordshire, England andMaryland, USA.
Transcend diversifies its range of flash products to include MP3
music players.
Transcend receives the 13th National Qualit y Award.
Transcend wins iF Design Aw ard 2005.
Transcend unveils its Operation Facilit y in Shanghai, China.
-4-

-

2007

-

2008
-

2009
-

2010

-

2011

-

2012

-

-

Transcend becomes the first company in the world to receive ISO 9001, ISO
14001 and HSPM (QC 080000) certifications.
Transcend is honored with 2006 Taiwan Superior Brands award from the
Bureau of Foreign Trade, commissioned by the Ministry of Economics
Affairs (MOEA) of Taiwan.
Transcend celebrates its 20th anniversary as it opens its
Shanghai factory.
Transcend opens office in Osaka, Japan.
Transcend is named by GfK the No.1 brand of Memory Devices (Memory
Cards and USB drive) in 2006 in Taiwan's retail market.
Transcend Korea opens in Seoul, South Korea.
Transcend wins Best Taiwan Global Brands commissioned by the MOEA of
Taiwan with a brand value of USD $244 million.
Transcend wins Taiwan Excellence Award for 5 consecutive years with a
total of 19 products being awarded.
Transcend is ranked 62nd place as "Top 100 IT Brands o 2008"
by Bloomberg Businessweek.
Transcend wins Germany's Red Dot award for its product design.
Transcend wins Japan's Good Design award.
Transcend is the first memory module manufacturer in the world to garnerfive Quality Management System certificates issued by the International
Organization for Standardization.
Transcend's patented non-volatile memory technology wins the silver prizeof National Invention and Creation Award from the Taiwan Intellectual
Property Office (IPO).
Transcend's StoreJet 25M and StoreJet 25C external hard drives wins
Germany's Red Dot award for their design.
Transcend's JetFlash T5 USB flash drive wins Japan's Good Design award.
Transcend is the world's third-largest flash drive manufacturer with a global
market share of 11.6%, according to a Gartner survey in 2008.
Transcend launches a complete series of USB 3.0 flash solutions.
Transcend's patented flash memory technology wins the golden prize of
National Invention and Creation Award from the Taiwan IPO.
Transcend completes its Neihu factory in Taipei, Taiwan.
Transcend opens its third US office in Miami, Florida.
Transcend wins for the 5th consecutive year Best Taiwan Global Brands
commissioned by the MOEA of Taiwan.
Transcend's patented non-volatile memory technology wins the silver prizeof National Invention and Creation Award from the Taiwan IPO.
Transcend extends its corporate social responsibility by sponsoring youth
sports activities, such as the HBL.
Transcend organizes its first Working Holiday program, aiming to attract
young talents from all over the globe.
Transcend expands its product line with wireless storage products.
Transcend wins the award for best companies to work for commissioned by
Taipei City Government Labor Affairs Bureau.
Transcend is named the third-largest manufacturer of USB flash drives andthe fourth-largest manufacturer of memory cards in the world, according to a
Gartner survey in 2012.
Transcend continues to expand its sponsorship of all youth sports events,
-5-

-

2013

-

2014

-

2015
-

2016
2017

-

2018
-

including basketball, volleyball, cheerleading, soccer, and softball
tournaments.
Transcend opens office in Silicone Valley, USA.
Transcend expands its product line to include DrivePro dashcams.
Transcend receives the ISO/TS 16949:2009 Quality Management System
Certification by SGS, demonstrating Transcend’s continuous improvement inquality management to meet the needs of the automotive industry.
Transcend wins Taiwan Excellence Award for the 10th consecutive year witha total of 48 products being awarded.
Transcend's patented memory block management technology wins the silver
prize of National Invention and Creation Award from the Taiwan IPO.
Transcend wins the award for best companies to work for commissioned by
Taipei City Government Labor Affairs Bureau.
Transcend expands its product line to include Mac-compatible upgrade
solutions.
Transcend expands its DrivePro dashcam product line and is honored with
ICT Month 100 I.T. Innovative Elite Award.
Transcend begins to sponsor the 2nd Black Panther High School BaseballTournament.
Transcend expands its product line to include DrivePro Body wearable
cameras.
Transcend wins Good Design Award 2015 for the design of its DrivePro 520
dashcam and JetDrive Lite expansion cards for Mac.
Transcend initiates its long-term Baseball Mentoring Program aimed atunderprivileged school baseball teams, aspiring to help young promisingathletes fulfill their dreams.
Transcend expands its product line to include StoreJet Cloud personal cloudstorage.
Transcend wins for the 10th consecutive year Best Taiwan Global Brands
commissioned by the MOEA of Taiwan.
Transcend's DrivePro 50 dashcam wins Japan's Good Design Award 2016.
Transcend's embedded SSDs are in fourth place in global market share,
according to a Gartner survey in 2015.
Transcend launches its first PCIe M.2 SSD series.
Transcend wins Good Design Award 2017 for its CM42 M.2 SSD enclosure
kit.
Transcend is honored by Taiwan's Ministry of Education for the first time in2017 for actively promoting sports activities.
Transcend continues to sponsor youth sports events, winning the silver prizeof Sports Activist Awards and the Long-Term Sponsorship Award in 2017.
Transcend launches a dual lens dashcam and a body camera with a tetheredcamera unit, and is honored with ICT Month 100 I.T. Innovative EliteAward.
Transcend wins Taiwan Excellence Award for the 15th consecutive year witha total of 77 products being awarded.
Transcend's JetDrive 855 SSD Upgrade Kits for Mac wins Japan's Good
Design award.
Transcend is honored with the golden prize of Sports Activist Awards for its
continuous efforts in sponsoring youth sports events.
-6-

2019

-

2020
2021

2022

-

2023

-

Transcend unveils its cutting-edge Portable SSD product series.
Transcend is granted 2019 Badge of Accredited Healthy Workplace by
Taiwan's Ministry of Health and Welfare for health promotion at theworkplace.
Transcend wins Taiwan Excellence Award for the 17th consecutive year.
Transcend expands its product line to include 3D NAND SSDs with
Extended Temperature Tolerance.
Transcend launches its first CFExpress Type B memory card.
Transcend launches its first QLC NAND SSD.
Transcend wins Top 25 Internation Brands in Taiwan for the 15th
consecutive year.
Transcend launches its first PCIe Gen4 x4 SSDs.
Transcend launches its first motorcycle dashcam DrivePro 20.
Transcend launches the DDR5-4800 DRAM module product line.
Transcend launches industrial-grade 112-layer 3D NAND SSDs.
Transcend wins Top 25 Internation Brands in Taiwan for the 16th
consecutive year.
Transcend wins Taiwan Excellence Award for the 18th year.
Transcend launches PCIe 4.0 M.2 SSD MTE250H, equipped withprofessional aluminum fin Heat Sink.
Transcend launches high-speed and anti-shock portable SSD ESD380C
Transcend launches industrial-grade 112-layer 3D NAND SLC Mode, TCG
Opal, and PLP SSD product lines with power-off protection
Transcend wins Top 25 Internation Brands in Taiwan for the 17th
Transcend wins Taiwan Excellence Award for the 19th year.
Transcend wins Ministry of Education Sports Activist Awards for the 10th
Transcend launches high-speed, anti-shock and waterproof portable SSD
ESD410C
Transcend launches industrial-grade U.2 NVMe SSD UTE210T-7-

3. Corporate Governance Report
3.1. Organization
3.1.1. Organizational Chart-8-

3.1.2. Major Corporate Functions
Department

Sales

Functions

Responsible for the establishment of the sales plan for all markets worldwide, including
physical/virtual channels, direct stores and project brands of the Company, industry grade,
network communication/POS/medical/military application/automobile application and OEM
customers, as well as the development and maintenance of customers, business management
and promotion, collection and response to new business opportunities.

Responsible for the research, development and design related matters for memory products,
R&D
computers and mobile phone peripheral products and vehicle continuous video recording (CVR)
Tech Support
and wearable cameras.
Responsible for product production, testing, repair and production schedule control, productProduction shipping operation, production technologies, manufacturing quality improvement and related
matters.
Responsible for the management of reasonable pricing and fair distribution of the Company’s
products, summarization and analysis of product information and pros/cons of products of eachproduct line, and also provide assistance to customization demands. Responsible for mattersPM &related to the brand marketing activities, strengthening of brand image, product and market
Marketinginformation collection, establishment and execution of marketing plans, contact and applicationof broadcast media, planning of the Company’s website and assistance to sales activity
arrangement and design, etc.
FAD

Responsible for the Company’s financial analysis, accounting affairs, statements preparation,difference analysis, fund management, planning of the Company’s taxes, finance, stock affairs
and investments as well as monitoring of the cash flow of all subsidiaries.

PUR

Responsible for understanding the quality condition and price trend of raw materials,
component parts, machine equipment and office supplies necessary for the products andoperation of the Company in order to perform price negotiation and purchase. It is also
responsible for maintaining the safety stock of the purchase items and assisting the handling ofslow-moving materials.

ADM

Responsible for coordinating the Company’s administrative management, human resource,
legal, patent and trademark related affairs, in order to ensure that all administrative affairs of theCompany comply with the laws and regulations, and also responsible for establishing internal
regulations according to laws in order to ensure the compliance of all employees in theorganization.

Information Responsible for matters related to the Company’s software and hardware constructions for
Systemsystems, networks and computers.
Responsible for the establishment of the Company’s quality assurance system, promotion of
Quality
ISO system and QA management system, direct internal audit and external certification, andAssurance communication with other departments to achieve objectives of the organization, customer audit
and subsequent follow-up management.
Responsible for the monitoring and assessment of the design of internal control systems of the
Audit Office parent company and its subsidiaries and also determine whether their executions are effective,
and propose improvement recommendations.
Responsible for leading and executing occupational safety and health policies, ensuring the
Occupational implementation of the occupational safety and health management system, controlling
Safety Office occupational safety and health documents, regularly conducting workplace environmental
monitoring, and managing and supervising contracting and construction activities.
-9-3.2. Background Information on Directors, General Managers, Vice General Managers, Assistant Managers and Heads of Various Department and Branches
3.2.1. Directors
April 23, 2024

Title

Nationality/
Place of
Incorporation

Name

GenderAge

DateElectedTerm(Years)Date FirstElectedShareholding when
Current Shareholding
ElectedShares%Shares%Spouse & Minor
Shareholding

Shareholding by
NomineeArrangement

SharesShares

%

R.O.C

SHU,
CHUNG-WON

61-70
years old

2021.08.26

3

2003.06.03

9,990,453

2.33%

10,709,453

2.50%

-

0.00%

CEO of Transcend Information Inc.
Chairman of Taiwan IC Packaging
Corporation
Department of Electrical
Director of C-Tech Corporation andEngineering, National Cheng
Transcend Information Trading GmbH
Kung University
0.00%
General Manager of Transcend Information
Project Manager of HewlettInc.
Packard Development
President of Transcend Information Trading
Company, L.P.
GmbH
Independent Director of Sports Gear Co.,
Ltd.

-

Male
Director

R.O.C

SHU,
CHUNG-CHENG

71-80
years old

2021.08.26

3

2004.06.11

6,244,098

1.46%

5,034,098

1.17%

1,000,000

0.23%

-

R.O.C

CHUI, LI-CHU

61-70
years old

2021.08.26

3

Male
Director

R.O.C

HSU,
CHIA-HSIAN

61-70
years old

2021.08.26

3

2015.06.12

2003.06.03(discharged
on2009.6.13
after
expiration of
two terms ofoffice)-487,244

0.00%

0.11%

-

377,244

0.00%

0..09%

10,709,453

16,744

2.50%

0.00%

-

R.O.C

CHEN, PO-SHOU

41-50
years old

2021.08.26

32021.08.26

-

0.00%

-

0.00%

-

0.00%

Title

Name

Relation

Director

SHU,
CHUNGCHENG

Brother

0.00%

Department of French,
Tamkang University
Administrative officer of Ho
Cheng Investment Inc.

Supervisor of Won Chin Investment Inc.

Remark(Note)

Note

Director

CHUI,
LI-CHU

SpouseBrother-

Seconddegree
Relatives

ChairmanSHU,
and CEO andCHUNGGeneral
WON
Manager

SpouseDirector

SHU,
CHUNGCHENG

Seconddegree
Relatives--

Department of AutomaticControl Engineering, Feng
0.00% Chia University
President of China area ofTranscend Information Inc.

Consultant of Transtech Trading (Shanghai)Co., Ltd.

None

None

None

-

-

San Jose State University
Economics
0.00%
Sales Director of Transcend
Information, Inc.

Sales Vice General Manager of Transcend
Information, Inc.
Director of Transcend Information (H.K.)
Limited.

None

None

None

-

Male
Director

Executives, Directors or
Supervisors Who are Spouses orwithin Two Degrees of Kinship

Chairman of C-Tech Corporation, Cheng
Chairman
SHU,
Chuan Technology Development Inc. andand CEO andCHUNGShu Min Investment Inc.
GeneralWON
Department of Civil
Executive Director of Transcend Information
ManagerEngineering, National Taipei (Shanghai), Ltd. and Transtech Trading
0.00% Institute of Technology(Shanghai) Co., Ltd.
General Manager of
Director of Wan An Technology Inc., Won
Transcend Information Inc. Chin Investment Inc., Wan Min Investment
Inc., Wan Chuan Investment Inc., Saffire
CHUI,
Director
Investment Ltd. and Memhiro Pte. Ltd.
LI-CHU
Consultant of Transcend Information Inc.

FemaleDirector

Other Position%

Male
Chairman

Experience（Education）

Note : Due to the needs of the Company’s operation and business development, presently, the Chairman, CEO and General Manager refer to the same person. However, a majority of the directors are notconcurrently assuming the positions of employees or managerial officers. In the future, to increase one independent director to improve the supervisory function of the board of directors.As of April 23,
2024, the personal shareholding of Director Shu, Chung-Won was 5,409,453 shares, and he retained the right to decide the exercise of the 5,300,000 shares. The total amount was 10,709,453 shares.

-10-

April 23, 2024

Title

Director

Indeoendent
Director

Nationality/
Place of
Incorporation

R.O.C

R.O.C

Name

WU,
KUAN-DEWANG,
YI-HSIN

Term
GenderDate Elected (Years)
Age

Date FirstElectedShareholding
when Elected

Current
Shareholding

Spouse & Minor
Shareholding

Shareholding by
NomineeArrangement

SharesSharesSharesShares%%%2021.08.26

32021.08.26

-

0.00%

-

0.00%

-

0.00%

-

Female61-70
years old

2021.08.26

3

2012.06.15

-

0.00%

-

0.00%

-

0.00%

-11-

Other Position

%

Male
41-50
years oldExperience（Education）-

Master of Mechanical Engineering,
National Taiwan University
Factory Chief of Transcend
0.00% R&D Director of Transcend Information,
Information, Inc.
Inc.

Ph.D, Accounting, University of Kentucky
Professor of Department of Accounting,National Chung Hsing University
Vice President of National Taipei
University, Library Director
Independent Director of Bestcom Infotech
Corp.
Independent Director of United
BioPharma Inc.
Professor of Department of Accounting,President and Professional Development National Taipei University
Committee Chairperson, Institute of
Chairman of Accounting Research andInternal Auditors-Chinese Taiwan
Development Foundation
Director and Member of Professional
Chairman of Taipei Trend Research
Ethics Committee and International
Foundation
0.00% Relationship Committee, International
Supervisor of Telecom Technology
Internal Audit Association
CenterFinancial Officer of Asian Alliance,
Consultant of Professional
International Internal Audit Association
Development Committee, Institute ofCommittee Member of “Park Operation Internal Auditors-Chinese Taiwan
Fund Supervisory Management
Director of Yu Da University ofCommittee,” National Science Council,
Science and Technology
Executive Yuan
Committee Member of “Committee forGovernment Accounting Standards,”
Directorate-General of Budget,
Accounting and Statistics, Executive Yuan
Director of First Financial Holding Co.,
Ltd.

Executives, Directors or
Supervisors Who are Spouses orwithin Two Degrees of Kinship

Remark(Note)

Title

Name

Relation

None

None

None

-

None

None

None

-

TitleIndeoendent
Director

Indeoendent
Director

Nationality/
Place of
Incorporation

R.O.C

R.O.C

Name

CHEN,
YI-LIANG

CHEN,
LO-MIN

Term
GenderDate Elected (Years)
Age

Date FirstElectedShareholding
when Elected

Current
Shareholding

Spouse & Minor
Shareholding

Shareholding by
NomineeArrangement

SharesSharesSharesShares%%%2021.08.26

3

2012.06.15

-

0.00%

-

0.00%

-

0.00%

-

Male
61-70
years old

2021.08.26

3

2012.06.15

-

0.00%

-

0.00%

-

0.00%

Other Position

%

Male
61-70
years oldExperience（Education）-

MBA, University of California, Los
AngelesPresident of China area of HewlettPackard Development Company, L.P.
Financial Vice President of Taiwan area of
Hewlett-Packard Development Company,
0.00%
Director of Tai Hwa Oil Industrial Co.,
L.P.
Ltd.
Independent Director of Nano-Op Co.,Ltd.
Independent Director of Lextar
Electronics Corp.

Department of Business Administration of
National ChengChi University
Global Executive Vice President of
Diebold Inc.
President of Asia-Pacific area of Diebold
Independent Director of Hitron
0.00% Inc.
Technologies Inc.
President of Great China Business divisionof Royal Phlips
President of NCR China Co., Ltd.
Vice President of Taiwan branch of NCR
Corp.

Executives, Directors or
Supervisors Who are Spouses orwithin Two Degrees of Kinship
Title

Name

Relation

None

None

None

-

None

None

None

-

3.2.2. Disclose the name of the Institutional Shareholders if the Company’s Direcor is a representative of an Institutional Shareholder: None.
3.2.3. Top 10 Shareholders’ Names and Shareholding Ratio of the Institutional Shareholders: Not applicable.

-12-

Remark(Note)

3.2.4. Disclosure of information as professional qualifications and independent status of directors and independent directors
Criteria

Professional Qualifications and Experience

Independent Status

Department of Electrical Engineering, National Cheng Kung University.
He is former Project Manager of Hewlett-Packard Development Company,
L.P. Presently, he has been dedicated in the memory industry business
management for more than 36 years since the establishment of theCompany in 1988. In addition to the positions of Director and President at
a subsidiary 100% owned by the Company, he also acted as the Chairmanof the affiliated company of Taiwan IC Packaging Corporation andvertically integrates the industry value chain.

He is the CEO and General Manager of the Company, and concurrently
acts as the Director and President of the affiliated company of Transcend
Information Trading GmbH.

Name

SHU,
CHUNG-WON

He is equipped with extensive industry knowledge, practical experience,business management and leadership, and he is also equipped with insighton the industrial development trend. With regard to the promotion ofoverseas market business, he also understands various commercial
environment, economy, culture and relevant risks. Accordingly, his
valuable experience is able to propose comments and directives on mattersrelated to corporate governance, operational management and risk
management to the board of directors of the Company, thereby achieving
the functions of strategic guidance and performance improvement.
Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.

SHU,
CHUNG-CHENG

Not been a person of any conditions defined in Article 30 of the Company
Law.
Department of Civil Engineering, National Taipei Institute of Technology.
Acted as the President of the Company from November 1998 to March
2020. Currently acts as a consultant of the Company. He has been

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

He is in a marital relationship with Director CHUI, LI-CHU.
SHU, CHUNG-CHENG is a second-degree relative of him and he also
acts the Director of affiliated companies of Transcend Information(Shanghai) Ltd., Transtech Trading (Shanghai) Ltd., Won Chin Investment
Inc., Saffire Investment Ltd., and Memhiro Pte. Ltd.
The number of shares held by him and his second-degree relative SHU,CHUNG-CHENG is 15,743,551 shares, accounting for 3.67%, and he islisted as individual shareholder of the top 10 shareholding percentage.

1

Act as the Chairman of Taiwan IC Packaging Corporation, an affiliatedcompany invested under the equity method.
He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.
He is the Director of affiliated companies of Transcend Information(Shanghai) Ltd., Transtech Trading (Shanghai) Ltd., Won Chin Investment
Inc., and Saffire Investment Ltd., Memhiro Pte. Ltd.

-13-

0

Criteria

Professional Qualifications and Experience

Independent Status

dedicated in the memory industry business management for more than 26
years, and also acts as the Chairman or Director in related companies of
the Company, in order to contribute his expertise in corporate governance.

He is in the second-degree relative relationship with Director CHUI, LICHU.

Name

He is equipped with extensive industry knowledge, practical experience,business management and crisis handling capabilities, and also has certain
understanding on the overall business policy, objective of the overall
operation as well as major business decision of the Company, such that heis able to promptly adopt changes, adjust strategies and implement timely
responsive measures. Accordingly, with his valuable experience he is able
to propose comments and directives on matters related to corporate
governance, operational management and risk management to the board of
directors of the Company, and provide references and adjustments for the
management team.
Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.
Not been a person of any conditions defined in Article 30 of the Company
Law.

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

SHU, CHUNG-WON is a second-degree relative of him and he also acts
the Director and President of affiliated companies of Transcend
Information Trading GmbH.
The number of shares held by him and his second-degree relative SHU,CHUNG-WON is 15,743,551 shares, accounting for 3.67%, and SHU,CHUNG-WON is listed as individual shareholder of the top 10
shareholding percentage.
He acts as the Chairman of Cheng Chuan Technology and also acts as the
Director of Won Chin Investment Inc., where both Cheng Chuan
Technology and Won Chin Investment Inc. are business partners of theCompany.
He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

CHUI, LI-CHU

Department of French, Tamkang University. Since 2006, she has assumed
positions of Supervisor of Won Chin Investment Inc. and Administrative
officer of Ho Cheng Investment Inc. She is equipped with more than 17
years of working experience in investment business, and is able topromptly propose comments and directives related to corporate
governance and operation management to the board of directors of the

She is not an employee, director of affiliates.
Her spouse SHU, CHUNG-WON is the Director and President ofTranscend Information Trading GmbH.
SHU, CHUNG-CHENG is a second-degree relative of her and he also acts
the Director of affiliated companies of Transcend Information (Shanghai)

-14-

0

Criteria

Professional Qualifications and Experience

Independent Status

Name
Company.

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
DirectorLtd., Transtech Trading (Shanghai) Ltd.,, Won Chin Investment Inc.,
Saffire Investment Ltd., and Memhiro Pte. Ltd.

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.
Not been a person of any conditions defined in Article 30 of the Company
Law.

The number of shares held by her spouse SHU, CHUNG-WON and her
second-degree relative SHU, CHUNG-CHENG is 15,743,551 shares,
accounting for 3.67%, and they are listed as individual shareholders of the
top 10 shareholding percentage.
She acts as the Supervisor of Won Chin Investment Inc. in business
relationship with the Company.
She has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

HSU,
CHIA-HSIAN

Department of Automatic Control Engineering, Feng Chia University. He
participated in the Company since the establishment in 1988 and retired in2015. He has been dedicated in the memory industry for more than 28
years and has participated in numerous projects. His last position was the
President of China area, and he is responsible for the development ofbusiness and factory establishment and management in the China region.
He is equipped with extensive information electronic industry knowledge,
practical experience, business management and decision making
capabilities, and he is also equipped with extensive experience in industry
development along with several years of overseas practical experience. He
is able to communicate on relevant business management affairs with

He is not an employee, director and supervisor of affiliates.
His spouse, relative within the second degree of kinship or direct blood
relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.
The number of shares held by him is 377,244 shares, accounting for
0.09%.
He is not assuming any position of director, supervisor or employee of acompany having a special relationship with the Company.

-15-

0

Criteria

Professional Qualifications and Experience

Independent Status

other directors and to provide comments and directives to the management
team.

He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.

Not having a marital relationship, or a relative within the second degree ofkinship to any other director of the Company.

Not been a person of any conditions defined in Article 30 of the Company
Law.

Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

San Jose State University Economics. Since July 1, 2019, he has acted as
the Business Vice President of the Company and he is also equipped withthe seniority of 16 years of service. He is mainly responsible for thebusiness unit’s annual operation goal and sales strategy of the Company,and he also provides guidance on the business development direction andmaintains customer relationships.

He is the Sales Vice General Manager of the Company.

Name

He is equipped with extensive industry experience, and has in-depth
CHEN,PO-SHOU

understanding on the industry development trend, marketing, sales andrelevant risk management. Act as the manager of the board of directors topromptly propose comments and directives related to corporate
governance, operation management and risk management.

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

His spouse, relative within the second degree of kinship or direct blood
relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.
The number of shares of the Company held by him and his spouse,
relatives within the second degree of kinship (or under the name of others)
is 0 shares.
He is the Director of affiliated companies of Transcend Information (HK.)
Ltd..

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.

He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.

Not been a person of any conditions defined in Article 30 of the Company
Law.

Not having a marital relationship, or a relative within the second degree ofkinship to any other director of the Company.
Not a governmental, juridical person or its representative as defined in

-16-

0

Criteria

Professional Qualifications and Experience

Independent Status

Name

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

Article 27 of the Company Law.
Master of Mechanical Engineering, National Taiwan University. He has
serviced the Company since October 18, 2010, and was promoted to
Factory Director from R&D Department Director on October 1, 2020,
with nearly 13 years of seniority. He is mainly responsible for the productmanufacturing process arrangement, improvement of manufacturing
technologies and process quality, as well as application of relevant
information technology on manufacturing process.

WU, KUAN-DE

He is equipped with the memory industry knowledge, R&D and productmanagement, information technology application, leadership and crisis
handling capability, and he is also able to propose comments anddirectives related to the operation of the Company to the board of
directors.

He is the manufacturing unit factory affairs responsible officer of theCompany.
His spouse, relative within the second degree of kinship or direct blood
relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.
The number of shares of the Company held by him and his spouse,
relatives within the second degree of kinship (or under the name of others)
is 0 shares.
He is not assuming any position of director, supervisor or employee of acompany having a special relationship with the Company.

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.

He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.

Not been a person of any conditions defined in Article 30 of the Company
Law.

Not having a marital relationship, or a relative within the second degree ofkinship to any other director of the Company.

0

Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

CHEN,
YI-LIANG

MBA, University of California, Los Angeles. He currently acts as the
Director of Tai Hwa Oil Industrial Co., Ltd. He once acted as the Presidentof China area of Hewlett-Packard Development Company, L.P., Financial
Vice President of Taiwan area of Hewlett-Packard Development Company,

He is not an employee, a director and supervisor of the Company or any of
its affiliates.
His spouse, relative within the second degree of kinship or direct blood

-17-

0

Criteria

Professional Qualifications and Experience

Independent Status

L.P., and Independent Director of Nano-Op Co., Ltd. He is equipped withthe experience in corporate governance, finance, operation management
capability and cooperate business development. He is able to provide
recommendations to the management team, to improve the corporate
governance quality of the board of directors, to implement audit
committee supervisory authority and to strengthen the salary andremuneration management function.

relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.

Name

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.
(with more than 30 years of professional experience in commerce, financeand corporate business development).
Not been a person of any conditions defined in Article 30 of the Company
Law.

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

The number of shares of the Company held by him and his spouse,
relatives within the second degree of kinship (or under the name of others)
is 0 shares.
He is not assuming any position of director, supervisor or employee of acompany having a special relationship with the Company.
He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not having a marital relationship, or a relative within the second degree ofkinship to any other director of the Company.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

CHEN, LO-MIN

Department of Business Administration of National ChengChi University.
He currently acts as the Independent Director of Hitron Technologies Inc.
He once acted as the Global Executive Vice President of Diebold Inc.,
President of Asia-Pacific area of Diebold Inc., President of Great China
Business division of Royal Phlips, President of NCR China Co., Ltd., andVice President of Taiwan branch of NCR Corp. He is equipped with theexperience in corporate governance, operation management capability andcooperate business development. He is able to provide recommendations
to the management team, to improve the corporate governance quality ofthe board of directors, to implement audit committee supervisory authority

He is not an employee, a director and supervisor of the Company or any of
its affiliates.
His spouse, relative within the second degree of kinship or direct blood
relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.
The number of shares of the Company held by him and his spouse,
relatives within the second degree of kinship (or under the name of others)
is 0 shares.

-18-

1

Criteria

Professional Qualifications and Experience

Independent Status

Name
and to strengthen the salary and remuneration management function.

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

He is not assuming any position of director, supervisor or employee of acompany having a special relationship with the Company.

Have Work Experience in the Areas of Commerce, Law, Finance, or
Accounting, or Otherwise Necessary for the Business of the Company.
(with more than 30 years of professional experience in commerce, financeand corporate business development).
Not been a person of any conditions defined in Article 30 of the Company
Law.

He has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not having a marital relationship, or a relative within the second degree ofkinship to any other director of the Company.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

WANG, YI-HSIN

Ph.D, Accounting, University of Kentucky. She is equipped with financial
and accounting processional expertise. She currently acts as the Professorof Department of Accounting, National Taipei University, Chairman of
Accounting Research and Development Foundation, Consultant ofProfessional
Development
Committee,
InstituteofInternal
Auditors-Chinese Taiwan, and Director of Yu Da University of Scienceand Technology. She once acted as the Professor of Department of
Accounting, National Chung Hsing University, Vice President of National
Taipei University, Director of First Financial Holding Co., Ltd.,
Independent Director of Bestcom Infotech
Corp., Independent Director of United BioPharma Inc., President andProfessional Development Committee Chairperson, Institute of Internal
Auditors-Chinese Taiwan, Director and Member of Professional Ethics
Committee and International Relationship Committee, International
Internal Audit Association and Financial Officer of Asian Alliance,
International Internal Audit Association. She is equipped with theprofessional skills in corporate governance, finance and accounting, as

She is not an employee, a director and supervisor of the Company or anyof its affiliates.
Her spouse, relative within the second degree of kinship or direct blood
relative within the third degree of kinship is not an employee, director andsupervisor of the Company or its affiliates.
The number of shares of the Company held by her and her spouse,
relatives within the second degree of kinship (or under the name of others)
is 0 shares.
She is not assuming any position of director, supervisor or employee of acompany having a special relationship with the Company.
She has not provided the services of commerce, law, finance andaccounting to the Company or its affiliates in the last 2 years.
Not having a marital relationship, or a relative within the second degree of

-19-

0

Criteria

Professional Qualifications and Experience

Independent Status

Namewell as internal audit. She is able to provide recommendations to the
management team, to improve the corporate governance quality of theboard of directors, to implement audit committee supervisory authority
and to strengthen the salary and remuneration management function.

kinship to any other director of the Company.
Not a governmental, juridical person or its representative as defined in
Article 27 of the Company Law.

Have an Instructor or Higher Position in a Department of Commerce, Law,
Finance, Accounting, or Other Academic Department Related to the Business
Needs of the Company in a Public or Private Junior College, College or
University., and Work Experience in the Areas of Commerce, Law,

Finance, or Accounting, or Otherwise Necessary for the Business of theCompany. (with more than 30 years of professional experience incommerce, finance and corporate business development).
Not been a person of any conditions defined in Article 30 of the Company
Law.

-20-

Number of Other
Public Companies
in Which the
Individual is
Concurrently
Serving as an
Independent
Director

3.2.5. Diversity and Independence of the Board of Directors(1)Diversity of the Board of Directors
The nomination and election of board members of the Company comply with the ”Procedures for Election of Directors” and ”Corporate
Governance Best-Practice Principles” , in order to ensure the diversity and independence of board members. According to Article 20 ofthe”Corporate Governance Best-Practice Principles” of the Company, the composition of the board of directors shall consider the diversity,
focusing on gender equality, and directors shall be generally equipped with knowledge, skills and expertise necessary for executing their job duties.
To realize the ideal of corporate governance, the board of directors as a whole shall possess the abilities, including operational judgment capability,
accounting and financial analysis capability, business management capability, crisis handling capability, industrial knowledge, international market
view, leadership capability, decision-making capability, etc.
Specific management objectives and achievement of the Board's Diversity Policy
Management Objectives

Achieved

There should be at least one female board member

Achieved

At least one-third of the directors have computer industry,marketing or technology expertiseAchieved

At least one-third of independent directors have legal,
accounting or technological expertiseAchieved

The Company’s diversity policy for current Board members and its implementation are as follows:-21-Core ofdiversify

Basic composition
Tenure and seniority
of independent
directors

Age40-60 61-70

Shu,
Chung-Won
Shu,
Chung-Cheng

V

Professional ability
Accounting

Bank

Nationality Gender Employee
Name

Industry experience

Over Below 3-9 Over 9
71 3 years years years

Business
Marketingmanagement

andInformation

Risk

R&D
Financial Technology Management
Analysis

R.O.C

Male

V

R.O.C

Male

Chui, Li-Chu

R.O.C

FemaleV

V

Hsu,
Chia-Hsian

R.O.C

Male

V

V

Chen, Po-Shou

R.O.C

Male

V

V

V

Wu, Kuan-De

R.O.C

Male

V

V

V

Chen, Yi-Liang

R.O.C

Male

V

V

V

V

V

Chen, Lo-Min

R.O.C

Male

V

V

V

V

V

Wang, Yi-Hsin

R.O.C

Female

V

V

V

V

V

V

-22-

V

V

V

V

V

V

V
V
V

V

V

V

V
V

V

V

V

All directors are equipped with extensive experience in leadership, decision, operation determination, business management, crisis handling, andare also equipped with industrial knowledge and international market view such that they are equipped with various capabilities necessary to
execute the corporate governance. Independent directors, Mr. CHEN, YI-LIANG, Mr. CHEN, LO-MIN and Ms. WANG, YI-HSIN, are equippedwith the professional backgrounds in accounting and financial analysis, such they are able to provide professional recommendations to theCompany from different viewpoints and aspects.
The current nine directors are of the nationality of the R.O.C., and the composition structure includes three independent directors, accounting for
33% of all directors. Three directors have the identity of an employee, accounting for 33%, and two directors are female directors (including one
independent director), accounting for 22%. Furthermore, with regard to the age distribution, one director is above the age of 71 years old, six
directors are of the age of 61–70 years old, and two directors are under the age of 60 years old.
(2) Independence of the Board of Directors
According to the provisions of the Securities and Exchange Act, the Company has obtained written declarations issued by all independent directors
during their assumption of office, and they are confirmed to comply with the provision specified in Article 14-2 of the Securities and Exchange Act
and relevant requirements specified in Regulations Governing Appointment of Independent Directors and Compliance Matters for PublicCompanies. The number of terms of office of the independent directors of the Company has reached four terms consecutively, and to further
emphasize the supervision and implement external independent functions, fixed compensation is provided to independent directors only.
Accordingly, after evaluation, the independence thereof is not reduced.
The Company is of the opinion that the board of directors is able to evaluate the independence of directors according to actual condition, including
the required recusal of directors due to conflict of interest, and to provide reports on important operation affairs, risk management, sustainable
operation issues and corporate governance, and whether directors are able to express perspectives different from other directors. In addition,according to the provisions of Paragraph 3 and Paragraph 4 of Article 26-3 of the Securities and Exchange Act, the percentage of directors having
the relationship of a spouse or relatives within the second degree is 33% only, less than half of the total number of directors, and it is evaluated ascomplying with the regulations.

-23-

3.2.6. Management Team
April 23, 2024
Title

Nationality

Name

Gender

Date
ElectedShareholding
Shares%Spouse & Minor
Shareholding

Shareholding
by Nominee
Arrangement

SharesShares%Experience (Education)

Other
Position%
Department ofElectrical Engineering,
National Cheng Kung
University
 Project Manager of
0.00%
Hewlett-Packard
Development
Company, L.P.
 Chairman ofTranscend
Information, Inc.
 Master of Information
Management, National
Taiwan University of
Science and
0.00%
Technology
 R&D Vice General
Manager of Transcend
Information, Inc.
 University of Southern
California ElectricalEngineering
0.00%  Administration Vice
General Manager ofTranscend
Information, Inc.
 San Jose State
University Economics
0.00%  Sales Vice General
Manager of Transcend
Information, Inc.

Managers who are Spouses orWithin Two Degrees of Kinship

Remark(s)

Title

Name

Relation(Note 2)

None

None

None

(Note 3)

None

None

None

None

-

None

None

None

None

-

None

None

None

None

-



Chairman,
CEO andGeneralManager(Note 1)

R.O.C

Shu,
Chun-Won

Male

1991.06.01

10,709,453

2.50%

-

0.00%

-

Vice
GeneralManager

R.O.C

LI,
TSENG-HOMale

2020.10.01

-

0.00%

4,000

0.00%

-

Vice
GeneralManager

R.O.C

Fang,
Wen-JengMale

2019.09.01

-

0.00%

25,9670.01%-

Director &Vice
GeneralManager

R.O.C

Chen,
Po-ShouMale2019.07.01

-

0.00%

-

0.00%

-

-24-

April 23, 2024
Title

Nationality

Name

Gender

Date
ElectedShareholding
Shares%Spouse & Minor
Shareholding

Shareholding
by Nominee
Arrangement

SharesShares%Experience (Education)

%

Other
PositionManagers who are Spouses orWithin Two Degrees of Kinship
Title

Name

Remark(s)Relation

Master of
Accountancy, National
CFO &Cheng Kung
Corporate
Chi,
University
R.O.C
Female 112.01.19
1,000 0.00%- 0.00%- 0.00%
None
None
None
None
Governance
Wen-Hui Financial and
Officer
Accounting Manager
of Transcend
Information, Inc.
Note 1: Due to the needs of the Company’s operation and business development, presently, the Chairman, CEO and General Manager refer to the same person. However, a majority of the directors are notconcurrently assuming the positions of employees or managerial officers. In the future, to increase one independent director to improve the supervisory function of the board of directors.
Note 2: Chairman of Taiwan IC Packaging Corporation
Director of C-Tech Corporation and Transcend Information Trading GmbH
General Manager of Transcend Information Trading GmbH
Independent Director of Sports Gear Co., Ltd.
Note 3: As of April 23, 2024, the personal shareholding of Director Shu, Chung-Won was 5,409,453 shares, and he retained the right to decide the exercise of the 5,300,000 shares. The total amount was
10,709,453 shares.
-25-

3.2.7. Remuneration of Directors, Independent Directors, General Manager and Vice General Managers
1. Remuneration of Directors and Independent Directors
Dec.31,2023; Unit:NT$ thousands
Remuneration

Title

Base
Compensation (A)Severance Pay(B)

Directors
Compensation (C)Allowances (D)Companies intheconsolidatedfinancialstatemen
ts

The
com
pany

Companies in the
consolidatedfinancialstatemen
ts

The
comp
any

Companies in the
consolidatedfinancialstatemen
ts

The
com
pany

Companies intheconsolidatedfinancialstatemen
ts

-

-

-

2,300

2,300

230

Name
The
comp
any

Chairman
Director
Director
Director
Director
Director
Independent
Director
Independent
Director
Independent
Director

Shu,
Chung-Won
Shu,
Chung-Cheng
Chui, Li-Chu
Hsu,
Chia-Hsian
Chen,
Po-Shou
Wu,
Kuan-DeChen,
Yi-Liang
Chen,
Lo-MinWang,
Yi-Hsin

Total compensation
and Ratio of totalcompensation(A+B+C+D) to Net
Income (%)

The
compa
ny

Companies in the
consolidatedfinancialstatemen
ts

2,530
-

2,880

2,880

-

-

-

-

300

Relevant Remuneration Received by Directors Who are Also Employees

Salary, Bonuses,
and Allowances (E)Severance Pay(F)

Companies intheconsolidatedfinancialstatemen
ts

The
com
pany

Companies in the
consolidatedfinancialstatements

12,300

-

The
compa
ny

The company

Companies intheconsolidated
financialstatements

Cash

Stock

Cash

Stock

483

-

483

-

2,530

230

12,300
0.13%

0.13%

3,180

3,180

300

0.16%

Employee Compensation (G)(Note)

0.16%

-

-

-

-

-

-

-

Total compensation
and Ratio of totalcompensation(A+B+C+D) to Net
Income (%)

The
compa
ny

Companies in theconsolidatedfinancialstatements

15,313

15,313

0.77%

0.77%

3,180

3,180

0.16%

0.16%

Remunerationfrom
venturesother
thansubsidiaries orfrom theparentcompan
y

216

-

-

1. Please describe the policy, system, standard, and structure of remuneration to independent directors, and the correlation between duties, risk, and time input with the amount of remuneration:
Transportation allowance is issued according to the attending status of the independent directors of the Company in the board of directors’ meetings and functional committees. The determination of the remuneration of directors is made based on the considerationof the overall business performance of the Company, future operational risk and development trend of the industry, along with the consideration of the contribution of each director on the operation of the Company and the annual performance evaluation result by
the board of directors (including individual director), in order to issue reasonable remuneration. According to Article 22 of the Articles of Incorporation of the Company, where the Company has a profit for each fiscal year, the Company shall set aside no morethan 0.2% of the profit for distribution to directors as remuneration.
2. In addition to the above remuneration, director remuneration shall be disclosed as follows when received from companies included in the consolidated financial statements in the most recent year to compensate directors for their services, such as being independent
contractors: NT$2,802 thousands.
Note 1: The compensation of employees approved by the Board of Directors for the year ended December 31, 2023 is NT$24,962,283.

-26-

Name of Directors
Total of (A+B+C+D)
Range of Remuneration

Total of (A+B+C+D+E+F+G)
Compensation Paid to Directors
The company
from Parent Company andInvested Companies

The company

Companies in the consolidated
financial statements

Less thanNT$ 1,000,000

Shu, Chung-Won,
Shu, Chung-Cheng, Chui, Li-Chu,
Hsu, Chia-Hsian,Chen, Po-Shou, Wu, Kuan-De

Shu, Chung-Won,
Shu, Chung-Cheng, Chui, Li-Chu,
Hsu, Chia-Hsian,Chen, Po-Shou, Wu, Kuan-De

Shu, Chung-Cheng,Shu, Chung-Cheng,
Chui, Li-Chu, Hsu, Chia-Hsian Chui, Li-Chu, Hsu, Chia-Hsian

NT$1,000,000 ~ NT$1,999,999

Chen,Yi-Liang, Chen, Lo-Min,
Wang, Yi-Hsin

Chen,Yi-Liang, Chen, Lo-Min,
Wang, Yi-Hsin

Chen, Yi-Liang, Chen, Lo-Min, Chen, Yi-Liang, Chen, Lo-Min,
Wang, Yi-Hsin
Wang, Yi-Hsin

NT$2,000,000 ~ NT$3,499,999
NT$3,500,000 ~ NT$4,999,999

Chen, Po-Shou, Wu, Kuan-De

Chen, Po-Shou, Wu, Kuan-De

NT$5,000,000 ~ NT$9,999,999

Shu, Chung-Won

Shu, Chung-Won

99

NT$10,000,000 ~ NT$14,999,999
NT$15,000,000 ~ NT$29,999,999
NT$30,000,000 ~ NT$49,999,999
NT$50,000,000 ~ NT$99,999,999
Greater than or equal to NT$100,000,000
Total

9

9

-27-

2. Remuneration of the General Manager and Vice General Managers
Salary (A)
Title

Name

Chairman and
CEO and General
Manager

Shu,
Chung-Won

Vice General
ManagerLi,
Tseng-HoVice General
Manager

Fang,
Wen-Jeng

Director andVice General
Manager

Chen,
Po-Shou

Severance Pay (B)Employee Compensation (D)(Note 1)

Bonuses and Allowances (C)Companies in
Companies in
Companies inThe
the consolidatedThe
the consolidatedThe
the consolidated
company
financialcompany
financialcompany
financialstatements
statements
statements

Cash

Stock

11,968730-

11,968

-

-

3,661

3,661

Note 1: The compensation of employees approved by the Board of Directors for the year ended December 31, 2023 is NT$24,962,283-28-

The company

Companies in the
consolidated
financial statements
Cash
Stock

730

Dec. 31, 2023; Unit: NT$ thousands
Total compensation and Ratio of Remuneration
total compensationfrom ventures(A+B+C+D) to Net Income (%) other thansubsidiaries
Companies in theor from theTheconsolidated
parentcompany
financial statements
company

16,35916,359

0.82%

0.82%

-

216

Name of General Manager and Vice General Managers
Range of Remuneration
Less than NT$ 1,000,000
NT$1,000,000 ~ NT$1,999,999
NT$2,000,000 ~ NT$3,499,999
NT$3,500,000 ~ NT$4,999,999
NT$5,000,000 ~ NT$9,999,999
NT$10,000,000 ~ NT$14,999,999
NT$15,000,000 ~ NT$29,999,999
NT$30,000,000 ~ NT$49,999,999
NT$50,000,000 ~ NT$99,999,999
Greater than or equal to NT$100,000,000
Total

The company

Compensation Paid to Directors from Parent Company andInvested Companies

Fang, Wen-Jeng, Chen, Po-Shou
Li, Tseng-Ho
Shu, Chung-Won

Fang, Wen-Jeng, Chen, Po-Shou
Li, Tseng-Ho
Shu, Chung-Won

4

4

-29-

3. Employee Compensation for Managerial Officers
Title

Dec. 31, 2023; Unit: NT$ thousands
Ratio of Total
Employee Compensation
Total Amount to Net
in Stockin CashIncome (%)

Name

Chairman and CEO andGeneral Manager (Note 1)
Vice General Manager
Managerial Vice General Manager
Officers Director andVice General Manager
CFO and
Corporate Governance Officer

Shu, Chung-Won
Li, Tseng-Ho
Fang, Wen-Jeng

-

856

856

0.04

Chen, Po-Shou

Chi, Wen-Hui

3.2.8. The ratio of total remuneration paid by the Company and by all companies included in the
consolidated financial statements for the two most recent fiscal years to Directors, General
Manager and Vice General Managers of the Company, to the net income:
Year
Title

Ratio of total remuneration paid to Directors, General Manager andVice General Manager to net income (%)
2023
2022
Companies in the
Companies in the
The company
consolidated
The company
consolidated
financial statements
financial statements

Directors

0.93%

0.93%

0.75%

0.75%

General Manager andVice General Managers

0.82%

0.82%

1.30%

1.30%

3.2.9. The policies, standards, and portfolios for the payment of remuneration, the procedures fordetermining remuneration, and the correlation with risks and business performance:
Transportation allowance is issued according to the attending status (listed for attendance) of thedirectors and independent directors of the Company in the board of directors’ meetings andfunctional committees. The determination of the remuneration of directors is made based on theconsideration of the overall business performance of the Company, future operational risk anddevelopment trend of the industry, along with the consideration of the contribution of eachdirector on the operation of the Company and the annual performance evaluation result by theboard of directors (including individual director), in order to issue reasonable remuneration.
Furthermore, according to Article 22 of the Articles of Incorporation of the Company, when the
Company has a profit for each fiscal year, an amount no more than 0.2% of the profit shall beappropriated as the remuneration of directors, and after the resolutions of the Remuneration
Committee and the Board of Directors, the remuneration is then issued to each director.
The salaries of the CEO, General Manager, Vice General Managers and other managerial officers,etc., are issued based on the consideration of the standard adopted in the same industry, market
status, professional competence and job duties. According to Article 22 of the Articles ofIncorporation of the Company, when the Company has a profit for each fiscal year, an amount
not less than 1% of the profit shall be appropriated as the remuneration of employees, and thepersonal annual work performance, including the achievement rate of revenue and profit of theentire company and his/her in-charge department, personal goal achievement rate, operational
management capability, and whether there is any special contribution or negative events, etc.,
such that the amount of distribution is determined after comprehensive evaluation of all aspects.
Remuneration performance evaluation and reasonableness for directors and managerial officers
are reviewed and approved by the Remuneration Committee and Board of Directors. The-30-

remuneration system is also reviewed according to the actual condition of business and relevantlaws and regulations appropriately at all times.

-31-

3.3. Implementation of Corporate Governance3.3.1. Operations of the Board of Directors
A total of 4 meetings of the Board of Directors were held in the previous period. The attendance of
directors were as follows:
Title

Name

Attendancein Person

By ProxyAttendance Rate (%)

ChairmanShu, Chung-Won

4

0

100

DirectorShu, Chung-Cheng

3

0

75

Director

Chui, Li-Chu

4

0

100

Director

Hsu, Chia-Hsian

4

0

100

Director

Chen, Po-Shou

4

0

100

DirectorWu, Kuan-De

4

0

100

4

0

100

4

0

100

4

0

100

Independent
Chen, Yi-Liang
Director
Independent
Chen, Lo-Min
Director
Independent
Wang, Yi-Hsin
Director
Other mentionable items:
1.

Remarks
2021.08.26
Renewal of office2021.08.26
Renewal of office2021.08.26
Renewal of office2021.08.26
Renewal of office2021.08.26
New term ofoffice2021.08.26
New term ofoffice2021.08.26
Renewal of office2021.08.26
Renewal of office2021.08.26
Renewal of office

If any of the following circumstances occur, the dates of the meetings, sessions, contents of motion, allindependent directors’ opinions and the company’s response should be specified:(1) Matters referred to in Article 14-3 of the Securities and Exchange Act.
(2) Other matters involving objections or expressed reservations by independent directors that were recorded orstated in writing that require a resolution by the board of directors.
None. Please refer to “3.3.12 Major resolutions of Shareholders’ Meeting, Board of Directors Meetings, Audit
Committee meetings and Remuneration Committee meetings in the most recent year and up to the publication
date of this Annual Report” for major resolutions of Board of Directors Meetings in the most recent year and up
to the publication date of this Annual Report.

2.

If there are directors’ avoidance of motions in conflict of interest, the directors’ names, contents of motion,
causes for avoidance and voting should be specified:
None.

3.

TWSE/TPEx-listed companies are required to disclose the evaluation cycle and period, scope of evaluation,
evaluation method, and evaluation items of the self evaluations conducted by the Board of Directors:
Evaluation
cycle

Evaluation

Scope of

Evaluation

periodevaluation

methodOnce aJanuary 1,

Board ofSelf-assessment (1) Board performance evaluation: level ofyear2023 toDirectors,

by directors,

participation in company operations, theDecemberindividualinternal

quality of Board decisions, Board-32-

Evaluation items

31, 2023

directors,

self-evaluation

composition and structure, appointment ofandby the Board of

directors and their continued development,functional

Directors andand internal controls.

committees

functional(2) Individual director performance evaluation:committees

grasp of company targets and missions,
understanding of the director's role andresponsibilities, level of participation incompany operations, internal relationshipmanagement and communication, director's
specialty and continued development, andinternal controls.
(3) Audit committee performance evaluation:
Participation in company operations,
understanding of the responsibilities of Audit
committees, improvement of thedecision-making quality of Audit
committees, composition of Audit
committees, and member selection andinternal control.
(4) Remuneration committee performance
evaluation: Participation in company
operations, understanding of the
responsibilities of Remuneration committees,
improvement of the decision-making qualityof Remuneration committees, andcomposition of Remuneration committees,
and member selection.

The results of the Board performance evaluation for the year ended December 31, 2023 have been disclosed on
corporate website at: https://tw.transcend-info.com/about/board_of_directors
4.

Evaluation of targets for strengthening of the functions of the board during the current and immediately
preceding fiscal years, and measures taken toward achievement thereof:(1) The Company established Remuneration committee in 2011 and Audit Committee in 2012 to assist theBoard of Directors in carrying out its various duties. The board of directors also established the ”Codes of
Ethical Conduct for Directors and Managerial Officers” in 2013 in order to provide guidance to the
conducts of directors and managerial officers for compliance with the moral standards, thereby achievingsound corporate governance.
(2) To strengthen the independent directors’ participation in the operation of the board of directors and to
improve the understanding of the company affairs, at least three independent directors are required to attend-33-

a board of directors’ meeting in person. (Note)(3) To implement corporate governance and to improve the function of the board of directors, performancegoals are established in order to enhance the operational efficiency of the board of directors. The
Company’s board of directors approved the “Rules for Performance Evaluation of Board of Directors” onMarch 5, 2020 and implemented them in 2021. The evaluation period was from January 1, 2023 to
December 31, 2023, and the evaluation result was reported to the board of directors on February 29, 2024.
Please refer to the aforementioned Point 3 for the evaluation content and result.
(4) To strengthen the effective operation of the board of directors, the Company established Corporate
Governance Officer on May 6, 2021 to assist the Board of Directors in carrying out its various duties andcompliance with the laws and regulations.
Note: Attendance of each independent directors during Board of Director meetings held in 2022.
Independent
The First
The Second
The Third
The Forth
Directors
Meeting
Meeting
Meeting
Meeting
Attendance
Attendance
Attendance
Attendance
Chen, Yi-Liangin Person
in Person
in Person
in Person
Attendance
Attendance
Attendance
Attendance
Chen, Lo-Min
in Person
in Person
in Person
in Person
Attendance
Attendance
Attendance
Attendance
Wang, Yi-Hsinin Person
in Person
in Person
in Person

3.3.2. Operations of the Audit Committee
1. Information on the members of the Audit Committee
Criteria
Professional Qualificationand Experience

Identity

Independent Director
Independent Director
Independent Director& Convener

NameChen, Yi-Liang
Chen, Lo-Min
Wang, Yi-Hsin

Independent Status

Please refer to “3.2.4 Information disclosure of the professional
qualifications of directors and independence of independent
directors”.

2. The Company established Audit Committee on June 2012. The Committee composed of theentire number of independent directors, which are three persons in total. The Committee
operations by the Company’s Audit Committee Charter, and the main function of the Audit
Committee is to supervise the following matters:(1) Fair presentation of the financial reports of this Corporation.
(2) The hiring (and dismissal), independence, and performance of certificated public
accountants of this Corporation.
(3) The effective implementation of the internal control system of this Corporation.
(4) Compliance with relevant laws and regulations by this Corporation.
(5) Management of the existing or potential risks of this Corporation.
3. The powers of the Committee are as follows:(1) The adoption of or amendments to the internal control system pursuant to Article 14-1 of
the Securities and Exchange Act.
(2) Assessment of the effectiveness of the internal control system.
(3) The adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act,-34-

of the procedures for handling financial or business activities of a material nature, suchas acquisition or disposal of assets, derivatives trading, loaning of funds to others, andendorsements or guarantees for others.
(4) Matters in which a director is an interested party.
(5) Asset transactions or derivatives trading of a material nature.
(6) Loans of funds, endorsements, or provision of guarantees of a material nature.
(7) The offering, issuance, or private placement of equity-type securities.
(8) The hiring or dismissal of a certified public accountant, or their compensation.
(9) The appointment or discharge of a financial, accounting, or internal audit officer.
(10) Annual financial reports and second quarter financial reports that must be audited andattested by a CPA, which are signed or sealed by the chairman, managerial officer, andaccounting officer.
(11) Other material matters as may be required by this Corporation or by the competentauthority.
4. The key tasks of the Audit Committee of the Company for the year of 2023 includes: Review
of all quarterly and annual financial statements, review of annual earning distribution proposal,
examine the effectiveness of the internal control system, review of material asset transactions,
corporate governance related affairs, risk management matters, appointment and compensationof CPAs, etc. Please refer to “3.3.12 Major resolutions of Shareholders’ Meeting, Board of
Directors Meetings, Audit Committee meetings and Remuneration Committee meetings in themost recent year and up to the publication date of this Annual Report” for major resolutions ofAudit Committee meetings in the most recent year and up to the publication date of thisAnnual Report.
5. A total of 4 Audit Committee meetings were held in the previous period. The attendance of the
independent directors was as follows:
Title

Name

Attendancein Person

By ProxyAttendance Rate (%)

Independent
Director
Independent
Director
Independent
Director

Chen, Yi-Liang

4

0

100

Chen, Lo-Min

4

0

100

Wang, Yi-Hsin

4

0

100

Remarks

Other mentionable items:
1.

If any of the following circumstances occur, the dates of meetings, sessions, contents of motion, thecontent of the objections, reservations or material recommendations of independent directors, resolutionsof the Audit Committee and the Company’s response to the Audit Committee’s opinion should bespecified:(1) Matters referred to in Article 14-5 of the Securities and Exchange Act.
(2) Other matters which were not approved by the Audit Committee but were approved by two-thirds ormore of all directors.
None. Please refer to “3.3.12 Major resolutions of Shareholders’ Meeting, Board of Directors Meetings,
Audit Committee meetings and Remuneration Committee meetings in the most recent year and up to the
publication date of this Annual Report” for major resolutions of Audit Committee meetings in the mostrecent year and up to the publication date of this Annual Report.
-35-

2.

If there are independent directors’ avoidance of motions in conflict of interest, the directors’ names,
contents of motion, causes for avoidance and voting should be specified:
None.

3.

Communications between the independent directors, the Company's chief internal auditor and CPAs (e.g.
the material items, methods and results of audits of corporate finance or operations, etc.):(1) The internal auditors have communicated the result of the audit reports to the members of the Audit
Committee periodically, and have presented the findings of all audit reports in the quarterly meetingsof the Audit Committee. The internal auditors report the next Annual Audit Plan and get the approvalof the Audit Committee in the last Audit Committee meeting every year. Should the urgency of thematter require it, the Company's chief internal auditor will inform the members of the Audit Committee
outside of the regular reporting. There was no such special situation in 2023. The communication
channel between the Audit Committee and the internal auditor has been functioning well.
(2) The Company’s CPAs have presented the findings or the comments for the quarterly corporate
financial reports, as well as those matters communication of which is required by law, in the regularquarterly meetings of the Audit Committee. Under applicable laws and regulations, the CPAs are
required to communicate to the Audit Committee any material matters that they have discovered. There
was no such special situation in 2023. The communication channel between the Audit Committee andthe CPAs has been functioning well.

-36-

3.3.3. Corporate Governance Implementation Status and Deviations from “the Corporate
Governance Best-Practice Principles for TWSE/TPEx Listed Companies”
Implementation Status

Evaluation Item

1.

2.

Does thecompany
establish anddisclose the
Corporate
GovernanceBest-PracticePrinciples
based on“Corporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”?
Shareholding
structure &shareholders’rightsDeviations
from “theCorporate
GovernanceBest-PracticePrinciples for
Yes NoAbstract Illustration
TWSE/TPEx
ListedCompanies”
and Reasonsv
The Company has established the Corporate Governance None
Best-Practice Principles based on the “Corporate GovernanceBest-Practice Principles for TWSE/TPEx Listed Companies”.
The information has been disclosed on the Company’s website.
http://tw.transcend-info.com/about/policies(1) Does thev
company
establish aninternal
operatingprocedure todeal withshareholders’suggestions,doubts, disputes
and litigations,and implement
based on theprocedure?

The Company has established spokesperson and investor None
relationship unit to handle issues of shareholders’ suggestions or
disputes.

(2) Does thecompany
possess the listof its major
shareholders aswell as the

The Company reports the shareholding change status of insiders None
(directors, managerial officers and shareholders withshareholding over 10% of the total number of shares) in time, andalso discloses the top 10 shareholders’ information in theshareholders’ meeting annual report every year. Furthermore, thefinancial statements also disclose the information of major

v

-37-

Implementation Status

Evaluation ItemYes Noultimate ownersof those shares?

Abstract Illustration

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasonsshareholders with the shareholding over 5% on a quarterly basis.

(3) Does thev
company
establish andexecute the risk
management
and firewall
system within
itsconglomerate
structure?

The Company and its affiliated enterprises enter into Noneinter-company business transactions, a written agreement
governing the relevant financial and business operations between
them shall be made in accordance with the principle of fairdealing and reasonableness, and the procedures including theactivities of trading, acquisition or disposal of assets,
endorsement and loans between the Company and its affiliates, inorder to implement the risk control mechanism thoroughly.

(4) Does thecompany
establish
internal rules
against insiders
trading with
undisclosed
information?
3. Composition
andResponsibilitie
s of the Boardof Directors

v

The Company has established and disclosed the ”Codes of None
Ethical Conduct for Employees”, ”Codes of Ethical Conduct for
Directors and Managerial Officers” and ”Procedures for Handling
Material Inside Information” on the Company’s website, in orderto prohibit employees to allow themselves or any third party togain personal benefits through the use of the Company’s assets,
information of through one’s job duties.

Does the Board v
of Directors
establish adiversified
policy, setgoals and
implement
themaccordingly?

1. The nomination and election of board members of the None.
Company comply with the ”Procedures for Election of
Directors” and ”Corporate Governance Best-PracticePrinciples” , in order to ensure the diversity and independenceof board members. According to Article 20 of the”Corporate
Governance Best-Practice Principles” of the Company, alldirectors are preferably required to possess knowledge, skills
and literacy necessary for performing duties, and diversity
directives have been established, for details on theimplementation of diversification objectives and achievement,
please refer to section 3.2.5.
2. All directors are equipped with extensive experience inleadership, operation determination, business management,
crisis handling, and are also equipped with industrial
knowledge and international market view such that they are
equipped with various capabilities necessary to execute the

(1)

-38-

Implementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasons

corporate governance. Independent directors, Mr. CHEN,
YI-LIANG, Mr. CHEN, LO-MIN and Ms. WANG, YI-HSIN,
are equipped with the professional backgrounds in accounting
and financial analysis, such they are able to provide
professional recommendations to the Company from different
viewpoints and aspects.
3. The ratio of directors equipped with the identity of employeesof the Company accounts for 33% of all directors, the ratio ofindependent directors accounts for 33% of all directors, and thefemale director ratio accounts for 22%. Three independent
directors have the term of office seniority above 9 years, one
director at the age above 71 years old, six directors at the age
between 61–70 years old, and two directors at the age under 60
years old.
4. The board of directors has disclosed the policy for theformation of diverse board members on the Company’s
website and the Market Observation Post System (MOPS).
v

Presently, the Company has established the Remuneration
Committee and Audit Committee, and these two committees are None
composed of all of the independent directors. Other types offunctional committees are continuously being assessed.

v
Does thecompany
establish astandard tomeasure theperformance of
the Board andimplement it
annually, andareperformance
evaluation
results
submitted to

The Company has established and disclosed the ”Rules for None
Performance Evaluation of Board of Directors” on the
Company’s website, and the evaluation period is from January 1
to December 31 of each year. The result is reported to the boardof directors before the end of March of the following year inorder to be used as a reference for review and improvement. The
evaluation result on the performance of the board of directors of
the Company will be used as a reference for election or
nomination of directors. The result of 2023 board of directors
performance evaluation has been reported to the board of
directors’ meeting on February 29, 2024. Please refer to “3.3.1
Operations of the Board of Directors”.

(2) Does thecompany
voluntarily
establish otherfunctional
committees in
addition to theRemuneration
Committee andthe Audit
Committee?
(3)

-39-

Implementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasons

the Board of
Directors andreferenced
when
determining
theremunerationof individual
directors andnominations
for reelection?

(4)

Does thecompany
regularly
evaluate theindependenceof CPAs?

v

The Company periodically evaluates the independence and None
suitability of the CPAs based on Audit Quality Indicators (AQIs)
on an annual basis, and the recently result has been approval by
the board of directors on November 6, 2023. After examination of
the CPAs’ independence and suitability evaluation checklist, andthe evaluation items include that the CPAs have no direct ormaterial indirect financial benefit relationships with theCompany, not assuming the position of director, managerial
officer or any job position that has material impack on the audit
work of the Company, not engaging in any financing or guarantee
activities with the Company or directors of the Company, notacting or representing as an agent of the Company, or involving
any defense or coordination for the Company, not providing
non-audit services other than certification and financial tax
services to the Company that may have direct impact on the audit
word, and not relatives to all of the aforementioned personnel,
etc. Accordingly, the independence and suitability of the CPAs of
the Company has been evaluated properly and confirmed tocomply with the requirements

4.

Does thev
company
appoint asuitablenumber ofcompetent
personnel and asupervisor
responsible forcorporate
governance

The Company assigns FAD as the main promotional unit for None
corporate governance. The board of directors appointed the CFOof the Company to act as the Corporate Governance Officer to be
in charge of corporate governance related affairs. The officer isequipped with the experience of the supervisor role in thefinancial, stock affairs and corporate governance related affairs
units of publicly listed companies for more than three years. The
main responsibilities and authorities of the corporate governance
unit are to provide documents and information necessary fordirectors to perform duties, to assist the Company and directors in
the compliance with the laws and regulations, and to handle-40-Implementation Status

Evaluation Item

matters(including but
not limited toprovidinginformation for
directors andsupervisors to
perform theirfunctions,assistingdirectors andsupervisors
withcompliance,
handling work
related tomeetings of theboard ofdirectors andtheshareholders'meetings, andproducingminutes ofboard meetings
andshareholders'meetings)?

Yes NoAbstract Illustrationaffairs for board of directors’ meetings and shareholders’meetings.
The key operational tasks for the current year are as follows:
1. Organize 2023 board of directors’ meetings, functional
committees’ meetings, and shareholders’ meetings, including
planning and establishment of agenda, mailing of meeting
notice within the statutory time-limit, providing all documents
and data necessary for the meetings, and also prepare meeting
minutes after such meetings.
2. Assist and organize continuing educational courses for
directors.
3. Perform 2022 board of directors’ performance evaluation, andsubmitted the evaluation result to the board of directors’
meeting on March 2, 2023.
4. Summarize amendments of latest laws of the competentauthority, and revise internal regulations of the Company
accordingly.
5. Provide appropriate and timely company information to
directors.
6. Make public announcements on all material resolutions
reached by the Company and material information of theCompany according to the laws.
7. Update and disclose all corporate governance information,
including the composition of board of directors and functional
committees, audit plan of each year, organization andmanagement team of the Company, important internal
regulations of the Company and interested party section, etc.
8. Handle directors liability insurance related affairs.
9. Other matters related to corporate governance.
Continuing Education Training of Corporate Governance Officer
in 2023
Date
2023/05/18

Host byAccounting
Research andDevelopment
Foundation

2023/05/30-05/31

Securities andFutures Institute2023/06/02

Taiwan Corporate
Governance
Association-41-

Training/Speech Title Hours
How to correctly
comprehend corporate
3
governance evaluation
indicators
Practical seminar for
directors and supervisors(including independent
12
directors) and corporate
governance supervisors
Initiation of inheritanceplan about employee3
reward plan and equity
inheritance

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and ReasonsImplementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasons

The Company has established the Corporate Governance Officer
section on the Company’s website, please refer tohttps://tw.transcend-info.com/about/directors

5.

6.

Does thev
company
establish acommunication
channel andbuild adesignatedsection on its
website forstakeholders(including but
not limited toshareholders,
employees,
customers, andsuppliers), as
well as handle
all the issues
they care for interms ofcorporatesocialresponsibilities?

The definition of interested parties of the Company includes None
employees, suppliers, shareholders and customers. The Company
has established various communication and compliant channels,
such as the spokesperson system, contact mailbox and website,
etc., and feedback information of the aforementioned interested
parties are collected, in order to provide the latest informationand communication channels of the Company. In addition,international trend and regulations, customer demands andmethods adopted in the same industry are also considered, andissues concerned by all interested parties are identified, in order
to list out the responsiveness and communication method for eachissue.
The Company has established the Interested Party section on the
Company’s website, please refer to:

Does thecompany
appoint a
professional
shareholder
service agency
to deal withshareholder
affairs?

v

The Company has appointed Transfer Agency Department of None
CTBC Bank to handle stock affairs of the Company.

v

1. The Company has established official corporate website to None
disclose relevant information timely. The website address is:Information
Disclosure(1) Does thecompany havea corporate

https://tw.transcend-info.com/about/stakeholders

7.

http://tw.transcend-info.com/

2. Financial information disclosure status:-42-

Implementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasons

The Chinese and English versions of the Company’s website
are established with the Investor Information section,
disclosing financial information, and the information is
updated periodically for investors’ reference.

website todisclose bothfinancialstandings andthe status ofcorporate
governance?

https://tw.transcend-info.com/about/month_sales
https://us.transcend-info.com/about/month_sales

3. Corporate governance information disclosure status:
The Company has disclosed the information on thecomposition of the committees, including board of directors,
annual audit plan, company organization and management
team, important internal regulations and interested party
section of the Company on the Company’s website.
http://tw.transcend-info.com/about/board_of_directors

(2)

(3)

Does thecompany have
otherinformation
disclosure
channels (e.g.
building an
Englishwebsite,appointing
designatedpeople tohandleinformationcollection anddisclosure,creating a
spokesmansystem,webcasting
investor
conferences)?
Does thecompany
announce andreport annual
financialv

1. The Company has assigned dedicated personnel to be None
responsible for the collection and disclosure of theCompany’s information,and spokesperson system isimplemented according to the regulations. The presentation
files and full audio and video recording of institutional
investors’ conferences are also published on the Company’s
website.
http://tw.transcend-info.com/about/conference

2. The Company has set up the English website to provide
investors from all countries to make inquiries and tounderstand relevant information. Please refer to:https://us.transcend-info.com/

v

The Company convened the board of directors’ meeting on The Company
February 29, 2024 to approve the annual financial statements for makes public
2023, and the annual financial statements were publicly announcement
announced and reported on the same day. And financial and reports
statements for Q1, Q2 and Q3 of the fiscal year were reported to the annual and-43-

Implementation Status

Deviations
from “theCorporate
GovernanceBest-PracticeEvaluation Item
Principles for
Yes NoAbstract Illustration
TWSE/TPEx
ListedCompanies”
and Reasonsstatements
the board of directors’ meetings on May 4, 2023, August 3, 2023 quarterly
within two
and November 6, 2023 respectively. And they were also publicly financial
months after
announced and reported on the same day.
statements
the end of eachaccording tofiscal year, andthe time limits
announce andspecified inreport Q1, Q2,
Article 36 of
and Q3the Securities
financial
and Exchange
statements, asAct.
well asmonthly
operation
results, before
the prescribedtime limit?
8. Is there anyv
1. Employees’ rights and interests, employee care execution Noneother important
status: Please refer to ”5.5 Labor Relations” of this Annual
information toReport.
facilitate a
2. Investor relationship, supplier relationship, interested parties’
betterrights and customer policy execution status: The Company has
understanding
set up the Interested Party section on the Company’s website.
https://tw.transcend-info.com/about/stakeholdersof the3.
Continuing
education status of directors and supervisors:
company’s
Pleaserefer
to ”3.3.5.Continuing Education/Training ofcorporate
Directors in 2023” of this Annual Report.
governance4. Risk Management Policies and risk evaluation measures
practices (e.g.,
execution status: Please refer to ”7.6 Analysis of Risk
including but
Management” of this Annual Report and the Company’s
not limited to
website:employeehttps://tw.transcend-info.com/about/risk_management_policy
rights,5. Customer policy execution status: The Company rigorously
employeecomplies with the customer confidentiality rules and thewellness,
Ethical Corporate Management Best-Practice Principles. In
investor
addition, the Company maintains excellent supply relationshiprelations,with customers and has established different internal teams to
supplier
service customers.
relations, rights
6.
Status on the Company’s purchase of liability insurance forofdirectors and supervisors: The Company has purchased
stakeholders,
directors’ and officers liability insurance, which has been
directors’ andapproved by the board of directors on November 6, 2023 andsupervisors’
has been publicly announced on MOPS.
training
7.
The
Company emphasizes the cultivation of senior
records,
management
talents and promotes R&D Vice GeneraltheManager, Sales Vice General Manager, Vice President of-44-

Implementation Status

Evaluation Item

implementationof riskmanagement
policies andrisk evaluation
measures, theimplementationof customer
relationspolicies, andpurchasing
insurance fordirectors andsupervisors)?

Yes NoAbstract Illustration

Administration and Directors of all divisions. The Company
also focuses on the management capability and professional
competence of senior managers, and plan to through thetransfer of different duties, senior managers are able to develop
different attributes and capabilities, thereby achieving
integration and utilization to enhance decision making andunderstanding of management principles. Accordingly,
candidates for board of directors and chairman of the board canbe appropriately selected from the senior managers.

-45-

Deviations
from “theCorporate
GovernanceBest-PracticePrinciples for
TWSE/TPEx
ListedCompanies”
and Reasons

9.

Please explain the improvements which have been made in accordance with the results of the Corporate
Governance Evaluation System released by the Corporate Governance Center, Taiwan Stock Exchange,and provide the priority enhancement measures.
(1) Status of improvement:
A. For the global trend of Sustainable Development Goals, since 2023 the Company according theframework of Task Force on Climate-Related Financial Disclosures (TCFD), disclose the risk
and opportunities of corporate governance, strategy, risk management and objectives. The
relevant information will be provided on ESG report, Annual report and the Company’s
website every year
https://tw.transcend-info.com/about/ESG_report(2) For the one item without scores, explanations are provided in the following:
A. Although the tenure of the Company’s independent directors has exceeded four consecutive
terms, their expertise is still needed. While exercising their duties as independent directors, they
can still apply their expertise and provide supervision and professional advice to the Board of
Directors. In this shareholders’ meeting, in response to Article 24, Paragraph 1 of the
Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies, and in linewith the expiration of the directors’ terms, a full re-election of directors was conducted toensure that the consecutive tenure of independent directors does not exceed three terms, thereby
strengthening the operation of the Board of Directors and the functions of directors, andenhancing the Company’s sustainable value.
B. Due to the needs of the Company’s operation and business development, presently, theChairman, CEO and General Manager refer to the same person. In the future, to cope with theregulatory requirements, we will increase one independent director to improve the supervisory
function of the board of directors at this shareholders meeting.

-46-

3.3.4. Composition, Responsibilities and Operations of the Remuneration Committee
To achieve sound corporate governance and to enhance remuneration management function,
the Company has established the Remuneration Committee in accordance withthe ”Regulations Governing the Appointment and Exercise of Powers by the Remuneration
Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei
Exchange”. The number of members of the Remuneration Committee of the Company is three,
and the members are to be appointed in accordance with the resolution of the board of
directors. The committee is formed by three external experts satisfying the professional
qualification and independence requirements. For the Remuneration Committee meetings of
the Company, at least two regular meetings are convened annually in order to periodicallyreview the remuneration regulations of the Company and to provide recommendations onamendments, to periodically review the performance evaluation of directors and managerial
officers and the policy, system, standard and structure for the salary and remuneration, as wellas to periodically evaluate and establish salary and remuneration of directors and managerial
officers of the Company. For the content of the performance evaluation standards for directors
and managerial officers, please refer to ”3.2.8. The ratio of total remuneration paid by theCompany and by all companies included in the consolidated financial statements for the twomost recent fiscal years to Directors, General Manager and Vice General Managers of theCompany, to the net income” and ”3.2.9. The policies, standards, and portfolios for thepayment of remuneration, the procedures for determining remuneration, and the correlation
with risks and business performance”.
1. Information on the members of the Remuneration Committee
Criteria
Professional
Qualificationand Experience

Identity

Independent Status

Name
Independent Director& Convener
Independent Director
Independent Director

Chen, Yi-Liang
Chen, Lo-Min

Number of Other PublicCompanies inWhich the Individual is
Concurrently Serving as
an Remuneration
Committee Member
0

Please refer to “3.2.4 Information disclosure of
the professional qualifications of directors andindependence of independent directors”.

Wang, Yi-Hsin

1
0

-47-

2. Operation of Remuneration Committee:(1) There are three members in the Remuneration Committee.
(2) Term of service: August 26, 2021 to August 25, 2024.
A total of two Remuneration Committee meetings were held in the previous period. The
attendance record of the Remuneration Committee members was as follows:
Attendance
Attendance Rate
Remarks
Title
Name
By Proxyin Person(%)
Convener Chen, Yi-Liang20100%
MemberWang, Yi-Hsin
20100%
MemberChen, Lo-Min20100%
Other mentionable items:
1.

If the board of directors declines to adopt or modifies a recommendation of the
remuneration committee, it should specify the date of the meeting, session, content of
the motion, resolution by the board of directors, and the Company’s response to the
remuneration committee’s opinion:
None. Please refer to “3.3.12 Major resolutions of Shareholders’ Meeting, Board of
Directors Meetings, Audit Committee meetings and Remuneration Committee
meetings in the most recent year and up to the publication date of this Annual Report”
for major resolutions of Remuneration Committee meetings in the most recent year and
up to the publication date of this Annual Report.

2.

Resolutions of the remuneration committee objected to by members or expressed
reservations and recorded or declared in writing, the date of the meeting, session,
content of the motion, all members’ opinions and the response to members’ opinion
should be specified:
None.

-48-

3.3.5. Continuing Education/Training of Directors in 2023
Title/Name
Director/Shu, Chung-Won

Date2023/06/02
2023/07/04

Director/Shu, Chung-Cheng

2023/06/02
2023/07/04

Director/
Chui, Li-Chu

2023/06/02
2023/07/04

Director/
Hsu, Chia-Hsian

2023/06/02
2023/07/04

Director/
Chen, Po-Shou

2023/06/02
2023/07/04

Director/Wu, Kuan-De

2023/06/02
2023/07/04

Independent
Director/
Chen, Lo-Min

2023/06/02
2023/10/20
2023/01/11
2023/02/16

Independent
Director/
Wang, Yi-Hsin

2023/06/07
2023/07/13
2023/07/18
2023/09/20

Independent
Director/
Chen, Yi-Liang

2023/06/02
2023/10/20

Host by

Training/Speech Title

Initiation of inheritance plan about
Taiwan Corporate Governanceemployee reward plan and equity
Association
inheritance
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
Taiwan Corporate Governance Initiation of inheritance plan about
Association
employee reward plan and equity
inheritance
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
Initiation of inheritance plan about
Taiwan Corporate Governanceemployee reward plan and equity
Association
inheritance
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
The Chinese National
2023 Net Zero Electricity Summit
Association of Industry andForum
Commerce
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
The Chinese National
2023 Net Zero Electricity Summit
Association of Industry andForum
Commerce
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
The Chinese National
2023 Net Zero Electricity Summit
Association of Industry andForum
Commerce
2023 Cathay Sustainable Finance andTaiwan Stock Exchange
Climate Change Summit
The Chinese National
2023 Net Zero Electricity Summit
Association of Industry andForum
Commerce
2023 Insider trading prevention
Securities and Futures Instituteeducational seminar
Accounting Research andTraining courses for internal auditors in
Development Foundation
the banking industry
Accounting Research andRead the TCFD Report: Grasp the Key
Development Foundation
Points of Information
Accounting Research and
The basis for preparation and disclosure
Development Foundationof ESG – key analysis of IFRS ISSB S1and S2 standards
Accounting Research andCorporate Governance and Securities
Development Foundation
Regulations: Being familiar with ESG
Environment, Society and GovernanceAccounting Research and2023 Transformation Finance andDevelopment Foundation
Sustainability Disclosure Seminar
Accounting Research andInternational trends and responses toDevelopment Foundation
sustainable development
The Chinese National
2023 Net Zero Electricity Summit
Association of Industry andForum
Commerce
2023 Insider trading prevention
Securities and Futures Instituteeducational seminar

-49-

Hours
3
6
3
3
3
3
3
3
3
3
3
3
3
3
1
1
1
1
3
1
3
3

3.3.6. Implementation of sustainable development promotion and difference from the Sustainable
Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
Implementation Status

Deviations from“the Sustainable
Development
Best-PracticeAssessment Item
Principles for
Yes NoAbstract Explanation
TWSE/TPEx Listed
Companies” andReasons
1. Does the companyv
Transcend Information appoints the Administration Noneestablish the governance
Vice General Manager Office - Administration
structure for promoting the
Department to be the main unit for promoting thesustainable development,sustainable development, and the directors of otherand set up a unit thatdivisions assume the positions of team leader
specializes (or is involved)
according to the nature of business. The Marketingin the promotion ofdivision is dedicated in the social participation andsustainable development,
feedback activities in addition to the promotion ofand does the board ofsustainable development. The Marketing division also
directors authorize thediscusses routine business promotion affairs andsenior management for
performs information collection and summarization as
handling such mater, andwell as reviews the execution status of the sustainable
the supervision status ofdevelopment with the Chairman.
the board of directors?
The division also provides report to the board of
directors on important promotion items once annually.
The board of directors reviews the management
directives, execution status and future plans, and also
provides opinions to the management team forreference to make adjustment, the result of 2023
execution status of the sustainable development has
been reported to the board of directors’ meeting on
November 6, 2023.
Please refer to the Company’s website for detailed
information:
https://tw.transcend-info.com/about/social_responsibility

2. Does the company assess
ESG risks associated with
its operations based on theprinciple of materiality,and establish related risk
management policies or
strategies?

v

1. This risk assessment boundary mainly focuses on None
the Taiwan headquarters and factory site as the coreof the assessment, and overseas business offices are
excluded.
2. During the pursuit of sustainable operation andprofit, the Company also conducts relevant risk
assessment on environment, society and corporate
governance related to the company operation inaccordance with the materiality principle. By
activelyfulfilling
sustainable
development
responsibilities, and through communication withinternal and external stakeholders, review ofdomestic and international relevant reports in thesame industry and evaluation documents of all
department, as well as incorporates such matters
into the management directives and operating
activities of the Company, thereby achieving thegoal of sustainable operation.
3. To enhance the corporate governance and to-50-

Implementation Status

Assessment ItemYes NoAbstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

establish sound risk management operation, theboard of directors has approved the Risk
Management Policies on November 10, 2020, in
order to provide guidance on effective
identification, measurement, supervision andcontrol of all kinds of risks to all units of theCompany during the performance of duties, and toalso control the possible risks within the acceptablelevel, thereby achieving the goal of reasonable risk
and compensation as well as the objective ofsustainable operation of the Company.
Reported various business risks and proposed
control strategy and method in the board of
director’s meeting on November 6, 2023, pleaserefer to the Company’s website:
https://tw.transcend-info.com/about/risk_management_p
olicy

3. Environmental issues(1) Does the company
establish proper
environmental
management systems
based on thecharacteristics of theirindustries?

v

Transcend adopts the product life cycle notion andperforms planning based on the characteristics of our None
industry and also obtains the ISO14001:2015
environmental management system standards andcontinuously be passed by third-party verification.
Accordingly, we continue to reduce negative impacts
on the environment and promote our environmental
performance.
In terms of products, the Company uses parts
complying with RoHS EU environmental protection
standards during the product manufacturing process,and all of the Company’s products qualify for the
QC080000 certification in order to reduce negative
impacts on the environment.Certificate information,please refer to the Company’s website:
https://tw.transcend-info.com/about/green

In addition, based on the climate-related financial
disclosure(TCFD)
framework,
Transcend's
implementation results are explained from the four
core elements of TCFD: "Governance", "Strategy","Risk Management", and "Objectives".
(2) Does the company
endeavor to promoteenergy utilizing more
efficiently and use
renewable materials whichhave low impact on theenvironment?

v

1. Energy saving:Nonei. The R&D continues to design and develop
energy saving products and completed the power
consumption improvement of Drive Pro 10 in
2023, achieving an annual electricity saving rateof 13.6%..
ii. In 2023, the factory completed the introduction-51-

Implementation Status

Assessment ItemYes NoAbstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasonsof a new high-efficiency cooling system incertain production areas, replacing the oldprocess cooling system. The introduction of the
new system achieved an annual electricity
savings rate of 14%. Additionally, a chiller
replacement project was undertaken, replacingsome high-load chillers during the summer
season, which achieved an annual electricity
savings rate of 25%.
iii. In June 2023, the factory purchased a 100HP air
compressor, replacing high-load air compressors.
The pipeline testing will continue until 2024, and
it is expected to reduce the annual electricity
consumption by approximately 70,540 kWh,achieving an annual electricity savings rate of
approximately 18.8%.
2. Resource recycling: The wastepaper, waste plastics,
waste metals and lighting fixtures generated by theCompany daily are recycled by qualified recycling
vendor periodically.
(3) Does the companyv
evaluate the potential risks
and opportunities inclimate change with regard
to the present and future ofits business, and takeappropriate action tocounter climate change
issues?

1. For the climate-related risks and opportunities Nonederived from climate change, Transcend evaluates
the possibility of occurrence and analyzes thedegreeofimpact,anddiscloses
theimplementation results from the four core elementsof TCFD: "Governance", "Strategy", "RiskManagement" and "Objectives".
Please find below a brief of the implementation
results:
Governance:
Through annual and ad hoc discussions between
the relevant departments of the ADM, FAD,
Engineering Department, and Quality Assurance
Department, assessments of the risks andopportunities pertaining to climate change werereported to the chairman where, once approved by
the chairman, they will be reported to the board of
directors on a regular basis each year to ensure
thorough discussion.
Strategy:
Strategies to mitigate and adapt to the effects ofclimate change are as follows:(1) Mitigation:Implementation of energy-efficient
improvements, and propagate the energy-saving
concepts;(2) Adaptation: Replace old equipment and add-52-Implementation Status

Assessment ItemYes NoAbstract Explanation

protective facilities to reduce the impact ofnatural disasters.
Risk Management and Objectives:
After identifying risks, assess the possibility of
improvement, set reasonable management goals,
plan countermeasures and implementation, andconduct annual assessment and review.
Future potential risks and opportunities
derived from climate change:
In 2022, the risks and opportunities identified by
the company should be paid high attention:
Risks:(1) increases in average temperature, which may
result in higher energy consumption (2)Old
equipment may lead to inefficient energy
conversion (3) Extreme weather events, resulting
in unexpected asset damage or factory shutdown
Opportunities:(1)Replacing old equipment to improve energy
efficiency(2)Replacewithenergy-saving
equipment and propagate energy-saving concepts
to reduce electricity costs (3)Add protective
facilities and establish a response process, avoid
natural disasters from damaging assets or delaying
production plan.
2. While facing potential impacts on the caused byclimate change, the Company also understands theopportunities for operation improvement associatedwith relevant responsive measure. For example,
during the replacement of old machines with newones, the Company cooperates with the government
subsidy policy and applies for relevantenergy-saving subsidy and incentives. To create afriendly environment, the Company enhances green
manufacturing and develops technologies beneficial
to the environment, including semi-high PCB andnew packaging materials, product improvement etc.
The Company also develops relevant manufacturing
processes to reduce energy consumption in order toachieve a low-carbon future. Please refer to theCompany’s website for details:
https://tw.transcend-info.com/about/energysaving
https://tw.transcend-info.com/about/TCFD-53-

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasonsImplementation Status

Deviations from“the Sustainable
Development
Best-PracticeAssessment Item
Principles for
Yes NoAbstract Explanation
TWSE/TPEx Listed
Companies” andReasons(4) Does the company takev
1. This data covers the Taiwan headquarters and Noneinventory of its greenhousefactory site; however, overseas business offices aregas emissions, water
excluded.
consumption, and total
2.
weight of waste in the lasti. Greenhouse gas emissions:
Unit: KgCO2e
two years, and implement
Emission
per unit
policies on energy
Year
Scope 1
Scope 2revenueefficiency and carbon
2023
33,6284,166,1080.0004
dioxide reduction,
2022
34,9904,087,881
0.0003greenhouse gas reduction,
ii.
Water
consumption:water reduction, or waste
Unit: million tons
management?
Year
2023
2022

Water consumption
29.16
28.38

iii. Total weight of waste:
Year
2023
2022

Hazardous industrial
waste
11.77710.705

Unit: tons
General industrial
waste
183.514206.439

3. The Company evaluates the risks and opportunitiesof all units in order to establish environmental
objective plans and to execute follow-up
appropriately every year. Some of theenvironmental objective plans are described in thefollowing:
2022: Factory 3F–5F lighting fixture replacement
project and improvement for DPB30.
2023: Improvement for Drive Pro 10, and factory
introduced a new high-efficiency cooling systemand the replacement project of the chilled water
system.
2024: Completed the replacement project of aircompressor and improvement for Drive Pro 3X
function.
The Company establishes environmental objectiveplans and executes follow-up appropriately every
year. For relevant objective plans and specificexecution measures, please refer to the Company’s
website for details:
https://tw.transcend-info.com/about/energysaving

4. Social issues(1) Does the company
formulate appropriatev

The Company is committed to complying with the None
national labor laws, “RBA Responsible Business-54-

Implementation Status

Assessment ItemYes NoAbstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

Alliance Code of Conduct” and other applicableindustrial standards and international conventions. The
Company also continues to improve the working
environment and employee welfare for all employees.
To achieve such commitment, the Company
periodically identifies employee occupational safety
and health risks, material environmental concerns, andentrusts a third-party authentication institution to
perform audit periodically. Please refer to theCompany’s website for detailed information:

management policies andprocedures according torelevant regulations andthe International Bill of
Human Rights?

https://tw.transcend-info.com/about/human(2) Does the company havereasonable employee
benefit measures(including salaries, leave,
and other benefits), and do
business performance or
results reflect on employee
salaries?

v

1. The Company has established the salary Nonemanagement regulations and employee bonus
distribution system. In addition to the distribution of
year-end bonus, the Company also distributes
performance bonus quarterly depending on the
profit of the Company in order to share the businessoutcome with employees, thereby encouraging andrewarding employees for their effort at work.
2. The Company has established the employee welfarecommittee to plan and provide various welfare to
employees, such as wedding gift money, childbirthgift money, funeral condolence, groupmeal
compensation, annual and holiday gifts. To allow
employees to achieve a balance between work andliving, the Company has set up recreation facilities
and a gym in order to allow employees to relax andrelieve pressure. Furthermore, the Company alsoplans free annual health examinations and arranges
for a physician to provide on-site periodic
consultation in order to care for and protect theemployees’ health properly.
3. The Company promotes the equal remuneration
criteria for same job duties and equal promotion
opportunities for employees of different genders. In
2023, the number of female employees accounted
for 50% of all employees, and the number of female
supervisors accounted for 17% of all management
staff.
4. Please refer to ”5.5.1 Employee benefit plans,continuing education, training, retirement systems,
the status of their implementation, and the status oflabor agreements and measures for preserving
employees' rights and interests” and corporatewebsite:https://tw.transcend-info.com/about/employee_benifit-55-

Implementation Status

Assessment Item

(3) Does the company provide
a healthy and safe working
environment and organize
training on health andsafety for its employees ona regular basis?

Yes Nov

Abstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

None
1. Environmental Safety and Health Policy
The Company is committed to continuously
promoting various handling/control mechanism
plans, to fulfill corporate responsibilities inenvironmental protection and employee safety andhealth, prevention of occupational injuries anddisease, reduction of environmental/safety andhealth management risks, and maintaining thecompetitiveness and improvement status of theCompany. In addition, the Company also aims toconvey its philosophy to all staff working for theorganization and even to all stakeholders, in order toestablish the cornerstone for the sustainable
operation of the Company.
2. Health and Safety of Employees in the Workplace
The Company, according to the hazard identification
and risk opportunity assessment, effectively controls
hazards and reduces risks, in order to improve thesafety and health performance. In addition, theCompany has also established the safety and healthrelated operation control, in order to ensure that
operations comply with the regulations andmanagement system requirements. The Company
also continues to implement the five main plans(human factor engineering, abnormal workload,
illegal infringement, labor health service andmaternity protection plans), and performs
monitoring and performance measurement analysis
and evaluation, and periodically convenes safetycommittee review meetings, in order to ensure theeffective operation of safety and health, and toprovide physical and mental protection toemployees, thereby achieving zero-hazard safety
and health working environment.
In 2023, the Company continues to participate in the“Healthy Workplace” of the Health Promotion
Administration,“2023 National Occupational
Safety and Health Week Event” of Occupational
Safety and Heatlth Administration and HealthAdministration and “Measures and Quantitative
Activities” of the Company, was rated A among thepeers, which indicated that the Company had
completed most of the basic leading indicators of
GRI 403 standard.
3. Labor Working Environment Monitoring andTesting-56-

Implementation Status

Assessment ItemYes NoAbstract Explanation

The Company implements workplace monitoringsemi-annually in order to protect employees fromphysical and chemical hazards in the workplace andto ensure exposure concentration complies with theregulatory standards. The chemical exposure
concentrations of the Company are far lower than
1/2 of the acceptable concentration standards forhazardous substances in the air specified by thelaws.
4. Health Management and Health Promotion
The Company sets up the health management room
and also employs full-time nursing personnel
according to the provisions of health protection laws
in order to handle on-site worker health service
affairs. In addition, the Company also contracts a
specialized physician for labor health service inorder to provide the monthly on-site service in theplant.
The
Company
providesregularphysicalexamination before the on-boarding of all new
employees, and all of the expenses for the
aforementioned examination are borne by theCompany. In 2023, the Company continuallyprovided all employee health examination and items
superior to the regulatory requirements, andemployee relatives and friends are also entitled tothe health examination based on the benefit plan, inorder to achieve greater health benefits. After healthexamination, the internal professional nurse
classifies the health reports of all employees forhealth management, and provides active care andconducts tracking on abnormal health items, inorder to allow employees to understand theirpersonal health conditions.
The internal nurse promotes various healthpromotion activities and targets annually according
to the employee health abnormality items, andevaluatestheoutcomeandprovidesrecommendations, in order to improve potential andexisting health issues of employees, thereby
preventing occurrence of diseases, improving
personal health condition and promoting employee
health. In the future, the Company will continue to
implement the same activities in conjunction withappropriate reward measures to allow employees tounderstand health and to achieve balance between
work and life.
-57-

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasonsImplementation Status

Assessment ItemYes NoAbstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

5. Safety and Health Education and Training
The Company organizes safety and health educationand training annually, in order to improve the safety
and health knowledge of employees. In 2023, there
was a total of five types of courses organized for theinternal education and training, and a total of 1,103
employees participated the training. There was a
total of five types of license courses, and a total of
29 employees participated in such courses.
6. Corporate Certification Status
The Company and all factory sites in Taiwan haveobtained the dual system certifications of ISO 45001
and CNS 45001 (TOSHMS).
7. Occupational Accident Prevention and Improvement
In 2023, there were 5 cases of occupational disasters
for 5 employees (accounting for 0.51% of the total
number of employees at the end of 2023), which did
not achieve the goal of zero occupational disasters.
The Company has conducted a thoroughinvestigation and review of the incident, andimplemented improvements to prevent therecurrence of similar issues. Measures taken include
revising
relevant
procedural
documents,
strengthening safety promotion, optimizing the work
environment and processes, and enhancing
mechanical equipment protection to ensure a safeand healthy working environment for our
employees.
8. Fire prevention and improvement
There was no fire incidents in 2023 and we willcontinually promote fire protection systemmanagement.
Please refer to the Company’s website for detailed
information:
https://tw.transcend-info.com/about/healthy_safety(4) Does the company provide
its employees with careerdevelopment and training
sessions?

v

The Company establishes annual education and None
training plan to provide knowledge necessary for
employees to perform works. Supervisors of all units
also provide training planning necessary for the careerand competence development of their department staff.
In 2023, training sessions were held 114 times, and a
total of 2,783 people participated in these sessions.

(5) Do the company's products v
and services comply with
relevant laws andRegarding issues related to customer health and safety, Nonecustomer privacy, marketing, and labeling of products
and services, the Company complies with relevant-58-Implementation Status

Assessment ItemYes Nointernational standards inrelation to customer healthand safety, customer
privacy, and marketing andlabeling of products andservices, and are relevant
consumer protection andgrievance procedure
policies implemented?
(6) Does the company
implement suppliermanagement policies,
requiring suppliers to
observe relevant
regulations onenvironmental protection,
occupational health andsafety, or labor and humanrights? If so, describe theresults.

Abstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

regulations and international standards. We haveestablished the “Warranty Policy,” “Terms ofUse,” “Privacy Policy,” and “Customer Service
Satisfaction Survey Procedures” to protect consumer
rights and grievance procedures.

v

1. The Company has established the “Supplier None
Selection and Management Work Guideline,” andthe standard selection process has been
implemented before the addition of new suppliers,
and suppliers are also requested to sign thefollowing
documentsof“environmental
protection regulations compliance guarantee”,“supplier ethics undertaking”, “supplier social
responsibility undertaking”,”New Supplier
Evaluation Form”and “Review Supply chain
security of Authorized Economic Operator” , orthe supplier is requested to provide relevant
responsibility statements. in order to comply withthe regulations of environmental protection,
occupational safety and health or labor rights,
Supply chain security.
2. The Company has established the GMP system to
inform suppliers of the latest hazardous substancestandard and relevant environmental protection
regulations of the Company in real time.
3. Supplier evaluation is performed annually. For the2023 supplier evaluation result, all of the suppliers
qualified the evaluation standard and complied withthe supplier code of practice.
Please refer to the Company’s website for detailed
information:
https://tw.transcend-info.com/about/vendor_management

5. Does the company
reference internationallyaccepted reporting
standards or guidelines,
and prepare reports that
disclose non-financial
information of thecompany, such as ESG

v

1. When we prepared our sustainability report, we None.
made reference to the R.O.C.'s Blueprint for
Sustainability Reporting Standards (IFRS) and thecore option and the content and quality principles of
the GRI Sustainability Reporting Standards, andprepared the report on the basis on the four
principles of Materiality, inclusivity, responsibility,
and impact of the AA1000 Accountability Standard-59-

Implementation Status

Assessment ItemYes NoAbstract Explanation

Deviations from“the Sustainable
Development
Best-PracticePrinciples for
TWSE/TPEx Listed
Companies” andReasons

reports? Do the reports
above obtain assurance
from a third party
verification unit?

as well as in response to the Sustainability
Accounting Standards Board (SASB) standards,
through which prominent issues of concern tostakeholders can be covered as much as possible,
and sustainable behaviors of our corporate
operations demonstrated.
2. Although not verified by external third parties, theaccuracy of all financial, environmental, and social
statistics herein are ensured by our stringent internal
control and audit mechanism.
6. Describe the difference, if any, between actual practice and the sustainable development principles, if thecompany has implemented such principles based on the Sustainable Development Best Practice Principles for
TWSE/TPEx Listed Companies:
The Company has established the “Sustainable Development Best-Practice Principles for TWSE/TPEx Listed
Companies”, having no major difference from the laws and regulations, and there have been no major
abnormalities in the actual operation.
7. Other useful information for explaining the status of sustainable development practices:(1) Environmental protection: Please refer to “5.4. Environmental Protection Expenditures”.
(2) Consumers’ rights and interests: The Company has established the dedicated Customer Service Center tohandle customer complaint issues. The direct-sale stores of the Company also provide the service of productreturn and exchange to consumers.
(3) Employees’ rights and interests: Please refer to “5.5.1 Employee benefit plans, continuing education,
training, retirement systems, the status of their implementation, and the status of labor agreements andmeasures for preserving employees' rights and interests”.
(4) Safety and health: The Company has obtained the ISO 14001 environmental management system, the ISO
45001 occupational safety and health management system certification for the workplace, and has also
qualified the TOSHMS certification standard (CNS 45001).The Company has also received the“Healthy
Workplace Certification – Health Promotion Badge” from the Ministry of Health and Welfare.
(5) Products: In terms of the quality management, the Company has obtained the ISO 9001 quality management
system certification. With outstanding product design and research and development strength, the Company
has received the honor of Taiwan Excellence Award for consecutive years, thereby establishing a quality
brand image.
(6) Specific promotion plan and implementation outcome for corporate social responsibility: Transcend has
long been committed to promoting the development of youth sports in Taiwan. In cooperation with highschool sports associations, we sponsor a number of sports events, including HBL and HVL, to provide moredevelopment opportunities for youth sports. Additionally, since 2015, Transcend has been promoting the“Youth Baseball Outreach Program” for over eight years, spanning across 13 counties and cities and 23
elementary schools in Taiwan, with over 600 participants. This program provides a stage for youth baseballplayers in remote areas to learn and grow. These efforts have also earned Transcend the Ministry of
Education’s Sports Promotion Award for ten consecutive years, motivating the company to continue
contributing more value to society and promoting healthy development of youth sports, striving to create abetter future.

-60-

3.3.7. Climate-related information for TWSE/TPEx listed companies
Implementation of climate-related information
Item
1. Describe the monitoring and governance ofclimate-related risks and opportunities by the
Board of Directors and the management.

Implementation Status
The Company has established a dedicated part-timeunit – the General Management Division under the
Administrative Vice President’s Office – to promotesustainable development. On May 4, 2023, during the
2nd Board of Directors’ meeting, this unit and theAdministrative Vice President were authorized to be
responsible for sustainable development affairs (suchas management policies, specific promotion plans, andimplementation), and to regularly report to the Boardof Directors.

2. Describe how the identified climate risks andopportunities affect the Company’s business,strategy and finance (short-, medium-, andlong-term).

Climate risk items: (1) Transformation risks:
government levies corporate carbon tax and carbon
fee: reducing energy costs and carbon emissions
through new additions and replacements of
low-carbon and energy-saving energy equipment, therelated equipment expenditure is about NT$9 million.
(2) Physical risks: For extreme weather events(typhoons, droughts, floods), the Company has toimprove its preparedness for natural disasters,
establish sound emergency response procedures, andperform regular drills. The Company purchases
property insurance at a cost of about NT$3 million
each year.
Climate Opportunities: Develop and/or add
low-carbon products and services: In response to the
ESG requirements of stakeholders, improve theenvironmental protection concept of products andadopt green production to reduce the impact on theenvironment and climate. In 2023, the Company’s
R&D expenses such as the development of
power-saving memory modules and product revision
to reduce power consumption and improve usage
efficiency only accounted for 1–1.5% of the annual
revenue.

identifying
climate-related
risks
and
3. Describe the financial impact of extreme After
opportunities,
wediscussed
response
strategies
withclimate events and transformation actions.
relevant units and assessed the potential financial
impacts on Transcend. For example, equipment
replacement can reduce energy costs, and we canapply for relevant energy-saving subsidies andincentives from the government. Natural disasters areunavoidable, but by establishing comprehensive
emergency response procedures and conducting
regular drills, we can reduce the costs of disasters.
4. Describe how climate risk identification,assessment, and management processes areintegrated into the overall risk management
system.

The Company has established the “Risk Management
Policy,” which was reported to the 4th session of theBoard of Directors on November 6, 2023. The
Company also proposed the management strategy andpractices. Considering the abnormal global climate,-61-

and frequent typhoons and earthquakes in Taiwan, therisk of asset loss increases. The Company has long
invested in global property insurance to transfer mostof the risks to third parties to reduce possible losses
caused by climate change.
5. If a scenario analysis is used to assess theresilience to climate change risks, thescenarios, parameters, assumptions, analysis
factors, and main financial impacts used shallbe described.

6. If there is a transformation plan in place tomanage climate-related risks, specify thecontent of the plan, as well as the indicatorsand targets used to identify and manage
physical and transformation risks.

The Company has been investing in global property
insurance for a long time. The property insurance in2023 increased insurance expenses by about NT$3
million, which accounted for only 0.2% of operating
expenses, and the impact on the overall financial
position was relatively insignificant.
Electricity- saving target: With 2020 as the baseyear, the target of reducing electricity consumption by
5% by 2026 has been set.
Carbon reduction target: Using 2020 as the baseyear, we set a carbon reduction target of 7% by 2026.

7. If internal carbon pricing is used as a planning The Company has not yet used internal carbon pricing
tool, the basis for setting the price shall be as a planning tool.
stated.

8. If climate-related goals are set, the activities
covered, the scope of greenhouse gas
emissions, and the planning period shall be
explained.
annual progress; if using carbon offsets orrenewable energy certificates (RECs) toachieve
Explain the source and volume of carbon
reduction credits or the number of RECs.

The Company currently does not set any
climate-related goals, but only follows the “Roadmap
for Sustainable Development for TWSE/TPEx Listed
Companies” and “ISO 14064-1” to minimize carbon
emissions and establish a schedule for GHG inventory
and assurance progress reporting.

9. Greenhouse gas inventory and assurance, and The Company follows the “Roadmap for Sustainablereduction goals, strategies, and concrete action Development of Listed/OTC Companies” and “ISO
14064-1” to establish a schedule for greenhouse gasplans.
inventory and external assurance processes. We aim tocomplete external assurance for the parent company
by 2028 and external assurance for subsidiaries
included in the consolidated statements by 2029.

-62-3.3.8. Fulfillment of Ethical Corporate Management and Deviations from the "Ethical Corporate
Management Best Practice Principles for TWSE/GTSM Listed Companies"
Implementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations from the“Ethical Corporate
Management Best
Practice Principles
for TWSE/GTSM
Listed Companies”
and Reasons

1. Establishment of ethicalcorporate management
policies and programsv

The “Ethical Corporate Management Best-Practice None
Principles” of the Company has been approved in theboard of directors’ meeting in 2014, and theregulations of the “Codes of Ethical Conduct for
Directors and Managerial Officers” and “Codes of
Ethical Conduct for Employees” , etc. have also been
approved in the board of directors’ meeting in 2013.
The Company requests directors and all employees tocomply with such provisions accordingly. Please referto the Company’s website:
https://tw.transcend-info.com/about/policies(2) Does the company havev
mechanisms in place toassess the risk ofunethical conduct, andperform regular analysis
and assessment ofbusiness activities withhigher risk of unethicalconduct within the scopeof business? Does thecompany implement
programs to prevent
unethical conduct basedon the above and ensure
the programs cover at
least the matters describedin Paragraph 2, Article 7of the Ethical Corporate
Management Best
Practice Principles for
TWSE/TPEx Listed
Companies?

The Company has established the “Ethical Corporate None
Management Best-Practice Principles”, “Codes of
Ethical Conduct for Directors and Managerial
Officers” and “Codes of Ethical Conduct for
Employees”, and all of these provisions have covered
the operating activities of relatively higher risk ofunethical conduct described in the content of all
subparagraphs of Paragraph 2 of Article 7 of the“Ethical Corporate Management Best-PracticePrinciples for TWSE/GTSM Listed Companies” andother operating scope.
Ethical corporate management and ethical code of
conduct are the core guidelines for the Company. The
contents of these provisions are published on the
Company’s website for relevant personnel’s review at
any time.
The Company provides internal and externalreporting channels. In case where a violation is foundto be true, different level of disciplinary action is
imposed depending upon the severity of the violation.

(1) Does the company have a
Board-approved ethicalcorporate management
policy and stated in its
regulations and externalcorrespondence theethical corporate
management policy andpractices, as well as theactive commitment of theBoard of Directors andmanagement towards
enforcement of suchpolicy?

-63-

Implementation Status

Evaluation Item

(3) Does the company
provide clearly theoperating procedures,code of conduct,
disciplinary actions, andappeal procedures in the
programs against
unethical conduct? Does
the company enforce theprograms above
effectively and perform
regular reviews andamendments?
2. Fulfill operations integrity
policy(1) Does the company
evaluate business
partners’ ethical records
and include ethics-relatedclauses in business
contracts?

Deviations from the“Ethical Corporate
Management Best
Practice Principles
Yes NoAbstract Illustration
for TWSE/GTSM
Listed Companies”
and Reasonsv
The Company has established the “Ethical Corporate None
Management Best-Practice Principles”, “Codes of
Ethical Conduct for Directors and Managerial
Officers” and ”Codes of Ethical Conduct for
Employees” . All of these provisions are published on
the Company’s website for relevant personnel’s
review. The Company also requests all employees
and directors to comply with these provisions
accordingly.

v

Prior to engaging in business dealings with suppliers, None
the Company conducts evaluation and review process
on all aspects of the suppliers, and requests the
suppliers to provide the “Supplier Ethics
Undertaking.” Prior to engaging in business dealings
with customers, the Company evaluates the financial
and credit status according to the credit investigation
policy of the Company. In case where transaction
counterparty involves in unethical conducts, theCompany may terminate or rescind contracts at anytime.

(2) Does the company have aunit responsible for
ethical corporate
management on afull-time basis under the
Board of Directors which
reports the ethicalcorporate management
policy and programs
against unethical conduct
regularly (at least once ayear) to the Board of
Directors while
overseeing suchoperations?

v

The Company assigns the Financial and Accounting None
Department and the Administration Department to be
the concurrent units responsible for the establishmentof ethical corporate management policies andexecution of supervision, and according to the job
duties and scope of each unit, including theestablishment and revision of the “Ethical Corporate
Management Best-Practice Principles,” organizing
ethical corporate management related propaganda andeducational training, etc., in order to ensure thethorough implementation of ethical corporate
management principles. Important items and relevant
affairs promotion status are reported to the board of
directors once annually.

(3) Does the company
establish policies toprevent conflicts ofinterest and provide
appropriatev

The Company has established the “Codes of Ethical None
Conduct for Directors and Managerial Officers”,“Codes of Ethical Conduct for Employees”,“Employee Code of Conduct and Reward andDiscipline Management Regulations”, “Regulations-64-

Implementation Status

Evaluation ItemYes Nocommunication channels,
and implement it?

Abstract Illustration

Deviations from the“Ethical Corporate
Management Best
Practice Principles
for TWSE/GTSM
Listed Companies”
and Reasons

Governing Procedure for Board of Directors
Meetings” and “Audit Committee Charter.” All ofthese provisions have clearly specified mattersrequiring recusal in case of encountering the situationof conflict of interest. The Company provides
complaint channel, such that in case where any
director, managerial officer or employee is verified tohave violated the code of ethical conduct, then such
violator shall be punished in accordance with thedisciplinary measures specified in the code of ethicalconduct.

(4) Does the company haveveffective accounting andinternal control systems inplace to implement ethicalcorporate management?
Does the internal audit
unit follow the results of
unethical conduct risk
assessments and devise
audit plans to audit thesystems accordingly toprevent unethical conduct,or hire outsideaccountants to performthe audits?

The Company prepares the financial statements in Noneaccordance with the International Financial ReportingStandards (IFRSs), International AccountingStandards (IAS) and interpretations. For the 2023
consolidated financial statements, the PwC Taiwan
has issued the audit report with unqualified opinion.
The Company establishes an internal control system
for all operating activities. The internal audit unit
performs audit work according to the audit plan andalso reports to the Audit Committee and board of
directors periodically.

(5) Does the company
regularly hold internaland external educational
trainings on operational
integrity?

To establish the corporate culture of ethical Nonemanagement and sound development, the Company
has constructed a proper business operation structureand has established the “Ethical Corporate
Management Best-Practice Principles,” and theseprinciples are implemented in the daily operation.
The new employees’ orientation training includes
ethical management related education courses, andthe content mainly covers the courses employee
ethical conduct, employee code of conduct, ethics andfair trade and duty of confidentiality, etc. In 2023,
two orientation training sessions were held, and a
total of 60 people participated in these sessions. The
period of each training session is 0.5 hours. The
course materials will be updated to Company’s
website for employees’s reference after theorientation training. The Company also places thecourse contents related to internal material
information handling operation and insider trading
related courses in the Company’s system and website

v

-65-

Implementation Status

Evaluation ItemYes NoAbstract Illustration

Deviations from the“Ethical Corporate
Management Best
Practice Principles
for TWSE/GTSM
Listed Companies”
and Reasons

as references for directors, managerial officers andemployees.
3. Operation of the integrity
channel(1) Does the company
establish both areward/punishment
system and an integrity
hotline? Can the accused
be reached by anappropriate person forfollow-up?

v

The Company has established the “Regulations for None
Company’s Whistleblowing Reports on Illegal andUnethical Conducts” and has also set up specificwhistleblowing mailbox and employee suggestion
box in order to allow internal and external personnel
to file complaint or whistleblowing reports to theCompany. After the receiving unit clarifies relevantfacts and evidence, it is reported to the managementlevel for handling.

(2) Does the company havein place standard
operating procedures forinvestigating accusation
cases, as well as
follow-up actions andrelevant ost-investigation
confidentiality measures?

v

The content of the “Regulations for Company’s None
Whistleblowing Reports on Illegal and UnethicalConducts” established by the Company specifies thehandling procedures related to the filing ofcomplaints, investigation and post-investigation
measures, and the whistleblower’s identity is kept
strictly confidential.

(3) Does the company
v
provide proper
whistleblower protection?

The “Regulations for Company’s Whistleblowing None
Reports on Illegal and Unethical Conducts” of theCompany also specifies that the whistleblower shallnot be subject to unfavorable disposal due to thewhistleblowing report, and the Company shallprovide sufficient protection to all whistleblowers.

4. Strengthening information
disclosure
Does the company disclose
its ethical corporate
management policies andthe results of its
implementation on thecompany’s website and
MOPS?

v

The Company has disclosed relevant ethical Nonemanagement principles on the Company’s website
and MOPS. The Company has also set up the EthicalManagement section on the Company’s website andhas disclosed ethical management related informationin the annual report.
https://tw.transcend-info.com/about/integrity

5. If the company has established the ethical corporate management policies based on the Ethical Corporate
Management Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy
between the policies and their implementation:
The Company has established the “Ethical Corporate Management Best-Practice Principles” in 2014, having nomajor difference from the “”Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed
Companies,” and there have been no major abnormalities in the actual operation.
-66-

Implementation Status

Deviations from the“Ethical Corporate
Management Best
Evaluation Item
Practice Principles
Yes NoAbstract Illustration
for TWSE/GTSM
Listed Companies”
and Reasons
6. Other important information to facilitate a better understanding of the company’s ethical corporate management
policies (e.g., review and amend its policies)(1) The Company periodically reviews the update status of the “Ethical Corporate Management Best-PracticePrinciples for TWSE/TPEx Listed Companies” and timely reviews and conducts evaluation to determine
necessary amendments.
(2) In the provisions of the “Codes of Ethical Conduct for Directors and Managerial Officers”, “Codes of EthicalConduct for Employees” and the “Employee Code of Conduct and Reward and Discipline Management
Regulations,” the Company has specified that unethical conducts are prohibited, conflict of interests shall be
avoided and obtaining of improper personal benefits and interests shall be prevented.
(3) In the “Audit Committee Charter” and “Regulations Governing Procedure for Board of Directors Meetings,”
the Company has specified the directors’ recusal system for conflict of interest.
(4) To implement the education on ethical management, the Company includes the ethical management in thecourse content of new employees’ orientation training, thereby allowing new employees to understand theCompany’s policy and direction on ethical management.
(5) The Company has established the “Patent Management Regulations” and “Intellectual Property Right
Management Control Operation” in order to serve as the basis for the obtaining, protection and managementof intangible assets. Company has also periodically introduced the concepts of the intellectual property rights
to all employees.

3.3.9. Corporate Governance Guidelines and Regulations
Please refer to the Company’s website at http://tw.transcend-info.com/about/policies
3.3.10. Other Important Information Regarding Corporate Governance
The Company has established the “Procedures for Handling Material Inside Information”.
The Company informs all employees via e-mail when newly establishment of the procedures
and subsequent amendments, and also makes public announcement through the intranet of theCompany for employees’ review and use. All departments and employees handling possible
material information and disclosure of such information are required to comply with theseprocedures as well as laws and regulations. “Procedures for Handling Material Inside
Information” has been disclosed on the Company’s website.
Please refer to: http://tw.transcend-info.com/about/policies-67-3.3.11. Implementation of Internal Control Systems
1. Statement of Internal Control Systems
Transcend Information, Inc.
Statement of Internal Control Systems
February 29, 2024
Based on the findings of a self-assessment, Transcend Information, Inc. (Transcend) states thefollowing with regard to its internal control system during the year 2023:
1.

Transcend’s Board of Directors and management are responsible for establishing, implementing,and maintaining an adequate internal control system. Our internal control is a process designed
to provide reasonable assurance over the effectiveness and efficiency of our operations(including profitability, performance and safeguarding of assets), reliability, timeliness,transparency of our reporting, and compliance with applicable rulings, laws and regulations.

2.

An internal control system has inherent limitations. No matter how perfectly designed, aneffective internal control system can provide only reasonable assurance of accomplishing its
stated objectives. Moreover, the effectiveness of an internal control system may be subject tochanges due to extenuating circumstances beyond our control. Nevertheless, our internal control
system contains self-monitoring mechanisms, and Transcend takes immediate remedial actions
in response to any identified deficiencies.

3.

Transcend evaluates the design and operating effectiveness of its internal control system basedon the criteria provided in the Regulations Governing the Establishment of Internal Control
Systems by Public Companies (herein below, the“Regulations”). The criteria adopted by theRegulations identify five key components of managerial internal control: (1) control environment,(2) risk assessment, (3) control activities, (4) information and communication, and (5)monitoring activities.

4.

Transcend has evaluated the design and operating effectiveness of its internal control system
according to the aforesaid Regulations.

5.

Based on the findings of such evaluation, Transcend believes that, on December 31, 2023, it has
maintained, in all material respects, an effective internal control system (that includes thesupervision and management of our subsidiaries), to provide reasonable assurance over ouroperational effectiveness and efficiency, reliability, timeliness, transparency of reporting, andcompliance with applicable rulings, laws and regulations.

6.

This Statement is an integral part of Transcend’s annual report and prospectus, and will be madepublic. Any falsehood, concealment, or other illegality in the content made public will entail
legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Law.

7.

This Statement was passed by the Board of Directors in their meeting held on February 29, 2024,with none of the nine attending directors expressing dissenting opinions, and the remainder all
affirming the content of this Statement.
Transcend Information, Inc.
Chairman: Shu, Chung-Won
General Manager: Shu, Chung-Won-68-

2. If CPA was Engaged to Conduct a Special Audit of Internal Control System, Provide Its
Audit Report: None.
3.3.12. If there has been any legal penalty against the company and its internal personnel, or any
disciplinary penalty by the company against its internal personnel for violation of the internal
control system, during the most recent fiscal year or during the current fiscal year up to the
publication date of the annual report, where the result of such penalty could have a material
effect on shareholder interests or securities prices, the annual report shall disclose the penalty,
the main shortcomings, and condition of improvement:
None.
3.3.13. Major resolutions of Shareholders’ Meeting, Board of Directors Meetings, Audit Committee
meetings and Remuneration Committee meetings in the most recent year and up to the
publication date of this Annual Report:
1. Major resolutions of Shareholders’ MeetingDate2023.06.16

Material Decisions
Adoption of 2022 Business Report and(1)
Financial Statements.

Resolutions and Implementation Status
Approved after voting.

Approved after voting. To appropriate legal
Adoption of the proposal for distribution of reserve NT$245,725,616 and special reserve(2)2022earnings.
NT$167,302,182 from 2022 earnings inaccordance with the regulations.

2. Material resolutions of Board of Directors Meetings
Date

Material Decisions(1)

Resolutions and Implementation Status2022 Business Report and Financial
Statements.

(2) Proposal for distribution of 2022 earnings.

(3)

Cash distribution from 2022 retained
earnings.

2023.03.02(The FirstTime in(4) Cash distribution from capital surplus.
2023)

Approved by all presented directors andproposed to Shareholders’ meeting for
ratification.
Approved by all presented directors andproposed to Shareholders’ meeting for
ratification.
Approved by all presented directors. To
appropriate cash dividend NT$2,059,496,040(NT$4.80 per share) from 2022 earnings andsubmit a report to Shareholders’ meeting.
Approved by all presented directors. The capitalsurplus derived from the issuance of new sharesat a premium totaling NT$343,249,340 will be
distributed in cash of NT$0.80 per share. And
submit a report to Shareholders’ meeting.

CPA Independence and Suitability
Approved by all presented directors.
Assessment.
Extension of the period of endorsement and Approved by all presented directors. The(6) guarantee to subsidiary Transcend Japan
handling department has executed such matterInc.
according to the regulations.
Ratification of the Appointment of the(7)
Approved by all presented directors.
financial and accounting officer.
Ratification of the Appointment of(8)
Approved by all presented directors.
Corporate Governance Officer.
(5)

-69-

Approved by all presented directors and(1) Planned issuance of restricted stock awards
proposed to Shareholders’ meeting forby the company
ratification.
2023.05.04(The
SecondTime in
2023)(2) Amendments to “Sustainable

Development Best Practice Principles”.

(3) Amendments to “Rules of Procedure for

Board of Directors Meetings”.

Approved by all presented directors.

Approved by all presented directors.

Extension of the period of endorsement and Approved by all presented directors. The(1) guarantee to subsidiary Transcend Japan
handling department has executed such matter
2023.08.03
Inc.
according to the regulations.
(The Third
Formulation to “Operational Standards forTime in
Mutual Financial Business between Related
2023)
(2)
Approved by all presented directors.
Parties in the Acquisition or Disposal of
Assets Process”
Approved by all presented directors. The Audit(1) 20234Annual Internal Audit Plan.
Office is requested to execute such matter
2023.11.06
according to the regulations.
(The
Approved by all presented directors. The
Renewal of Directors and Officers’ Liability
Fourth(2)handling department has executed such matter
Insurance.
Time inaccording to the regulations.
2023)
2024 CPA Independence and Suitability(3)
Approved by all presented directors.
Assessment.
Approved by all presented directors andproposed to Shareholders’ meeting for
ratification.
Approved by all presented directors and(2) Proposal for distribution of 2023 earnings. proposed to Shareholders’ meeting for
ratification.
Approved by all presented directors. To
Cash distribution from 2023 retained
appropriate cash dividend NT$1,930,777,538(3)earnings.
(NT$4.50 per share) from 2023 earnings andsubmit a report to Shareholders’ meeting.
2024.02.29
Approved by all presented directors. The capital(The First
surplus derived from the issuance of new shares
Time in(4) Cash distribution from capital surplus.
at a premium totaling NT$214,530,838 will be
2024)
distributed in cash of NT$0.50 per share. And
submit a report to Shareholders’ meeting.
Extension of the period of endorsement and Approved by all presented directors. The(5) guarantee to subsidiary Transcend Japan
handling department has executed such matterInc.
according to the regulations.
Approved by all presented directors and(6) Election of directors.
proposed to Shareholders’ meeting for election.
Approved by all presented directors andAmendments to “Rules and Procedures of(7)
proposed to Shareholders’ meeting for
Shareholders’ Meeting”.
ratification.
2024.05.09
Issuance the first of restricted stock awards(1)
Approved by all presented directors.
(Theby the company(1)2023 Business Report and Financial
Statements.

-70-SecondTime in
2024)

The Qualification Review of the Elected
Directors and Independent Directors(2) Candidate for the 2024 Annual Regular
Shareholders’ Meeting

Approved by all presented directors andproposed to Shareholders’ meeting for election.

Approved by all presented directors and
To release the prohibition on directors fromproposed to Shareholders’ meeting for(3)
participation in competing business.
ratification.

3. Material resolutions of Audit Committee Meetings
Date

Material Decisions

Resolutions and Implementation Status
Approved by all presented committee members
2022 Business Report and Financial(1)
and proposed to Board of directors’ meeting forStatements.
discussion.
Approved by all presented committee members(2) Proposal for distribution of 2022 earnings. and proposed to Board of directors’ meeting fordiscussion.
Approved by all presented committee members
and proposed to Board of directors’ meeting for
Cash distribution from 2022 retained(3)
discussion. To appropriate cash dividend
earnings.
NT$2,059,496,040 (NT$4.80 per share) from
2023.03.02
2022 earnings.
(The First
Approved by all presented committee members
Time inand proposed to Board of directors’ meeting for2023)
discussion. The capital surplus derived from the(4) Cash distribution from capital surplus.
issuance of new shares at a premium totaling
NT$343,249,340 will be distributed in cash of
NT$0.80 per share.
Extension of the period of endorsement and Approved by all presented committee members(5) guarantee to subsidiary Transcend Japanand proposed to Board of directors’ meeting forInc.
discussion.
Approved by all presented committee members
Ratification of the Appointment of the(6)
and proposed to Board of directors’ meeting for
financial and accounting officer
discussion.
2023.05.04(The
Approved by all presented committee members
Planned issuance of new restricted employee
Secondand proposed to Board of directors’ meeting forshares by the company
Time indiscussion.
2023)
Extension of the period of endorsement and Approved by all presented committee members(1) guarantee to subsidiary Transcend Japanand proposed to Board of directors’ meeting for2023.08.03
Inc.
discussion.
(The Third
Formulation to “Operational Standards
Time inApproved by all presented committee members
for Mutual Financial Business between
2023)
(2)
and proposed to Board of directors’ meeting for
Related Parties in the Acquisition or
discussion.
Disposal of Assets Process”
Approved by all presented committee members
2023.11.06(1) 2024 Annual Internal Audit Planand proposed to Board of directors’ meeting for(The
discussion.
FourthApproved by all presented committee members
Time in(2) 2024 CPA Independence and Suitability
and proposed to Board of directors’ meeting for
2023)
Assessment.
discussion.
2024.02.29
Approved by all presented committee members
2023 Business Report and Financial(The First (1)and proposed to Board of directors’ meeting forStatements.
Time indiscussion.
-71-2024)

Approved by all presented committee members
and proposed to Board of directors’ meeting fordiscussion.
Approved by all presented committee members
and proposed to Board of directors’ meeting for
Cash distribution from 2023 retained(3)
discussion. To appropriate cash dividend
earnings.
NT$1,930,777,538 (NT$4.50 per share) from2023 earnings.
Approved by all presented committee members
and proposed to Board of directors’ meeting fordiscussion. The capital surplus derived from the(4) Cash distribution from capital surplus.
issuance of new shares at a premium totaling
NT$214,530,838 will be distributed in cash of
NT$0.50 per share.
Extension of the period of endorsement and Approved by all presented committee members(5) guarantee to subsidiary Transcend Japanand proposed to Board of directors’ meeting forInc.
discussion.
Approved by all presented committee members
2024.05.09 (1) Issuance the first of restricted stock awards
and proposed to Board of directors’ meeting forby the company(The
discussion.
SecondApproved by all presented committee members
Time in(2) To release the prohibition on directors fromand proposed to Board of directors’ meeting for2024)
participation in competing business.
discussion.
(2) Proposal for distribution of 2023 earnings.

4. Material resolutions of Remuneration Committee Meetings
Date2023.03.02(The FirstTime in2023)

Material Decisions
Resolutions and Implementation Status
Distribution of 2022 employees’ profit(1)
sharing bonus and directors’ compensation. Approved by all presented committee members
Remuneration of managerial officers inand proposed to Board of directors’ meeting for
(2)
2023.
discussion.
(3) Remuneration of directors in 2023.

2023.11.06
Remuneration of managerial officers in(The
Approved by all presented committee members
(1)
2023.
Secondand proposed to Board of directors’ meeting forTime indiscussion.
(2) Remuneration of directors in 2023.
2023)
Distribution of 2023 employees’ profit
2024.02.29 (1) sharing bonus and directors’ compensation.
Approved by all presented committee members(The First
Remuneration of managerial officers inand proposed to Board of directors’ meeting forTime in (2) 2024.
discussion.
2024)(3) Remuneration of directors in 2024.
2024.05.09(The
SecondTime in2024)(1)

Remuneration of managerial officers in
2024.

(2) Remuneration of directors in 2024.
(3)

Issuance the first of new restrictedemployee shares by the company

Approved by all presented committee members
and proposed to Board of directors’ meeting fordiscussion.

3.3.14. Major Issues of Record or Written Statements Made by Any Director Dissenting to Important
Resolutions Passed by the Board of Directors in the Most Recent Year up to the Publication
Date of this Annual Report:
None.
-72-

3.3.15. Resignation or Dismissal of the Company’s Key Individuals, Including the Chairman, CEO,and Heads of Accounting, Finance, Internal Audit, Corporate Governance and R&D in the
Most Recent Year and up to the Publication Date of this Annual Report:
Title

Name

Date ofAppointment

Date ofTermination

CFO & Corporate
Governance Officer

Hsiao, Sheng-Yin

2019/08/01

2023/01/19

April 23, 2024
Reasons for
Resignation or
Dismissal
Resignation

3.4. Information on CPA fees
Unit: NT$ thousands
Accounting Firm

Name of
CPA

Audit Period

Chen,
Pricewaterhouse Chin-Chang
2023.01.01~2023.12.31
Coopers
Lin, Yi-Fen

Audit Fee

3,670

Non-audit Fee(Note)
2,763

Total

Remark

6,433-

Note: The non-audit services are for Transfer Pricing Report, New Restricted Employee Sharesconfident service, Tax Compliance Audit service and other Tax Consulting services.
3.4.1. When the company changes its accounting firm and the audit fees paid for the fiscal year inwhich such change took place are lower than those for the previous fiscal year, the amounts of
the audit fees before and after the change and the reasons shall be disclosed.
Not applicable.
3.4.2. When the audit fees paid for the current fiscal year are lower than those for the previous fiscal
year by 10 percent or more, the reduction in the amount of audit fees, reduction percentage,
and reason(s) therefor shall be disclosed.
None.
3.5. Replacement of CPA
Not applicable.
3.6. Where the company's chairman, general manager, or any managerial officer in charge offinance or accounting matters has in the most recent year held a position at the accounting firmof its certified public accountant or at an affiliated enterprise of such accounting firm, the nameand position of the person, and the period during which the position was held, shall be
disclosed.
None.
3.7. Any transfer of equity interests and/or pledge of or change in equity interests by a director,
managerial officer, or shareholder with a stake of more than 10 percent during the most recent
fiscal year and during the current fiscal year up to the date of publication of this Annual Report.
None.

-73-

3.7.1. Changes in shares held by Directors, Managerial Officers and Major Shareholders
2023

Title

Chairman and CEO
and General manager
Director
Director
Director
Director & Sales Vice
General Manager
Director

As of April 23, 2024
Increase
Increase
Increase
Increase(decrease)(decrease)(decrease) of(decrease) ofof sharesof shares
shares held
shares held
pledgedpledgedName

Shu, Chung-Won (Note 2)

719,000-(5,300,000)-(1,210,000)(110,000)---

Chen, Po-Shou

-

-

-

-

Wu, Kuan-De

-

-

-

-

Shu, Chung-Cheng
Chui, Li-Chu
Hsu, Chia-Hsian

Independent Director Chen, Yi-Liang
Independent Director Chen, Lo-Min
Independent Director Wang, Yi-Hsin
R&D Vice General
Li, Tseng-Ho
Manager
Administration Vice
Fang, Wen-Jeng
General Manager
Financial andHsiao, Sheng-Yin
Accounting Officer & (Dismissal date: 2023/01/19)
Corporate Governance
Chi, Wen-Hui (Note 3)
Officer
Shareholder holding
Won Chin Investment Inc.
10% or more of shares
Note 1: The status of the increase/decrease of shares held and pledged shall be based on the period of thedirectors and managerial officers’ term of office.
Note 2: The general manager temporary hold by Shu, Chung-Won, the appointment effected on January 1,
2023.
Note 3: New appointment of Financial and Accounting Officer & Corporate Governance Officer on January 19,
2023, and approved by Board of Directors March 2, 2023.

3.7.2. Shares Trading with Related Parties
Not applicable.
3.7.3. Shares Pledge with Related Parties
Not applicable.

-74-3.8. Relationship information, if among the company's Top 10 shareholders any one is a related
party, spouse or a relative within the second degree of kinship of another

Name

Won ChinInvestment Inc.
Representative:
Shu, Chung-Yu

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

SharesSharesShares74,783,600%

17.43%

-

%

-

-

%

-

Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationship
Wan AnTechnology Inc.

Same person as the
ChairmanWan MinInvestment Inc.

Same person as the
Chairman

Wan Chuan
Investment Inc.

Same person as the
Chairman

The Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Won
Chin
The Chairman of
the company listed
here is a relative
Ho Cheng
within two degrees
Investment Inc.
of kinship of the
Chairman of Won
Chin
The Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of Won
Chin
The Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of Won
Chin
Won ChinInvestment Inc.

Wan AnTechnology Inc.
34,251,854
Representative:
Shu, Chung-Yu

Wan MinInvestment Inc.
7.98%

-

-

-

-

Wan Chuan
Investment Inc.

-75-

Same person as the
ChairmanSame person as the
Chairman;Investment of Wan
An on Wan Min isevaluated underequity method
Same person as the
Chairman;Investment of Wan
An on Wan Chuan isevaluated underequity method

Name

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

Shares%Shares%Shares

%

7.68%

-

-

-

-

Cheng Chuan
Technology
Development
Inc.
32,971,701
Representative:
Shu,
Chung-Cheng-76-

Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationship
The Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Wan
An
The Chairman of
the company listed
here is a relative
within two degrees
Ho Chengof kinship of theInvestment Inc.
Chairman of Wan
An; Investment of
Wan An on He
Cheng is evaluatedunder equity method
The Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of Wan
An
The Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of Wan
An
The Chairman of
the company listed
here is a relative
Won Chin
within two degrees
Investment Inc.
of kinship of the
Chairman of Cheng
Chuan
The Chairman of
the company listed
here is a relative
Wan Anwithin two degrees
Technology Inc.
of kinship of the
Chairman of Cheng
Chuan
The Chairman of
the company listed
here is a relative
Wan Minwithin two degrees
Investment Inc.
of kinship of the
Chairman of Cheng
Chuan
The Chairman of
Wan Chuan
the company listed
Investment Inc.
here is a relative
within two degrees

Name

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

SharesSharesSharesWan MinInvestment Inc.
29,726,397
Representative:
Shu, Chung-Yu

%

6.93%

-

%

-

-77-

-

%

-

Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationshipof kinship of the
Chairman of Cheng
Chuan
The Chairman of
the company listed
here is a relative
Ho Cheng
within two degrees
Investment Inc.
of kinship of the
Chairman of Cheng
Chuan
The Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of Cheng
Chuan
Same person as the
Chairman;
ShuminInvestment of
Investment Inc.
Cheng Chuan on
Shumin is evaluatedunder equity method
Won ChinInvestment Inc.

Same person as the
Chairman

Wan AnTechnology Inc.

Same person as the
Chairman; Wan Min
is an investee of
Wan An underequity method

Wan Chuan
Investment Inc.

Same person as the
Chairman

The Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Wan
Min
The Chairman of
the company listed
here is a relative
Ho Cheng
within two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Min
The Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Min

Name

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

SharesSharesSharesWan Chuan
Investment Inc.
29,505,896
Representative:
Shu, Chung-Yu

Ho Cheng
Investment Inc.
Representative: 14,426,462
Shu,
Chung-Mei

%

6.88%

3.36%

-

-

%

-

-

-78-

-

-

%

-

Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationship
The Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Min
Won ChinInvestment Inc.

Same person as the
Chairman

Wan AnTechnology Inc.

Same person as the
Chairman; Wan
Chuan is an investeeof Wan An underequity method

Wan MinInvestment Inc.

Same person as the
Chairman

The Chairman of
the company listed
here is a relative
Ho Cheng
within two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Chuan
The Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Chuan
The Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Wan
Chuan
The Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of Wan
Chuan
Shin Chuang
Investment Inc.

Same person as the
ChairmanWon ChinInvestment Inc.

The Chairman of
the company listed
here is a relative
within two degrees
of kinship of the
Chairman of Ho
Cheng

-

Name

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

SharesSharesShares%%%Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationship
The Chairman of
the company listed
here is a relative
within two degrees
Wan Anof kinship of theTechnology Inc.
Chairman of Ho
Cheng; Ho Cheng is
an investee of Wan
An under equity
methodThe Chairman of
the company listed
here is a relative
Wan Minwithin two degrees
Investment Inc.
of kinship of the
Chairman of Ho
Cheng
The Chairman of
the company listed
here is a relative
Wan Chuan
within two degrees
Investment Inc.
of kinship of the
Chairman of Ho
Cheng
The Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Ho
Cheng
The Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of HoCheng
Ho Cheng
Investment Inc.

Shin Chuang
Investment Inc.
Representative: 13,947,294
Shu,
Chung-Mei

3.25%

-

-

-79-

-

-

Same person as the
Chairman

The Chairman of
the company listed
here is a relative
Won Chin
within two degrees
Investment Inc.
of kinship of the
Chairman of Shin
ChuangThe Chairman of
the company listed
Cheng Chuan
here is a relative
Technology
within two degrees
Development Inc. of kinship of the
Chairman of Shin
ChuangName and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
Relationship
The Chairman of
the company listed
here is a relative
Wan Anwithin two degrees
Technology Inc.
of kinship of the
Chairman of Shin
ChuangThe Chairman of
the company listed
here is a relative
Wan Minwithin two degrees
Investment Inc.
of kinship of the
Chairman of Shin
ChuangThe Chairman of
the company listed
here is a relative
Wan Chuan
within two degrees
Investment Inc.
of kinship of the
Chairman of Shin
ChuangThe Chairman of
the company listed
here is a relative
Shuminwithin two degrees
Investment Inc.
of kinship of the
Chairman of Shin
ChuangCurrent Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

Shares%SharesSharesYuanta Taiwan
High Dividend
Low Volatility
ETF

9,865,000

2.30%

-

-

-

-

None

None

HI-JET
Incorporation
Representative:
Yeh,Chia-Wen

6,581,000

1.53%

-

-

-

-

None.

None

Name

%

%

Won ChinInvestment Inc.
ShuminInvestment Inc.
Representative:
Shu,
Chung-Cheng

6,437,842

1.50%

-

-

-

-

Wan AnTechnology Inc.

-80-

The Chairman of
the company listed
here is a relative
within two degrees
of kinship of the
Chairman of
ShuminThe Chairman of
the company listed
here is a relative
within two degrees
of kinship of the
Chairman of
ShuminName

Current Shareholding

Spouse’s/minor’s
Shareholding

Shareholding
by Nominee
Arrangement

SharesSharesShares%%%Name and Relationship Between the
Company’s Top Ten Shareholders, orSpouses or Relatives Within Two
DegreesName
RelationshipSame person as theCheng Chuan
Chairman; Shumin
Technology
is an investee ofDevelopment Inc. Cheng Chuan underequity method
The Chairman of
the company listed
here is a relative
Wan Minwithin two degrees
Investment Inc.
of kinship of the
Chairman of
ShuminThe Chairman of
the company listed
here is a relative
Wan Chuan
within two degrees
Investment Inc.
of kinship of the
Chairman of
ShuminThe Chairman of
the company listed
here is a relative
Ho Cheng
within two degrees
Investment Inc.
of kinship of the
Chairman of
ShuminThe Chairman of
the company listed
here is a relative
Shin Chuang
within two degrees
Investment Inc.
of kinship of the
Chairman of
Shumin3.9. The total number of shares and total equity stake held in any single enterprise by the company,
its directors, managerial officers, and any companies controlled either directly or indirectly by
the company.
AffiliatedEnterprises(Note)

April 23, 2024; Unit: Shares
Direct or Indirect Ownership
Ownership by the Company
by Directors/
Total OwnershipManagerial officers
Shares%Shares%Shares%Taiwan IC Packaging
Corporation

21,928,036

12.51%

4,471,641

Saffire Investment Ltd.

6,600,000

100%-

Transcend Information
Inc. (USA)625,000

100%

Transcend Japan Inc.

6,400

Transcend Korea Inc.

40,00026,399,677

15.06%-

6,600,000

100%

-

-

625,000

100%

100%

-

-

6,400

100%

100%

-

-

40,000100%

Note: Invested by the company using the equity method.
-81-

2.55%

4. Capital Overview
4.1. Capital and Shares
4.1.1. Source of Capital
Authorized CapitalFace ValueYear andPer Share
Month
(NT$)

Paid-in Capital

Amount(NT$
thousands)

SharesShares2021/1010500,000,000 5,000,000 429,061,675

2024/05

10

500,000,000 5,000,000 429,867,675

RemarkProperty
other thanAmountcash as(NT$
Source of Capital
Other
payment
thousands)
for share
payment
4,290,617 Cash establishment New
Restricted
Employee Shares to4,298,677
806,000
shares(Note 1)

Note 1：The base date for capital increase is May 9, 2024, and the registration change is pending
approval by the Ministry of Economic Affairs.
Note 2：The source is in the last year up to the publication date of this annual report.
Type of
Stock
CommonStock

Authorized Capital
Shares Outstanding(Note)

Un-issued Shares

Total Shares

429,867,675

70,132,325

500,000,000

Remark
25,000,000 shares arereserved for employee stock
options.

Note: Listed Shares.

Information for Shelf Registration: None.
4.1.2. Shareholder Structure
As of April 23, 2024
Shareholders
Structure Government

Agencies

Financial
Institutions

Quantity

Number of
Shareholders
Shareholding(Shares)
Holding
Percentage

Foreign
Other Juridical
Domestic
Institutions andPersons
Natural Persons
Natural Persons

Total

-

19

117

23,032236

23,404-19,802,818

259,330,809

93,552,856

56,375,192

429,061,675

0.00%

4.62%

60.44%

21.80%

13.14%

100.00%4.1.3. Shareholding Distribution Status
As of April 23, 2024 (Note 1)
Class of shareholding(Shares)
1~999
1,000~5,000
5,001~10,000
10,001~15,000

Number of shareholders

Shareholding (Shares)

Shareholding percentage (%)

5,239
15,112
1,652
448

844,377
28,833,732
13,092,975
5,696,253

0.20%
6.71%
3.05%
1.33%

-82-

33

4,544,619
5,818,363
3,595,207
2,865,682
9,898,865
10,851,812
10,362,491
7,285,892
5,296,000
8,291,160
311,784,247

1.06%
1.36%
0.84%
0.67%
2.31%
2.53%
2.42%
1.70%
1.23%
1.93%
72.66%

23,404

429,061,675

100.00%15,001~20,000
20,001~30,000
30,001~40,000
40,001~50,000
50,001~100,000
100,001~200,000
200,001~400,000
400,001~600,000
600,001~800,000
800,001~1,000,000

247
227
100
61
139
79
35
15
8
9

1,000,001 or over
Total

Note 1: It refers to the most recent shareholding dispersal base date provided by the stock affairs agent.
Note 2: The Company does not issue preferred shares.

4.1.4. List of Major Shareholders
SharesShareholding(Shares)Name of major shareholders
Won Chin Investment Inc.

Percentage (%)

74,783,600
34,251,854
32,971,701
29,726,397
29,505,896
14,426,462
13,947,294
9,865,000
6,581,000
6,437,842
252,497,046

Wan An Technology Inc.
Cheng Chuan Technology Development Inc.
Wan Min Investment Inc.
Wan Chuan Investment Inc.
Ho Cheng Investment Inc.
Shin Chuang Investment Inc.
Yuanta Taiwan High Dividend Low Volatility ETF
HI-JET Incorporation
Shumin Investment Inc.
Total

17.43%
7.98%
7.68%
6.93%
6.88%
3.36%
3.25%
2.30%
1.53%
1.50%
58.85%

4.1.5. Market Price, Net Worth, Earnings, and Dividends per Share in the Past Two Years
Unit: NT$; Thousand shares
Year
Item
Market Highest
Price per Lowest
Share
Average
Net Worth Before distribution
per Share After distribution
Earnings Weighted Average Shares
per Share
Earnings per Share (EPS)(EPS)
Dividend Cash dividendper Share Cumulative unpaid dividends

2022

2023

As of March 31,2024(Note 1)

75.80
57.90
68.34
45.57
39.97
429,062

84.60
65.40
73.87
44.91
39.91
429,062

90.60
76.80
81.58
42.08
42.08
429,062

5.72

4.63

7.52(Note 2)

4.80

4.50

-

-

Not applicable--83-Return on Price-to-earning ratio
Investment Price-dividend ratio(ROI)
Analysis Cash dividend yield rate

11.95
14.24

15.95
16.42

10.85 (Note 2)
Not applicable

7.02

6.09

Not applicable

Note 1: The consolidated financial statements of 2024 Q1 have been prepared in accordance to the IFRS andhave been reviewed by the CPAs.
Note 2: The calculation of Earnings per Share (EPS) and Price-to-Earnings Ratio for 2024 Q1 have beenannualized.

4.1.6. Dividend Policy and Implementation Status
1. Dividend Policy
According to Article 22-1 of the Company’s Articles of Incorporation, if the Company has
earnings after the annual final accounting, it shall be allocated in the following order:(1) To pay taxes.
(2) To cover accumulated losses, if any.
(3) To appropriate 10% legal reserve unless the total legal reserve accumulated has alreadyreached the amount of the Company’s authorized capital.
(4) To appropriate or reverse special reserve in accordance with the regulations.
(5) To reserve certain amount, on the premise that there is no effect on the Company’s
normal operations and no violation of regulations, for maintaining stability of
dividends.
(6) For any remainder, adding on accumulated unappropriated retained earnings, the boardof directors shall propose the earnings distribution proposal and shall handle inaccordance with the following provision: the board of directors is authorized to
distribute dividends and bonuses or legal reserve and capital reserve in whole or in partwhich be paid in cash after a resolution has been adopted by a majority vote at a
meeting of the board of directors attended by two-thirds of the total number of directors;
and in addition thereto a report of such distribution shall be submitted to theshareholders’ meeting in accordance with Section 5 of Article 240 and Section 1 of
Article 241 of the Company Act. In case of the dividends and bonuses or legal reserveand capital reserve in whole or in part be distributed in the form of new shares to beissued by the company, shall be proposed to the shareholders' meeting for review andapproval by a resolution in accordance with Article 240 of the Company Act.
The Company distributes dividends taking into consideration the Company's economic
environment and growth phases, future demands of funds, long-term financial planning,
and the cash flows that the stockholders desire. Under the circumstances of no material
investment plans and other special situation, the proportion of dividend distributed shall not
be less than 80% of after-tax profit, and cash dividends shall account for at least 5% of thetotal dividend distributed. The Company currently distributes dividend all in cash, andthere is no consideration for the distribution of stock dividends.
2. Proposed Distribution of Dividend:
The appropriation for cash dividends from 2023 earnings and cash payment from capitalsurplus have been approved by the Board of Directors during its meeting on February 29,2024.
Unit: NT$
year

2023

Dividends per Share
Retained Earnings
Cash
Dividend
Capital surplus

4.50
0.50
-84-

Free Share
Assignment

Retained Earnings
Capital surplus
Total

0.00
0.00
5.00

3. Major Change Expected in the Dividend Policy:
None.
4.1.7. Impacts of free share assignment intended through the current shareholders meeting on the
Company's operational performance and earnings per share:
Not applicable.
4.1.8. Compensation for Employees and Directors
1. The percentage or range of compensation for employees and directors based on the Article
of Incorporation:
Bases on Article 22 of the Article of Incorporation, where the Company has a profit before
tax for each fiscal year, the Company shall first reserve certain amount of the profit torecover losses for preceding years, and then set aside no less than 1% of the remaining
profit for distribution to employees as compensation and no more than 0.2% of theremaining profit for distribution to directors as compensation.
The compensation may be paid in stock or cash. For remuneration in the form of shares, theemployees of subsidiaries meeting specific condition are also entitled to the payment. The
Board is authorized to decide such qualifications and allocation.
2. Basis for estimating the amount of compensation for employees and directors, basis forcalculating the number of shares to be distributed as employee compensation, and theaccounting treatment of the discrepancy, if any, between the actual distributed amount andthe estimated amount, for the current period:
If the actual amounts approved by board of directors differ from the estimated amount, thedifference will be recorded in the year when board of directors makes the resolution as achange in accounting estimate.
3. Distribution of Compensation of Employees and Directors for 2023 Approved in the Boardof Directors Meeting:
The compensation of employees and directors for the year ended December 31, 2023 hasbeen approved by the Board of Directors during its meeting on February 29, 2024.
Unit: NT$
Compensation of Employees andApproved in the Board of
Estimated Amount
Directors for 2023
Directors Meeting
Employee Compensation – in Cash
24,962,283
25,696,351
Directors’ Compensation – in Cash
2,300,000
Note 1: The difference between the actual amounts approved by board of directors and theestimated amount will be taken as a change in accounting estimate and adjusted in profit
or loss for 2024.
Note 2: The Company did not distribute the compensation of employees and directors in stocks.

4. The actual distribution of employee and director compensation for the previous fiscal year(with an indication of the number of shares, monetary amount, and stock price, of theshares distributed), and, if there is any discrepancy between the actual distribution and therecognized employee and director compensation, additionally the discrepancy, cause, andhow it is treated:-85-

Unit: NT$
Approved in the Board ofCompensation of Employees andDirectors Meeting
Estimated Amount
Directors for 2022
(Actual distribution Amount)
Employee Compensation – in Cash
30,987,026
31,729,233
Directors’ Compensation – in Cash
2,300,000
Note: The above-mentioned actual distribution of compensation of employees and directors wasin line with the resolution of the Board of Directors. The difference between the actual
distribution amounts and the estimated amount was taken as a change in accounting
estimate and adjusted in profit or loss for 2022.

4.1.9. Buy-back of Treasury StockNone.
4.2. Status of Corporate Bonds
None.
4.3. Status of Preferred SharesNone.
4.4. Stauts of Overseas Depositary Receipts
None.
4.5. Status of Employee Stock Option
None.

-86-

4.6. Status of New Restricted Employee Shares(1) Status of New Restricted Employee Shares
As of May 16, 2024

Type of restricted stock awards

First issuance of restricted stock awards in 2023

Effective date and total shares

September 8, 2023 and total shares: 3,000,000 shares

Date of issue

First issue date on May 9, 2024；The second issue date
has not set yet

Number of new shares fromrestricted stock awards

806,000 shares

Issue price

None

Shares issued through restricted
stock awards as a percentage ofcurrent outstanding shares

0.19%

Vesting conditions of restricted
stock awards

Employees who, after subscribing for restricted stocks,
are still employed as of each grant date and did not haveany violation against the Company’s employment
agreement, employees’ code of conduct, the depository
agreement, corporate governance best practice principles,
ethical corporate management best practice principles,
work rules, non-competition and non-disclosure
undertaking or other contractual agreements with theCompany during the following period as recognized by
the Company, shall be vested 100% if having been
employed for two years since the grant date of each year,
while the vesting unit is one share.

Restricted rights of restricted stock

1. Except for succession, employees who subscribed for
restricted stocks and have not met vesting conditions
shall not sell, pledge, transfer, gift to others, create anencumbrance on or otherwise dispose of the same.

awards

2. Attending, submitting proposals, giving speeches, andexercising voting rights and rights of election at ashareholders’ meeting are conducted in accordance withthe trust and depository agreement. After an employee
meets vesting conditions, stock dividends and cash
dividends will be transferred from the trust account to theemployee’s personal account at the TDCC pursuant to thetrust and depository agreement (cash dividends are to betransferred to the employee’s personal bank account).
The unvested stocks of an employee who does not meetvesting conditions will be taken back for free and cancel
registration; the stock dividends or cash dividends
accrued therefrom, however, are not required to berefunded or repaid by the employee.
-87-

3. Except for the trust requirement in the preceding
paragraph, employees who subscribed for restricted
stocks pursuant to the Rules and have not met vesting
conditions shall have the same rights in, among others,
receiving stock dividends, cash dividends and additional
paid-in capital and subscribing for new shares upon
capital increase by cash as the Company’s outstanding
common stocks.
Custody of restricted stock awards

Restricted stock awards that are issued will be placed in atrust until vesting conditions are met.

Handling restricted stock award
allocated or subscribed to by
Restricted stocks that are taken back by the Company for
employees who fail to meet vesting free will be cancelled registration by the Company.
conditions
Number of restricted shares takenback or bought back0 shares

Number of shares with restrictions
lifted0 shares

Number of shares with restrictions
not yet lifted

806,000 shares

Number of shares with restrictions
not yet lifted as a percentage ofcurrent outstanding shares (%)

0.19%

Impact on shareholders equity

No material impact on shareholder equity-88-

(2) Names of managers who have received restricted share awards cumulatively and Top 10
employees in terms of the number of shares they acquired and the status of acquisition

Number of restricted sharesas a percentage of current
outstanding shares (Note 1)

Chen,
Po-Shou

Issuance amountVice
President

Issue priceFang,
Wen-Jeng

Number of unrestricted shares

Vice
President

Number of unrestricted sharesas a percentage of current
outstanding shares (Note 1)

Li,
Tseng-HoIssuance amountVice
President

Sharesobtainedthrough
restrictedstockawardsIssue price

Name

Restrictions not yet

Number of unrestricted shares

Manager

Title

Restrictions that wereliftedSharesobtainedthrough
restrictedstockawards asapercentage
of current
outstanding shares(Note 1)89,000

0.02%

0

0

0

0.00%

89,000

0

0

0.02%

191,000

0.04%

0

0

0

0.00%

191,000

0

0

0.04%

liftedCFO &Corporate
Governance

Chi,
Wen-Hui

Officer
GeneralTeri
Manager of
Chang
U.S. Branch

Employees

Factory
Director

Wu,
Kuan-De

Director

MichaelLee

Director

Sean Chen

Director

Fenny Lin

Director

Blue Lan

Director

Eric Wang

Director

Tedd Lin

Director

Shinji Hsu

Director
Cloud Hu
Note 1：It is calculated based on the change registration of 429,061,675 shares before the capitalincrease approved by the Ministry of Economic Affairs on October 4, 2021. The base-89-

date for capital increase is May 9, 2024, and the registration change is pending approvalby the Ministry of Economic Affairs.
4.7. Status of New Shares Issuance in Connection with Mergers or Acquisitions
None.
4.8. Implementation of the Capital Allocation Plans
Any uncompleted public issue or private placement of securities, or issues and placements thatwere completed but have not yet fully yielded the planned benefits: None.

-90-

5. Operational Highlights
5.1. Business Activities
5.1.1. Business Scope
1. Main areas of business operations
The main areas of business operations of the Company registered on the registration
alternation form issued by the Ministry of Economic Affairs are as follows:(1) Computers and Peripheral Equipment Manufacturing.
(2) Data Storage Media Manufacturing and Duplicating.
(3) Wholesale of Computers and Clerical Machinery Equipment.
(4) Wholesale of Computer Software.
(5) Wholesale of Electronic Materials.
(6) International Trade.
(7) Information Software Services.
(8) Electronics Components Manufacturing.
(9) Restrained Telecom Radio Frequency Equipment and Materials Import.
(10) Restrained Telecom Radio Frequency Equipment and Materials Manufacturing.
(11) All business items that are not prohibited or restricted by law, except those that are
subject to special approval.
2. Revenue distribution in the Most Recent Two Fiscal Years

Item

Unit: NT$ thousands
2022
Amount%2023
Amount%

FLASH+DRAM products

9,005,185

85.79

10,212,330

84.24

Others1,490,987

14.21

1,910,020

15.76

Total

10,496,172

100.0012,122,350

100.00(1) Main Products
A. DRAM Modules
UDIMM, SODIMM, ECC UDIMM, ECC SODIMM, RDIMM, and the application
scope includes memory modules for desktop/notebook computers, memory
modules for servers/workstations, memory modules for routers, and memory
modules for commercial and industrial applications, etc.
B. Flash Products
SSD with the interface of PATA/SATA/PCIe, form factor including 2.5", M.2,
mSATA, mSATA mini, half-slim, and external SSD. Type of memory cards
includes CF Card, CFast Card, SD Card and microSD Card, flash memory modules
with the interface of PATA/SATA/USB for special industrial application platform,
and portable disks complying with the standards of USB 2.0, USB3.0 and USB3.1
specifications.
C. Multimedia Products
Dashcam, body camera, and external DVD writers, etc.
D. Hard Disk Products
Various types of portable hard disk storage devices, and NAS cloud hard disks, etc.
E. Card Readers and Accessories
Various types of card readers, hubs and adapter cards, etc.
-91-

(2) New products development
A. DRAM Modules
DRAM modules of higher frequency, DRAM modules of higher capacity, DRAM
modules for gaming sports, wide temperature DRAM modules for industrial
purposes, and memory modules for servers / workstations / desktop computers /notebook, etc.
B. Flash Products
i. SSD: Capacity expansion, higher transmission speed, various form factors, highspeed portable SSD, high-endurance SSD for embedded products, wide
temperature SSD, SSD with power loss protection, and SSD with AES function.
ii. Memory cards: Memory cards for surveillance cameras, high speed memory
cards, memory cards with high Read/Write numbers, wide temperature memory
cards for embedded products.
iii. USB portable disks: Type-C series of portable disks, flash memory portabledisks built-in with multiple functions, flash memory portable disks with highspeed, flash memory portable disks with ultra-high capacity, and flash portabledisks equipped with encryption specification, etc.
C. Multimedia Products
Motorcycle Dashcams, various body cameras, personal portable recording devices
and accessories and NAS cloud storage products, etc.
D. Hard Disk Products
2.5,” various types of high capacity SSD (Solid State Disk), various 2.5”/3.5” large
capacity portable hard disks of stylish appearance and different functions, Network
Attached Storages (NAS) and external DVD writers, etc.
E. Card Readers and Accessories
Type-C interface related peripheral products, such as Hub, card reader, andDocking Station, etc. Card readers equipped with stylish appearance and support
the latest memory card specification, and card readers equipped with encryptionfunction. Card readers which are applicable to OTG portable disks, etc.
5.1.2. Industry Overview
1. The Current Status and Development of the Industry(1) DRAM Memory Industry Overview
Still widely used in industrial applications, and the demand for commercial
applications continues to increase. With the broad applications of Internet of Things(IoT) and the increasing need of industrial computers, cloud computers and servers, inconjunction with increase of the applications in the fields of the edge computing,media streaming and auto electronics, etc. The adoption of AI services in various
terminal applications has also led to an increase in the capacity of memory modules.
The market demand is also shifting from DDR4 to DR5. It is expected to be widelyused this year. Transcend will continue to develop modules of higher frequency andlarger capacity, and work in the industrial market.
(2) Flash Memory Industry Overview
Memory cards are small in size and have a variety of applications. In addition to smart
phones, digital cameras and gaming devices used by consumers, the demand of
surveillance cameras, network cameras and cloud cameras for commercial use
continues to grow such that memory cards are maintained with a certain sales volume;
however, the demand for USB portable disks, except for developing countries, has-92-slowed down due to the development of cloud storage.
SSDs have greater speed than traditional hard disks, and they are also equipped withthe advantages of compact, lightweight, energy saving and shock resistant, etc. In
terms of price, consumer acceptance has increased significantly. Furthermore, theintroduction of USB Type-C as the benchmark device in the market last year further
increased the market acceptance of portable SSDs and enabled the rapid growth of thisproduct line. Diverse machine requirements include different form factors andcustomization demands will also drive the demand for SSDs.
Under the rapid development and the transformation of manufacturing process of TLC
and 3D Nand in recent years, the production costs of suppliers have decreased, which
is beneficial to the transformation of need and the continuous growth of the demandfor Nand flash. Various AI products have been introduced one after another, which has
greatly increased the demand for data processing and drove the demand for Flash to
grow significantly. Accordingly, for flash products, Transcend will still focus on thedevelopment of fields of SSD and industrial applications as the main targets.
2. The Links Between Upstream, Midstream and Downstream of the Industry Supply Chain
Upstream

Middle Stream

Dynamic Random Access
Memory (DRAM)
Manufacturer

Downstream
SystemIntegrator

Static Random Access
Memory (SRAM)
Manufacturer
Flash Memory (FLASH)
Manufacturer

End User
DRAM Module/
Flash Memory
Manufacturer

PCB
Manufacturer

ChipsetManufacturer

Retailer

Connecter
Manufacturer

Electronic Component(Resistor, Capacitor, Plate,Lens, Display, & Power
Supply, etc) Supplier

Distributor

3. Development Trends and Competition status of Products
The popularity of 5G infrastructure has driven the rapid development of powerful Internet
technologies, such as AI and IoT platform. Such applications bring about massive-93-

amounts of data and the market demand for real-time computing and powerful storage,
which will drive the sales of DRAM and Flash. In the past few years, upstream suppliers
have experienced significant losses due to declining terminal demand caused by the
pandemic, which led to a continuous decline in chip prices. Since the second half of lastyear, the market has been gradually rebounding from the bottom, with overall market
prices showing significant recovery. This has put the inventory management and cost
control capabilities of downstream manufacturers to the test.
In general, the consumer market has completely shaken off the stagnation of the past few
years and started to recover. With the expectation of price increase, the demand isgradually emerging. Industrial applications are equipped with the characteristics of higer
quality, stable and long-term focus on research and development, capability for highcustomization and flexibility in operation as well as stable supply, etc., the entry barrier is
high.
Transcend has deep-rooted in the management of the industrial application market andcontinue to invest in research and development. Under the ever-changing market
environment, the Company has been able to achieve continuous growth. The Company has
not only been ranked 62nd by the U.S. Bloomberg Businessweek among Top 100
Technology Company Worldwide but also been ranked by Ministry of Economic Affairs as
Top 25 International Brand in Taiwan for the 17th consecutive year, indicating that undersuch increasingly severe international market, the Company has been able to demonstrate
its stable brand development and management strength.
The competitive advantages of the Company are well demonstrated in the following four
aspects:(1) Supply and Logistics
A. Rigorous supply chain management
B. Global timely logistics: virtual warehouse
C. Excellent inventory management(2) Innovation and Production
A. Professional internal research, development and design teams
B. Own factory manufacturing and rigorous quality control(3) Product and Inventory
A. Diverse product lines offering a wide range of products
B. Professional pre-sale service
C. Complete after-sale service
D. Global inventory real-time management(4) Comprehensive Backend Support
A. Rigorous financial and accounting management
B. Brand reputation and global marketing support
C. Product return and exchange management and repair technical service
As a leading manufacturing well-known for its professional storage media, all employeesof the Company continue to pursuit greater achievements. To development of channel
service, we also establish a broader vision: with our technology advantages in the productsof memory cards, flash memory products, storage equipment products, multimedia
products and industrial products, along with the global logistics and marketing network
providing quality and professional pre-sale and after-sale services, we have been able tosuccessfully establish a sound brand image and has become the leading manufacturer in
global consumer electronics and embedded products.
-94-5.1.3. Technologies, Research and Development Overview
1. A Listing of Research and Development Expenditures as well as Technologies and/or
Products Successfully Developed in 2022 and as of the date of this Annual Report
Unit: NT$ thousands
Year R&D Expenses

2023

132,973

R&D Achievements[Portable SSD] The ESD300 is Transcend's smallest portable SSD thatdelivers a lightning-fast transfer rate of 10 Gbps and a capacious storage
capacity of up to 2TB, allowing you to transfer vast amounts of files in theblink of an eye. Compatible with all USB Type-C devices, the ESD300 is aconvenient and efficient external storage option that you won't want to missout on.
[Portable SSD] The ESD310 is Transcend's smallest portable SSD thatdelivers a lightning-fast transfer rate of 10 Gbps and a capacious storage
capacity of up to 2TB, allowing you to transfer vast amounts of files in theblink of an eye. With the inclusion of both USB Type-A and Type-C
connectors in a single drive, the ESD310 is a convenient and efficient
external storage option that you won't want to miss out on.
[Portable SSD] Transcend's ESD265C is a portable solid-state drivefeaturing a sturdy metallic case in iron gray, unparalleled USB 10Gbps
transfer rates, and a USB Type-C port. But most importantly the ESD265C
only weighs a mere 31 grams, making it super portable and convenient.
[Portable SSD] Transcend's ESD360C portable SSD boasts a blazing-fast
USB 20Gbps transfer rate and impressive storage capacity. Its credit-card
size means you can easily put it in your pocket or wallet. The ESD360C
has numerous useful features such as advanced data security capabilities
and one-touch auto-backup function, allowing you to safely store client
data, meeting records, business contracts, or even your valuable media
files.
[Portable SSD] Transcend's ESD410C portable SSD features blistering
speeds and impressive durability. With a transfer rate up to 20Gbps, dealing
with large files is virtually worry-free. Compliant with the US
military-grade drop test, the compact ESD410C can endure a 3-meter drop
and meets IPX5 standard, securing data inside with a high-level ofprotection, suitable for outdoor photographers, travelers, and content
creators.
[Portable SSD] The ESD320A is Transcend's miniature portable SSD thatdelivers a lightning-fast transfer rate of 10 Gbps and a generous storage
capacity of up to 2TB, allowing you to transfer vast amounts of files in theblink of an eye. With a retractable USB Type-A connector, the ESD320A is
a convenient and efficient external storage option that you won't want tomiss out on.
[Portable SSD] The ESD330C is Transcend's miniature portable SSD thatdelivers a lightning-fast transfer rate of 10 Gbps and a generous storage
capacity of up to 2TB, allowing you to transfer vast amounts of files in theblink of an eye. With a retractable USB Type-C connector, the ESD330C is
a convenient and efficient external storage option that you won't want tomiss out on.
[SSD] MSA470P is a Power Loss Protection (PLP) SSD. During
unexpected power outages, the built-in tantalum capacitor provides power
to the controller and DRAM cache, ensuring data integrity and storage
reliability.
[SSD] Upgrade your computer performance to a whole new level with
PCIe SSD 115S. Boasting the slick PCIe Gen 3x4 interface and slim M.2-95-

Year R&D Expenses

R&D Achievements
2280 size, the PCIe SSD 115S is the perfect speedy and sizable companion
for your desktops, laptops, and ultrabooks.
[SSD] Transcend's PCIe Gen 4x4 M.2 SSD MTE410S has a compact form
factor and high-quality 3D NAND flash, making it easy to upgrade
Ultrabooks, lightweight notebooks, tablets, and handheld gaming PCs. It is
designed with multiple firmware optimization technologies, such as SLC
caching and the LDPC ECC mechanism, which help to improve bothstorage reliability and extend the drive lifespan. The MTE410S is afantastic choice for boosting the performance of modern work platforms.
[SSD] Transcend's U.2 SSD UTE210T is built by the 112-layer 3D NAND
flash, an 8-channel controller, and a PCIe Gen 4x4 interface, setting new
benchmarks in data transfer efficiency. Its built-in DRAM cache enables
fast random read and write speeds, while the anti-sulfur resistor guarantees
high storage reliability in harsh conditions. The UTE210T also features
superior heat dissipation, enabling high-speed operations without the riskof overheating.
[SSD] Transcend's M.2 SSD MTE712P is a Power Loss Protection (PLP)
SSD. During unexpected power outages, the built-in tantalum capacitor
provides power to the controller and DRAM cache, ensuring data integrity
and storage reliability. The MTE712P also complies with the TCG (Trusted
Computing Group) Opal 2.0 standards. Data is protected using the
hardware-based AES 256-bit encryption and LBA (Logical Block Address)
sector-specific permissions.
[SSD] Transcend's MTE460T PCIe M.2 SSD features a PCIe Gen 3x2
interface and 112-layer 3D NAND flash, delivering breakthrough densitythat greatly improves storage efficiency. In addition, the 30µ" gold finger
PCB, Corner Bond technology, and anti-sulfur resistors guarantee its
reliability in harsh conditions. Transcend's MTE460T is also 100%chamber tested in-house for extended operating temperatures of -20℃~75℃. Wide-temp capability (-40℃~85℃) can also be provided upon request,
optimizing stability in extreme environments.
[SSD] Transcend's MTE760T is a self-encrypting drive (SED) thatcomplies with the TCG Opal 2.0 standards. Data is protected using the
hardware-based AES 256-bit encryption and LBA (Logical Block
Address)sector-specific permissions.
[SSD] Transcend's MTE480T is a self-encrypting drive (SED) thatcomplies with the TCG Opal 2.0 standards. Data is protected using the
hardware-based AES 256-bit encryption and LBA (Logical Block
Address)sector-specific permissions.
[SSD] Transcend's M.2 SSD MTS970P is a Power Loss Protection (PLP)
SSD. During unexpected power outages, the built-in tantalum capacitor
provides power to the controller and DRAM cache, ensuring data integrity
and storage reliability.
[SSD] Introducing Transcend's SSD910T 2.5" Enterprise SSD, designed
for large data centers and high-performance servers. With high-quality 3D
NAND flash, a SATA III 6Gb/s interface, and a DRAM cache, it delivers
rapid transfer speeds for handling massive data loads. Experience highQuality of Service (QoS), ultra-low latency, and optimal endurance,
resulting in incredibly fast loading times. The integrated Power Loss
Protection (PLP) ensures data integrity, even during power fluctuations.
Upgrade to Transcend's SSD910T for unmatched performance in web
servers and media streaming applications.
-96-Year R&D Expenses

R&D Achievements[SSD] Transcend's SSD470N features a SATA III 6Gb/s interface andstate-of-the-art 3D NAND technology, which allows 112 layers of 3D
NAND flash chips to be vertically stacked. Compared to 3D NAND at 96
layers, this density breakthrough greatly improves storage efficiency.
Transcend's SSD470N comes with a powerful controller and a DRAM
cache, ensuring data can be written to the flash over extended periods
without compromising performance. The SSD470N is fully tested in-houseto guarantee reliability in mission-critical applications, boasting an
endurance rating of 3K Program/Erase cycles and an extended operating
temperature ranging from -20℃~75℃.
[Enclosure] Transcend's CM10G is an enclosure designed specifically for
M.2 PCIe or SATA SSDs. By following the tool-free installation guide, you
can turn an M.2 PCIe/SATA SSD into a portable USB 10Gbps external
drive to harness the full potential of your system.
[Memory Module] DDR5 5600 U-DIMM/ SO-DIMM/ ECC-DRMM/
R-DIMM memory modules are suitable to industrial desktop computersand notebook computers.
[Body Camera] Transcend's DrivePro 20B is a simple and compact POV
camera designed for outdoor and mobile recording. Embedded with a
STARVIS™ image sensor, this POV camera offers Full HD 1080P
recording at 60fps for crystal clear sharpness and night images even in low
light. IP68 rated, it is designed to withstand various weather conditions,and is resistant to water, dust, heat, and shocks, suitable for outdoor
recording. The built-in Wi-Fi connectivity allows live streaming of footage
on mobile devices via the free DrivePro App. Its small and portable size
makes it easy to carry around, ideal for delivery men, law enforcement
personnel, scooter riders, and cyclists.

-97-

[SSD] Transcend's MTS570P is a Power Loss Protection (PLP) SSD.
During unexpected power outages, the built-in tantalum capacitors provide
power to the controller and DRAM cache, ensuring data integrity andstorage reliability.
[Memory Card] Transcend's CFexpress 860 Type B memory card features
blazing-fast speeds, sustained write performance, and high storage capacity
for professional filmmakers and video editors. Countless files can be stored
and smooth 8K RAW video can be shot without compromising video
quality—ultimately making it an ideal choice for capturing outdoor
recreation, wildlife, action shots, and many other kinds of incredible
2024
content.
39,053
Q1[Memory Card] CFexpress 900 Type B memory card boasts outstanding
read and write speeds, enabling uninterrupted high-quality video recording
and high-speed continuous shooting. Photographers can focus on shooting
without any burden, capturing rich details in the scenes.
[Memory Card] To meet the high data transfer demands of Ultra HighDefinition filmmaking, Transcend's CFast 610 Memory Cards feature
incredible read and write speeds. CFast 610 memory cards are designed tosupport high-end cameras and recorders from leading manufacturers,
making them well-suited for professional cinematographers shooting
high-resolution.
The above information for the year 2023 has been summarized for the period from January 1 to
December 31, 2023. The information for year 2024 has been summarized for the period fromJanuary 1 to March 31, 2024.

-98-

2. Ongoing R&D Projects
Product
Line

Ongoing Projects

DRAM
Products

DRAM modules ofhigher frequency,
DRAM modules ofhigher capacity,
DRAM modules forgaming sports, andwide temperature
DRAM modules forembedded products,
etc.

Flash
Products

Capacity expansion,
higher transmission
speed, various form
factors, high speed
USB portable disks,
SSD with high R/W
numbers, wide
temperature SSD forembedded products,
SSD for special
purposes such as
power failure protector
and encryptionfunction.

Strategy
Products

Storage devices withvarious new
specifications/interfaces, dual lens Dash Cam,body camera
equipment andaccessories, and otherperipheral application
products.

Current
Progress

Expected Mass
Production Time

Key Success Factors

Developmentin progressSome products have (1) Specialized
entered the mass
specification for
production stage,different fields
and others under(2) Increase of data
development
transmission speed
progress are(3) Increase of productexpected to enter
reliability andthe mass production
compatibility, increase
stage starting fromof operating2024.
temperature

Developmentin progress(1) Increase of accessSome products havecapacity and R/Wentered the mass
speed
production stage,(2) Increase of dataand others under
security anddevelopment
encryption level
progress are(3) Compact and light
expected to enterwith great portability
the mass production(4) Implementation ofstage starting fromnew memory2024.
manufacturing process

Developmentin progress(1) Product specifications
and functions withunique characteristics
in comparison to otherproducts in the market
Some products have(2) Proper control ofentered the mass
product mass
production stage,
production and market
and others underlaunch scheduledevelopment(3) Completeness ofprogress areaccessories
expected to enter(4) Exclusive functions
the mass production
for regional market
stage starting fromand special groups
2024.
(5) Increase of data
security andencryption level(6) Simplify productcomplexity

The R&D budget for the ongoing projects accounts for approximately 80% of the total R&D budget in
2024. And the R&D budget is estimated to account for 1.0%–1.5% of the whole-year revenue in 2024.

-99-5.1.4. Long-term and Short-term Business Development Plans
1. Short-term Business Development Plan
(1)Embedded Business Management
The Company has focused on embedded market and invested a great amount of
resources in the development of embedded products for a long period of time, and theCompany has always adopted the business philosophy of excellent quality andcustomer-oriented approach; consequently, the Company has been able to successfully
gain customers’ trust and support and became the leading brand in the embedded field.
Transcend further actively invests in the embedded products business and copes withthe development trend of industrial computer and automation, etc., thereby expanding
the business performance in the embedded field.
(2)Adjustment of R&D Department
The Company is equipped with a complete R&D team, and in the future, the Company
will continue to actively recruit outstanding R&D talents in order to continuously
develop and launch comprehensive and multi-function product series based on theattitude of pursuit for excellence and perfection, in order to provide quality products to
consumers and to establish brand loyalty, to satisfy the market trend and to meet
consumer demands, as well as to effectively reduce cost and improve production
efficiency at the same time.
2. Long-term Business Development Plan
(1) Brand Management and Channel Planning
A. Global Comprehensive Planning
The Company establishes its headquarters in Taipei, and subsidiaries or service
centers are also established in Germany, the Netherlands, United Kingdom, UnitedStates, Japan, Hong Kong, Beijing, Shanghai, Shenzhen and South Korea. The
Company’s products are sold in more than 130 countries, and more than 80% of theCompany’s customers are from markets outside Taiwan. To continue to enhance theplanning and establishment of sales channel, collaborate with online and offline
global channel distributors/retailers closely, and deep-rooted in 3 channel systems(traditional IT channel, camera channel and Telecommunication Channel), theCompany will continue to establish sales points at all major areas worldwide,
thereby raising the brand image and visibility of the Company.
B. Investment in Marketing Activities
The Company promotes the market with the own brand of “Transcend.” ,and has
always been active in the development of marketing activities. Throughcollaboration with local channel distributors/retailers in different regions, theCompany provides the marketing budget and organizes various marketing activities,
such as online and offline advertisement, new product launch, product media testing,
distributor training and contest and show, etc., while matching with the local
customs and culture, thereby achieving local market development and expand thebrand of Transcend. Consequently, maximum marketing effect through limited
resources can be achieved.
C. Deep-rooted in Local Market
The Company recruits outstanding talents at overseas subsidiaries and implements
the strategy of recruiting local sales specialists and management personnel in orderto develop the market in depth and to enhance management performance through thelocal talent’s language advantages and cultural understanding. The Company also
engage in close collaboration with local channel distributors/retailers to develop
marketing channels.
-100-(2) Continue to Optimize Operational System
A. Completeness and Diversity of Product Lines
The greatest advantage of the Company lies in the diversity of products capable ofsatisfying the one-stop shopping demand of customers. The product lines of theCompany include standard and special memories, various types of flash memory
cards, portable disks, SSDs, portable hard disks, Dashcam, body cameras, andpersonal cloud storage devices, with the number of product types reaching more than
2,000.
B. Product Customization Service and Comprehensive Embedded Solution
The Company provides complete product customization service to satisfy demandsof different customer groups. Plentiful embedded product lines demonstrating
diverse solutions for embedded purposes. In addition, the Company upholds theprinciple of excellence and perfection to continuously optimize the quality control
system. The Company will continue to collaborate with outsourcing wafer
packaging vendors equipped with ISO/IATF16949 certification, in order to ensure
the best protection for customers and to push the Company’s products to the global
market.
For diverse and comprehensive product functions, the Company aims to satisfy thepurchase characteristics of different consumer groups through various sales channels inorder to further expand the depth and breadth of the sales level, thereby achieving thebenefit of economics of scale and increasing the global market share.
(3) Complete Pre-Sale and After-Sale service
Since customers emphasize the after-sale service and product quality, rather than mere
price difference, brand value becomes apparent when products are of excellent quality.
The function and performance differences among memory products are reducing;
therefore, the Company aims to demonstrate the strength and to differentiate from thecompetitors through kind product consultation and complete after-sale service while
continuously improving the product quality, thereby establishing the brand recognition
and trust of Transcend among distributors and users.
In the industrial application market, which differs from traditional retail markets, there
is a need for long-term stable supply. Amidst the rapid evolution of DRAM/Flashproduction processes, Transcend provides a professional pre-sales service team to assist
customers in selecting suitable products to meet the requirements of quality, productperformance, and long-term stable supply.
5.2. Markets and Overview of Production and Sales
5.2.1. Market Analysis
1. Main Products and Sales Region
The Company has diverse and comprehensive products. The product lines of the Company
cover channel products and embedded products, including special and standard memories,
various types of small flash memory cards, portable disks, portable hard disks, Dashcam,
body camera and personal cloud storage devices, etc. Under the complete global planning,
the Company has 12 business locations worldwide and Taiwan as the main production base,and the region of sales further includes all global markets. Through comprehensive sales
strategy and excellent quality, the brand of Transcend is promoted worldwide.

-101-

Sales region in the last two years：
Unit: NT$ thousands
Area
TaiwanAsia
Americas
EuropeOthers
Total

2023
Amount2,282,102
3,631,219
1,408,222
2,544,180
630,449
10,496,172

2022
%
21.74
34.59
13.42
24.24
6.01
100.00

Amount2,803,950
3,805,341
2,038,051
2,741,912
733,096
12,122,350

%
23.13
31.39
16.81
22.62
6.05
100.002. Market Share
Regarding the DRAM memory industry and the flash memory industry, due to the fine
product categories (SDRAM, DDR, DDR2, DDR3, DDR4, DDR5, flash memory card,
portable disk, Dashcam, body camera, personal cloud storage device, and SSD, etc.), anddue to the difference between the contract market and spot market, the market share cannot
be estimated precisely. According to the results of various market survey institutions, theglobal market share of Transcend continues to increase. Looking into the future, theCompany will continue to increase the market share and achieve the goal of reasonableprofit through continuous effort.
3. Future Market Demand/Supply Conditions and Growth Potential(1) DRAM Module
DRAM module carrying rate continues to increase, the shipping ratio for themainstream 8GB/16GB modules continue to rise. As the quantity of cloud computers,
servers and data centers increases, the shipping volume of 16GB/32GB module isexpected to grow rapidly. With the popularization of the new DDR5, a new wave of
demand will drive performance growth.
(2) Flash Products
As the application of SSD becomes more popular, including broad applications in
portable hard disks and built-in storage devices of handheld video recorders, theconsumption volume of SSD will continue to increase. Regarding the field ofembedded products, applications related to AI and data center in 2023 have grown, andthe demand for workstation and server have increased. All of these applications requiremassive data storage; therefore, the data storage demand will continue to increase,which will further drive the shipping volume of SSD.
For memory cards, the applications will continue to be widely used as storage medium
for channel products, such as 3C consumer electronics of smart phones, digital video
recorders, tablet computers, Notebook, Ultrabook, multimedia players, gaming devices,surveillance cameras, home care cameras and automobile navigators, etc. In addition,with the continuous shipping of new applications, it is expected that there will still bea stable demand for memory cards.
4. The Company’s Competitive Niche(1) Internationalization of sales network, distribution of market channels
Since the establishment, the Company has been committed to the own brandmanagement and channel planning and continuously exerts efforts in differentiating
the Company from traditional domestic professional OEM manufacturer. In terms of-102-

the sales and marketing strategies, the Company aims to establish the brand image ofhigh quality for the brand of “Transcend,” and in the professional storage field, theCompany targets the “End Customers,” supply distributors, system operators and retailmarket, thereby reducing the channel gap and allowing both the Company andcustomers to obtain greater profits. In addition, with the continuous improvement of
the Company’s position in the industry and through providing comprehensive productlines and complete after-sale service system, the Company is able to increase customer
sales continuously, including strategic collaboration with international front line
channel operators. Presently, the Company has over 5,000 loyal customers worldwide
and has established a solid and stable sales network with cooperation of subsidiaries invarious countries.
(2) Establish brand image, deep-rooted in local market“Transcend” is one of the few successful domestic brands that have received highpraise internationally. For both domestic and international memory product markets,
Transcend is the brand representing stability and high quality, and such brand image
has been deep-rooted in the mind of consumers. Through advertising on social media,
internet, magazines, newspapers, and large outdoor signage, as well as new release,sports event sponsorship, and public welfare activity engagement, Transcend's brandimage can be nurtured, which is beneficial to the improvement of the brand awareness;nevertheless, the Company still values excellent product and quality service as themost essential factors to achieve high brand value. Furthermore, through the Transcend
online shopping website, the Company is able to obtain the comments and feedback
from the end consumers directly, thereby using such comments and feedback as thereference for product and service improvement.
(3) Utilize purchase advantage effectively, expand product competitiveness
The Company has been established for more than thirty years, and the type andquantity of purchase items are enormous and continue to increase. Through excellent
partnership with upstream vendors of DRAM and NAND Flash established for a long
period of time over the past years, the Company is able to achieve the best cost
structure, thereby increasing the product price competitiveness. In addition, throughthe in-depth collaboration with the upstream vendors, the Company is able tointroduce new products in the market faster than competitors, in order to seize thebusiness opportunities in the market effectively and to become the leading brand in themarket.
(4) Continue to develop strategy products, strengthen brand value
The Company started the business based on the niche memory modules, following
which the Company then entered the standard memory module and flash memory
market. As the Company’s planning in the global traditional sales channel becomes
more complete, the Company actively engages in the development of strategic
products of Dash Cam, body camera, external portable hard disks, card readers,personal cloud storage device and SSDs, etc., such that through diverse product series
along with the addition of other sales channels, the Company is able to satisfy thepurchase characteristics of different consumer groups and to further expand the depth
and breadth of sales level.
5. Favorable and Unfavorable Factors for Future Development and Response to Such Factors
Favorable Factors(1) Complete product lines, diverse product types
With more than thirty years of development, the Company invests great research and-103-

development budget and human resource for the establishment of complete productlines, and the main products include various memories, digital memory cards, USB
portable disks, external hard disks, card readers, personal cloud storage devices,
Dashcam, body camera and SSDs, etc. There are more than 1000 types of products
available for all kinds of electronic product applications, thereby satisfying thecustomers’ demand of “one-stop shopping.”
With more than thirty years of experience and qualified technical personnel, the R&D
team of the Company also synchronizes with the market trend, and will continue todevelop and launch innovative products satisfying the market demands.
(2) Establish brand image, deep-rooted in local market
Over the past years, the Company has invested important resources in both productappearance design and product packaging continuously, in order to design and provide
products meeting the global trend. In addition, the Company has received greatrecognition with numerous international industrial design awards, and also provides
multi-language instruction manuals and product catalogues for various countries inorder to be deep-rooted in the local market. Accordingly, the Company has
successfully obtained great support from consumers on the Company’s products.
(3) Internationalization of sales network, distribution of market channels
The Company is devoted to the own brand management and marketing, and customers
around the globe are considered to be the market for the Company. Through theestablishment of international market channels and after extensive years of market
development and deep-rooted in new emerging markets and countries, the Company
has accumulated more than 5,000 loyal customers worldwide, and through thecooperation of branch offices in various countries, the Company has established asolid and stable sales network. The overseas customers of the Company accounts fornearly 80%, demonstrating the solid international sales network of the Company.
(4) Equipped with comprehensive global logistics management capability
The Company has established subsidiaries or sales offices at Germany, the Netherlands,
the United Kingdom, the United States, Japan, Hong Kong, Beijing, Shanghai,
Shenzhen and South Korea. Due to the great number of product types, customers arewidely distributed worldwide. To effectively control inventory and to manage the sales
targets, the Company and all overseas sales offices are established with computer
information system with complete functions. Accordingly, the headquarters is able tosufficiently and promptly understand the order receipt and inventory status of all
overseas sales offices through network, in order to reduce the cost associated withoverstock and to successful delivery, thereby improving product image andcompetitiveness.
(5) Increase product value with outstanding industrial design
Transcend has already realized the importance of industrial design, and the Company
is staffed with a professional industrial design team in pursuit of outstanding industrial
design in order to improve product value. In recent years, the Company has received
numerous important industrial grant awards of Germany iF design award, reddot
design award, Japan Good Design award, etc., and also received the honor of “Taiwan
Excellence Award” for the nineteen years, a remarkable record achieved by theCompany.
(6) Professional and dedicated R&D team
The Company has established a professional and dedicated R&D team for eachproduct, whether standard products in large quantities or highly customized products,-104-the Company’s own R&D team is able to promptly satisfy all aspects of demands ofcustomers in terms of the product compatibility, reliability and yield rate, etc., thereby
establishing an irreplaceable team and strength that cannot be overcome or surpassedby operators in the same industry.
Unfavorable Factors and Actions(1) Violent price fluctuation of critical raw materials of DRAM chips, affecting
operational stability
The prices of the critical raw materials of DRAM, NAND Flash chips of the Company
fluctuate violently, and if a downstream operator cannot effectively manage the chip
supply sources and control the inventory, then under the situation where the demandfor chips is higher than supply and the market price surges, such operator would not beable to handle customers’ strong demand and to provide sufficient products.
Furthermore, when the chips are under the condition of supply over demand and themarket price plunges, then the production cost and overstock cost would become
overly high due to the high purchase price of the original raw materials. Consequently,
market price fluctuation often results in the control difficulty of the sales price andcost, such that the stability of the operation is affected in certain extend.
Action
The Company has constructed a complete information system, and the inventory
level can be reasonably controlled and enhanced through the assistance of such
system. Furthermore, the Company focuses on the operation and long-term
collaboration relationship with the suppliers and customers, and the Company also
appropriately controls risks and adjusts strategies according to the market condition
periodically, thereby ensuring reasonable price and maintaining a health inventory
level.
(2) Low entrance barrier for standard memory card products and flash memory card
products, leading to price war
Most of the operators in the same industry expand production capacity to seek highrevenue; however, the market demand is not as optimistic as expected. To fill up the
production capacity gap newly created, a lot of the operators are lowering their prices
for competition, or even selling products for minimum profit or no profit, leading to
the situation of chaotic market prices that is unfavorable to the product development
and promotion. Unless a company is able to manage niche products and channels, or isequipped with brand value, it would be difficult to achieve stable development.
Transcend is equipped with both of these characteristics and values them as thelong-term goal.
 Action
In addition to standard products, for DRAM and NAND Flash related products, theCompany also offers special products at a certain ratio. The Company also develops
numerous industrial control products and strategic products in order to increase thedifference from the competitors and to improve profitability while providing the
one-stop shop service to customers.
5.2.2. Main Usage and Manufacturing Processes of Main Products
1. Main Products and Their Main Usage(1) Digital memory card/USB portable disk products
For flash memory card/USB portable disk, the main application is to increase the data-105-

storage memory capacity of various digital equipment, such as multimedia mobile
phones, digital cameras, tablets, PC/NB, surveillance cameras, gaming devices andsmart phones.
(2) Solid State Drive (SSD)
The company's main products are SSDs. SSD is equipped with the characteristics thatare absent in traditional hard disks, and such characteristics include shock resistant,high Read/Write speed, quiet and low power consumption, etc. Presently, for bothnotebook computers and desktop computers, the ratio of SSD has increased
significantly, and the individual upgrades with SSD made by end users in theafter-market also indicate great popularity. As the price of SSD becomes widely
accepted by consumers, flash memories are expected to have the greatest popularity
and application in the future.
(3) Memory products
The memory modules are another main products, its function is to expand thecomputer data processing capacity and to increase the processing speed, and the main
applications include personal computer system, network system, industrial computers,
as well as equipment, such as desktop computers, notebook computers, laser printers,
servers, workstations, routers and fax machines.
(4) Dashcam
As the global automotive market continues to grow, consumers focus more on the
personal driving safety. Transcend continued to launch a variety of Dashcam and kept
develop in the Dashcam market.
(5) Body Camera
In addition to the automotive market, Transcend has launched Body Camera, which isthe best partner for military and police security. The Company continuously launched
new models and achieves further growth in the security and surveillance market.
(6) Storage equipment
To satisfy the demand for information and personnel mobility, portable hard disks areequipped with the characteristics of compact size, high capacity and portability. The
personal data portability and the design of confidentiality and security are increased inorder to provide a comprehensive portable data solution for professionals in various
sectors. As the industrial control application demand increases, Transcend launches
numerous storage products satisfying different industrial applications, such as SSD,
flash memory modules and industrial grade CF/SD memory cards.
(7) Accessories and card readers
As the popularity of digital camera, smartphones and multimedia devices increase, thedemand for transmitting and exchanging videos, music and various multimedia data
effectively and swiftly among personal computers and other portable devices are
increasing. Transcend launches various types of portable card readers and adapters,
providing direct and convenient access interfaces, such that they offer the best choices
to users having the preference of using high speed memory cards for transmission ofdigital data, music and photos. In addition, in view of the great popularity ofsmartphones and tablets nowadays, Transcend further launches high speed products
and OTG/Type-C flash drives products, allowing users to enjoy faster transmission
speed and achieving greater convenience in cross-platform data transmission, also
making the overall storage product series more complete.
-106-2. Main Products and Their Manufacturing Processes
Flow Chart of Manufacturing Processes
Sales

Finished goods

Department

Warehouse

N

N
ManufacturingY
Production Schedule

W/O

Material Preparation

SMT

Y

Outsourced Processing

In-plant Processing

Incoming Quality

SecondStage
Processing

N

Testing

Control (IQC)

Packaging

Final Quality Control(FQC)

Warehouse Receiving-107-

5.2.3. Supply Status of Major Raw Materials
Major Raw Materials

DRAM

Purchasing Strategy and Supply Situation
The Company maintains long-standing and positive cooperative
relationships with major suppliers in the industry, and has signed
memorandums of cooperation. Even in cases where resources areconcentrated on new processes by the original manufacturers, weare able to secure stable supply, ensuring seamless delivery to
downstream customers.

Nand FlashThe Company maintains excellent relationship with leading
operators in the industry. In addition to obtaining stable supply
source and cost advantages through purchase strategy, the Company
has established long-term technical collaboration relationship with
suppliers in order to maintain strong competitiveness for, NAND
FLASH related products of the Company.

Hard Drive

The demand in the hard drive market has increased due to the rise in
NAND Flash prices. However, suppliers have reduced production,
leading to limited output despite strong demand. Consequently,
prices have been adjusted upwards. Nevertheless, our company
maintains close cooperation with key suppliers, ensuring clear
advantages in terms of supply, quality, and cost.

Controller

The Company selects cooperating partners carefully, and all of thecooperating partners are well-known operators with excellent
company structure, thereby ensuring the product quality and costadvantages.

PCB

All of the cooperating partners of the Company are global top
hundred PCB suppliers, and the Company also places orders
according to the capacity and competitive advantage of suppliers,
such that the effects of quality and cost can be achieved at the sametime while maintaining stable product supply.

Optical Disk Device

The overall market for optical drive indicates slow decline. The
Company and suppliers are long-term partners, and adopts thestrategic collaboration method to ensure the quality, stable supply
and price competitiveness.

Mechanical Part

Most of the designs of mechanical parts are customized. The
Company is able to select stable long-term cooperating partners
through detailed cost structure analysis and comparison in order tomaintain stable quality and to continue to contact new suppliers forcost comparison, thereby ensuring price competitiveness.

-108-5.2.4. Company Names, Amount and Percentage of Major Suppliers and Customers which were commanding 10%-plus Share of annual ordervolume in the Last Two Years
1. Major Suppliers
Unit: NT$ thousands
2022
2023
2024(as of March 31, 2024) (Note 3)
Ratio toRatio toRatio toRelation
Relation
Relation
Item Company
Annual Net
Company
Annual Net
Company
Quarterly
AmountwithAmountwithAmountwith
NameSupplies
Name
Supplies
Name
Net Supplies
Transcend
Transcend
Transcend
(%)
(%)
(%)
1
A
1,772,896
29.13
None
A
2,664,300
30.88
None
A
902,456
38.47
None
2
B
1,404,055
23.07
None
B
2,581,645
29.93
None
C
431,804
18.41
None
3
C
643,84210.58
C
961,972
11.15
None
B
376,853
16.07
None
OthersOthers2,265,766
37.22
2,418,741
28.04
Others634,487
27.05
Net Total
Net Total
Net Total
6,086,559
100.008,626,658
100.002,345,600
100.00
Supplies
Supplies
Supplies
Note 1: Due to the restrictions of commercial confidentiality and non-disclosure of contracts, the names of suppliers are shown by codes.
Note 2: Changes of increase/decrease were due to the business needs.
Note 3: The financial statements of 2024 Q1 have already been reviewed by the CPAs.

2. Major Customers
The sales income of one customer from the company between 2023 and 2022 did not show 10% of the consolidated net operating
income.

-109-5.2.5. Production in the Last Two Years
Major Products
FLASH+DRAM
Products
Others
Total

2023
Quantity

Capacity

Unit: 1,000 pieces; NT$ thousands
2022
Quantity
Capacity
AmountCapacity

18,67015,8406,612,172

20,837

17,174

7,336,326

1,376
20,046

1,132
16,972

1,131,087
7,743,259

1,969
22,806

1,788
18,962

1,511,642
8,847,968

5.2.6. Sales in the Last Two Years
Unit: 1,000 pieces; NT$ thousands
2022
Local
Export
Qty
Amount
Qty
Amount2023
Major Products
Qty
FLASH+DRAM
Products
Others
Total

Local
Amount

Qty

ExportAmount5,312

2,492,310 13,147

6,512,875

4,762 2,515,514

14,634

7,696,816

158
5,470

311,639 1,127
2,803,949 14,274

1,179,348
7,692,223

190
288,436
4,952 2,803,950

1,383
16,017

1,621,584
9,318,400

5.3. The Number of Employees, Average Service Year, Average Age and Educational Level Distribution
Ratio in Last Two Years and up to the Publication Date of this Annual ReportYear
Number of
EmployeeDirectIndirect
Total

Average Age
Average Years of
Ph.D.
Masters
Bachelor’s
DegreeEducation
SeniorHigh
Below
Senior

2022

2023

618
584
1,202
39.4
10.1
0.0%
14.0%

609
568
1,177
40.2
10.8
0.0%
14.2%

As of
April 23, 2024
592
562
1,154
40.4
11.0
0.0%
14.2%

60.2%

59.9%

60.0%

22.4%

22.6%

22.6%

3.4%

3.3%

3.2%

-110-

5.4. Environmental Protection Expenditures
For all selected raw materials, auxiliary materials and packaging materials, internal professional
personnel has performed product compliance inspection in order to ensure that the products comply
with the international environmental protection laws and regulations.
The main manufacturing processes of the Company’s products include component mounting, board
cutting, assembly, testing, packaging and sales to the customer end. During the manufacturing
process, no waste gas or wastewater is discharged, and only industrial wastes are generated from theprocess. The industrial wastes are collected and classified according to their properties, andqualified supplier approved by the Environmental Protection Administration is entrusted to handle
the cleaning and disposal of the wastes. The qualification certificate of the supplier entrusted isreviewed rigorously, and testing and reporting are performed in accordance with the laws andregulations in order to ensure that the industrial wastes are properly handled.
1. Any losses and disposition suffered by the company in the most recent fiscal year and up to thisAnnual Report publication date due to environmental pollution incidents: One.
Arbitration
date
December11, 2023

Order
numberof therulingViolation oflaws andregulations

21-112- Article 40,
120205 Paragraph 3of the Air
Pollution
Control Act

Content of Violation

Diesel vehicles entered theMunicipal
Air
Quality
Maintenance Zone without
having obtained an expiry dateof “Superior” or higher

Adjudicating
Authority

Punishme
nt content

Taipei City

A fine of
NT$1,000is
imposed.

self-management badge of thesame grade.
2. Current and future countermeasures and possible expenditures: The Company has completed theregular inspection and passed the inspection by the end of November 2023. Inspections arescheduled to be conducted in November every year to avoid further fines for environmental
pollution in the future.
3. Material Environmental Protection Expenditures: None.
5.5. Labor Relations
5.5.1. Implementation of various employee welfare measures, continuing education, training, andretirement systems, and maintenance of the collective bargaining agreement and various employee
rights::1. Employee benefit plans:(1) Insurance: To provide greater living protection to employees, in addition to the enrollmentof labor and health insurances for employees according to the laws, the Company plans thegroup insurance for employees, and it covers term life insurance, accidental injury
insurance, hospitalization and medical insurance, and cancer health insurance, etc. For
employees traveling on business trips, additional business travel safety insurance is appliedin order to provide greater protection to employees.
(2) Entertainment activities: The Company has established the Employees’ Welfare Committee-111-

according to the laws, and the activities of year-end party, family day and sports contest,
etc., are organized annually in order to achieve physical and mental relaxation and toachieve coherence. Furthermore, the activity center is also installed with various fitness
and recreation facilities, such as, table football, table tennis, snooker, fitness room andother equipment for employees’ use during their free time. Employees are also encouraged
to participate in club activities and to establish friendship and communication through club
activities.
(3) Other benefits: Employees’ health is considered a fundamental aspect for the Company’s
development. In addition to providing annual health examination to employees, theCompany also sets up basketball courts,fitness room, ping pong table, billiards table andfoosball table to provide diverse sports and recreation facilities. Employees are offeredwith the employee discount prices for the purchase of the Company’s products for own use.
The employee cafeteria and café also offer meals at discount prices to employees. The
Company irregularly provides gifts and issues marriage and maternity cash gift and funeral
consolation money. Furthermore, through cross-industry alliance with other vendors, theCompany provides more preferential information to the living of employees.
2. Emoloyee continuing education and training:
As the Company is in the highly competitive technology industry, talents are the key factors
determining the success of a corporate. Transcend has also valued talents as the most powerfuland significant backup to the company. Through various learning methods of professional
competence improvement courses, work transfer, overseas business trips and trade shows, etc.,
arranged by the Company, Transcend is able to cultivate employees equipped with functions ofgreater diversity and depth, thereby achieving the goals of the organization.
In terms of the training courses, each year, the Company organizes orientation training for new
employees and also organizes competence improvement courses for professional abilities of
personnel in each departments, as well as organizes or assigns personnel to participate inrelevant external trainings according to laws and regulations.
3. Retirement systems:
To meet the requirements specified by the laws and regulations, the Company contributes 6%of the insured monthly salary and deposits into the pension personal account at the Bureau ofLabor Insurance monthly for new employees on-board since July 1, 2005 and existing
employees who chose the new retirement pension system. For existing employees who chosethe old retirement pension system and maintained their service years under the old system, theCompany appropriates an appropriate pension reserve and deposits in the dedicated account at
Bank of Taiwan, and the Supervisory Committee members are responsible for the supervisionof the reserve fund.
4. Other labor agreements:
The agreements between the labor and management of the Company are handled in accordancewith the Labor Standards Act, and are explained in conjunction with the personnel management
regulations upon the time when employees joining the Company for service. Relevant
regulations are added or revised depending upon the operational needs of the Company.
5.5.2. Any Losses due to Labor Disputes and Any Estimated Losses and Countermeasures
1. Any losses and disposition suffered by the company in the most recent fiscal year and up to thisAnnual Report publication date due to labor disputes:-112-

(1)According to the result of the 2023 labor inspection, a total of 1 violation was found.
Date of punishment: 2023/04/24
Punishment No.: Taipei City Labor No.11260083031
Violated rules and regulations: Paragraph 1 of Article 24 of the Labor Standards Act andParagraph 6 of Article 30 of the Labor Standards Act
Violated contents of regulations: extended working hours without additional wages as
required and did not register the attendance of workers on a daily basis to the minute.
Amount of fine: NTD 120,000
2. Any estimanted losses and countermeasures: Based on the results of the 2023 labor inspection,
the Company enhanced the promotion of working hours and overtime application, and added aworking hour reminder system to remind employees to pay attention to their working hours andapply for overtime when needed.

5.6. Information Security Management
5.6.1. Information Security Management Strategy and Structure
1. Information Security Risk Management Structure
The Company established the “Information Security Execution Team” in May 2019 to be
responsible for the establishment of policies, execution, recording and review of information
security events and information security accidents, and to also accept the annual information
cycle supervision of the Auditing Office. The Administrative Vice President concurrently acts
as the information officer to take the role of convener in order to convene meetings annually,
and to also report information security governance status to the board of directors.

2. Information Security Policy
To improve the information security management system, and to ensure the confidentiality,
legality, reliability and integrity of the Company’s information, personnel, assets, software andhardware, the Company establishes the information security policy according to the ISMS
information security management system, and the objective is to reduce information risk to theacceptable level through control methods, in order to improve the information security risk
management of the Company.
Information security control measures:(1) Establish information asset list, and perform classification control according to theinformation risk assessment.
(2) All new employees are required to participate in the information security education andtraining, in order to improve employees’ understanding and concept on the information
security. In addition, educational promotion on information security precautions are also
executed periodically.
(3) The internal and external networks of the Company are installed with firewall, andemployees are prohibited to use private network equipment to connect to the external
network or intranet of the Company.
(4) Mainframes of confidentiality are installed in an isolated network environment. For databaseand file access, use authorities are established and remote backup is performed periodically.
(5) Perform information asset inspection operation and system abnormality drill periodically, inorder to maintain the system reliability.
-113-

(6) Establish information security event management standard and information security event
reporting procedure.
(7) All employees using information provided by the Company to perform relevant information
job duties and suppliers with business dealings or visitors shall bear the responsibility andobligation to protect the information assets obtained or used, and it is prohibited to perform
access, modification or illegal disclosure without authorization.
(8) Personal computers shall be installed with anti-virus software and updated with the latest
virus codes. In addition, software management policy shall be established, and any
unauthorized software shall be prohibited from use.
(9) Employees possessing accounts, passwords and authorizations provided by the Company
shall bear the custody responsibility properly and shall also update passwords periodicallyaccording to the request.
(10) All employees of the Company shall comply with the laws and regulations as well as therequirements of the information security policy of the Company. The supervising unit shallbear the supervision responsibility, implement the system and improve employees’
understanding on the information security and legal concepts.
3. Specific Management Plan
(1) It is necessary to identify the information security event root cause and adopt an effective
strategy, as well as establishing the method and procedure to improve future incident
handling according to the information security incident classification.
(2) The information security execution team proposes the information security incident
statistical information according to the internal audit information cycle requirements of the
Auditing Office, in order to facilitate the continuous improvement of the information
security management system.

(3) Important information security event handling result shall be periodically summarized, andunder condition where no personal privacy and trade secret is involved, announcement canbe published on the monthly report or intranet to describe the incident occurrence cause,
process, handling method, improvement and precaution recommendations, etc., in order to
use it as reference information for information security education and information security
event prevention.
(4) Based on the consideration that information security risk is a new emerging type of risk, theCompany is currently under the evaluation stage. In the future, the Company will continue
to improve the information security system management and will also conduct information
security evaluation periodically. Through repetitive drills and continuous review andimprovement, the information security hazard awareness of employees and response
capability of information security handling personnel of the Company can be enhanced,
thereby preventing occurrence of information security events.
4. Information Security Management Resources
The Administrative Vice President concurrently acts as the information officer to take the roleof convener in order to convene meetings in regularly every year, to review report records andto review information security policy and future development direction. In addition, theinformation security governance status has been reported to the board of directors on
November 06, 2023.
Please refer to the Company’s website for details:
https://tw.transcend-info.com/about/information_security_management-114-5.6.2. Losses, possible impacts and countermeasures as a result of major information security incidents
in the last year up to the publication date of this annual report, state the reasons if losses cannot bereasonably estimated: None.
5.7. Important Contracts
Agreement

Counterparty

Contract Period

Major Contents

Lease

Won Chin Investment Inc. 2022.6.12-2027.6.11

Land Lease Contract

None

Lease

Cheng Chuan Technology
2022.6.12-2027.6.11
Development Inc.

Land Lease Contract

None

License Intel Corporation
LicenseMemory Technologies
LLC

Thunderbolt Technology
License Agreement
MEMORY PATENT
2019.12.26-2024.12.31
LICENSE AGREEMENT
2014.4.18--115-

Restrictions

None
None

6. Financial Information
6.1. Condensed Balance Sheet and Statement of Comprehensive Income for the Most Recent Five Years– Based on IFRS
6.1.1. Consolidated Condensed Balance Sheet
Unit: NT$ thousands
Financial Summary for The Last Five Years (Note 1)

Year
Item
Current assets
Property, Plant and Equipment
Intangible assets
Other assets
Total assets
Before distribution
Current
liabilities After distribution
Non-current liabilities
Before distribution
Total
liabilities After distribution
Equity attributable toshareholders of the parent

2019

2020

2021

2022

15,411,700
2,438,154
3,350,936
21,200,790
1,501,579
3,432,357
292,363
1,793,942
3,724,720

14,615,264
2,282,324
3,840,034
20,737,622
1,837,754
3,146,392
227,8422,065,596
3,374,234

16,773,957
1,942,013
3,722,531
22,438,501
2,401,653
4,976,023
202,0132,603,666
5,178,036

16,254,872
1,580,372
3,693,198
21,528,442
1,426,767
3,829,512
551,139
1,977,906
4,380,651

2023(Note 3)
16,395,267
1,509,348
4,384,666
22,289,281
2,702,840
4,848,149
317,7313,020,571
5,165,880

19,406,848

18,672,026

19,834,835

19,550,536

19,268,710

As of March
31, 2024(Note 2)
16,605,087
1,514,397
5,097,687
23,217,171
4,825,066
4,825,066
335,018
5,160,084
5,160,084
18,057,087

Capital stock
4,307,617
4,290,617
4,290,617
4,290,617
4,290,617
4,290,617
Before distribution
4,346,854
3,945,369
3,730,914
3,387,781
3,044,619
2,830,088
Capitalsurplus
After distribution
3,960,698
3,730,838
3,387,665
3,044,532
2,830,088
2,830,088
10,999,853
10,553,284
12,003,819
12,229,955
12,163,837
11,034,364
Retained Before distribution
earnings After distribution
9,455,231
9,459,177
9,772,698
10,170,459
10,233,059
11,034,364
Other equity interest(130,902)(117,244)(190,515)(357,817)(230,363)(97,982)
Treasury stock(116,574)
Non-controlling interest
Before distribution
19,406,848
18,672,026
19,834,835
19,550,536
19,268,710
18,057,087
Total
equityAfter distribution
17,476,070
17,363,388
17,260,465
17,147,791
17,123,401
18,057,087
Note 1: 2019–2023 financial statements have been audited and certified by CPAs.
Note 2: The financial statements of 2024 Q1 have been reviewed by the CPAs.
Note 3: For the proposal for distribution of 2023 earnings, in accordance with the provisions of the Articles of Incorporation, theproposal on the distribution of earnings in cash and the proposal on the cash distribution from capital surplus have been
approved by the board of directors’ meeting through special resolution. The remaining distribution items have not been
approved through the resolution of the shareholders’ meeting; therefore, no adjustment has been made.

-116-

6.1.2. Condensed Consolidated Balance Sheet - Parent Company Only
Financial Summary for The Last Five Years (Note 1)

Year
Item
Current assets
Property, Plant and Equipment
Intangible assets
Other assets
Total assets
Before distribution
Current
liabilities After distribution
Non-current liabilities
Before distribution
Total
liabilities After distribution
Equity attributable toshareholders of the parent

As of March
31, 2024(Note 2)

2019

2020

2021

2022

2023
(Note 3)

14,532,387
1,644,401
5,256,311
21,433,099
1,810,735
3,741,513
215,516
2,026,251
3,957,029

13,722,813
1,540,175
5,686,690
20,949,678
2,114,521
3,423,159
163,1312,277,652
3,586,290

15,783,618
1,435,144
5,511,805
22,730,567
2,746,155
5,320,525
149,577
2,895,732
5,470,102

14,578,379
1,374,912
5,707,881
21,661,172
1,604,918
4,007,663
505,718
2,110,636
4,513,381

15,709,830
1,316,764
5,414,924
22,441,518
2,904,798
5,050,107
268,010
3,172,808
5,318,117

19,406,848

18,672,026

19,834,835

19,550,536

19,268,710 Not Applicable

Capital stock
4,307,617
4,290,617
4,290,617
4,290,617
4,290,617
Before distribution
Capital4,346,854
3,945,369
3,730,914
3,387,781
3,044,619
surplus
After distribution
3,960,698
3,730,838
3,387,665
3,044,532
2,830,088
Beforedistribution
Retained
10,999,853 10,553,284 12,003,819 12,229,955 12,163,837
earnings After distribution
9,455,231
9,459,177
9,772,698 10,170,459 10,233,059
Other equity interest(130,902)(117,244)(190,515)(357,817)(230,363)
Treasury stock(116,574)
Non-controlling interest
Before distribution
Total
19,406,848 18,672,026 19,834,835 19,550,536 19,268,710
equityAfter distribution
17,476,070 17,363,388 17,260,465 17,147,791 17,123,401
Note 1: 2019–2023 financial statements have been audited and certified by CPAs.
Note 2: Pursuant to Article 7 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers (adopting theInternational Financial Reporting Standards), the Company is not required to prepare the parent company only financial
statements of 2024 Q1; therefore, the Company provides no financial information for 2024 Q1.
Note 3: For the proposal for distribution of 2023 earnings, in accordance with the provisions of the Articles of Incorporation, theproposal on the distribution of earnings in cash and the proposal on the cash distribution from capital surplus have been
approved by the board of directors’ meeting through special resolution. The remaining distribution items have not been
approved through the resolution of the shareholders’ meeting; therefore, no adjustment has been made.

-117-

6.1.3. Consolidated Condensed Statement of Comprehensive Income
Unit: NT$ thousands
As of March
31, 2024(Note 2)Financial Summary for The Last Five Years (Note 1)

Year
Item

Operating revenue
Gross profit
Profit from operations
Non-operating income (expenses)
Profit before income tax
Profit from continuing operations
Loss from discontinued
operations
Profit for the year
Other comprehensive income(loss), net of taxes

2019

2020

2021

2022

2023

13,496,186
3,087,531
1,781,010
308,733
2,089,743
1,728,967
1,728,967

11,446,696
2,470,096
1,211,936
290,445
1,502,381
1,197,735
1,197,735

14,314,815
4,175,686
2,891,794
236,860
3,128,654
2,533,294
2,533,294

12,122,350
2,722,743
1,506,705
1,849,572
3,356,277
2,454,344
2,454,344

10,496,172
3,044,605
1,889,646
581,1882,470,834
1,984,835
1,984,835

2,732,286
896,591
597,229
388,419985,648806,949
806,949(32,117)

12,175(61,923)(164,389)

135,997

126,737

2,289,955

2,120,832

933,686

2,454,344

1,984,835

806,949

Total comprehensive income for
1,696,850
1,209,910
2,471,371
the year
Profit attributable to shareholders
1,728,967
1,197,735
2,533,294of the parent
Profit attributable to noncontrolling interest
Total Comprehensive income
attributable to Shareholders of the
1,696,850
1,209,910
2,471,371
parentTotal Comprehensive income
attributable to non-controllinginterest
Earnings per share (Note 3)
4.01
2.79
5.90
Earnings per share (Note 4)
4.01
2.79
5.90
Note 1: 2019–2023 financial statements have been audited and certified by CPAs.
Note 2: The financial statements of 2024 Q1 have been reviewed by the CPAs.
Note 3: It is calculated based on the outstanding weighted average number of shares.
Note 4: It is calculated based on number of shares after retroactive adjustment.

-118-

2,289,955

2,120,832

933,686

-

-

-

5.72
5.72

4.63
4.63

1.88
1.88

6.1.4. Condensed Statement of Comprehensive Income - Parent Company Only
Unit: NT$ thousands
Financial Summary for The Last Five Years (Note 1)

Year
Item
Operating revenue
Gross profit
Profit from operations
Non-operating income (expenses)
Profit before income tax
Profit from continuing operations
Loss from discontinued operations
Profit for the year
Other comprehensive income(loss), net of taxes

2019

2020

2021

2022

2023

12,860,887
2,521,479
1,871,034
173,005
2,044,039
1,728,967
1,728,967

10,937,519
1,982,871
1,315,135
146,157
1,461,292
1,197,735
1,197,735

13,747,158
3,586,255
2,883,281
233,678
3,116,959
2,533,294
2,533,294

11,386,995
2,115,053
1,455,913
1,611,060
3,066,973
2,454,344
2,454,344

9,879,469
2,457,403
1,825,657
644,875
2,470,532
1,984,835
1,984,835(32,117)

12,175(61,923)(164,389)

135,997

As of March
31, 2024(Note 2)

Toal comprehensive income for
1,696,850
1,209,910
2,471,371
2,289,955
2,120,832
Not
the yearApplicable
Profit attributable to shareholders
1,728,967
1,197,735
2,533,294
2,454,344
1,984,835
of the parent
Profit attributable to noncontrolling interest
Total Comprehensive income
attributable to Shareholders of the
1,696,850
1,209,910
2,471,371
2,289,955
2,120,832
parentTotal Comprehensive income
attributable to non-controllinginterest
Earnings per share (Note 3)
4.01
2.79
5.90
5.72
4.63
Earnings per share (Note 4)
4.01
2.79
5.90
5.72
4.63
Note 1: 2019–2023 financial statements have been audited and certified by CPAs.
Note 2: Pursuant to Article 7 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers (adopting
the International Financial Reporting Standards), the Company is not required to prepare the parent company only
financial statements of 2024 Q1; therefore, the Company provides no financial information for 2024 Q1.
Note 3: It is calculated based on the outstanding weighted average number of shares.
Note 4: It is calculated based on number of shares after retroactive adjustment.

6.1.5. Auditors’ Opinions from 2019 to 2023
Year

CPA Firm

CPA

Audit Opinion

2019

Pricewaterhouse Coopers

Lin Chun-Yao, Chou Chien-Hung

Unqualified Opinion

2020

Pricewaterhouse Coopers

Lin Chun-Yao, Chou Chien-Hung

Unqualified Opinion

2021

Pricewaterhouse Coopers

Lin Chun-Yao, Chen Chin-Chang

Unqualified Opinion

2022

Pricewaterhouse Coopers

Chen Chin-Chang, Lin Yi-Fan

Unqualified Opinion

2023

Pricewaterhouse Coopers

Chen Chin-Chang, Lin Yi-Fan

Unqualified Opinion-119-6.2. Financial Analysis for the Most Recent Five Years – Based on IFRS
6.2.1. Consolidated Financial Analysis
Financial Analysis for the Last Five Years (Note 2)
Year
Item

2019
Debt Ratio (%)

Financial
structure

Ratio of long-term capital to property,
plant and equipment (%)

Current ratio (%)
Quick ratio (%)
Interest earned ratio (times)
Accounts receivable turnover (times)
Average collection period
Inventory turnover (times)
OperatingAccounts payable turnover (times)
performance Average days in sales
Property, plant and equipment
turnover (times)
Total assets turnover (times)
Return on total assets (%)
Return on stockholders' equity (%)

Solvency

2020

2021

2022

2023

As of
March 31,2024
(Note 3)

8.46

9.96

11.60

9.19

13.55

22.23

807.96828.101,031.76

1271.961297.68

1214.48

1,026.37
432.06
1,121.51
7.44
49
3.96
9.11
92

795.28313.12738.18
7.85
47
3.41
8.05
107

698.43225.62
2,507.93
9.36
39
2.26
7.83
162

1139.28314.26
1,702.10
8.53
43
2.10
9.81
174

606.59419.94745.23
8.51
43
1.80
6.39
203

344.14225.261,510.42
8.84
41
1.33
4.16
274

5.36

4.85

6.78

6.88

6.79

7.23

0.63
8.04
8.78

0.55
5.72
6.29

0.66
11.74
13.16

0.55
11.17
12.46

0.48
9.07
10.23

0.48
14.20
17.30

41.35
28.25
67.40
35.12
44.04
55.68
Pre-tax income Profit from operations
Profitability to paid-in
Profit before income
48.51
35.02
72.92
78.22
57.59
91.89
capital (%)
tax
Profit ratio (%)
12.81
10.46
17.70
20.25
18.91
29.53
Earnings per share (NT$) (Note 1)
4.01
2.79
5.90
5.72
4.63
7.52
Cash flow ratio (%)
69.36(13.52)101.81358.1748.61
1.71
Cash flow
Cash flow adequacy ratio (%)
84.50
65.18
62.14
75.20
62.55
62.27
Cash reinvestment ratio (%)(6.19)(12.99)6.31
14.61(3.70)
0.44
Operating leverage
1.69
1.98
1.41
1.75
1.58
1.50
Leverage
Financial leverage
1.00
1.00
1.00
1.00
1.00
1.00
Analysis of financial ratio differences for the last two years: (Not required if the difference does not exceed 20%)
1. Debt ratio: An increase in the purchase amount in 2023 resulted in a corresponding increase in accounts payable at the endof the period; because of this, the debt ratio increased compared to last year.
2. Current ratio: An increase in the purchase amount in 2023 resulted in a increase in accounts payable at the end of theperiod; because of this, the current ratio decreased as compared to last year.
3. Quick ratio: The quick ratio was up from last year due to the increase in liquid assets due to the higher liquidity of time
deposits within 3 months.
4. Interest earned ratio (times): An increase in interest expenses in 2023 resulted in the interest earned ratio decreasing as
compared to last year.
5. Accounts payable turnover (times): An increase in the purchase amount in response to market conditions in 2023 resulted
in an increase in average accounts payable; the accounts payable turnover dscreased as compared to last year.
6. Pre-tax income to paid-in capital-Profit from (%): An increase in gross profit in 2023 resulted in an increase in profit fromoperations; the ratio of pre-tax income to paid-in capital increased as compared to last year.
7. Pre-tax income to paid-in capital-Profit before income tax (%): A decrease in non-operating income in 2023 resulted in adecrease in profit before income tax; the ratio of pre-tax income to paid-in capital decreased as compared to last year.
8. Cash flow: An adjustment of inventory in response to market conditions in 2023 was the main cause of a increase of
inventory and decrease of net cash flows from operating activities; all financial ratios related to cash flow decreased
compared to last year.

Note 1: It was calculated based on the outstanding weighted average number of shares.
Note 2: 2019–2023 financial statements have been audited and certified by CPAs.
Note 3: The financial statements of 2024 Q1 have been reviewed by the CPAs.

-120-

1. Financial Structure(1) DebtrRatio=total liabilities/total assets(2) Ratio of long-term capital to property, plant and equipment=(total shareholders’ equity＋
non-current liabilities)/ net value of property, plant and equipment
2. Liquidity(1) Current ratio=current assets/current liabilities(2) Quick ratio=(current assets-inventory-pre-paid expense)/ current liabilities(3) Interest earned ratio =earning before income tax and interest expense/interest expense of the term
3. Operating Performance(1) Accoutns receivables(including accounts receivables and notes receivables due to business) turnover=Net sales/ average balance of accounts receivables(including accounts receivables and notes
receivables due to business)(2) Average collection period =365/ accounts receivables turnover(3) Inventory turnover =Cost of goods sold/average inventory(4) Accounts payable (including accounts payables and notes payables due to business) turnover =cost ofgoos sold/ average balance of accounts payables(including accounts payables and notes payables due
to business)(5) Average days in sales =365/ inventory turnover(6) Property, plant and equipment turnover=net sales/average net value of property, plant and equipment(7) Total assets turnover =net sales/average total assets
4. Profitability(1) Return on Assets=[profit(loss) for the year+interest expense×(1-tax rate)]/average total assets(2) Return on stockholders' equity = profit(loss) for the year /average total stockholders' equity(3) Profit ratio= profit(loss) for the year /net sales(4) Earnings per share=( Profit(loss) attributable to shareholders of the parent –preferred stock
dividends)/ weighted average share outstanding
5. Cash Flow
(1) Cash flow ratio = Cash inflow generated from operations / current liabilities(2) Cash flow adequacy ratio = Cash inflow generated from operations of the most recent five years /(capital expenditure+increased amount of inventory+cash dividends) of the most recent five years(3) Cash reinvestment ratio =( Cash inflow generated from operations –cash dividends)/( gross value of
property, plant and equipment +long-term investment+other assets+working capital)
6. Leverage(1) Operating leverage=(net sales-variable business costs and expenses)/ Profit(loss) from operations(2) Financial leverage= Profit from operations /( Profit from operations –interest expense)-121-6.2.2. Parent Conpany Only Financial Analysis
Financial Analysis for the Last Five Years (Note 2)
Year
Item

2019
Debt Ratio (%)

Financial
structure

Ratio of long-term capital toproperty, plant and equipment (%)

Current ratio (%)
Solvency
Quick ratio (%)
Interest earned ratio (times)
Accounts receivable turnover(times)Average collection period
Inventory turnover (times)
OperatingAccounts payable turnover (times)
performance
Average days in sales
Property, plant and equipment
turnover (times)
Total assets turnover (times)
Return on total assets (%)
Return on stockholders' equity (%)
Profit from
Pre-tax
operations
income toProfitability
paid-in capital Profit before(%)
income tax

2020

2021

2022

2023

9.45

10.87

12.74

9.74

14.14

1,193.28

1,222.92

1,392.50

1,458.73

1,483.69

802.57
325.76
3,024.73

648.98245.75
1,776.57

574.75
170.6912,827.99

908.36
185.642,476.36

540.82370.67
1,356.95

7.67

8.50

10.45

8.89

7.83

48
4.12
6.66
89

43
3.55
5.89
103

35
2.34
5.97
156

41
2.14
6.77
171

47
1.82
4.93
200

7.66

6.87

9.24

8.10

7.34

0.59
7.93
8.78

0.52
5.66
6.29

0.63
11.60
13.16

0.51
11.06
12.46

0.45
9.01
10.23

43.44

30.65

67.20

33.93

42.55

47.45

34.06

72.65

71.48

57.58

As of
March 31,2024
(Note 3)Not
appicable

Profit ratio (%)
13.44
10.95
18.43
21.55
20.09
Earnings per share (NT$) (Note 1)
4.01
2.79
5.90
5.72
4.63
Cash flow ratio (%)
47.98(11.99)89.74
298.75
34.67
Cash flow
Cash flow adequacy ratio (%)
82.60
62.32
60.46
72.98
62.24
Cash reinvestment ratio (%)(7.42)(13.61)
6.64
12.88(5.28)
Operating leverage
1.30
1.45
1.21
1.40
1.31
Leverage
Financial leverage
1.00
1.00
1.00
1.00
1.00
Analysis of financial ratio differences for the last two years: (Not required if the difference does not exceed 20%)

1. Debt ratio: An increase in the purchase amount in 2023 resulted in a corresponding increase in accounts payable atthe end of the period; the debt ratio increased as compared to last year.
2. Current ratio: An increase in the purchase amount in 2023 resulted in a corresponding increase in accounts
payable at the end of the period; the current ratio decreased as compared to last year.
3. Quick ratio: The quick ratio was up from last year due to the increase in liquid assets due to the higher liquidity oftime deposits within 3 months.
4. Interest earned ratio (times): A decrease in net profit before income tax and an increase in interest expenses in2023 resulted in the interest earned ratio decreased as compared to last year.
5. Accounts payable turnover (times): An increase in purchasing in response to market conditions in 2023 resulted in
an increase in the average accounts payable; the accounts payable turnover decreased as compared to last year.
6. Pre-tax income to paid-in capital (%): An increase in gross profit in 2023 resulted in an increase in profit fromoperations; the ratio of pre-tax income to paid-in capital increased as compared to last year.
7. Cash flow: An adjustment of inventory in response to market conditions in 2023 was the main cause of anincrease of inventory and decrease of net cash flows from operating activities; all financial ratios related to cash flow
decreased compared to last year.
Note 1: It was calculated based on the outstanding weighted average number of shares.
-122-Note 2: 2019–2023 financial statements have been audited and certified by CPAs.
Note 3: Pursuant to Article 7 of the Regulations Governing the Preparation of Financial Reports by Securities
Issuers (adopting the International Financial Reporting Standards), the Company is not required to prepare
the parent company only financial statements of 2024 Q1; therefore, the Company provides no financial
information for 2024 Q1.

-123-

1. Financial Structure(1) DebtrRatio=total liabilities/total assets(2) Ratio of long-term capital to property, plant and equipment=(total shareholders’ equity＋
non-current liabilities)/ net value of property, plant and equipment
2. Liquidity(1) Current ratio=current assets/current liabilities(2) Quick ratio=(current assets-inventory-pre-paid expense)/ current liabilities(3) Interest earned ratio =earning before income tax and interest expense/interest expense of the term
3. Operating Performance(1) Accoutns receivables(including accounts receivables and notes receivables due to business) turnover=Net sales/ average balance of accounts receivables(including accounts receivables and notes
receivables due to business)(2) Average collection period =365/ accounts receivables turnover(3) Inventory turnover =Cost of goods sold/average inventory(4) Accounts payable (including accounts payables and notes payables due to business) turnover =cost ofgoos sold/ average balance of accounts payables(including accounts payables and notes payables due
to business)(5) Average days in sales =365/ inventory turnover(6) Property, plant and equipment turnover=net sales/average net value of property, plant and equipment(7) Total assets turnover =net sales/average total assets
4. Profitability(1) Return on Assets=[profit(loss) for the year+interest expense×(1-tax rate)]/average total assets(2) Return on stockholders' equity = profit(loss) for the year /average total stockholders' equity(3) Profit ratio= profit(loss) for the year /net sales(4) Earnings per share=( Profit(loss) attributable to shareholders of the parent –preferred stock
dividends)/ weighted average share outstanding
5. Cash Flow
(1) Cash flow ratio = Cash inflow generated from operations / current liabilities(2) Cash flow adequacy ratio = Cash inflow generated from operations of the most recent five years /(capital expenditure+increased amount of inventory+cash dividends) of the most recent five years(3) Cash reinvestment ratio =( Cash inflow generated from operations –cash dividends)/( gross value of
property, plant and equipment +long-term investment+other assets+working capital)
6. Leverage(1) Operating leverage=(Net sales-variable business costs and expenses)/ Profit(loss) from operations(2) Financial leverage= Profit from operations /( Profit from operations –interest expense)-124-6.3. Audit Committee’s Review Report for the Most Recent Year

Audit Committee’s Review Report

The Board of Directors has prepared the Company’s 2023 Business Report, Financial Statements andEarnings Distribution Proposal. Transcend Corporation’s Financial Statements have been audited andcertified by Mr. Chin-Chang Chen and Mr. Yi-Fan Lin, the CPA of the Pricewaterhouse Coopers. The
Business Report, Financial Statements and Earnings Distribution Proposal have been reviewed andconsidered to be complied with relevant rules by the undersigned, the audit committee of Transcend
Corporation. Pursuant to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company
Act, we hereby submit this report.

The Audit Committee of Transcend Information, Inc.

Chairman of the Audit Committee: WANG, YI-HSIN

February 29, 2024

-125-

6.4. Consolidated Financial Statements for the Years Ended December 31, 2023 and 2022,
and Independent Auditors’ Report

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESREPRESENTATION LETTER

The entities that are required to be included in the combined financial statements ofTranscend Information, Inc. as of and for the year ended December 31, 2023, under theCriteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports
and Consolidated Financial Statements of Affiliated Enterprises are the same as thoseincluded in the consolidated financial statements prepared in conformity with theInternational Financial Reporting Standard 10, “Consolidated Financial Statements.” In
addition, the information required to be disclosed in the combined financial statements is
included in the consolidated financial statements. Consequently, Transcend Information, Inc.
and Subsidiaries do not prepare a separate set of combined financial statements.
Very truly yours,
TRANSCEND INFORMATION, INC.
Chairman: SHU, CHUNG-WON
February 29, 2024

-126-

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR 23000331
To the Board of Directors and Shareholders of Transcend Information, Inc.
OpinionWe have audited the accompanying consolidated balance sheets of Transcend Information,
Inc. and subsidiaries (the “Group”) as at December 31, 2023 and 2022, and the related
consolidated statements of comprehensive income, of changes in equity and of cash flows
for the years then ended, and notes to the consolidated financial statements, including asummary of material accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in allmaterial respects, the consolidated financial position of the Group as at December 31, 2023
and 2022, and its consolidated financial performance and its consolidated cash flows for theyears then ended in accordance with the Regulations Governing the Preparation of Financial
Reports by Securities Issuers and the International Financial Reporting Standards,
International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that cameinto effect as endorsed by the Financial Supervisory Commission.
Basis for opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement
Audit and Attestation Engagements of 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 consolidated
financial statements section of our report. We are independent of the Group in accordancewith the Norm of Professional Ethics for Certified Public Accountant of the Republic ofChina, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the Group’s 2023 consolidated financial statements. These
matters were addressed in the context of our audit of the consolidated financial statements as-127-

a whole and, in forming our opinion thereon, we do not provide a separate opinion on thesematters.

Key audit matters for the Group’s 2023 consolidated financial statements are stated asfollows:
Valuation of inventories
Description
Refer to Notes 4(14), 5(2) and 6(5) to the consolidated financial statements for the
information on the Group’s inventory accounting policy, estimates and assumptions andallowance for inventory valuation losses.
The percentage of the Group’s inventories to total assets is material and the Group applies
judgements and estimates in determining the net realizable value of inventories at thebalance sheet date. The Group 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 Group’s inventories and the allowance for inventory valuation losses
are material to the financial statements, the valuation of inventories has been identified as
one of the key audit matters.
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 Group’s operations and industry. Assessed thereasonableness of the policy and procedures to recognize allowance for inventory
valuation losses.
B. Obtained an understanding of the Group’s operations and industry. Assessed thereasonablnventory count plan and observed the annual physical count of material
inventory storage location in order to assess the effectiveness of internal controls overinventory.
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.
-128-

Estimation of allowance for sales discounts
Description
In consideration of business volume, the Group provides a variety of business incentives tospecific customers or products, and based on that, the Group can estimate the allowance forsales discounts monthly. Refer to Notes 4(26) and 6(4) to the consolidated 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
consolidated financial statements, the estimation of allowance for sales discounts has been
identified as one of the key audit matters.

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 Groupdures in respect of the above key audit
matter:onsolidated financial statements, the esObtained an understanding of theGroupdures in rrocedures and interviewed management to assess the appropriateness ofsales allowance contracts and internal control over estimation of allowance.
B. 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 Group.
Other matter – Parent company only financial reports
We have audited and expressed an unqualified opinion on the parent company only financial
statements of Transcend Information, Inc. as at and for the years ended December 31, 2023
and 2022.
Responsibilities of management and those charged with governance for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with the Regulations Governing the Preparation of
Financial Reports by Securities Issuers and the International Financial Reporting Standards,
International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came-129-

into effect as endorsed by the Financial Supervisory Commission, and for such internal
control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing
the Group’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 Group or to cease operations, or has no realistic alternative but to doso.
Those charged with governance, including the Audit Committee, are responsible foroverseeing the Group’s financial reporting process.

-130-Independent auditors’ responsibilities for the audit of the consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, andto issue an auditors’ report that includes our opinion. Reasonable assurance is a high level ofassurance, 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 ofusers taken on the basis of these consolidated 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 consolidated 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 toprovide 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 Group’s internal control.
C. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
D. Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’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
consolidated 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 ourauditors’ report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.

-131-E. Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fairpresentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performanceof the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, theplanned 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 thosematters that were of most significance in the audit of the consolidated financial statements ofthe 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 orwhen, in extremely rare circumstances, we determine that a matter should not be
communicated in our auditors’ report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Chen, Ching-Chang

Lin, Yi-Fan

For and on Behalf of PricewaterhouseCoopers, Taiwan
February 29, 2024------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results ofoperations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions otherthan the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of suchfinancial statements may differ from those generally accepted in countries and jurisdictions other than the Republic ofChina. Accordingly, the accompanying consolidated 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 consolidated 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 derivefrom the translation.

-132-

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Assets

December 31, 2023
AMOUNT%

Notes

December 31, 2022
AMOUNT%

Current assets
1100

Cash and cash equivalents

6(1)

1136

Financial assets at amortised cost -

6(3)

$

current

1,858,719

8

8,130,839$

3,187,31215

37

8,611,357

40

1150

Notes receivable, net

6(4)

323

-

867

-

1170

Accounts receivable, net

6(4)1,247,331

6

1,217,936

6

1200

Other receivables

113,104

1

77,626-130X

Inventories

5,003,689

22

3,143,064

14

41,262-

16,710-16,395,267

74

16,254,872

75

461,7342

51,463-626,6283

524,9393

301,6021--

105,138-

136,710

1

1479
11XX

6(5)

Other current assets
Total current assets
Non-current assets

1510

Financial assets at fair value through6(2)profit or loss - non-current
1517

Financial assets at fair value through6(6)other comprehensive income non-current
1535

Financial assets at amortised cost -6(3)non-current
1550

Investments accounted for using

6(7)equity method
1600

Property, plant and equipment, net

6(8) and 8

1,509,348

7

1,580,372

7

1755

Right-of-use assets

6(9) and 7

168,7081

196,190

1

1760

Investment property, net

6(11)2,580,696

12

2,593,931

12

1840

Deferred income tax assets

6(23)80,796-

137,774

1

1900

Other non-current assets

6(12)59,364-52,191-

5,894,014

26

5,273,570

25

22,289,281

100

21,528,442

100

15XX
1XXX

Total non-current assets
Total assets$(Continued)

-133-

$

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Liabilities and equity

December 31, 2023
AMOUNT%

Notes

December 31, 2022
AMOUNT%

Current liabilities
2170

Accounts payable

2180

Accounts payable - related parties

2200

1,791,770

8

39,913

Other payables

2230

Current income tax liabilities

2280

Lease liabilities - current

2300

Other current liabilities

21XX

$
7

7

Total current liabilities$

472,6772-

27,442-

301,3552

271,9482

494,6692

581,5463

52,944-47,806-22,189-25,348-2,702,840

12

1,426,767

7

Non-current liabilities
2570

Deferred income tax liabilities

6(23)173,3771

376,44722580

Lease liabilities - non-current

7

101,640

1

132,962-

2600

Other non-current liabilities

6(13)42,714-

41,730-317,7312

551,1392

3,020,571

14

1,977,906

9

4,290,617

19

4,290,617

20

3,044,619

13

3,387,781

16

25XX

Total non-current liabilities

2XXX

Total liabilities
Equity attributable to shareholders ofparentShare capital

3110

6(14)

Common stock
Capital surplus

3200

6(15)

Capital surplus
Retained earnings

6(16)

3310

Legal reserve

5,303,693

24

5,057,967

24

3320

Special reserve357,8172

190,5141

3350

Unappropriated retained earnings

6,502,327

29

6,981,474

32

Other equity interest
3400

Other equity interest

3XXX

Total equity
Significant contingent liabilities and

6(17)
(

230,363) (1) (19,268,710

86

22,289,281

100

357,817) (2)

19,550,536

91

21,528,442

100

9unrecognized contract commitments
Significant events after the balance sheet 11
date
3X2X

Total liabilities and equity$$

The accompanying notes are an integral part of these consolidated financial statements.

-134-

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

8710

Items
Notes
Operating revenue
6(18) and 7
Operating costs
6(5)(22) and 7
Gross profit
Operating expenses
6(22)Sales and marketing expenses
Administrative expenses
Research and development expenses
Expected credit impairment gain
6(4)Total operating expenses
Operating profit
Non-operating income and expenses
Interest income
6(3)(19)
Other income
6(6)(10)(11)(20)
Other gains and losses
6(2)(21)
Finance costs
6(9)Share of (loss) profit of associates
6(7)and joint ventures accounted forusing the equity method
Total non-operating income andexpensesProfit before income tax
Income tax expense
6(23)Profit for the year
Other comprehensive income (loss)
Components of othercomprehensive income (loss) thatwill not be reclassified to profit orloss(Loss) gain on remeasurements of 6(13)defined benefit plans
Unrealized gain (loss) on financial 6(6)(17)
assets at fair value through othercomprehensive income
Share of other comprehensive
6(7)income (loss) of associates andjoint ventures accounted for using
the equity method
Components of othercomprehensive income (loss) thatwill be reclassified to profit or loss
Financial statements translation
6(17)differences of foreign operations
Income tax related to components 6(17)(23)of other comprehensive incomethat will be reclassified to profit orloss
Other comprehensive income(loss) for the year
Total comprehensive income
Net profit attributable to:Shareholders of parent
Comprehensive income attributable to:Shareholders of parent

9750
9850

Earnings per share (in dollars)
Basic earnings per share
Diluted earnings per share

4000
5000
5900
6100
6200
6300
6450
6000
6900
7100
7010
7020
7050
7060
7000
7900
7950
8200

8311
8316
8320

8361
8399

8300
8500
8610

$
(

(
(
(

For the years ended December 31
2023
2022
AMOUNT%AMOUNT
10,496,172
100 $12,122,350
7,451,567) (71) (9,399,607) (3,044,605
29
2,722,743

%
100
77)
23

742,597) (279,454) (132,973) (65
1,154,959) (1,889,646

7) (
3) (
1) (
11) (
18

750,015) (329,213) (137,105) (295
1,216,038) (1,506,705

6)
3)
1)
10)
13

(

394,761
78,703
133,172
3,320)

4
1
1- (114,926
82,483
1,643,836
1,973)

1
1
13
-

(

22,128)-10,300-$581,1882,470,834
485,999) (1,984,835

6
24
5) (
19 $

1,849,572
3,356,277
901,933) (2,454,344

15
28
8)
20

($

2,159)

-

5,185

-

173,465

1 (

170,069) (

1)

1,524

- (

219)

-

46,041)

-

892

-

9,208

- (

178)

-

$
$

135,997
2,120,832

1 ($
20 $

164,389) (2,289,955

1)
19

$

1,984,835

19$

2,454,344

20$

2,120,832

20$

2,289,955

19

4.63
4.62

$
$

(

(

(

$

6(24)
$
$

The accompanying notes are an integral part of these consolidated financial statements.

-135-

5.72
5.71

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars)
Equity attributable to shareholders of the parent
Retained Earnings

Capital Reserves

Notes

Common stock

Additional paid-in
capitalDonated assets
received

Net assets frommergerLegal reserve

Special reserve

Unappropriatedretained earnings

Other Equity Interest
Unrealised gains(losses) fromfinancial assets
Financialmeasured at fairstatements
value throughtranslation
other
differences ofcomprehensive
foreign operations
income

$

$

$

$

$

$

$

($

Total equity

For the year ended December 31, 2022
Balance at January 1, 2022
Net income for the year
Other comprehensive income (loss)

6(6)(17)

Total comprehensive income (loss)
Appropriations and distribution of 2021 earnings

4,290,617

$

7,417

-

3,691,432
-

4,354
-

35,128-4,803,503-

117,244-

7,083,072
2,454,344
4,966

197,932 )714(

170,069 )

-

-

-

-

-

-

2,459,310

714(

170,069 )$ 19,834,835(

2,454,344
164,389 )2,289,955

6(16)Legal reserve

-

-

-

-

254,464-(

254,464 )--Cash dividends

-

-

-

-

-

-

(

2,231,121 )--Special reserve

-

-

-

-

-

73,270(73,270 )Cash payment from capital surplus

-

-

-

-

-

(

343,249 )Net loss on disposal of financial assets at fair value through 6(6)(17)
other comprehensive income

-

-

-

-

-

-

Expired unclaimed dividends recognized as capital surplus

-

-

116

-

-

-

Balance at December 31, 2022((

2,231,121 )(

343,249 )

-

-

-

-

-

-

2,053 )

-

2,053

-

-

-

-

116

$

4,290,617$

3,348,183

$

4,470

$

35,128$5,057,967$

190,514$

6,981,474($

197,218 )($

160,599 )$ 19,550,536$

4,290,617$

3,348,183

$

4,470

$

35,128$5,057,967$

190,514$

6,981,474($

197,218 )($

160,599 )$ 19,550,536(

1,984,835
635 )(

36,833 )173,465

1,984,835
135,997

1,984,200(

36,833 )173,465

2,120,832

For the year ended December 31, 2023
Balance at January 1, 2023
Net income for the year
Other comprehensive income (loss)

6(6)(17)

Total comprehensive income (loss)
Appropriations and distribution of 2022 earnings

-

-

-

-

-

-

-

-

-

-

-

-

6(16)

Legal reserve

-

-

-

-

245,726-(

245,726 )--Cash dividends

-

-

-

-

-

-

(

2,059,496 )--Special reserve

-

-

-

-

-

167,303(

167,303 )--Cash payment from capital surplus

-

-

-

-

-

-

-

-

(

343,249 )Net gain on disposal of financial assets at fair value through 6(6)(17)
other comprehensive income

-

-

-

-

-

-

9,178

-

Expired unclaimed dividends recognized as capital surplus

-

-

87

-

-

-

-

-

Balance at December 31, 2023$

4,290,617$

3,004,934

$

4,557

$

35,128$5,303,693$

357,817

The accompanying notes are an integral part of these consolidated financial statements.

-136-

$

6,502,327($

234,051 )($(

2,059,496 )(

343,249 )-9,178 )

-

-

87

3,688

$ 19,268,710

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars)
For the years ended December 31
Notes

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax
Adjustments
Adjustments to reconcile profit (loss)
Net (gain) loss on financial assets at fair value through profit or loss
Share of profit or loss of associates and joint ventures accounted forusing the equity method
Expected credit impairment gain
Gain on disposal of non-current assets held for sale
Loss on disposal of property, plant and equipment
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 at fair value through profit or loss - current
Notes receivable
Accounts receivable
Other receivables
Inventories
Other current assets
Changes in liabilities relating to operating activities
Accounts payable
Accounts payable - related parties
Other payables
Other current liabilities
Net defined benefit liability
Other non-current liabilities
Cash inflow generated from operations
Dividends received
Interest received
Income tax paid
Net cash flows provided by operating activities$

6(2)(21)
6(7)

(

6(4)
6(21)
6(21)
6(22)
6(19)
6(9)
6(6)(20)(

2,470,834$

38,186 )(22,12865 )
2158,441
394,761 )3,320
21,134 )

(
(
(
(

544
29,347 )28,291 )
1,860,625 )
24,552 )(1,319,093
12,471
29,407
3,159 )
884 )
1,615,236
19,874
388,531
709,760 )
1,313,881(((

3,356,277

8,271
(
(
(

(

10,300 )295 )1,324,180 )
448
194,624
114,926 )
1,973
35,592 )(

1,517,305
1,632
404,838
93,2472,631,761
3,265 )

(

(
(
(
(
(

892,158 )
24,799 )14,220 )63,258 )827 )546
5,727,102
35,592
103,776
756,207 )5,110,263(

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of 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 financial assets at fair value through othercomprehensive income
Acquisition of financial assets at fair value through other comprehensive
incomeProceeds from disposal of non-current assets held for sale
Proceeds from disposal of property, plant and equipment
Acquisition of property, plant and equipment
Decrease in guarantee deposits paid
Acquisition of right-of-use assets
Acquisition of investment property
Increase in other non-current assets
Dividends received
Net cash flows used in investing activities(

372,085 )4,592,690
4,413,471 )(

41,155
3,113,029
6,150,167 )(

6(6)
71,776

6(25)

(

6(11)

(
(

24,173 )
1,893
489 )
11,978 )10,968144,869 )

6(7)
(

6,179
(

71,611 )
1,800,796
162
38,325 )692 )4,082 )
5,262 )
21,885
1,286,933 )

(
(
(
(
(

CASH FLOWS FROM FINANCING ACTIVITIES
Decease in guarantee deposits received
Payment of lease liabilities
Cash dividends paid (including cash payment from capital surplus)
Expired unclaimed dividends recognized as capital surplus
Net cash flows used in financing activities
Effect of exchange rate changes
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

6(16)

(
(
(
(
(
(
$

291 )
49,430 )2,402,745 )87
2,452,379 )
45,226 )1,328,593 )
3,187,312
1,858,719

The accompanying notes are an integral part of these consolidated financial statements.

-137-

(
(
(
(

$

55,289 )2,574,370 )116
2,629,543 )
24,581 )
1,169,206
2,018,106
3,187,312

TRANSCEND INFORMATION, INC. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(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 and its
subsidiaries (collectively referred herein as the “Group”) are manufacturing, processing and sales ofcomputer 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 consolidated financial statements were authorized for issuance by the Board of Directors on
February 29, 2024.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS(1)Effect of the adoption of new issuances of or amendments to International Financial ReportingStandards (“IFRS® ”) Accounting Standards that came into effect as endorsed by the Financial
Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC and became effective from2023 are as follows:

New Standards, Interpretations and Amendments
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arisingfrom a single transaction’
Amendments to IAS 12, ‘International tax reform - pillar two model rules’

Effective dateby International
AccountingStandards Board
January 1, 2023
January 1, 2023
January 1, 2023
May 23, 2023

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

-138-

(2)Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC
but not yet adopted by the GroupNew standards, interpretations and amendments endorsed by the FSC and will become effectivefrom 2024 are as follows:

New Standards, Interpretations and Amendments
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’

Effective dateby International
AccountingStandards Board
January 1, 2024
January 1, 2024
January 1, 2024
January 1, 2024

The above standards and interpretations have no significant impact to the Group’s financial
condition and financial performance based on the Group’s assessment.
(3)IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRS
Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between
an investor and its associate or joint venture’

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 21, ‘Lack of exchangeability’

Effective dateby International
AccountingStandards Board
To be determinedby International
AccountingStandards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2025

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

-139-

4. SUMMARY OF MATERIAL ACCOUNTING POLICIESThe principal accounting policies applied in the preparation of these consolidated financial statements
are set out below. These policies have been consistently applied to all the periods presented, unlessotherwise stated.
(1)Compliance statement
The consolidated financial statements of the Group have been prepared in accordance with theRegulations Governing the Preparation of Financial Reports by Securities Issuers, International
Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and
SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as
the “IFRSs”).
(2)Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under
the historical cost convention:(a) Financial assets at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets lesspresent value of defined benefit obligations.
B. The preparation of financial statements in conformity with IFRSs requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in theprocess of applying the Group’s accounting policies. The areas involving a higher degree ofjudgement or complexity, or areas where assumptions and estimates are significant to theconsolidated financial statements are disclosed in Note 5.
(3)Basis of consolidation
A. Basis for preparation of consolidated financial statements:(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries
are all entities (including structured entities) controlled by the Group. The Group controls anentity when the Group is exposed, or has rights, to variable returns from its involvement withthe entity and has the ability to affect those returns through its power over the entity.
Consolidation of subsidiaries begins from the date the Group obtains control of thesubsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealized gains or losses on transactions between
companies within the Group are eliminated. Accounting policies of subsidiaries have beenadjusted where necessary to ensure consistency with the policies adopted by the Group.

-140-

(c) Profit or loss and each component of other comprehensive income are attributed to theshareholders of the parent and to the non-controlling interests. Total comprehensive income
is attributed to the shareholders of the parent and to the non-controlling interests even if thisresults in the non-controlling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing
control of the subsidiary (transactions with non-controlling interests) are accounted for as
equity transactions, i.e. transactions with owners in their capacity as owners. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value ofthe consideration paid or received is recognized directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retainedin the former subsidiary at its fair value. That fair value is regarded as the fair value on initialrecognition of a financial asset or the cost on initial recognition of the associate or joint
venture. Any difference between fair value and carrying amount is recognized in profit orloss. All amounts previously recognized in other comprehensive income in relation to thesubsidiary are reclassified to profit or loss on the same basis as would be required if therelated assets or liabilities were disposed of. That is, when the Group loses control of a
subsidiary, all gains or losses previously recognized in other comprehensive income inrelation to the subsidiary should be reclassified from equity to profit or loss, if such gains orlosses would be reclassified to profit or loss when the related assets or liabilities are disposedof.
B. Subsidiaries included in the consolidated financial statements:
Ownership (%)
December
December31, 2023
31, 2022

Name ofInvestor

Name of
Subsidiary

Transcend
Information,
Inc.

Saffire Investment
Ltd. (Saffire)

Investment
holdings

100

100

Transcend Japan
Inc. (Transcend
Japan)

Import and wholesaleof computer memory
modules

100

100

Transcend
Information Inc.
(Transcend USA)

Import and wholesaleof computer memory
modules

100

100

Transcend Korea
Inc. (Transcend
Korea)

Import and wholesaleof computer memory
modules

100

100

Main Business
Activities-141-

Description

Ownership (%)
December
December31, 2023
31, 2022

Name ofInvestor

Name of
Subsidiary

Main Business
Activities

SaffireInvestment
Ltd.
MemhiroPte. Ltd.

Memhiro Pte. Ltd.
(Memhiro)

Investment holdings

100

100

Transcend
Import and wholesale
Information Europe of computer memory
B.V. (Transcend
modules
Europe)100

100

Transcend
Import and wholesale
Information Trading of computer memory
GmbH (Transcend modules
Germany)
Transcend
Manufacture and sales
Informationof blank medium(Shanghai), Ltd.
such as memory(Transcend
expansion cards andShanghai)external storage
devices, and otherdisk drives and leaseof self-ownedbuildings
Transtech Trading Wholesale, agent,(Shanghai) Co., Ltd. import and export,(Transtech
retail and related
Shanghai)services of
expansion memory
modules, external
storage devices
and related
storage equipment
and components

100

100

100

100

100

100

Transcend
Information (H.K)
Ltd. (Transcend
HK)

100

100

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

-142-

Description

(4)Foreign currency translation
Items included in the financial statements of each of the Group’s entities are measured using thecurrency of the primary economic environment in which the entity operates (the “functional
currency”). The consolidated financial statements are presented in New Taiwan dollars, which is theCompany’s functional and the Group’s presentation currency.
A. Foreign currency transactions and balances(a) Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuation where items are remeasured.
Foreign exchange gains and losses resulting from the settlement of such transactions arerecognized 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
re-translated 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 andliabilities 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; theirtranslation differences are recognized in other comprehensive income. However,non-monetary 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 initialtransactions.
(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 averageexchange rates of that period; and(c) All resulting exchange differences are recognized in other comprehensive income.

-143-

(5)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 thantwelve months after the balance sheet date. Terms of a liability that could, at the option of thecounterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
Otherwise they are classified as non-current liabilities.
(6)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 definition above and are held for the purpose of meeting short-term cash commitments
in operations are classified as cash equivalents.
(7)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 atamortised 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 arerecognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes thetransaction costs in profit or loss. The Group subsequently measures the financial assets at fairvalue, and recognizes the gain or loss in profit or loss.

-144-

(8)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 Group 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 othercomprehensive income are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.
The Group 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 thederecognition 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 theGroup and the amount of the dividend can be measured reliably.
(9)Financial assets at amortised cost
A. Financial assets at amortised cost are those that meet all of the following criteria:(a) The objective of the Group’s business model is achieved by collecting contractual cash
flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognized andderecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.
Interest income from these financial assets is included in finance income using the effective
interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or
impaired.
(10)Accounts and notes receivable
A. Accounts and notes receivable entitle the Group 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.
(11)Impairment of financial assets
For financial assets at amortised cost and accounts receivable that have a significant financing
component, at each reporting date, the Group recognizes the impairment provision for 12 months
expected credit losses if there has not been a significant increase in credit risk since initialrecognition 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-145-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 Group
recognizes the impairment provision for lifetime ECLs.
(12)Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to receive the cash flows
from the financial asset expire.
(13)Leasing arrangements (lessor) - operating leases
Lease income from an operating lease (net of any incentives given to the lessee) is recognized in
profit or loss on a straight-line basis over the lease term.
(14)Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using theweighted-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 inapplying thelower of cost and net realizable value. Net realizable value is the estimated selling price in theordinary course of business, less the estimated cost of completion and the estimated costs
necessary to make the sale.
(15)Investments accounted for using equity method - associates
A. Associates are all entities over which the Group has significant influence but not control. In
general, it is presumed that the investor has significant influence, if an investor holds, directly
or indirectly 20 percent or more of the voting power of the investee. Investments in associates
are accounted for using the equity method and are initially recognized at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit orloss, and its share of post-acquisition movements in other comprehensive income is recognizedin other comprehensive income. When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured receivables, the Group does
not recognize further losses, unless it has incurred legal or constructive obligations or madepayments on behalf of the associate.
C. 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 Group’s ownership percentage ofthe associate, the Group recognizes change in ownership interests in the associate in ‘capitalsurplus’ in proportion to its ownership.
D. Unrealized gains on transactions between the Group and its associates are eliminated to theextent of the Group’s interest in the associates. Unrealized losses are also eliminated unless thetransaction provides evidence of an impairment of the asset transferred. Accounting policies ofassociates have been adjusted where necessary to ensure consistency with the policies adopted-146-

by the Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire newshares proportionately, which results in a change in the Group’s ownership percentage of theassociate but maintains significant influence on the associate, then ‘capital surplus’ and‘investments accounted for under the equity method’ shall be adjusted for the increase or decreaseof its share of equity interest. If the above condition causes a decrease in the Group’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 orloss proportionately on the same basis as would be required if the relevant assets or liabilities were
disposed of.
(16)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
will flow to the Group and the cost of the item can be measured reliably. The carrying amountof the replaced part is derecognized. All other repairs and maintenance are charged to profit orloss 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, plantand 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-147-(17)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 Group. For short-term leases or leases of
low-value assets, lease payments are recognized as an expense on a straight-line basis over thelease term.
B. Lease liabilities include the net present value of the remaining lease payments at thecommencement 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 Group subsequently measures the lease liability at amortised cost using the interest method
and recognizes interest expense over the lease term. The lease liability is remeasured and theamount 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 theinitial measurement of lease liability.
The right-of-use asset is measured subsequently using the cost model and is depreciated fromthe 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.
(18)Investment property
An investment property is stated initially at its cost and measured subsequently using the costmodel. Except for land, investment property is depreciated on a straight-line basis over its
estimated useful life of 10 ~ 55 years.
(19)Impairment of non-financial assets
The Group 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 higherof an asset’s fair value less costs to sell or value in use. When the circumstances or reasons forrecognizing 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 beenrecognized.

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(20)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 andsubsequently 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.
(21)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 tosettle on a net basis or realize the asset and settle the liability simultaneously.
(22)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 berecognized as expense in that period when the employees render service.
B. Pensions(a) Defined contribution plans
For defined contribution plans, the contributions are recognized as pension expenses when
they are due on an accrual basis. Prepaid contributions are recognized as an asset to theextent of a cash refund or a reduction in the future payments.
(b) Defined benefit plansi.

Net obligation under a defined benefit plan is defined as the present value of an amountof pension benefits that employees will receive on retirement for their services with theGroup in current period or prior periods. The liability recognized in the balance sheet inrespect 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 ofgovernment bonds (at the balance sheet date) of a currency and term consistent with thecurrency and term of the employment benefit obligations.

ii. Remeasurements arising on defined benefit plans are recognized in othercomprehensive 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.

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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 thoseamounts can be reliably estimated. Any difference between the resolved amounts and thesubsequently actual distributed amounts is accounted for as changes in estimates.
(23)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 othercomprehensive 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 havebeen 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.
(24)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, theconsideration paid, excluding any directly attributable incremental costs (net of income taxes)
is deducted from equity attributable to the Company’s equity holders.
(25)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 shareson the effective date of new shares issuance.

-150-

(26)Revenue recognition
A. Sales of goods(a) The Group manufactures and sells computer software and hardware, computer peripheral
equipment, and computer component products. When the right of control is transferred tothe 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 tothe customer, and either the customer has accepted the products in accordance with thesales contract, or the Group has objective evidence that all criteria for acceptance have beensatisfied.
(b) Sales revenue is recognized based on contract price, net of sales returns, volume discounts
and estimated sales discounts. The goods are often sold with volume discounts based on
aggregate sales over a one-month period. Sales discounts and allowances are estimated andprovided 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 anassessment 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 theconsideration is unconditional because only the passage of time is required before thepayment is due.
B. Incremental costs of obtaining a contract
Given that the contractual period lasts less than one year, the Group recognizes the incremental
costs of obtaining a contract as an expense when incurred although the Group expects torecover those costs.
(27)Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to theChief Operating Decision-Maker. The Group’s Chief Operating Decision-Maker, who is
responsible for allocating resources and assessing performance of the operating segments, hasbeen identified as the Chairmen of the Board of Directors that makes strategic decisions.
5.

CRITICAL ACCOUNTING JUDGEMENTS,
ASSUMPTION UNCERTAINTY

ESTIMATESAND

KEY SOURCES

OF

The preparation of these consolidated financial statements requires management to make criticaljudgements in applying the Group’s accounting policies and make critical assumptions and estimatesconcerning future events. Assumptions and estimates may differ from the actual results and arecontinually 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:-151-(1) Critical judgements in applying the Group’s accounting policies
Investment property
The Group uses a portion of the property for its own use and another portion to earn rentals or forcapital 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 Group must determine thenet realizable value of inventories on balance sheet date using judgements and estimates. Due to therapid technology innovation, the Group 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 onrecent market price and demand of products in the future specific period, thus there might besignificant changes in the valuation.
As of December 31, 2023, the carrying amount of inventories was $5,003,689.
6. DETAILS OF SIGNIFICANT ACCOUNTS(1)Cash and cash equivalents

December 31, 2023$
441
1,603,099
255,179$
1,858,719

Cash on hand and petty cash
Checking accounts and demand deposits
Time deposits

December 31, 2022$
173
2,519,575
667,564$
3,187,312

A. The aforementioned time deposits pertain to high liquidity investments with maturity within
three months.
B. The Group transacts with a variety of financial institutions all with high credit quality to disperse
credit risk, so it expects that the probability of counterparty default is remote.
C. The Group has no cash and cash equivalents pledged to others.

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

December 31, 2023

Non-current items:
Financial assets mandatorily measured atfair value through profit or loss
Beneficiary certificates
Valuation adjustments$$

December 31, 2022

433,566 $28,168 (461,734 $

61,481
10,018)51,463

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

For the years ended December 31,
2023
2022
Financial assets mandatorily measured at fairvalue through profit or loss
Beneficiary certificates
Financial products$$

38,186 ($38,186 ($17,262)
8,991
8,271)

B. The Group has no financial assets at fair value through profit or loss pledged to others.
(3)Financial assets at amortised cost

Items
Current items:
Time deposits with original maturity of more than
three months
Non-current items:
Corporate bonds

December 31, 2023

December 31, 2022$

8,130,839$

8,611,357$

301,602$-

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

Interest income

For the years ended December 31,
2023
2022
352,396 $87,929

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

-153-

C. The Group transacts time deposits with reputable domestic and foreign banks. The issuers ofordinary corporate bonds which the Group invested are well-known domestic and foreign
enterprises. The Group’s counterparties have good credit quality, so the Group expects that theprobability of counterparty default is remote. The impairment loss is assessed using a 12-month
expected credit loss approach.
(4)Notes and accounts receivable

December 31, 2023
December 31, 2022
$
323 $
867
$
1,247,793 $
1,218,446(462) (
510)

Notes receivable
Accounts receivable
Less: Loss allowance$

1,247,331$

1,217,936

A. As of December 31, 2023 and 2022, the estimated sales discounts and allowances were$105,415 and $92,122, respectively. Since the sales discounts and allowances met therequirements for offset of financial liabilities and financial assets, the net amounts were shown
under accounts receivable.
B. The ageing analysis of accounts receivable and notes receivable is as follows:
December 31, 2023$
1,009,865
225,142
1,701
2,687
8,721
$
1,248,116

Not past due
Up to 30 days
31 to 90 days
91 to 180 days
Over 180 days

December 31, 2022$
962,635
238,088
8,809
5,776
4,005
$
1,219,313

The above ageing analysis was based on past due date.
C. The Group has credit insurance that covers accounts receivable from major customers. Should
bad debts occur, the Group will receive 90% of the losses resulting from non-payment.
D. As of December 31, 2023 and 2022, notes receivable and accounts receivable were all fromcontracts with customers. As of January 1, 2022, the balance of notes receivable and accounts
receivable from contracts with customers amounted to $1,625,783.
E. As at December 31, 2023 and 2022, without taking into account any collateral held or othercredit enhancements, the maximum exposure to credit risk in respect of the amount that best
represents the Group’s notes receivable were $323 and $867, respectively; the maximum
exposure to credit risk in respect of the amount that best represents the Group’s accounts
receivable were $1,247,331 and $1,217,936, respectively.

-154-

F. The Group classifies customers’ accounts receivable in accordance with the credit rating of thecustomer. The Group applies the simplified approach to estimate expected credit loss under theprovision matrix basis.
G. The Group wrote-off the financial assets, which cannot reasonably be expected to be recovered,after initiating recourse procedures. However, the Group will continue executing the recourse
procedures to secure their rights. On December 31, 2023 and 2022, the Group has no written-off
financial assets that are still under recourse procedures.
H. The Group used forecastability, historical and timely information to assess the loss rate ofaccounts receivable. As of December 31, 2023 and 2022, the provision matrix is as follows:Notpast due
December 31, 2023
Expected loss rate
Total book valueOver 180 days
past due

0.002%~0.384% 0.011%~38%$
1,009,542 $
229,530
Not
past due

December 31, 2022
Expected loss rate
Total book value

1-180 days
past due1-180 days
past due$

25%~100%
8,721

Total

$

Over 180 days
past due

0.003%~0.523% 0.017%~38%$
961,768 $
252,673

25%~100%$
4,005

1,247,793

Total

$

1,218,446

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

2023
At January 1
Reversal of impairment
Effect of exchange rate changes

$

510 $
65) (
17

800
295)
5

$

462

510

(

At December 31

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

-155-

2022

$

(5)Inventories

Raw materials
Work in progress
Finished goods$$

Raw materials
Work in progress
Finished goods$$

December 31, 2023
Allowance forvaluation loss($
119,316) $(511)(
3,085)($
122,912) $Book value
3,988,461
423,427
591,801
5,003,689

December 31, 2022
Allowance for
Costvaluation loss
2,743,592 ($446,816) $285,227 (6,256)
601,619 (
34,302)

Book value
2,296,776
278,971567,317

Cost
4,107,777
423,938
594,886
5,126,601

3,630,438 ($487,374) $3,143,064

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

Cost of goods sold(Gain on reversal of) loss on decline in market
value of inventory$($

For the years ended December 31,
2023
2022
7,816,029 $
8,964,753
364,462)
7,451,567 $

434,854
9,399,607

The gain on reversal of decline in market value of inventory for the year ended December 31,
2023 arose from the clearance of inventories which were previously provided with allowanceand the recovery in the net realizable value of certain inventories.
B. No inventories were pledged to others.

-156-

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

Items

December 31, 2023

December 31, 2022

Non-current items:
Equity instruments
Listed stocks
Others$621,815 $
1,125
622,940
3,688 (

684,4131,125
685,538
160,599)$

626,628

524,939

Valuation adjustments$

A. The Group has elected to classify equity investments that are considered to be strategic
investments as financial assets at fair value through other comprehensive income. The fair valueof such investments amounted to $626,628 and $524,939 as at December 31, 2023 and 2022,
respectively.
B. For the years ended December 31, 2023 and 2022, the Group disposed equity investments whose
fair value were $71,776 and $6,179, respectively and the cumulative gains (losses) on disposal
was transferred to retained earnings in the amount of $9,178 and ($2,053), 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:

For the years ended December 31,
2023
2022
Equity instruments at fair value throughother comprehensive income
Fair value change recognized in othercomprehensive income (loss)
Cumulative gains (loss) reclassified toretained earnings due to derecognition
Dividend income recognized in profit or loss
Held at end of year
Derecognized during the year$

173,465 ($

170,069)$

9,178 ($

2,053)$

18,5842,550
21,13435,59235,592$$$

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

-157-

(7)Investments accounted for using equity method

Investee Company
Taiwan IC Packaging Corporation

December 31, 2023$
105,138

December 31, 2022$
136,710

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

AssociatenameTaiwan IC
Packaging Corporation

Principal
place ofbusiness
TaiwanShareholding ratio
December31, 2023
12.51%

December31, 202212.50%Nature of
Method ofrelationship measurement
Note
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 ofvertical integration, Taiwan IC Packaging Corporation processes the raw materials
provided by the Group into relevant semi-finished goods.
B. The Group held a 12.51% equity interest in Taiwan IC Packaging Corporation, and is thecompany’s largest single shareholder. However, the Group does not hold the majority of thevoting power during the shareholders’ meeting of Taiwan IC Packaging Corporation and theGroup does not serve as corporate director of Taiwan IC Packaging Corporation, which indicatethat the Group 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 Group has significant influence over Taiwan IC Packaging Corporation.
C. The summarized financial information of the associate that is material to the Group is asfollows:
Balance sheet

Taiwan IC Packaging Corporation
December 31, 2023
December 31, 2022$
996,963 $
1,218,268
1,129,944
1,151,953(
174,106) (167,786)(
73,302) (75,327)$
1,879,499 $
2,127,108

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Total net assets$

Share in associate’s net assets
Net equity differences

(
$

-158-

235,125 $
129,987) (105,138 $

265,889
129,179)
136,710

Statement of comprehensive income$

Revenue(Loss) profit for the year from continuing
operations
Total comprehensive (loss) income
Dividends received from associates

Taiwan IC Packaging Corporation
For the years ended December 31,
2023
2022
861,693 $1,223,212($($

176,992) $178,367) $84,12896,327$

10,96821,885$

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

Investee Company
Taiwan IC Packaging Corporation($

For the years ended December 31,
2023
2022
20,604) $10,081

E. The Group’s investment in Taiwan IC Packaging Corporation has quoted market price. The fairvalue of Taiwan IC Packaging Corporation was $317,957 and $242,305 as of December 31,
2023 and 2022, respectively.

-159-

(8)Property, plant and equipment

Land
At January 1
Cost
Accumulated depreciation$$

At January 1
Additions (including transfers)
Disposals
Depreciation charge
Net exchange differences$(

At December 31$

At December 31
Cost
Accumulated depreciation$$

Buildings and Machinery andstructures
equipment

2023
Transportationequipment

Officeequipment

OthersTotal

711,572 $ 1,204,122 $- (450,034) (711,572 $ 754,088 $

345,956 $
250,796) (95,160 $28,079 $21,649) (6,430 $

30,619 $22,396) (8,223 $

20,663 $ 2,341,011
15,764) (760,639)
4,899 $ 1,580,372

711,572 $- (5,608) (705,964 $

754,088 $
5,510
31,174) (2,098)
726,326 $

95,160 $16,00547,275) (3
63,893 $

6,430 $
- (3,855) (2,575 $

8,223 $
3,503
2)
4,536) (17
7,205 $

4,899 $ 1,580,372
2,067
27,085- (2)
3,582) (90,422)
1 (
7,685)
3,385 $ 1,509,348

705,964 $ 1,187,112 $- (460,786) (705,964 $ 726,326 $

194,519 $
130,626) (22,360 $19,785) (32,057 $24,852) (7,257 $ 2,149,269
3,872) (639,921)63,893

2,575

7,205

3,385

-160-

$

$

$

$ 1,509,348

Land
At January 1
Cost
Accumulated depreciation$$$

At January 1
Additions (including transfers)
Disposals
Transfers to non-current assets held
for sale
Depreciation charge
Net exchange differences(

At December 31$

At December 31
Cost
Accumulated depreciation$$

Buildings and Machinery andstructures
equipment

2022
Transportationequipment

Officeequipment

OthersTotal

712,136 $ 2,227,274 $- ( 1,146,125) (712,136 $ 1,081,149 $383,459 $268,788) (114,671 $

27,859 $16,915) (10,944 $32,077 $21,226) (10,851 $48,096 $ 3,430,901
35,834) ( 1,488,888)
12,262 $ 1,942,013

712,136-

114,671 $
41,205
121)

10,944 $- (10,851 $
1,477
6) (

12,262 $ 1,942,013
800
50,741483) (
610)

285,968) (54,674) (6,322
754,088 $2,182) (58,517) (104
95,160 $18) (4,525) (29
6,430 $

235) (
4,020) (156
8,223 $

2,023) (290,426)
5,697) (127,433)
40
6,087
4,899 $ 1,580,372

711,572 $ 1,204,122 $- (450,034) (711,572 $ 754,088 $

345,956 $
250,796) (95,160 $28,079 $21,649) (6,430 $

30,619 $22,396) (8,223 $

20,663 $ 2,341,011
15,764) (760,639)
4,899 $ 1,580,372$ 1,081,149 $
7,259
- (

- (
- (
564)
711,572 $A. The relevant assets of the Group recognized as property, plant and equipment are all for self-use.
B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

-161-

(9)Leasing arrangements - lessee
A. The Group leases various assets including land, buildings, and business vehicles. Rental contracts
are typically made for periods of 1 to 11 years. Lease terms are negotiated on an individual basis
and contain a wide range of different terms and conditions. The lease agreements do not impose
covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise certain store locations andoffices. Low-value assets comprise equipment such as printers and water dispensers.
C. The carrying amounts of right-of-use assets and the depreciation charge are as follows:Land
Buildings
Transportation equipment (business vehicles)

Land
Buildings
Transportation equipment (business vehicles)

December 31, 2023
Carrying amount$
128,30938,2882,111$
168,708

December 31, 2022
Carrying amount$
165,858
28,506
1,826$
196,190

For the years ended December 31,
2023
2022
Depreciation charge
Depreciation charge$
37,549 $37,68916,584
15,962785
670$
54,918 $54,321

D. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $27,665
and $196,118, respectively. Details are provided in Note 7(2)E.
E. Information on profit or loss in relation to lease contracts is as follows:

For the years ended December 31,
2023
2022
Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts
Expense on leases of low-value assets

$

3,320
7,653
1,334

$

1,973
8,052
1,472

F. For the years ended December 31, 2023 and 2022, the Group’s total cash outflow for leases were$58,417 and $64,813, respectively.

-162-

(10)Leasing arrangements - lessor
A. The Group leases various assets including land and buildings. Rental contracts are typically madefor 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, 2023 and 2022, the Group recognized rent income in theamounts of $57,569 and $46,891, respectively, based on the operating lease agreement, which
does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

2024
2025
2026
2027
2028

December 31, 2023$
37,444
19,815
12,518776$
70,553

2023
2024
2025
2026
2027

December 31, 2022$
56,162
36,136
21,247
12,061
776$
126,382(11)Investment property
2023
Buildings andstructuresLand
At January 1
Cost
Accumulated depreciation$$

At January 1
Additions
Depreciation charge
Net exchange differences$

At December 31$

At December 31
Cost
Accumulated depreciation

$
$

Total

2,268,726 $- (2,268,726 $

466,845 $
141,640) (325,205 $2,735,571
141,640)
2,593,931

2,268,726 $- (325,205 $489
13,101) (2,593,931
489
13,101)- (2,268,726 $

623) (
311,970 $623)
2,580,696

2,268,726 $- (2,268,726 $

465,607 $153,637) (311,970 $2,734,333
153,637)
2,580,696

-163-

2022
Buildings andstructuresLand
At January 1
Cost
Accumulated depreciation
At January 1$$

2,268,726 $- (2,268,726 $

461,381 $128,019) (333,362 $2,730,107
128,019)2,602,088$

2,268,726

333,362$

2,602,088$- (2,268,726 $

4,082
12,870) (631
325,205 $

4,082
12,870)631
2,593,931

2,268,726 $- (2,268,726 $

466,845 $
141,640) (325,205 $2,735,571
141,640)
2,593,931

Additions
Depreciation charge
Net exchange differences
At December 31
At December 31
Cost
Accumulated depreciation

Total

$
$

$

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

Rental income from investment property
Direct operating expenses arising frominvestment property that generated rental
incomeDirect operating expenses arising frominvestment property that did not generaterental income$

For the years ended December 31,
2023
2022
57,569 $46,891$

12,400$12,169

$

701

$

701

B. The fair value of the investment property held by the Group was $5,053,643 and $5,047,960 as ofDecember 31, 2023 and 2022, respectively. The aforementioned fair values were assessed basedon the transaction prices of similar properties in the same area and are categorized within Level 3
in the fair value hierarchy.
C. No investment property was pledged to others.

-164-

(12)Other non-current assets

December 31, 2023$
32,995
10,52015,849$59,364

Guarantee deposits paid
Prepayment for business facilities
Others

December 31, 2022$
34,8882,912
14,391$
52,191(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 Labor Standards 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 thenumber 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 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, theCompany will make contributions for the deficit by next March.
(b) The amounts recognized in the balance sheet are as follows:
December 31, 2023
Present value of defined benefit obligations $(Fair value of plan assets$
Net defined benefit liability-165-

December 31, 2022

38,359 $29,693) (8,666 $

36,58429,193)
7,391

(c) Movements in net defined benefit liabilities are as follows:
Present value of
defined benefit
obligations
2023
Balance at January 1
Current service cost
Interest expense (income)$Remeasurements:
Return on plan assets(excluding amounts included
in interest income or expense)
Change in financial assumptions
Experience adjustments
Pension fund contribution
Paid pension
Balance at December 31($

Fair value ofplan assets

36,584 ($493
512 (37,589 (29,193) $419)
29,612)

7,391
493
93
7,977

- (

195) (

195)

397
1,957
2,354 (
- (1,584)
38,359 ($195)
1,470) (1,584
29,693) $

397
1,957
2,159
1,470)
8,666

Present value of
defined benefit
obligations
2022
Balance at January 1
Current service cost
Interest expense (income)Remeasurements:
Return on plan assets(excluding amounts included
in interest income or expense)
Change in financial assumptions
Experience adjustments
Pension fund contribution
Balance at December 31

$

(
(
(
$

-166-

Net defined
benefitliability

Fair value ofplan assets

Net defined
benefitliability

38,857 ($550
291 (39,698 (25,454) $196)
25,650)13,403550
95
14,048- (2,071) (2,071)

2,630)
484)
3,114) (- (36,584 ($- (- (2,071) (1,472) (29,193) $2,630)
484)
5,185)
1,472)
7,391

(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-the-counter, 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 fromthe 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 inmanaging and operating that fund and hence the Company is unable to disclose theclassification of plan assets fair value in accordance with IAS 19 paragraph 142. The
composition of fair value of plan assets as of December 31, 2023 and 2022 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

For the years ended December 31,
2023
2022
1.300%
1.400%

Future salary increases rate

1.625%

1.625%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience
Mortality Table.
Because the main actuarial assumption changed, the present value of defined benefit obligation
is affected. The analysis was as follows:

Discount rate
Increase
Decrease
0.25%
0.25%
December 31, 2023
Effect on present value of
defined benefit obligation
December 31, 2022
Effect on present value of
defined benefit obligation

Future salary increases
Increase
Decrease
0.25%
0.25%

($

1,005) $1,045$

1,015 ($

982)($

1,023) $1,065$

1,038 ($

1,002)The sensitivity analysis above is based on one assumption which changed while the otherconditions 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-167-balance sheet are the same.
The methods and types of assumptions used in preparing the sensitivity analysis did notchange compared to the previous period.
(f) Expected contributions to the defined benefit pension plan of the Company for the year ending
December 31, 2024 amount to $1,467.
(g) As of December 31, 2023, the weighted average duration of the retirement plan is 10.76 years.
B. Defined contribution plans(a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the“New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with
R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based
on 6% of the employees’ monthly salaries and wages to the employees’ individual pension
accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lumpsum upon termination of employment.
(b) Transtech Shanghai and Transcend Hong Kong have defined contribution plans. Monthly
contributions to an independent fund administered by the government in accordance with thepension regulations in the People’s Republic of China (PRC) are based on a certain percentageof employees' monthly salaries and wages, ranging from 12.5% to 20%. Other than themonthly contributions, the Group has no further obligations.
(c) Transcend Japan, Transcend Korea, Transcend USA, Transcend Europe and Transcend
Germany have defined contribution plans. Monthly contributions are based on a certain
percentage of employees’ monthly salaries and wages and are recognized as pension costs
accordingly. Other than the monthly contributions, the Group has no further obligations.
(d) The pension costs under the defined contribution pension plans of the Group for the years
ended December 31, 2023 and 2022 were $40,590 and $40,500, respectively.
(14)Share capital
As of December 31, 2023, 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 sharesissued have been collected. The Company’s ordinary shares outstanding at the beginning and at theend of the period were 429,062 thousand shares for the years ended December 31, 2023 and 2022.

-168-

(15)Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of parvalue on issuance of common stocks and donations can be used to cover accumulated deficit or toissue new stocks or cash to shareholders in proportion to their share ownership, provided that theCompany has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires thatthe amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in
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 theremaining amount shall be set aside as legal reserve. The Company shall also set aside special
reserve in accordance with the regulations. On the premise that there is no effect on the
Company’s normal operations and no violation of regulations, the Company shall reserve certain
amount for maintaining stability of dividends. The remainder, if any, is the distributable earnings
to be appropriated as resolved by stockholders at the stockholders’ meeting. The Board of
Directors is authorized by the shareholders to resolve the appropriation of cash dividends and cash
payment from capital surplus by a resolution adopted by a majority vote at its meeting attended by
two-thirds of the total number of directors, which will then be reported to the shareholders.
B. The Company distributes dividends taking into consideration the Company’s economic
environment, growth phases, future demands for funds, long-term financial planning and the cash
flow needs of 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 inproportion 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 shareownership is permitted, provided that the distribution of the reserve is limited to the portion inexcess 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.

-169-

E. (a) The appropriations of earnings and cash payment from capital surplus for the years ended
December 31, 2022 and 2021 have been resolved by the shareholders during their meeting on
June 16, 2023 and June 17, 2022, respectively. Details are summarized below:

For the year ended
December 31, 2022

AmountLegal reserve
Special reserve
Cash dividends$

245,726
167,3032,059,496
2,472,525$

For the year ended
December 31, 2021

Dividends per
share (in dollars)

Amount
$

$

4.80
$

254,464
73,2702,231,121
2,558,855

Dividends per
share (in dollars)$

Cash payment
per share
AmountCash payment from
capital surplus$

343,249

Cash payment
per share(in dollars)
$

0.80

5.20

Amount$343,249(in dollars)$

0.80

Actual distribution of retained earnings for 2022 and 2021 were in agreement with the amounts
resolved by the Board of Directors and shareholders.
(b) The appropriations of earnings and cash payment from capital surplus for the year ended
December 31, 2023 as proposed by the Board of Directors on February 29, 2024 are as
follows:

For the year ended December 31, 2023
Dividends per share
Amount(in dollars)$
199,337(
127,454)
1,930,778 $
4.50$
2,002,661

Legal reserve
Reversal of special reserve
Cash dividends$

Cash payment from capital surplus

Amount214,531

Cash payment
per share (in dollars)$

0.50

As of February 29, 2024, the above appropriations of 2023 earnings have not yet been resolvedby the shareholders.

-170-

(17)Other equity items

At January 1
Revaluation adjustment
Revaluation transferred
to retained earnings
Currency translationdifferences
Effect from income tax
At December 31

At January 1
Revaluation adjustment
Revaluation transferred
to retained earnings
Currency translationdifferences
Effect from income tax
At December 31

2023
Unrealised gains (losses) on
Exchange
valuation of investments indifferences
equity instruments measured on translation offoreign financial
at fair value through othercomprehensive income
statements($
160,599) ($197,218) ($173,465(

9,178)

Total
357,817)
173,465- (9,178)

46,041) (9,208
234,051) ($46,041)
9,208
230,363)2022
Unrealised gains (losses) on
Exchange
valuation of investments indifferences
equity instruments measured on translation of
at fair value through otherforeign financial
comprehensive income
statements$
7,417 ($
197,932) ($(170,069)- (Total
190,515)
170,069)

$

($

- (
3,688 ($

2,053

-

- (
160,599) ($892
178) (
197,218) ($

2,053
892
178)
357,817)(18)Operating revenue$

Sales revenue-171-

For the years ended December 31,
2023
2022
10,496,172 $12,122,350

A. Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods at a point in time in the following
geographical regions:Electronic products
For the year ended
December 31, 2023

Taiwan

Revenue from external$ 2,282,102
customer contracts
For the year ended
December 31, 2022

Taiwan

Revenue from externalcustomer contracts$ 2,803,950

Asia

America

Europe$ 3,631,219$ 1,408,222$ 2,544,180

Others$Electronic products
America
EuropeAsia$ 3,805,341$ 2,038,051$ 2,741,912

630,449
Others$733,096

Total$ 10,496,172
Total$ 12,122,350

B. Contract assets and liabilities
The Group has no revenue-related contract assets and liabilities.
(19)Interest income

Interest income from bank deposits
Interest income from financial assets measured
at amortised cost
Other interest income$$

For the years ended December 31,
2023
2022
37,351 $23,550352,396
5,014
394,761$

87,9293,447
114,926(20)Other income

Rental income
Dividend income

$
$

-172-

For the years ended December 31,
2023
2022
57,569 $46,891
21,13435,59278,703 $82,483

(21)Other gains and losses

Net currency exchange gain
Net gain (loss) on financial assets at fair value
through profit or loss
Gain on disposal of non-current assets held for
sale
Loss on disposals of property, plant andequipment
Others$For the years ended December 31,
2023
2022
89,591 $
320,239
38,186 (($8,271)-

1,324,180

2) (
5,397
133,172 $

448)
8,136
1,643,836(22)Expenses by nature

Wages and salaries
Labor and health insurance fees
Pension costs
Other personnel expenses
Depreciation charges (including investment
property and right-of-use assets)$

For the years ended December 31,
2023
2022
1,094,968 $
1,127,443
120,723
120,044
41,17641,14553,20754,914
158,441

194,624

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’ remuneration.
B. For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at$25,696 and $31,729, respectively, and recognized in salary expenses; while no directors’
remuneration was accrued.
C. The employees’ compensation and directors’ remuneration were estimated and accrued based on
1% and 0% of distributable profit for the year ended December 31, 2023. The employees’
compensation and directors’ remuneration as resolved by the Board of Directors were $24,962 and$2,300, respectively, and the employees’ compensation will be distributed in the form of cash.
D. The differences between employees’ compensation and directors’ remuneration as resolved by the
Board of Directors and the amounts recognized in the 2022 financial statements by $742 and($2,300), respectively, have been adjusted in profit or loss for 2023. The employees' compensationand directors' remuneration had been fully paid.

-173-

E. Information about employees’ compensation and directors’ remuneration of the Company as
resolved at the meeting of Board of Directors 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:

For the years ended December 31,
2023
2022
Current income tax:
Current income tax on profits for the year
Prior year income tax overestimation
Total current income tax
Deferred income tax:
Origination and reversal of temporary
differences
Total deferred income tax

$
(

(
(
$

Income tax expense

626,894 $4,011) (622,883

758,410
13,543)744,867

136,884)
136,884)
485,999 $

157,066
157,066
901,933(b) The income tax relating to components of other comprehensive income is as follows:

For the years ended December 31,
2023
2022
Financial statements translationdifferences of foreign operations($

9,208) $178

B. Reconciliation between income tax expense and accounting profit

Income tax calculated by applying statutory
rate to the profit before tax
Effects from tax exemption and items
disallowed by tax regulation
Temporary differences not recognized asdeferred tax assets
Changes in assessment of realizability ofdeferred income tax assets
Prior year income tax overestimation
Effect from investment tax credits
Withholding tax in other countries
Income tax expense
-174-

$

For the years ended December 31,
2023
2022
510,936 $981,142(

14,021) ((6,262)(($- (4,011) (1,830) (1,187
485,999 $6,458)
64,893)
13,543)
1,990)
7,675
901,933

C. Amounts of deferred income tax assets or liabilities as a result of temporary differences are as
follows:
2023

At January 1
Deferred income tax assets$
Amount of allowance for bad debts
that exceed the limit for tax purpose
Pension provision amount in excess
of appropriation amount
Unused compensated absences
Unrealized sales discounts andallowances
Unrealized gross profit from sales
Unrealized loss on market value
decline and obsolete andslow-moving inventories
Financial statements translationdifferences of foreign operations
Others$
Total
Deferred income tax liabilities
Unrealized exchange gain($
Net gain on investment accounted forusing equity method((
Others($
Total

Recognized in
profit or loss

Recognized inothercomprehensive
incomeAt December 31

282 ($

282) $-

4,809 (
1,746 (

177)
322)

-

4,632
1,424

16,043
987

2,975
2,245

-

19,0183,232

97,475 (72,892)-

24,583

10,887
5,545
137,774 ($2,267
66,186) $

9,208
9,208

$

20,095
7,812
80,79623,027) $19,101$- ($3,926)

353,332)
88)
376,447) $183,9672
203,070

$

- (
- (
- ($

169,365)86)
173,377)

-175-

$

-

2022

At January 1
Deferred income tax assets
Amount of allowance for bad debts
that exceed the limit for tax purpose
Pension provision amount in excess
of appropriation amountRoyalty fees
Unused compensated absences
Unrealized sales discounts andallowances
Unrealized gross profit from sales
Unrealized loss on market value
decline and obsolete andslow-moving inventories
Financial statements translationdifferences of foreign operations
Others
Total
Deferred income tax liabilities
Unrealized exchange gain
Net gain on investment accounted forusing equity method
Others
Total$

Recognized in
profit or loss

350 ($

Recognized inothercomprehensive
income68) $-At December 31$

282

4,974 (
2,171 (
1,165

165)
2,171)
581

-

4,809
1,746

9,536
2,152 (

6,507
1,165)-

16,043987

10,562

86,913-

97,475

11,0655,380
47,355$- (165
90,597 ($178)
178) $

10,887
5,545
137,774($929) ($

22,098) $- ($23,027)((($

127,762) (93)
128,784) ($225,570)5
247,663) $

- (
- (
- ($

353,332)
88)
376,447)$

B. The Company’s income tax returns through 2021 have been assessed and approved by the Tax
Authority.

-176-

(24)Earnings per share

For the year ended December 31, 2023
Weighted-averagecommon shares
Earnings
outstanding
per share
Profit after tax(in thousands)(in dollars)
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
sharesEmployees’ compensation
Profit attributable to ordinary
shareholders of the parent
plus assumed conversionof all dilutive potential
ordinary shares$

1,984,835

429,062$

1,984,835

429,062-391

1,984,835

429,453

$

$

4.63

$

4.62

For the year ended December 31, 2022
Weighted-averagecommon shares
Earnings
outstanding
per share
Profit after tax(in thousands)(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent$

2,454,344

429,062

Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent$

2,454,344

429,062-554

2,454,344

429,616

Assumed conversion of all
dilutive potential ordinary
sharesEmployees’ compensation
Profit attributable to ordinary
shareholders of the parent
plus assumed conversionof all dilutive potential
ordinary shares

$

-177-

$

5.72

$

5.71

(25)Supplemental cash flow information
Investing activities with partial cash payments

Purchase of property, plant and equipment
Less: Transfers from prepayment for businessfacilities
Cash paid during the year$($

For the years ended December 31,
2023
2022
27,085 $50,7412,912) (24,173 $12,416)38,325

7. RELATED PARTY TRANSACTIONS(1)Names of related parties and relationshipNames of related parties
Taiwan IC Packaging Corporation(Taiwan IC Packaging)
Won Chin Investment Inc. (Won Chin)
Cheng Chuan Technology Development Inc.
(Cheng Chuan)Transcend H.K. Ltd.

Relationship with the Group
Associate accounted for using equity method
Other related party
Other related party
Other related party(2)Significant transactions and balances with related parties
A. Operating revenue
For the years ended December 31,
2023
2022
Sales of goods－Taiwan IC Packaging

$

1,100

$

1,309

The sales prices charged to related parties are approximate to those charged to third parties. The
credit term to Taiwan IC Packaging is 30 days after delivery. The credit term to third parties is 30 to
60 days after monthly billings.
B. Purchases

For the years ended December 31,
2023
2022
Purchases of goods－Taiwan IC Packaging

$

-178-

195,954$

221,258

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

Accounts payable:－Taiwan IC Packaging

December 31, 2023

December 31, 2022$$

39,91327,442The payables to related parties arise mainly from purchase transactions, and information on thepayment term is provided in Note 7(2) B. The payables bear no interest.
D. Other payables

Other payables:－Taiwan IC Packaging

December 31, 2023

December 31, 2022

$

$

-

4

Other payables to related parties arise mainly from miscellaneous purchases. The payables bear nointerest.
E. Leasing arrangements – lessee(a) The Company renewed 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 (excluding tax), which was determined based on the appraisal results of YungchengReal Estate Appraisers Firm and CCIS Real Estate Joint Appraisers Firm and renewed at $1,350(including tax) in dollar per square feet/month (tax included) after having a three-party
negotiation. Rent is paid on the contract date and becomes payable on the same date eachfollowing year until the end of the lease. As of December 31, 2023 and 2022, the balance ofrelated right-of-use assets amounted to $128,309 and $165,858 while lease liabilities amounted
to $113,163 and $149,825, respectively.
(b) The Group entered into an office lease contract with its related party, Transcend H.K. Ltd., witha lease term of 1 year from June 1, 2022 to May 31, 2023 and renewed the contract for 1 year
on June 1, 2023. The monthly rental payment is HKD $50 in thousand, which was determinedby reference to the surrounding market quoted price. The Group recognized rental expenses of$2,387 and $2,284 for the years ended December 31, 2023 and 2022, respectively.
(3)Key management compensation
For the years ended December 31,
2023
2022
$
20,709 $68,967
Salaries and other employee benefits-179-

8. PLEDGED ASSETSThe Group’s assets pledged as collateral are as follows:

Pledged assets
Property, plant andequipment

Book value
December 31,
December 31,
2023
2022
Pledge purpose$
112,175 $
121,700 Collateral for general credit
limit granted by financial
institutions

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTCOMMITMENTS
As of December 31, 2023, except for the provision of endorsements and guarantees mentioned in Note13(1) B, there are no other significant commitments.
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Information on distribution of 2023 earnings and cash dividends from capital surplus is provided in Note6(16) E(b).
12. OTHERS(1)Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as agoing concern in order to provide returns for shareholders and to maintain an optimal capital structure
to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell
assets to reduce debt. The Group’s own funds are currently sufficient, daily operations can create
stable cash inflows, and there are no significant capital expenditure plans in the short term. Except for
obtaining loans to reduce the exchange rate exposure, the Group has sufficient funds to cover its own
needs. Debt financing is not necessary.

-180-

(2)Financial instruments
A. Financial instruments by category
December 31, 2023
Financial assets
Financial assets mandatorily measured atfair value through profit or loss
Financial assets at fair value through othercomprehensive income
Financial assets at amortised cost
Cash and cash equivalents
Financial assets at amortised cost
Notes receivable
Accounts receivable
Other receivables
Guarantee deposits paid

Financial liabilities
Financial liabilities at amortised costAccounts payable (including relatedparties)
Other payables (including relatedparties)
Guarantee deposits received
Lease liabilities$

461,734

December 31, 2022$

51,463626,628

524,939$

1,858,719
8,432,441
323
1,247,331
113,104
32,995
12,773,275$

3,187,312
8,611,357
867
1,217,936
77,62634,88813,706,388$

1,831,683$

500,119$$

301,355
34,0482,167,086
154,584$$

271,948
34,339806,406
180,768

B. Financial risk management policies
Risk management is carried out by a central treasury department (Group treasury) under policies
approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks
in close cooperation with the Group’s operating units. The Board provides written principles foroverall risk management, as well as written policies covering specific areas and matters, such as
foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments andnon-derivative financial instruments, and investment of excess liquidity.

-181-

C. Significant financial risks and degrees of financial risks(a) Market risk
Foreign exchange riski.

The Group operates internationally and is exposed to exchange rate risk arising from thetransactions of the Company and its subsidiaries used in various functional currency,
primarily with respect to the USD. Exchange rate risk arises from future commercial
transactions and recognized assets and liabilities.

ii.

The Group’s businesses involve some non-functional currency operations (the Company’sfunctional currency: NTD; the subsidiaries’ functional currencies: JPY, KRW, USD, EUR
and RMB, etc.). The information on assets and liabilities denominated in foreign
currencies whose values would be materially affected by the exchange rate fluctuations is
as follows:

December 31, 2023

Financial assets

Financial liabilities

Financial assets

Financial liabilities

Foreign currency
amountForeign(In
thousands) Exchange rate
Book value
currency
192,283
30.71 $ 5,905,011
USD：NTD $82,5984.327
357,402
RMB：NTD
4,182
33.98
142,104
EUR：NTD
791,4570.2172
171,904
JPY：NTD
1,669,630
0.023939,904
KRW：NTD
5,849
0.9038
179,623
USD：EUR
4,295
1.1521
168,149
GBP：EUR
51,79230.71 $ 1,590,532
USD：NTD $62,252
4.327
269,364
RMB：NTD
December 31, 2022
Foreign currency
amountForeign(In thousands) Exchange rate
Book value
currency
254,448
30.71 $ 7,814,098
USD：NTD $23,9944.408
105,766
RMB：NTD
5,372
32.72
175,772
EUR：NTD
474,455
0.2324110,263
JPY：NTD
1,728,885
0.024642,531
KRW：NTD
5,905
0.9385
181,343
USD：EUR
1,950
1.13
72,326
GBP：EUR
13,05230.71 $
400,827
USD：NTD $97,981
4.408
431,900
RMB：NTD

-182-

iii.

The information on total exchange (loss) gain, including realized and unrealized, arisingfrom significant foreign exchange variation on the monetary items held by the Group forthe years ended December 31, 2023 and 2022 is provided in Note 6(21).

iv.

Sensitivity analysis relating to foreign exchange rate risks is primarily for financial
reporting period-end date of foreign currency monetary item. If the New Taiwan dollar
exchange rate to the U.S. dollar increases or decreases by 1%, the Group’s net income
will decrease or increase by $43,145 and $74,133 for the years ended December 31, 2023
and 2022, respectively.

Price riski.

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

ii.

The Group’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, other components ofequity for the years ended December 31, 2023 and 2022 would have increased/decreased
by $6,266 and $5,249, 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 riski.

The Group’s principal interest-bearing assets are cash and cash equivalents and financial
assets at amortised cost. Cash and cash equivalents are due within twelve months.
Financial assets at amortised cost are maintained at fixed rates. Therefore, it is assessedthat there is no significant cash flow interest rate risk.

ii.

The Group has not used any financial instruments to hedge its interest rate risk.

(b) Credit riski.

Credit risk refers to the risk of financial loss to the Group arising from default by theclients 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.

ii.

The Group manages its credit risk taking into consideration the entire group’s concern.
According to the Group’s credit policy, each local entity in the Group is responsible formanaging and analyzing the credit risk for each of their new clients before standard-183-

payment and delivery terms and conditions are offered. To control internal risk, the Groupassesses the credit quality of the customers, taking into account their financial position,
past experience and other factors. Individual risk limits are set based on internal orexternal ratings in accordance with limits set by the Board of Directors. The utilisation of
credit limits is regularly monitored.
iii. The Group 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 asignificant increase in credit risk on that instrument since initial recognition.
v.

For details of credit risk in relation to accounts receivable and notes receivable, refer toNote 6(4).

(c) Liquidity riski.

Cash flow forecasting is performed in the operating entities of the Group and aggregatedby Group treasury. Group treasury monitors rolling forecasts of the Group’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 Group treasury. Group 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, 2023 and2022, the Group held money market position of $10,451,292 and $11,850,132,
respectively, that are expected to readily generate cash inflows for managing liquidity
risk.

iii. The Group’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 Group’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 offinancial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that theentity can access at the measurement date. A market is regarded as active where amarket in which transactions for the asset or liability take place with sufficientfrequency and volume to provide pricing information on an ongoing basis. The fairvalue of the Group’s investment in listed stocks and beneficiary certificates is includedin Level 1.
-184-

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly. The fair value of the Group’s investment in
non-hedging derivatives is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment
in equity investment without active market, financial products and investment property
is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(11).
C. Financial instruments not measured at fair value
The carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable,accounts receivable, other receivables, guarantee deposits paid, accounts payable (including related parties),
other payables (including related parties), guarantee deposits received, and lease liabilities are approximate
to their fair values.
D. The related information on financial and non-financial instruments measured at fair value by levelon the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
December 31, 2023
AssetsRecurring fair value measurements
Financial assets at fair value throughprofit or loss
Beneficiary certificates
Financial assets at fair value throughother comprehensive income
Equity securities

December 31, 2022
AssetsRecurring fair value measurements
Financial assets at fair value throughprofit or loss
Beneficiary certificates
Financial assets at fair value throughother comprehensive income
Equity securities

Level 1$

461,734

625,503$ 1,087,237

Level 2

$

-

$

-

Level 1$

51,463$523,814575,277-185-

Level 3

Total

$

-

$

1,125
1,125

Level 2$626,628$ 1,088,362

Level 3

$

-

$

-

461,734

Total

$

-

$

1,125
1,125

$

51,463$524,939
576,402

E. The fair value of financial instruments traded in active markets is based on quoted market prices atthe balance sheet date. A market is regarded as active if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency,
and those prices represent actual and regularly occurring market transactions on an arm’s length
basis. The quoted market price used for financial assets held by the Group is the closing price.
These instruments are included in Level 1. Instruments included in Level 1 comprise primarily
listed stocks classified as financial assets at fair value through other comprehensive income andbeneficiary certificates classified as financial assets at fair value through profit or loss.
F. For the years ended December 31, 2023 and 2022, there were no transfers between Level 1 andLevel 2.
G. If one or more of the significant inputs is not based on observable market data, the instrument isincluded in level 3.
H. The financial products purchased for the year ended December 31, 2022 were categorised as Level
3.
I. Financial segment is in charge of valuation procedures for fair value measurements being
categorised within Level 3, which is to verify independent fair value of financial instruments.
Such assessment is to ensure the valuation results are reasonable by applying independent
information to make results close to current market conditions and frequently review the fairvalue.
J. The qualitative information of significant unobservable inputs to valuation model used in Level 3
fair value measurement is as follows: financial products are income investments, and thejudgements of their valuation technique and significant unobservable inputs are based on the cash
flow of individual contract.
13. SUPPLEMENTARY DISCLOSURES(1)Significant transactions information
A. Loans to others: None.
B. Provision of endorsements and guarantees to others: 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: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

-186-

G. Purchases or sales of goods from or to relate parties reaching NT$100 million or 20% of theCompany’s paid-in capital or more: Refer to table 3.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:
Refer to table 4.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Refer to table 5.
(2)Information on investees
Names, locations and other information of investee companies (not including investees in Mainland
China):Refer to table 6.
(3)Information on investments in Mainland China
A. Basic information: Refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies
in the Mainland Area: Refer to table 5.
(4)Major shareholders information
Major shareholders information: Refer to table 8.
14. SEGMENT INFORMATION(1)General information
The Group operates business only in a single industry. The Chairman of the Board of Directors who
allocates resources and assesses performance of the Group as a whole, has identified that the Grouphas only one reportable operating segment.
(2)Segment information
The segment information provided to the Chief Operating Decision-Maker for the reportablesegments is as follows:

Segment revenue$

Segment income$

For the years ended December 31,
2023
2022
10,496,172 $12,122,350
1,984,835$

2,454,344(3)Reconciliation for segment income (loss)
Sales between segments are carried out at arm’s length. The revenue from external customers
reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in thestatement of comprehensive income.
-187-

(4)Information on products and services
All external customer revenue comes from sale of electronic products. Refer to Note 6(18)A for
details.
(5)Geographical information
For details of geographical information of the Group’s revenue, refer to Note 6(18)A. The
information on the Group’s non-current assets is as follows:
December 31, 2023
Non-current assets$
4,030,403
195,171
49,261
43,281$
4,318,116

TaiwanAsia
America
EuropeTotal

December 31, 2022
Non-current assets$
4,127,633
190,780
59,82844,443$
4,422,684(6)Major customer information
There was no revenue from a single customer which accounted for more than 10% of the Group’s
total revenue for the years ended December 31, 2023 and 2022.

-188-

T ranscend Information, Inc. and Subsidiaries
Provision of endorsements and guarantees to others
For the year ended December 31, 2023
T able 1

Expressed in thousands of NT D
(Except as otherwise indicated)
Maximum

Ratio of

Party being

Limit onoutstanding

Outstanding

endorsed/guaranteed

endorsements/

endorsement/

endorsement/

Provision of

accumulated
Amount ofendorsements/ Provision ofendorsement/

Ceiling on total

Provision ofguarantees by endorsements/ endorsements/

Relationship withguarantees

guarantee

guarantee

Actualamount ofparentguarantees by

guarantees tothe endorser/

provided for aamount as ofamount at

amount drawn

guarantees

net asset value ofendorsements

company tosubsidiary to

the party inthe endorser//guarantees

subsidiaryparentMainlandguarantor company provided (Note 7)(Note 8)company

China

Footnote

2

Y

-

-

-

endorsements/ guarantee amount to

NumberEndorser/Company

guarantor

single party

December 31,

December 31,

down

secured with(Note 1)guarantor

name(Note 2)

(Note 3)2023 (Note 4)2023 (Note 5)(Note 6)collateral0

T ranscend
T aiwan

T ranscend
Japan Inc.

2

$ 3,853,742$

461,800(JPY2,000,000)(In thousands)$

434,400

$

-

-

$

7,707,484(JPY2,000,000)(In thousands)

Note 1: T he numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:(a) T he Company is ‘0’.
(b) T he 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) T he endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(c) T he endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(d) T he 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. ($19,268,710*20%=$3,853,742)
Note 4: T he maximum outstanding endorsement/guarantee amount during and as of December 31, 2023 is JPY$2,000,000 (In thousands).
Note 5: T he amount was approved by the Board of Directors.
Note 6: T he actual amount of endorsement drawn down is $0.
Note 7: Not exceeding 40% of the Company’s net asset value. ($19,268,710*40%=$7,707,484)
Note 8: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary.

-189-

T ranscend Information, Inc. and Subsidiaries
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2023
T able 2

Expressed in thousands of NT D
(Except as otherwise indicated)
As of December 31, 2023
Marketable securities

Relationship with the

General

Number ofBook value

Ownership(Note 1)securities issuer (Note 2)

ledger accountshares(Note 3)(%)

T rendForce Corporation-

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

Fubon Financial Holding Co., Ltd.
Preferred Shares B-"

T aiwan Semiconductor
Manufacturing Co., Ltd.

-"MediaT ek Inc.

-

Fubon Financial Holding Co., Ltd.

-

Securities held by
T ranscend T aiwan

Footnote
Fair value(Note 4)

StocksCathay Financial Holding Co. Ltd.

-

Yuanta Financial Holding Co., Ltd.

-60,816

$

1,125

1

1,758,000

105,304

420,000

$

1,125

-

-

105,304-

249,060-

249,060-

40,00040,600-40,600-1,176,384

76,230-76,230-216,323

9,897

-

9,897

-

121,272

3,347

-

3,347

-

100,000

2,835

-

2,835

262,000

20,750-20,750-117,480-

117,480-

278,620

-

"
"
"
"
"

CT BC Financial Holding Co., Ltd
Formosa Plastics Corporation-

ASUST ek Computer Inc.

-""
240,000$

626,628$

278,620-

1,197,000

44,768-44,768-1,440,000

111,096-

111,096-

27,250-27,250-Beneficiary certificates
Yuanta/P-shares T aiwan T op 50
ET F-

Financial assets at fair value
through profit or loss
- non-current

Yuanta/P-shares T aiwan Dividend
Plus ET F ""Fubon FT SE T WSE T aiwan 50
ET F
Cathay MSCI T aiwan ESG
Sustainability High Dividend
Yield ET F"

2,057,000$"
1,250,000$-190-

461,734

T ranscend Information, Inc. and Subsidiaries
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2023
T able 2

Expressed in thousands of NT D
(Except as otherwise indicated)
As of December 31, 2023

Securities held by
T ranscend T aiwan

Marketable securities

Relationship with the

General

Number ofBook value

Ownership(Note 1)securities issuer (Note 2)

ledger accountshares(Note 3)(%)-

Financial assets at amortised
cost - non-current

1,850,000

-

"

-

"

Footnote
Fair value(Note 4)

Corporate bonds
T SMC Arizona Corporation U.S.
dollar-denominated corporate
bonds
International Business Machines$56,287-2,250,000

68,4851,650,000$

56,287--

68,485-47,825-47,825-

1,100,000

33,185-33,185-2,000,000

60,352-60,352-250,000

7,754

-

7,754

-

27,714-27,714-

Corporation U.S.
dollardenominated corporate bonds
Meta Platforms, Inc. U.S. dollardenominated corporate bonds
PAYPAL HOLDINGS, INC. U.S.
dollar-denominated corporate
Intel Corporation U.S. dollardenominated corporate bonds
Mercedes-Benz Finance North
America LLC U.S.
dollardenominated corporate bonds
T oyota Motor Credit Corporation
U.S. dollar-denominated corporate
bonds

-

"
"
"

"
900,000$

301,602

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 themarketable 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.

-191-

T ranscend Information, Inc. and Subsidiaries
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, 2023
T able 3

Expressed in thousands of NT D
(Except as otherwise indicated)
Differences in transaction terms compared to
T ransaction
Relationship with theSalescounterparty(purchases)

Purchaser/seller

Counterparty

T ranscend
Information, Inc.

T ranstech T rading(Shanghai) Co., Ltd.

Subsidiary of Memhiro"

T ranscend Japan Inc.

T he Company’s
subsidiary"

T ranscend Information
Europe B.V.

"

Sales

Amount$third party transactions (Note)

Percentage

Percentage ofof total sales

total notes/accounts(purchases)

Credit term

Unit price920,0559"477,224

5""

Subsidiary of Memhiro"

488,648

5"

T ranscend Information
Inc.

T he Company’s
subsidiary"

676,850

7"

T ranscend Korea Inc.

T he Company’s
subsidiary"328,522"

T ranscend Information
T rading GmbH

Subsidiary of Memhiro"

T ranscend
Information
Europe B.V.
T ranscend
Information, Inc.

T ranscend Information
T rading GmbH

Controlled by the same
ultimate parent company"

T aiwan IC Packaging
Corporation

Associate accounted forusing equity method(Purchase)(

Notes/accounts receivable (payable)

Credit term

120 days after No significant 30 to 60 days after monthly
monthly billings
difference billings to third parties

Balance$receivable (payable)

Footnote

355,43926-"

156,821

11

-

"

"

83,998

6

-

"

"

"

30,476

2

-

3

"

"

"

39,904

3-

307,547

3

"

"

"

-

-

-

126,51121

30 days after
delivery"

7 to 60 days after delivery to
third parties

5,548

10

-

195,954)(2)

30 days aftermonthly billings"

30 to 45 days after monthly (billings to third parties

39,913)(2)-

Note: T he 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.

-192-

T ranscend Information, Inc. and Subsidiaries
Receivables from related parties reaching NT $100 million or 20% of paid-in capital or more
For the year ended December 31, 2023
T able 4

Expressed in thousands of NT D
(Except as otherwise indicated)

Overdue receivables

Balance as at
Creditor

Counterparty

T ranscend Information, Inc. T ranscend Japan Inc.
"
T ranscend Information(Shanghai), Ltd.

Amount collected

Relationship

December 31,

subsequent to the

Allowance forwith the counterparty

2023

balance sheet date

doubtful accounts

T he Company’s subsidiary$

T urnover rate

Amount156,821

3.64$

Action taken--$

76,862-T ranstech T rading (Shanghai) Co., Ltd.

Subsidiary of Memhiro

355,439

4.01

-

-

294,195-

T ranscend Information, Inc.

Ultimate parent company

252,679-

252,679

-

-

-

-193-

T ranscend Information, Inc. and Subsidiaries
Significant inter-company transactions during the period
For the year ended December 31, 2023
T able 5

Expressed in thousands of NT D
(Except as otherwise indicated)
T ransaction

NumberRelationship

General ledger(Note 1)Company nameCounterparty(Note 2)

account0

T ranscend Information, Inc.

T ranstech T rading (Shanghai) Co., Ltd.

1

Sales

"

"

T ranscend Japan Inc.

"

"

"

T ranscend Information Europe B.V.

"

"

"

T ranscend Information Inc.

"

"

"

Percentage of consolidated total operating
Amountrevenues or total assets (Note 3)

920,055

T here is no significant
difference in unit pricefrom those to third parties.

9"477,224"5"

488,648

"

5

"

"

676,850"

6

T ranscend Information T rading GmbH""

307,547"

3"

T ranscend Korea Inc.

""

328,522

"

3

"

"

T ranstech T rading (Shanghai) Co., Ltd.

"

Accounts receivable

355,439120 days after monthly billings

2

"

"

T ranscend Information (Shanghai), Ltd.

"

Accounts payable

252,679)

120 days after monthly billings

T ranscend Information Europe B.V. T ranscend Information T rading GmbH

3

Sales

126,511

T here is no significant
difference in unit pricefrom those to third parties.

1$

T ransaction terms(((Individual transactions not exceeding 1% of the consolidated total revenue and total assets are not disclosed.)
Note 1: T he 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 todisclose 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.

-194-

1)
1

T ranscend Information, Inc. and Subsidiaries
Information on investees
For the year ended December 31, 2023
T able 6

Expressed in thousands of NT D
(Except as otherwise indicated)

Initial investment amount

Shares held as at December 31, 2023
Net profit (loss) Investment incomeof the investee

Balance as at

December 31, December 31,
Investor

Investee

Location

Main business activities

by the Company

ended December

for the year ended

31, 2023

December 31, 2023

Number of shares(%)

Book value

216,8296,600,000

100$

89,103

89,1036,400

100

93,79947,77847,778

United States Wholesale of computer memoryof America
modules and peripheral products

38,592

38,592625,000100

178,826

308,147

308,147

T ranscend Korea Inc.

Korea

Wholesale of computer memory
modules and peripheral products

6,132

6,132

40,000100

12,894

4,704

4,704

T aiwan IC Packaging
Corporation

T aiwanPackaging of Semi-conductors

354,666

354,666

21,928,036

12.51

105,138 (

176,992) (22,128)

Saffire Investment
Ltd.

Memhiro Pte Ltd.

Singapore

Investment holdings

173,702173,7028,277,609

100

812,830

26,962

26,962

Memhiro Pte Ltd.

T ranscend Information
Europe B.V.

Netherlands

Wholesale of computer memory
modules and peripheral products

1,693

1,693

100

100

250,857

6,827

6,827

T ranscend Information
T rading GmbHGermany

Wholesale of computer memory
modules and peripheral products

2,288

2,288

-

100

131,736

4,230

4,230

T ranscend Information(H.K.) Ltd.

Hong Kong

Wholesale of computer memory
modules and peripheral products

7,636

7,636

2,000,000

100

11,161

1,399

1,399

T ranscend
Information, Inc.

Saffire Investment Ltd.

B.V.I.

Investment holdings

T ranscend Japan Inc.

Japan

Wholesale of computer memory
modules and peripheral products

T ranscend Information
Inc.

2023
$

216,8292022

Ownership(loss) recognized

for the year

Balance as at

$

-195-

851,409$

29,135$

29,135

Footnote

T able 7

T ranscend Information, Inc. and Subsidiaries

Expressed in thousands of NT D

Information on investments in Mainland China(Except as otherwise indicated)Year ended December 31, 2023
Amount remitted fromT aiwan to Mainland
Accumulated

China/Amount remitted

Accumulated

amountback to T aiwan for

amount of

Net incomeof remittance fromthe year ended

remittance(loss)

Ownership

recognizedBook value ofDecember 31, 2023

from T aiwan toof investee forheld byby the Company

investments in

T aiwan toInvestee in
Mainland China

Main business activities

T ranscend
Manufacture and sales ofInformation
computer memory modules,(Shanghai), Ltd. storage products and disks,and lease of self-ownedbuildings
T ranstech
T rading(Shanghai) Co.,Ltd.

Paid-in capital$

Wholesale, agent, importand export and retail ofcomputer memory modules,
storage products andcomputer components

Investment

Accumulated

income (loss)

amountInvestment

Mainland China

Remitted toRemitted Mainland China as of the year ended the Company for the year ended Mainland China

methodas of January 1,

Mainlandback toDecember 31,

December 31,(direct orDecember 31,

as of December（Note 1）

2023

China

T aiwan

2023

2023

indirect)2023 (Note 2)

31, 2023

150,787--

16,310--150,7872

16,3102

Investment

Ceiling onamount approved

investments in$$

150,787$

16,310

4,291

100

9,162

100

$

4,291

9,162

$

322,804

66,556by the Investment Mainland China
Accumulated amount ofCommission ofremittance from T aiwan to

the Ministry of

Investment

Mainland China as of

Economic Affairs

Commission of

December 31, 2023$

167,097

imposed by the(MOEA)$

167,097

MOEA$

11,561,226

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) T hrough investing in an existing company in the third area (Memhiro Pte Ltd.), which then invested in Mainland China.
(3) Others.
Note 2: T he 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: T he numbers in this table are expressed in New T aiwan Dollars.
Note 4: For the year ended December 31, 2023, T ranscend Information (Shanghai), Ltd. remitted back gain on investments of $817,580 (RMB 187,800 thousand) which was based on the exchange rate of RMB 1=4.35.

-196-

of investment
incomeremitted back to
T aiwan as ofDecember 31, 2023 Footnote$

2,281,608-

Note 4-

T ranscend Information, Inc. and Subsidiaries
Major shareholders information
December 31, 2023
T able 8

SharesName of major shareholders

Number of shares held

Shareholding ratio

Won Chin Investment Inc.

74,783,600

17.42

Wan An T echnology Inc.

34,149,854

7.95

Cheng Chuan T echnology Development Inc.

32,971,701

7.68

Wan Min Investment Inc.

29,726,397

6.92

Wan Chuan Investment Inc.

29,505,896

6.87

-197-

6.5. Financial Statements of Parent Company Only for the Years Ended December 31,
2023 and 2022, and Independent Auditors’ Report
INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR 23000329
To the Board of Directors and Shareholders of Transcend Information, Inc.
OpinionWe have audited the accompanying parent company only balance sheets of Transcend
Information, Inc. (the “Company”) as at December 31, 2023 and 2022, and the relatedparent 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 material 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,
2023 and 2022, and its financial performance and its cash flows for the years then endedin 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 Financial
Statement Audit and Attestation Engagements of Certified Public Accountants andStandards on Auditing of the Republic of China. Our responsibilities under thosestandards are further described in the Independent Auditors’ responsibilities for the auditof 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 otherethical 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.

-198-

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the Company’s 2023 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.
Key audit matters for the Company’s 2023 parent company only financial statements arestated as follows:
Valuation of inventories
Description
Refer to Notes 4(13), 5(2) and 6(5) to the parent company only financial statements forthe information on the Company’s inventory accounting policy, estimates andassumptions 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, themarket prices change frequently. Since the Company’s inventories and the allowance forinventory valuation losses are material to the financial statements, the valuation of
inventories has been identified as one of the key audit matters.
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 thereasonableness of the policy and procedures to recognize allowance for inventory
valuation losses.
B. Obtained an understanding of the Company’s inventory control procedures.

-199-

Reviewed annual inventory count plan and observed the annual physical count ofmaterial 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 accuracyof information to assess the reasonableness of allowance for inventory valuation
losses.
Estimation of allowance for sales discounts
Description
In consideration of business volume, the Company provides a variety of businessincentives to specific customers or products, and based on that, the Company canestimate the allowance for sales discounts monthly. Refer to Notes 4(25) and 6(4) to theparent company only financial statements for the information on the estimation ofallowance 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 one of the key audit matters.
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 theprocedures 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 ofallowance determined by the Company.
Responsibilities of management and those charged with governance for the parent
company only financial statements-200-

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, asapplicable, matters related to going concern and using the going concern basis ofaccounting 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 foroverseeing the Company’s financial reporting process.
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 tofraud or error, and to issue an auditors’ report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with the Standards on Auditing of the Republic of China will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered 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 ofChina, we exercise professional judgement and professional skepticism throughout theaudit. 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 andappropriate to provide a basis for our opinion. The risk of not detecting a material-201-

misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, orthe 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 ofaccounting estimates and related disclosures made by management.
D. Conclude on the appropriateness of management’s use of the going concern basis ofaccounting 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 therelated disclosures in the parent company only financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on theaudit 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 amanner that achieves fair presentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the Company to express an opinion on theparent company only financial statements. We are responsible for the direction,
supervision and performance of the audit. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

-202-

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence, and to communicate withthem 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 thata matter should not be communicated in our auditors’ 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
February 29, 2024------------------------------------------------------------------------------------------------------------------------------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 andpractices in the Republic of China governing the audit of such financial statements may differ from thosegenerally accepted in countries and jurisdictions other than the Republic of China. Accordingly, theaccompanying 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 parent company only 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.

-203-

TRANSCEND INFORMATION, INC.
PARENT COMPANY ONLY BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Assets

December 31, 2023
AMOUNT%

Notes

December 31, 2022
AMOUNT%

Current assets
1100

Cash and cash equivalents

6(1)

1136

Financial assets at amortised cost -

6(3)

$

current

1,214,553

58,060,820$

1,812,082

9

36

8,527,800

39

1150

Notes receivable, net

6(4)

323

-

867

-

1170

Accounts receivable, net

6(4)689,5543

720,97331180

Accounts receivable - related parties

7

688,9233

423,847

2

1200

Other receivables

112,946

1

21,627-

130X

Inventories

4,940,866

22

3,069,913

14

1479

Other current assets

1,845

-

1,270

-

15,709,830

70

14,578,379

67

461,7342

51,463-626,6283

524,9393

301,6021--

1,242,066

6

2,252,378

10

1,316,764

6

1,374,912

6

128,3091

165,858

1

11XX

6(5)

Total current assets
Non-current assets

1510

Financial assets at fair value through6(2)profit or loss - non-current
1517

Financial assets at fair value through6(6)other comprehensive income non-current
1535

Financial assets at amortised cost -6(3)non-current
1550

Investments accounted for using

6(7)equity method
1600

Property, plant and equipment

6(8)

1755

Right-of-use assets

6(9) and 7

1760

Investment property, net

6(11)2,547,461

11

2,555,793

12

1840

Deferred income tax assets

6(23)69,255-

126,380

1

1900

Other non-current assets

6(12)37,869-31,070-6,731,688

30

7,082,793

33

22,441,518

100

21,661,172

100

15XX
1XXX

Total non-current assets
Total assets$(Continued)

-204-

$

TRANSCEND INFORMATION, INC.
PARENT COMPANY ONLY BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Liabilities and equity

December 31, 2023
AMOUNT%

Notes

December 31, 2022
AMOUNT%

Current liabilities
2170

Accounts payable

2180

Accounts payable - related parties

2200

Other payables

2220

Other payables - related parties

2230

Current income tax liabilities

2280

Lease liabilities - current

2300

Other current liabilities

21XX

$
7

7

7

Total current liabilities

1,790,529

8

298,728$

471,7133

2443,5912

266,495

1

209,400

1

16,683-

17,692-

491,4252

422,7742

37,187-36,662

-

3,751

-

3,086

-

2,904,798

13

1,604,918

8

Non-current liabilities
2570

Deferred income tax liabilities

6(23)173,3771

376,44522580

Lease liabilities - non-current

775,976-113,163-

2600

Other non-current liabilities

6(13)18,657-

16,110-268,0101

505,718

2

3,172,808

14

2,110,636

10

4,290,617

19

4,290,617

20

3,044,619

13

3,387,781

16

25XX

Total non-current liabilities

2XXX

Total liabilities
EquityShare capital

3110

6(14)

Common stock
Capital surplus

3200

6(15)

Capital surplus
Retained earnings

6(16)

3310

Legal reserve

5,303,693

24

5,057,967

23

3320

Special reserve357,8172

190,5141

3350

Unappropriated retained earnings

6,502,327

29

6,981,474

32

Other equity interest
3400

Other equity interest

3XXX

Total equity
Significant contingent liabilities and

6(17)
(

230,363) (1) (19,268,710

86

22,441,518

100

357,817) (2)

19,550,536

90

21,661,172

100

9unrecognized contract commitments
Significant events after the balance sheet 11
date
3X2X

Total liabilities and equity$$

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

-205-

TRANSCEND INFORMATION, INC.
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

8500

Items
Notes
Operating revenue
6(18) and 7
Operating costs
6(5)(22) and 7
Gross profit
Unrealized profit from sales
Realized profit from sales
Realized gross profit
Operating expenses
6(22)Sales and marketing expenses
Administrative expenses
Research and development expenses
Total operating expenses
Operating profit
Non-operating income and expenses
Interest income
6(3)(19)
Other income
6(6)(10)(11)(20)
Other gains and losses
6(2)(21) and 7
Finance costs
6(9)Share of profit of subsidiaries,
6(7)associates and joint ventures
accounted for using the equity
methodTotal non-operating income andexpensesProfit before income tax
Income tax expense
6(23)Profit for the year
Other comprehensive income (loss)
Components of othercomprehensive income (loss) thatwill not be reclassified to profit orloss(Loss) gain on remeasurements of
6(13)defined benefit plan
Unrealized gain (loss) on financial
6(6)(17)
assets at fair value through othercomprehensive income
Share of other comprehensive
6(7)income (loss) of associates and joint
ventures accounted for using equity
methodComponents of othercomprehensive income (loss) thatwill be reclassified to profit or loss
Financial statements translation
6(7)(17)differences of foreign operations
Income tax related to components of 6(17)(23)
other comprehensive income thatwill be reclassified to profit or loss
Other comprehensive income (loss)
for the year
Total comprehensive income

9750
9850

Earnings per share (in dollars)
Basic earnings per share
Diluted earnings per share

4000
5000
5900
5910
5920
5950
6100
6200
6300
6000
6900
7100
7010
7020
7050
7070

7000
7900
7950
8200

8311
8316
8330

8361
8399
8300

$
(
(

(
(
(
(

For the years ended December 31
2023
2022
AMOUNT%AMOUNT
9,879,469
100 $11,386,995
7,409,205) (75) (9,278,593) (2,470,264
25
2,108,402
16,316)- (3,455)
3,455
10,1062,457,403
25
2,115,053

%
100
81)
19
19

317,083) (181,690) (132,973) (631,746) (1,825,657

3) (
2) (
2) (
7) (
18

314,858) (207,177) (137,105) (659,140) (1,455,913

3)
2)
1)
6)
13

374,837
78,703
145,851
1,822)

4
1
2- (96,934
82,483217,979
1,239)

1
1
2-

47,306-

1,214,903

10$

644,875
2,470,532
485,697) (1,984,835

7
25
5) (
20 $

1,611,060
3,066,973
612,629) (2,454,344

14
27
6)
21

($

2,159)

-

5,185

-

173,465

2 (

170,069) (

1)

1,524

- (

219)

-

46,041) (

1)

892

-

9,208

- (

178)

-

135,997
2,120,832

1 ($
21 $

(

(

(

$
$

$

164,389) (2,289,955

1)
20

6(24)
$
$

4.63
4.62

$
$

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

-206-

5.72
5.71

TRANSCEND INFORMATION, INC.
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars)
Capital Reserves

Common stock

Additional paid-in
capitalDonated assets
received

Net assets frommergerLegal reserve

Special reserve

Unappropriatedretained earnings

Other Equity Interest
Unrealised gains(losses) on
Financialfinancial assets atstatements
fair value throughtranslation
other
differences ofcomprehensive
foreign operations
incomeBalance at January 1, 2022

$ 4,290,617

$

$

$

$

$

$

($

Net income for the year

-

-

-

-

-

-

2,454,344

-

-

-

-

-

-

-

4,966

714

(

170,069 )

-

-

-

-

-

-

2,459,310

714(

170,069 )Legal reserve

-

-

-

-

254,464-(

254,464 )--Cash dividends

-

-

-

-

-

-

(

2,231,121 )--Special reserve

-

-

-

-

-

73,270(73,270 )Cash payment from capital surplus

-

-

-

-

-

116

-

-

-

(

Notes

Retained Earnings

Total equity

For the year ended December 31, 2022

Other comprehensive income (loss)

6(6)(17)

Total comprehensive income (loss)
Appropriations and distribution of 2021 earnings

Net loss on disposal of financial assets at fair value throughother comprehensive income
Expired unclaimed dividends recognized as capital surplus

3,691,432

4,354

35,1284,803,503

117,244

7,083,072

197,932 )

$

7,417

$ 19,834,835-

2,454,344(

164,389 )2,289,955

6(16)

(

343,249 )

-

-

-

-

-

2,053 )
-

-

2,053
-

(

2,231,121 )(

343,249 )-6(6)(17)-

Balance at December 31, 2022-

116

$ 4,290,617$

3,348,183

$

4,470

$

35,128$5,057,967$

190,514$

6,981,474($

197,218 )($

160,599 )$ 19,550,536

Balance at January 1, 2023

$ 4,290,617$

3,348,183

$

4,470

$

35,128$5,057,967$

190,514$

6,981,474($

197,218 )($

160,599 )$ 19,550,536

Net income for the year

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Legal reserve

-

-

-

-

245,726-(

245,726 )--Cash dividends

-

-

-

-

-

-

(

2,059,496 )--Special reserve

-

-

-

-

-

167,303(

167,303 )--Cash payment from capital surplus

-

-

-

-

-

-

-

-

87

-

-

-

9,178
-

-

For the year ended December 31, 2023

Other comprehensive income (loss)

6(6)(17)

Total comprehensive income (loss)
Appropriations and distribution of 2022 earnings

Net gain on disposal of financial assets at fair value throughother comprehensive income
Expired unclaimed dividends recognized as capital surplus
Balance at December 31, 2023

1,984,835(

635 )
1,984,200--

1,984,835(

36,833 )173,465

135,997(

36,833 )173,465

2,120,832

6(16)

(

343,249 )(2,059,496 )(

343,249 )-6(6)(17)$ 4,290,617$

3,004,934

$

4,557

$

35,128$5,303,693$

357,817

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

-207-

$

6,502,327($

234,051 )(

9,178 )
-

$

3,688

87
$ 19,268,710

TRANSCEND INFORMATION, INC.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(Expressed in thousands of New Taiwan dollars)
For the years ended December 31
Notes

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax
Adjustments
Adjustments to reconcile profit (loss)
Unrealized profit from sales
Realized profit from sales
Net (gain) loss on financial assets at fair value through profit or loss
Share of profit or loss of associates and joint ventures accounted forusing the equity method
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 at fair value through profit or loss - current
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
Net defined benefit liability
Other non-current liabilities
Cash inflow generated from operations
Dividends received
Interest received
Income tax paid
Net cash flows provided by operating activities$

6(2)(21)6(7)16,316
3,455 )
38,186 )

(
(
(

6(22)
6(19)
6(9)
6(6)(20)

2,470,532(

47,306 )127,671374,837 )
1,822
21,134 )

(
(
(
(

544
31,419265,076 )84,132 )
1,870,953 )
575 )

(

1,318,816
144,863 )
57,095
1,009 )
665
884 )1,172,470
19,874
368,607553,781 )1,007,170

(
(
(

(

$

3,066,973

3,455
10,106 )17,262((

1,214,903 )
154,169
96,934 )1,239
35,592 )((1,508,314
1,632
416,616
148,118 )
94,7582,544,650
110 )

(

(
(
(
(

892,131 )
16,940 )42,967 )261
65,182 )
827 )
1,322
5,286,841
35,59285,784
613,516 )
4,794,701(((

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of 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 financial assets at fair value through othercomprehensive income
Acquisition of financial assets at fair value through other comprehensive
incomeCapital reduction and return of shares of investment accounted for using theequity method
Acquisition of property, plant and equipment
Increase in guarantee deposits paid
Acquisition of right-of-use assets
Acquisition of investment property
Increase in other non-current assets
Dividends received
Net cash flows from (used in) investing activities(

372,085 )4,573,010
4,407,329 )(

41,1553,100,000
6,147,400 )(

6(6)
71,776-

6,179(

71,611 )

6(7)
6(25)

(
(

6(11)

(
(

20,241 )
135 )
489 )
9,576 )
1,000,240
835,1716(7)985,589
35,790 )692 )4,082 )
1,712 )
98,6352,029,729 )

(
(
(
(
(

CASH FLOWS FROM FINANCING ACTIVITIES
Incease in guarantee deposits received
Payment of lease liabilities
Cash dividends paid (including cash payment from capital surplus)
Expired unclaimed dividends recognized as capital surplus
Net cash flows used in financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

6(16)

(
(
(
(
$

1,272
38,484 )2,402,745 )87
2,439,870 )
597,529 )1,812,082
1,214,553

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

-208-

(
(
(

$

38,484 )2,574,370 )
116
2,612,738 )
152,234
1,659,848
1,812,082

TRANSCEND INFORMATION, INC.
NOTES TO THE PARENT COMPANY ONLY FINANC IAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(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 andother 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 February 29, 2024.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS(1)Effect of the adoption of new issuances of or amendments to International Financial ReportingStandards (“IFRS® ”) Accounting Standards that came into effect as endorsed by the Financial
Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC and became effective from2023 are as follows:

New Standards, Interpretations and Amendments
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arisingfrom a single transaction’
Amendments to IAS 12, ‘International tax reform - pillar two model rules’

Effective date byInternational
AccountingStandards Board
January 1, 2023
January 1, 2023
January 1, 2023
May 23, 2023

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

-209-

(2)Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC
but not yet adopted by the Company
New standards, interpretations and amendments endorsed by the FSC and will become effectivefrom 2024 are as follows:

New Standards, Interpretations and Amendments
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’

Effective date byInternational
AccountingStandards Board
January 1, 2024
January 1, 2024
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.
(3)IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRS
Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’

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 21, ‘Lack of exchangeability’

Effective date byInternational
AccountingStandards Board
To be determinedby International
AccountingStandards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2025

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 MATERIAL ACCOUNTING POLICIESThe 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.

-210-

(1)Compliance statement
The parent company only financial statements of the Company have been prepared in accordancewith 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 lesspresent 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 theCompany’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 arerecognized 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
re-translated 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 andliabilities 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; theirtranslation differences are recognized in other comprehensive income. However,non-monetary 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 initialtransactions.
-211-

(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 averageexchange 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 thantwelve months after the balance sheet date. Terms of a liability that could, at the option of thecounterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
Otherwise they are classified as non-current liabilities.

-212-

(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 definition above and are held for the purpose of meeting short-term cash commitments
in 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 atamortised 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 arerecognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognizes thetransaction costs in profit or loss. The Company subsequently measures the financial assets atfair value, and recognizes the gain or loss 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 othercomprehensive 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 thederecognition 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 theCompany and the amount of the dividend can be measured reliably.
(8)Financial assets at amortised cost
A. Financial assets at amortised cost are those that meet all of the following criteria:(a) The objective of the Company’s business model is achieved by collecting contractual cash
flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognized andderecognized using trade date accounting.

-213-

C. At initial recognition, the Company measures the financial assets at fair value plus transaction
costs. Interest income from these financial assets is included in finance income using theeffective interest method. A gain or loss is recognized in profit or loss when the asset isderecognized or impaired.
(9)Accounts and notes receivable
A. Accounts and notes receivable entitle the Company a legal right to receive consideration in
exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently
measured at initial invoice amount as the effect of discounting is immaterial.
(10) Impairment of financial assets
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 12months expected credit losses if there has not been a significant increase in credit risk since initialrecognition 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 orcontract assets that do not contain a significant financing component, the Company recognizes theimpairment 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) Leasing arrangements (lessor) - operating leases
Lease income from an operating lease (net of any incentives given to the lessee) is recognized in
profit or loss on a straight-line basis over the lease term.
(13) Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using theweighted-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 inapplying 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 estimatedcosts necessary to make the sale.

-214-

(14) 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 powerover the entity.
B. Unrealized profits and losses 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 isrecognized in other comprehensive income. When the Company’s share of losses in a subsidiaryequals 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 areaccounted for using the equity method and are initially recognized at cost.
E. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit
or loss, and its share of post-acquisition movements in other comprehensive income isrecognized in other comprehensive income. When the Company’s share of losses in an associateequals or exceeds its interest in the associate, including any other unsecured receivables, theCompany 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 ofthe associate, the Company recognizes change in ownership interests in the associate in ‘capitalsurplus’ in proportion to its ownership.
G. Unrealized gains on transactions between the Company and its associates are eliminated to theextent of the Company’s interest in the associates. Unrealized losses are also eliminated unlessthe 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.

-215-

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 percentageof the associate but maintains significant influence on the associate, then ‘capital surplus’ and‘investments accounted for under the equity method’ shall be adjusted for the increase or
decrease of its share of equity interest. If the above condition causes a decrease in the
Company’s ownership percentage of the associate, in addition to the above adjustment, theamounts previously recognized in other comprehensive income in relation to the associate arereclassified to profit or loss proportionately on the same basis as would be required if therelevant 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.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during theconstruction 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
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, plantand equipment are as follows:-216-Buildings and structures
Machinery and equipment
Transportation equipment
Office equipment and others

8 ~ 50 years
2 ~ 10 years
3 ~ 5 years
2 ~ 5 years(16) 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 thelease term.
B. Lease liabilities include the net present value of the remaining lease payments at thecommencement 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 fromcontract modifications.
C. At the commencement date, the right-of-use asset is stated at cost comprising the amount of theinitial measurement of lease liability.
The right-of-use asset is measured subsequently using the cost model and is depreciated fromthe 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.
(17) Investment property
An investment property is stated initially at its cost and measured subsequently using the costmodel. Except for land, investment property is depreciated on a straight-line basis over its
estimated useful life of 10 ~ 55 years.

-217-(18) 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 bywhich the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is thehigher 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, theimpairment loss is reversed. The increased carrying amount due to reversal should not be more thanwhat the depreciated or amortised historical cost would have been if the impairment had not beenrecognized.
(19) 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 andsubsequently 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.
(20) 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 tosettle on a net basis or realize the asset and settle the liability simultaneously.
(21) 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 they are due on an accrual basis. Prepaid contributions are recognized as an asset tothe extent of a cash refund or a reduction in the future payments.
(b) Defined benefit plani. Net obligation under a defined benefit plan is defined as the present value of an amount ofpension benefits that employees will receive on retirement for their services with theCompany 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-218-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 ofgovernment bonds (at the balance sheet date) of a currency and term consistent with thecurrency 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 thoseamounts can be reliably estimated. Any difference between the resolved amounts and thesubsequently actual distributed amounts is accounted for as changes in estimates.
(22) Income tax
A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit orloss, except to the extent that it relates to items recognized in other comprehensive income oritems 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 beenenacted or substantially enacted by the balance sheet date and are expected to apply when therelated 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.

-219-

(23) 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 deductedfrom equity attributable to the Company’s equity holders.
(24) 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 theeffective date of new shares issuance.
(25) 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 tothe 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 tothe 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 beensatisfied.
(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 tothe 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 theconsideration is unconditional because only the passage of time is required before thepayment is due.
B. Incremental costs of obtaining a contract
Given that the contractual period lasts less than one year, the Company recognizes theincremental costs of obtaining a contract as an expense when incurred although the Company
expects to recover those costs.

-220-

5.

CRITICAL ACCOUNTING JUDGEMENTS,
ASSUMPTION UNCERTAINTY

ESTIMATESAND

KEY SOURCES

OF

The preparation of these parent company only financial statements requires management to makecritical judgements in applying the Company’s accounting policies and make critical assumptions andestimates concerning future events. Assumptions and estimates may differ from the actual results andare continually evaluated and adjusted based on historical experience and other factors. Suchassumptions 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 orfor 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 tothe 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 isbased 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, 2023, the carrying amount of inventories was $4,940,866.
6. DETAILS OF SIGNIFICANT ACCOUNTS(1) Cash and cash equivalents

Cash on hand and petty cash
Checking accounts and demand deposits
Time deposits

December 31, 2023

December 31, 2022

$

$

$

340
964,213250,000
1,214,553$

42
1,504,940
307,100
1,812,082

A. The aforementioned time deposits pertain to high liquidity investments with maturity within-221-three months.
B. The Company transacts with a variety of financial institutions all with high credit quality todisperse credit risk, so it expects that the probability of counterparty default is remote.
C. The Company has no cash and cash equivalents pledged to others.
(2) Financial assets at fair value through profit or loss
Items

December 31, 2023

Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
Beneficiary certificates
Valuation adjustments

December 31, 2022$

433,566 $28,168 (61,481
10,018)$461,734

51,463$

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

For the years ended December 31,
2023
2022
Financial assets mandatorily measured at fairvalue through profit or loss
Beneficiary certificates$

38,186 ($17,262)

B. The Company has no financial assets at fair value through profit or loss pledged to others.
(3) Financial assets at amortised cost
Items

December 31, 2023

December 31, 2022

Current items:
Time deposits with original maturity of morethan three months$

8,060,820$

8,527,800

Non-current items:
Corporate bonds$

301,602$-

A. Amounts recognized in profit or loss in relation to financial assets at amortised cost are listed
below:For the years ended December 31,
2023
2022
$

Interest income

348,814$

B. The Company has no financial assets at amortised cost pledged to others as collateral.
-222-

80,156

C. The Company transacts time deposits with reputable domestic and foreign banks. The issuers ofcorporate bonds which the Company invested are well-known domestic and foreign enterprises.
The Company’s counterparties have good credit quality, so the Company expects that theprobability of counterparty default is remote. 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

December 31, 2023$
323$
689,554-

December 31, 2022$
867$
720,973-$$689,554

720,973

A. As of December 31, 2023 and 2022, the estimated sales discounts and allowances were $76,490
and $57,603, respectively. Since the sales discounts and allowances met the requirements foroffset of financial liabilities and financial assets, the net amounts were shown under accounts
receivable.
B. The ageing analysis of accounts receivable and notes receivable is as follows:

Not past due
Up to 30 days

December 31, 2023
Accounts
Notes
receivable
receivable$
552,668 $323
136,886-

December 31, 2022
Accounts
Notes
receivable
receivable$
546,702 $867
174,271-$$689,554$323

720,973$

867

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, 2023 and 2022, notes receivable and accounts receivable were all fromcontracts with customers. As of January 1, 2022, the balance of notes receivable and accounts
receivable from contracts with customers amounted to $1,140,088.
E. As at December 31, 2023 and 2022, without taking into account any collateral held or othercredit enhancements, the maximum exposure to credit risk in respect of the amount that best
represents the Company’s notes receivable were $323 and $867, respectively; the maximum
exposure to credit risk in respect of the amount that best represents the Company’s accounts
receivable were $689,554 and $720,973, respectively.

-223-

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, 2023 and 2022, the Company
has no written-off financial assets that are still under recourse procedures.
H. The Company used forecastability, historical and timely information to assess the loss rate ofaccounts receivable. On December 31, 2023 and 2022, the provision matrix is as follows:Notpast due
December 31, 2023
Expected loss rate
Total book value$

0.005%
552,668

Not
past due
December 31, 2022
Expected loss rate
Total book value$

0.007%
546,7021-180 days
past dueOver 180 days
past due

0.03%~15.47%$
136,88625%~100%$-

1-180 days
past dueOver 180 days
past due

0.04%~18.16%$
174,271

25%~100%
$

-

Total

$

689,554

Total$

720,973

I. The Company had no impairment losses arising from customers’ contracts for the years ended
December 31, 2023 and 2022, and balance of allowance for loss on December 31, 2023 and2022 are both $0.
J. The Company does not hold any collateral as security.

-224-

(5) Inventories

Raw materials
Work in progress
Finished goods$$

Raw materials
Work in progress
Finished goods$$

December 31, 2023
Allowance for
Costvaluation loss
4,107,777 ($
119,316) $423,938 (
511)
532,063 (3,085)
5,063,778 ($
122,912) $Book value
3,988,461
423,427
528,978
4,940,866

December 31, 2022
Allowance for
Costvaluation loss
2,743,592 ($446,816) $285,227 (6,256)
528,468 (
34,302)

Book value
2,296,776
278,971494,166

3,557,287 ($487,374) $3,069,913

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

Cost of goods sold(Gain on reversal of) loss on decline in market
value of inventory$($

For the years ended December 31,
2023
2022
7,773,667 $
8,843,739
364,462)7,409,205 $434,854
9,278,593

The gain on reversal of decline in market value of inventory for the year ended December 31,
2023 arose from the clearance of inventories which were previously provided with allowanceand the recovery in the net realizable value of certain inventories.
B. No inventories were pledged to others.
(6) Financial assets at fair value through other comprehensive income - non-current
Items

December 31, 2023

Non-current items:
Equity instruments
Listed stocks
Others$Valuation adjustments$

December 31, 2022

621,815 $
1,125
622,940
3,688 (
626,628 $684,4131,125
685,538
160,599)524,939

A. The Company has elected to classify equity investments that are considered to be strategic-225-

investments as financial assets at fair value through other comprehensive income. The fair valueof such investments amounted to $626,628 and $524,939 as at December 31, 2023 and 2022,
respectively.
B. For the years ended December 31, 2023 and 2022, the Company disposed equity investments
whose fair value were $71,776 and $6,179, respectively and the cumulative gains (losses) on
disposal was transferred to retained earnings in the amount of $9,178 and ($2,053), 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:

For the years ended December 31,
2023
Equity instruments at fair value throughother comprehensive income
Fair value change recognized in othercomprehensive income (loss)
Cumulative gains (losses) reclassified toretained earnings due to derecognition
Dividend income recognized in profit or loss
Held at end of year
Derecognized during the year

2022

$

173,465 ($

170,069)$

9,178 ($

2,053)$

18,5842,550
21,13435,59235,592$$$

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

-226-

(7) Investments accounted for using equity method

At January 1
Share of profit or loss of investments accounted
for using equity method
Dividends received from investments accounted
for using equity method
Capital reduction and return of shares accounted
for using equity method(Increase) decrease in unrealised profit from sales
Other comprehensive income (loss)
Changes in other equity items
At December 31
Investees
Subsidiaries:
Saffire Investment Ltd.
Transcend Japan Inc.
Transcend Information Inc.
Transcend Korea Inc.
Associate:
Taiwan IC Packaging Corporation

$

(

(
(
$

$

2022
2,114,375
1,214,903

1,000,240) (98,635)- (12,861)
1,524 (
46,041)
1,242,066 $

985,589)
6,651
219)
892
2,252,378

December 31, 2023

December 31, 2022

$

$

$

-227-

2023
2,252,378
47,306

851,409
93,799178,826
12,894105,138
1,242,066$

1,676,847
222,111
153,808
62,902
136,7102,252,378

A. Subsidiaries
Refer to Note 4(3) in the consolidated financial statements for the year ended December 31,
2023 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:

AssociatenameTaiwan IC
Packaging
Corporation

Principal
place ofbusiness
TaiwanShareholding ratio
December December
31, 2023
31, 2022
12.51%
12.50%Nature ofrelationship
Note

Method ofmeasurement
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 ofvertical integration, Taiwan IC Packaging Corporation processes the raw materials
provided by the Company into relevant semi-finished goods.
(b) The Company held a 12.51% equity interest in Taiwan IC Packaging Corporation, and is thecompany’s largest single shareholder. However, the Company does not hold the majority ofthe voting power during the shareholders’ meeting of Taiwan IC Packaging Corporation and
the Company does not serve as corporate director 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 overTaiwan IC Packaging Corporation.
(c) The summarized financial information of the associate that is material to the Company is asfollows:
Balance sheet

Taiwan IC Packaging Corporation
December 31, 2023
December 31, 2022$
996,963 $
1,218,268
1,129,944
1,151,953(
174,106) (167,786)(
73,302) (75,327)$
1,879,499 $
2,127,108$
235,125 $
265,889(
129,987) (129,179)$
105,138 $
136,710

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Total net assets
Share in associate’s net assets
Net equity differences-228-

Statement of comprehensive income

A
Revenue(Loss) profit for the year from continuing
operations
Total comprehensive (loss) income
Dividends received from associates

$
($
($
$

Taiwan IC Packaging Corporation
For the years ended December 31,
2023
2022
861,693 $1,223,212
176,992) $178,367) $10,968 $84,12896,327
21,885(d) Share of profit (loss) of associates accounted for using the equity method is as follows:
For the years ended December 31,

Investee Company
Taiwan IC Packaging Corporation

2023
($

2022
20,604) $10,081(e) The Company’s investment in Taiwan IC Packaging Corporation has quoted market price.
The fair value of Taiwan IC Packaging Corporation was $317,957 and $242,305 as ofDecember 31, 2023 and 2022, respectively.

-229-

(8) Property, plant and equipment

Land
At January 1
Cost
Accumulated depreciation

At December 31
Cost
Accumulated depreciation

Machinery andequipment

Buildings andstructures

Officeequipment

OthersTotal

601,268 $- (601,268 $

981,527 $
318,909) (662,618 $

339,523 $
244,630) (94,893 $23,325 $16,980) (6,345 $

10,412 $5,510) (4,902 $

20,422 $ 1,976,477
601,565)
15,536) (4,886 $ 1,374,912$

601,268 $- (662,618 $
4,551
23,918) (94,893 $16,00547,072) (6,345 $
3,770) (4,902 $
530
2,960) (4,886 $ 1,374,912
23,153
2,067
81,301)
3,581) ($601,268$

601,268 $- (601,268 $$$At January 1
Additions (including transfers)
Depreciation charge
At December 31

2023
Transportationequipment$$

643,251

63,826$

967,571 $324,320) (643,251 $$

188,085 $124,259) (63,826 $

-230-

2,575

$

17,645 $15,070) (2,575 $

2,472$

10,683 $8,211) (2,472 $

3,372

$ 1,316,764

7,019 $ 1,792,271
475,507)3,647) (3,372 $ 1,316,764

Land
At January 1
Cost
Accumulated depreciation$

At December 31
Cost
Accumulated depreciation

Machinery andequipment

Buildings andstructures

Officeequipment

OthersTotal

601,268 $- (601,268 $

1,207,917 $
512,918) (694,999 $355,091 $
243,493) (111,598 $23,325 $13,051) (10,274 $10,485 $3,234) (7,251 $

24,252 $ 2,222,338
14,498) (787,194)
9,754 $ 1,435,144$

601,268 $- (694,999 $
5,607
37,988) (111,598 $41,20557,910) (10,274 $3,929) (7,251 $
594
2,943) (9,754 $ 1,435,144
800
48,206
5,668) (108,438)$

601,268

662,618

94,893

6,345

4,902

4,886

$

601,268 $- (601,268 $$At January 1
Additions (including transfers)
Depreciation charge
At December 31

2022
Transportationequipment$$$

981,527 $
318,909) (662,618 $$

339,523 $
244,630) (94,893 $23,325 $16,980) (6,345 $The relevant assets of the Company recognized as property, plant and equipment are all for self-use.

-231-

$

$

10,412 $5,510) (4,902 $

$ 1,374,912

20,422 $ 1,976,477
15,536) (601,565)
4,886 $ 1,374,912

(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 forborrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise certain store locations.
Low-value assets comprise equipment such as printers.
C. The carrying amounts of right-of-use assets and the depreciation charge are as follows:

December 31, 2023

December 31, 2022

Carrying amount

Carrying amount

$

Land

128,309$

165,858

For the years ended December 31,
2023
2022
Depreciation charge
Depreciation charge$Land37,549$37,167

D. For the year ended December 31, 2022, the additions to right-of-use assets amounted to $187,762.
Details are provided in Note 7(2)G. For the year ended December 31, 2023, there were no additions
to right-of-use assets.
E. Information on profit or loss in relation to lease contracts is as follows:
For the years ended December 31,
2023
2022
Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts
Expense on leases of low-value assets

$

1,822
2,489
420

$

1,239
2,970
428

F. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases
were $41,393 and $41,882, respectively.

-232-

(10) Leasing arrangements - lessor
A. The Company leases various assets including land and buildings. Rental contracts are typicallymade for periods of 1 to 5 years. Lease terms are negotiated on an individual basis and contain awide 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, 2023 and 2022, the Company recognized rent income in theamount of $57,569 and $46,891, respectively, based on the operating lease agreement, which does
not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:
December 31, 2023

December 31, 2022

2024 $
2025
2026
2027
2028

37,444
19,815
12,518776-

2023 $
2024
2025
2026
2027

56,162
36,136
21,247
12,061
776$

70,553$

126,382(11) Investment property

2023
Buildings andstructuresLand
At January 1
Cost
Accumulated depreciation

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

Total

$

2,268,726 $- (371,500 $84,433) (2,640,226
84,433)$

2,268,726

287,067$

2,555,793$

2,268,726 $- (287,067 $489
8,821) (2,555,793
489
8,821)$

2,268,726

278,735$

2,547,461$

2,268,726 $- (371,989 $
93,254) (2,640,715
93,254)$

2,268,726

278,735

2,547,461

-233-

$

$

$

$

2022
Buildings andstructuresLand
At January 1
Cost
Accumulated depreciation

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

Total

$

2,268,726 $- (367,418 $
75,869) (2,636,144
75,869)$2,268,726

291,549$

2,560,275$

2,268,726 $- (291,549 $
4,082
8,564) (2,560,275
4,082
8,564)$

2,268,726

287,067$

2,555,793$

2,268,726 $- (371,500 $84,433) (2,640,226
84,433)$

2,268,726

287,067

2,555,793

$

$

$

$

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

Rental income from investment property
Direct operating expenses arising frominvestment property that generated
rental income
Direct operating expenses arising frominvestment property that did not
generate rental income

For the years ended December 31,
2023
2022
57,569 $46,891

$

8,120

$

7,863

$

701

$

701

B. The fair value of the investment property held by the Company was both $4,829,337 as ofDecember 31, 2023 and 2022, The aforementioned fair values were assessed based on thetransaction prices of similar properties in the same area and are categorized within Level 3 in thefair value hierarchy.
C. No investment property was pledged to others.

-234-

(12) Other non-current assets

Guarantee deposits paid
Prepayments for business facilities
Others

December 31, 2023$
14,53910,52012,810December 31, 2022$
14,404
2,912
13,754$$37,86931,070(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 Labor Standards 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 thenumber 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 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, theCompany will make contributions for the deficit by next March.
(b) The amounts recognized in the balance sheet are as follows:

December 31, 2023
December 31, 2022
Present value of defined benefit obligations $38,359 $36,584(29,693) (29,193)
Fair value of plan assets$
8,666 $
7,391
Net defined benefit liability-235-

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

Present value of
defined benefit
obligations
2023
Balance at January 1
Current service cost
Interest expense (income)$Remeasurements:
Return on plan assets(excluding amounts included
in interest income or expense)
Change in financial assumptions
Experience adjustments
Pension fund contribution
Paid pension
Balance at December 31($

Remeasurements:
Return on plan assets(excluding amounts included
in interest income or expense)
Change in financial assumptions
Experience adjustments
Pension fund contribution
Balance at December 31

$

(
(
(
$

Net defined
benefit liability

36,584 ($493
512 (37,589 (29,193) $419)
29,612)

7,391
493
93
7,977

- (

195) (

195)

397
1,957
2,354 (
- (1,584)
38,359 ($195)
1,470) (1,584
29,693) $

397
1,957
2,159
1,470)
8,666

Present value of
defined benefit
obligations
2022
Balance at January 1
Current service cost
Interest expense (income)Fair value ofplan assets

Fair value ofplan assets

Net defined
benefit liability

38,857 ($550
291 (39,698 (25,454) $196)
25,650)13,403550
95
14,048- (2,071) (2,071)

2,630)
484)
3,114) (- (36,584 ($- (- (2,071) (1,472) (29,193) $2,630)
484)
5,185)
1,472)
7,391(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-236-

financial institutions, investment in domestic or foreign listed, over-the-counter, 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 fromthe 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 inmanaging and operating that fund and hence the Company is unable to disclose theclassification of plan assets fair value in accordance with IAS 19 paragraph 142. The
composition of fair value of plan assets as of December 31, 2023 and 2022 is given in the
Annual Labor Retirement Fund Utilisation Report announced by the government.
(e) The principal actuarial assumptions used were as follows:

For the years ended December 31,
2023
2022
1.300%
1.400%
1.625%
1.625%

Discount rate
Future salary increase rate

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:

Discount rate
Increase
Decrease
0.25%
0.25%

Future salary increases
Increase
Decrease
0.25%
0.25%

December 31, 2023
Effect on present value of
defined benefit obligation
December 31, 2022
Effect on present value of($

1,005) $1,045$

1,015 ($

982)

defined benefit obligation($

1,023) $1,065$

1,038 ($

1,002)The sensitivity analysis above is based on one assumption which changed while the otherconditions 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 thebalance sheet are the same.
The methods and types of assumptions used in preparing the sensitivity analysis did notchange compared to the previous period.

-237-

(f) Expected contributions to the defined benefit pension plan of the Company for the year ending
December 31, 2024 amount to $1,467.
(g) As of December 31, 2023, the weighted average duration of the retirement plan is 10.76 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 theemployees’ 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, 2023 and 2022 were $33,263 and $33,234, respectively.
(14) Share capital
As of December 31, 2023, 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 sharesissued have been collected. The Company’s ordinary shares outstanding at the beginning and at theend of the period were 429,062 thousand shares for the years ended December 31, 2023 and 2022.
(15) Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of parvalue on issuance of common stocks and donations can be used to cover accumulated deficit or toissue new stocks or cash to shareholders in proportion to their share ownership, provided that theCompany has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires thatthe amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in
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 theremaining 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-238-

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 inproportion 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 shareownership is permitted, provided that the distribution of the reserve is limited to the portion inexcess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When debit
balance on other equity items is reversed subsequently, the reversed amount could be included in
the distributable earnings.
E. (a) The appropriations of earnings and cash payment from capital surplus for the years ended
December 31, 2022 and 2021 have been resolved at the shareholders’ meeting on June 16, 2023
and June 17, 2022, respectively. Details are summarized below:

For the year ended
December 31, 2022

AmountLegal reserve
Appropriation
for special
reserve
Cash dividends$

245,726$

167,3032,059,496
2,472,525

For the year ended
December 31, 2021

Dividends per
share (in dollars)$

Amount$254,464$

73,2702,231,121
2,558,855

4.80

Dividends per
share (in dollars)$

Cash payment
per share
AmountCash payment
from capitalsurplus$343,249

Cash payment
per share(in dollars)

$

0.80

5.20

Amount$343,249(in dollars)

$

0.80

Actual distribution of retained earnings for 2022 and 2021 were in agreement with the-239-amounts resolved by the Board of Directors and shareholders.
(b) The appropriations of earnings and cash payment from capital surplus for the year ended
December 31, 2023 as proposed by the Board of Directors on February 29, 2024 are as
follows:

For the year ended December 31, 2023
Dividends per share
Amount(in dollars)$
199,337(
127,454)
1,930,778 $
4.50$
2,002,661

Legal reserve
Reversal of special reserve
Cash dividends$

Cash payment from capital surplus

Amount214,531

Cash payment
per share (in dollars)$
0.50

As of February 29, 2024, the above appropriations of 2023 earnings have not yet been resolvedby the shareholders.
(17) Other equity items

2023
Unrealised gains (losses) on
Exchange
valuation of investments indifferences
equity instruments measured on translation of
at fair value through other foreign financial
comprehensive income
statements($
160,599) ($197,218) ($173,465-

At January 1
Revaluation adjustment
Revaluation transferred to(retained earnings
Currency translation differences
Effect from income tax
At December 31$

9,178)- (3,688 ($

-240-

- (
46,041) (9,208
234,051) ($Total
357,817)
173,465
9,178)
46,041)
9,208
230,363)

2022
Unrealised gains (losses) on
Exchange
valuation of investments indifferences
equity instruments measured on translation of
at fair value through other foreign financial
comprehensive income
statements$
7,417 ($
197,932) ($(170,069)- (Total
190,515)
170,069)2,053- (160,599) ($

2,053
892
178)
357,817)

At January 1
Revaluation adjustment
Revaluation transferred toretained earnings
Currency translation differences
Effect from income tax
At December 31($

892178) (
197,218) ($(18) Operating revenue$

Sales revenue

For the years ended December 31,
2023
2022
9,879,469 $
11,386,995

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:
For the year ended
December 31, 2023
Revenue from externalcustomer contracts

For the year ended
December 31, 2022
Revenue from externalcustomer contracts

Electronic products
America
EuropeTaiwanAsia$ 2,282,102$ 3,408,840$ 1,205,933$ 2,352,145

Electronic products
America
EuropeTaiwanAsia$ 2,803,949$ 3,528,324$ 1,798,453$ 2,523,173

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

-241-

OthersTotal$ 630,449$ 9,879,469

OthersTotal$ 733,096$11,386,995

(19) Interest income

Interest income from bank deposits
Interest income from financial assets measured
at amortised cost
Other interest income$$

For the years ended December 31,
2023
2022
21,009 $13,331
348,814
5,014
374,837$

80,156
3,447
96,934(20) Other income

Rental income
Dividend income$

For the years ended December 31,
2023
2022
57,569 $46,891
21,13435,59278,703 $82,483$For the years ended December 31,
2023
2022
93,592 $
226,573$(21) Other gains and losses0
Net currency exchange gain
Net gain (loss) on financial assets at fair value
through profit or loss
Others$38,186 (17,262)

14,073
145,851

8,668
217,979$(22) Expenses by nature

Wages and salaries
Labor and health insurance fees
Pension costs
Other personnel expenses
Directors’ remuneration
Depreciation charges(including investment property and right-of-use
assets)$For the years ended December 31,
2023
2022
757,579 $
761,434
70,89270,72433,84933,87938,326
39,797
5,710
1,993

127,671

154,169

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of-242-

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’ remuneration.
B. For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at$25,696 and $31,729, respectively, and recognized in salary expenses; while no directors’
remuneration was accrued.
C The employees’ compensation and directors’ remuneration were estimated and accrued based on
1% and 0% of distributable profit for the year ended December 31, 2023. The employees’
compensation and directors’ remuneration resolved by the Board of Directors were $24,962 and$2,300, respectively, and the employees’ compensation will be distributed in the form of cash
2023.
D The differences between employees’ compensation and directors’ remuneration as resolved by the
Board of Directors and the amounts recognized in the 2022 financial statements by $742 and($2,300), respectively, have been adjusted in profit or loss for 2023. The employees' compensationand directors' remuneration had been fully paid.
E Information about employees’ compensation and directors’ remuneration of the Company as
resolved at the meeting of Board of Directors 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:

For the years ended December 31,
2023
2022
Current income tax:
Current income tax on profits for the year
Prior year income tax overestimation
Total current income tax
Deferred income tax:
Origination and reversal of temporary
differences

$
(

(
(

622,601 $169) (
622,432

452,853277)
452,576

136,735)
136,735)
485,697 $160,053
160,053
612,629

Total deferred income tax$
Income tax expense(b) The income tax relating to components of other comprehensive income is as follows:
For the years ended December 31,
2023
2022
Financial statements translationdifferences of foreign operations

($

-243-

9,208) $178

B.

Reconciliation between income tax expense and accounting profit

For the years ended December 31,
2023
2022
Income tax calculated by applying statutory
rate to the profit before tax
Effects from tax exemption and items
disallowed by tax regulation
Prior year income tax overestimation
Effect from investment tax credits
Withholding tax in other countries$

494,106(((

613,395

7,597) (169) (
1,830) (1,187$

Income tax expense$

485,697

6,174)
277)
1,990)
7,675$

612,629

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

At January 1

2023
Recognized inotherRecognized incomprehensive
profit or loss
incomeAt December 31

Deferred income tax assets$

Pension provision amount in excess
of appropriation amount
Unrealized sales discounts andallowances

4,809 ($

177) $

-

$

4,632

11,521

3,777-

15,298

Unrealized gross profit from sales

987

2,245

-

3,232

Unrealized loss on market value
decline and obsolete andslow-moving inventories
Financial statements translationdifferences of foreign operations
Others97,475 (72,892)-

24,583$

10,887
701
126,380 ($714
66,333) $

9,208
9,208

$

20,095
1,415
69,255

Unrealized exchange gain($

23,027) $19,101- ($3,926)Net gain on investment accounted
for using equity method(

353,332)

183,967- (169,365)

Others

(

86)

-

- (

86)

Total

($

376,445) $- ($173,377)

Total
Deferred income tax liabilities-244-

203,068

$

$

2022

At January 1

Recognized in
profit or loss

Recognized inothercomprehensive
incomeAt December 31

Deferred income tax assets$

Pension provision amount in excess
of appropriation amount

4,975 ($

166) $

-

$

4,809

Royalty fees

2,171 (

2,171)--

Unrealized sales discounts andallowances

6,282

5,239

-

11,521

Unrealized gross profit from sales

2,152 (

1,165)-

987

Unrealized loss on market value
decline and obsolete andslow-moving inventories
Financial statements translationdifferences of foreign operations

10,504

86,971-

97,475178)

10,887

Others$1,794 (
38,943 $1,093)
87,615 ($178) $

701
126,380

Unrealized exchange gain($929) ($

22,098) $- ($23,027)

Net gain on investment accounted
for using equity method(

127,762) (225,570)- (353,332)

Others

(

86)

-

- (

86)

Total

($

128,777) ($247,668) $- ($376,445)

11,065Total- (Deferred income tax liabilities

D. The Company’s income tax returns through 2021 have been assessed and approved by the Tax
Authority.

-245-

(24) Earnings per share

For the year ended December 31, 2023
Weighted-averagecommon shares
Earnings
outstanding
per share
Profit after tax(in thousands)(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders
Diluted earnings per share
Profit attributable to ordinary
shareholders
Assumed conversion of all
dilutive potential ordinary
sharesEmployees’ compensation
Profit attributable to ordinary
shareholders plus assumed
conversion of all dilutive
potential ordinary shares$

1,984,835

429,062$

1,984,835

429,062-391

1,984,835

429,453

$

$

4.63

$

4.62

For the year ended December 31, 2022
Weighted-averagecommon shares
Earnings
outstanding
per share
Profit after tax(in thousands)(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders
Diluted earnings per share
Profit attributable to ordinary
shareholders
Assumed conversion of all
dilutive potential ordinary
sharesEmployees’ compensation
Profit attributable to ordinary
shareholders plus assumed
conversion of all dilutive
potential ordinary shares$

2,454,344

429,062$2,454,344

429,062-554

2,454,344

429,616

$

-246-

$

5.72

$

5.71

(25) Supplemental cash flow information
Investing activities with partial cash payments

For the years ended December 31,
2023$

Purchase of property, plant and equipment
Less: Transfer from prepayment for businessfacilities
Cash paid during the year2022
23,153($2,912) ($20,241

48,206
12,416)$35,790

7. RELATED PARTY TRANSACTIONS(1)Names of related parties and relationshipNames of related parties
Transcend Japan Inc. (Transcend Japan)
Transcend Information Inc. (Transcend USA)
Transcend Korea Inc. (Transcend Korea)
Transcend Information Europe B.V.
(Transcend Europe)
Transcend Information Trading GmbH
(Transcend Germany)
Transcend Information (H.K.) Ltd.
(Transcend HK)
Transcend Information (Shanghai), Ltd.
(Transcend Shanghai)Transtech Trading (Shanghai) Co., Ltd.
(Transtech Shanghai)Taiwan IC Packaging Corporation(Taiwan IC Packaging)
Won Chin Investment Inc. (Won Chin)
Cheng Chuan Technology Development Inc.
(Cheng Chuan)

Relationship with the Company
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-247-

For the years ended December 31,
2023
2022
Sales of goods－Transtech Shanghai－Transcend USA－Other subsidiaries－Taiwan IC Packaging$$

920,055
676,850
1,701,828
1,100
3,299,833$$

672,568
466,470
1,733,874
1,309
2,874,221

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 30days after delivery to Taiwan IC Packaging, and the credit term to general customers was 30 to 60
days after monthly billings.
B. Purchases
For the years ended December 31,
2023
2022
Purchases of goods－Taiwan IC Packaging$

195,954$

221,258

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

Receivables from related parties－Transtech Shanghai－Transcend Japan－Transcend Europe－Transcend Korea－Other subsidiaries

December 31, 2023

December 31, 2022

$

$

$

355,439
156,82183,99839,90452,761
688,923$

103,703105,21274,512
42,531
97,889423,847

The receivables from related parties arise mainly from sale transactions. The credit term to Taiwan
IC Packaging 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 foruncollectible accounts held against receivables from related parties.
D. Accounts payable-248-

Payables to related parties－Transcend Shanghai－Other subsidiaries－Taiwan IC Packaging

December 31, 2023

December 31, 2022

$

$

$

252,679
6,136
39,913298,728$

414,212
1,937
27,442443,591

The payables to related parties arise mainly from purchase transactions, and information on thepayment term is provided in Note 7(2) B. The payables bear no interest.
E. Other payables
Other payables－Transcend Shanghai－Taiwan IC Packaging

December 31, 2023

December 31, 2022$$

16,683

17,6884$
16,683 $17,692Other payables to related parties arise mainly from purchase of fixed assets and miscellaneouspurchases. The other payables bear no interest.

F. Miscellaneous income
For the years ended December 31, 2023 and 2022, the expendables sold to related parties, whichwere recognized in non-operating income, amounted to $6,101 and $1,131, respectively.
G. Leasing arrangements - lessee
The Company renewed 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 (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 is paid on thecontract date and becomes payable on the same date each following year until the end of the lease.
As of December 31, 2023 and 2022, the balance of related right-of-use assets amounted to$128,309 and $165,858 while lease liabilities amounted to $113,163 and $149,825, respectively.
H. Endorsements and guarantees:
As of December 31, 2023 and 2022, information on the Company providing endorsements andguarantees to associates is provided in Note 13(1) B.
(3)Key management compensation

For the years ended December 31,
2023
2022
$

Salaries and other employee benefits-249-

20,709$68,967

8. PLEDGED ASSETS
None.
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS
As of December 31, 2023, except for the provision of endorsements and guarantees mentioned in Note13(1) B, there are no other significant commitments.
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Information on distribution of 2023 earnings and cash dividends from capital surplus is provided in Note6(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, theCompany 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 plansin 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-250-

Financial assets
Financial assets mandatorily measured
at fair value through profit or loss
Financial assets at fair value throughother comprehensive income
Financial assets at amortised cost
Cash and cash equivalents
Financial assets at amortised cost
Notes receivable
Accounts receivable (including relatedparties)
Other receivables
Guarantee deposits paid

Financial liabilities
Financial liabilities at amortised costAccounts payable (including relatedparties)
Other payables (including relatedparties)
Guarantee deposits received
Lease liabilities

December 31, 2023

December 31, 2022$$

461,734

51,463626,628

524,939

1,214,553
8,362,422
323

1,812,082
8,527,800
867$

1,378,477
112,946
14,53912,171,622$

1,144,820
21,627
14,404
12,098,002$

2,089,257$

915,304$$

283,178
9,991
2,382,426
113,163$$

227,092
8,719
1,151,115
149,825

B. Financial risk management policies
Risk management is carried out by a central treasury department (Company treasury) underpolicies approved by the Board of Directors. Company treasury identifies, evaluates and hedges
financial risks in close cooperation with each segment.. The Board provides written principles foroverall risk management, as well as written policies covering specific areas and matters, such as
foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments andnon-derivative financial instruments, and investment of excess liquidity.
C. Significant financial risks and degrees of financial risks(a) Market risk
Foreign exchange riski.

The Company operates internationally and is exposed to exchange rate risk arising fromthe transactions of the Company used in various functional currency, primarily withrespect to the USD. Exchange rate risk arises from future commercial transactions and

-251-

ii.

recognized assets and liabilities.
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:

December 31, 2023
Foreign currency
amount (In thousands) Exchange rate
Financial assets
Monetary items
USD：NTDRMB：NTD
JPY：NTD
EUR：NTD
KRW：NTD
Investment accounted forusing the equity method
USD：NTD
JPY：NTD
KRW：NTD
Financial liabilities
Monetary items
USD：NTDRMB：NTD

Book value$

192,283
82,598791,457
4,182
1,669,630

30.71
4.327
0.217233.98
0.0239$ 5,905,011
357,402
171,904
142,104
39,904$33,547
431,855
539,49830.71
0.21720.0239$ 1,030,235
93,79912,894$

51,79262,252

30.71
4.327

$ 1,590,532
269,364-252-

December 31, 2022
Foreign currency
amount (In thousands) Exchange rate
Financial assets
Monetary items
USD：NTDRMB：NTD
JPY：NTD
EUR：NTD
KRW：NTD
Investment accounted forusing the equity method
USD：NTD
JPY：NTD
KRW：NTD
Financial liabilities
Monetary items
USD：NTDRMB：NTD

Book value$

254,448
23,994474,455
5,372
1,728,885

30.71
4.408
0.232432.72
0.0246$ 7,814,098
105,766
110,263
175,772
42,531$

59,611
955,727
2,556,992

30.71
0.23240.0246$ 1,830,655
222,11162,902$

13,052
97,981

30.71
4.408

$

400,827
431,900

iii. The information on total exchange (loss) gain, including realized and unrealized arisingfrom significant foreign exchange variation on the monetary items held by the Company
for the years ended December 31, 2023 and 2022 is provided in Note 6(21).
iv. Sensitivity analysis relating to foreign exchange rate risks is primarily for financial
reporting period-end date of foreign currency monetary item. If the New Taiwan dollar
exchange rate to the U.S. dollar increases or decreases by 1%, the Company’s net income
will decrease or increase by $43,145 and $74,133 for the years ended December 31, 2023
and 2022, respectively.
Price riski.

The Company is exposed to equity securities price risk because of investments held by theCompany 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, theCompany 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, other components ofequity for the years ended December 31, 2023 and 2022 would have increased/decreased
by $6,266 and $5,249, respectively, as a result of other comprehensive income classified-253-

as equity investment at fair value through other comprehensive income.
Cash flow and fair value interest rate riski.

The Company’s principal interest-bearing assets are cash and cash equivalents andfinancial 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 assessedthat 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 riski.

Credit risk refers to the risk of financial loss to the Company arising from default by theclients 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.

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, theCompany assesses the credit quality of the customers, taking into account their financial
position, past experience and other factors. Individual risk limits are set based on internalor external ratings in accordance with limits set by the Board of Directors. The utilisationof 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 asignificant increase in credit risk on that instrument since initial recognition.
v.

For details of credit risk in relation to accounts receivable and notes receivable, pleaserefer to Note 6(4).

(c) Liquidity riski.

Cash flow forecasting is performed in the operating entities of the Company andaggregated by Company treasury. Company treasury monitors rolling forecasts of theCompany’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,-254-choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts. As at December 31,
2023 and 2022, the Company held money market position of $9,737,107 and $10,391,345,
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 offinancial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that theentity can access at the measurement date. A market is regarded as active where amarket in which transactions for the asset or liability take place with sufficientfrequency and volume to provide pricing information on an ongoing basis. The fairvalue of the Company’s investment in listed stocks and beneficiary certificates is
included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly. The fair value of the Company’s investment in
non-hedging derivatives is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s
investment in equity investment without active market, financial products andinvestment 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
The carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes
receivable, accounts receivable (including related parties), other receivables, guarantee deposits
paid, accounts payable (including related parties), other payables (including related parties),
guarantee deposits received, and lease liabilities are approximate to their fair values.
D. The related information on financial and non-financial instruments measured at fair value by levelon the basis of the nature, characteristics and risks of the assets and liabilities are as follows:-255-

December 31, 2023
AssetsRecurring fair value measurements
Financial assets at fair value throughprofit or loss
Beneficiary certificates
Financial assets at fair value throughother comprehensive income
Equity securities
December 31, 2022
AssetsRecurring fair value measurements
Financial assets at fair value throughprofit or loss
Beneficiary certificates
Financial assets at fair value throughother comprehensive income
Equity securities

Level 1$

Level 2

Level 3

461,734$- $625,503$ 1,087,237$- $Level 1

Level 2

Total

- $

1,125
1,125

626,628$ 1,088,362

Level 3$51,463$- $$523,814575,277$- $461,734

Total

- $

1,125
1,125

$

51,463524,939
576,402

E. The fair value of financial instruments traded in active markets is based on quoted market prices atthe balance sheet date. A market is regarded as active if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency,
and those prices represent actual and regularly occurring market transactions on an arm’s length
basis. The quoted market price used for financial assets held by the Company is the closing price.
These instruments are included in Level 1. Instruments included in Level 1 comprise primarily
listed stocks classified as financial assets at fair value through other comprehensive income andbeneficiary certificates classified as financial assets at fair value through profit or loss.
F. For the years ended December 31, 2023 and 2022, there were no transfers between Level 1 andLevel 2.
G. If one or more of the significant inputs is not based on observable market data, the instrument isincluded in level 3.
H. There was no change in Level 3 financial instruments for the years ended December 31, 2023 and
2022.
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 fairvalue.

-256-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: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to relate parties reaching NT$100 million or 20% of theCompany’s paid-in capital or more: Refer to table 3.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:
Refer to table 4.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Refer to table 5.
(2)Information on investees
Names, locations and other information of investee companies (not including investees in Mainland
China): Refer to table 6.
(3)Information on investments in Mainland China
A. Basic information: Refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies
in the Mainland Area: Refer to table 5.
(4)Major shareholders information
Major shareholders information: Refer to table 8.
14. SEGMENT INFORMATION
None.

-257-

T ranscend Information, Inc.
Provision of endorsements and guarantees to others
For the year ended December 31, 2023
T able 1

Expressed in thousands of NT D
(Except as otherwise indicated)
Maximum

Ratio of

Party being

Limit onoutstanding

Outstanding

endorsed/guaranteed

endorsements/

endorsement/

endorsement/

Relationship withguarantees

guarantee

guarantee

ActualProvision of

accumulated
Amount ofendorsements/ Provision ofendorsement/

Ceiling on total

endorsements/ guarantee amount toProvision ofguarantees by endorsements/ endorsements/

amount ofparentguarantees by

guarantees tothe endorser/

provided for aamount as ofamount at

amount drawn

guarantees

net asset value ofendorsements

company tosubsidiary to

the party in

NumberEndorser/Company

guarantor

single party

December 31,

December 31,

down

secured withthe endorser//guarantees

subsidiaryparentMainland(Note 1)guarantor

name(Note 2)

(Note 3)2023 (Note 4)2023 (Note 5)(Note 6)collateralguarantor company provided (Note 7)(Note 8)company

China

Footnote0

T ranscend
Information,Inc.

T ranscend
Japan Inc.

2

$ 3,853,742

2

Y

-

-

-

$
461,800 $434,400(JPY $2,000,000) (JPY $2,000,000)(In thousands)(In thousands)

$

-

-

$

7,707,484

Note 1: T he numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:(a) T he Company is ‘0’.
(b) T he 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) T he endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(c) T he endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(d) T he 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. ($19,268,710*20%=$3,853,742)
Note 4: T he maximum outstanding endorsement/guarantee amount during and as of December 31, 2023 is JPY$2,000,000 (In thousands).
Note 5: T he amount was approved by the Board of Directors.
Note 6: T he actual amount of endorsement drawn down is $0.
Note 7: Not exceeding 40% of the Company’s net asset value.( $19,268,710*40%=$7,707,484)
Note 8: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary.

-258-

T ranscend Information, Inc.
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2023
T able 2

Expressed in thousands of NT D
(Except as otherwise indicated)
As of December 31, 2023
Marketable securities

Relationship with the

General

Number ofBook value

Ownership(Note 1)securities issuer (Note 2)

ledger accountshares(Note 3)(%)

T rendForce Corporation-

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

Fubon Financial Holding Co., Ltd.
Preferred Shares B-"

T aiwan Semiconductor
Manufacturing Co., Ltd.

-"MediaT ek Inc.

-

Fubon Financial Holding Co., Ltd.

-

Securities held by
T ranscend T aiwan

Footnote
Fair value(Note 4)

StocksCathay Financial Holding Co. Ltd.

-

Yuanta Financial Holding Co., Ltd.

-60,816

$

1,125

1

1,758,000

105,304

420,000

$

1,125

-

-

105,304-

249,060-

249,060-

40,00040,600-40,600-1,176,384

76,230-76,230-216,323

9,897

-

9,897

-

121,272

3,347

-

3,347

-

100,000

2,835

-

2,835

262,000

20,750-20,750-117,480-

117,480-

278,620

-

"
"
"
"
"

CT BC Financial Holding Co., Ltd
Formosa Plastics Corporation-

ASUST ek Computer Inc.

-""
240,000$

626,628$

278,620-

1,197,000

44,768-44,768-1,440,000

111,096-

111,096-

27,250-27,250-Beneficiary certificates
Yuanta/P-shares T aiwan T op 50
ET F-

Financial assets at fair value
through profit or loss
- non-current

Yuanta/P-shares T aiwan Dividend
Plus ET F ""Fubon FT SE T WSE T aiwan 50
ET F
Cathay MSCI T aiwan ESG
Sustainability High Dividend
Yield ET F"

2,057,000$"
1,250,000$-259-

461,734

T ranscend Information, Inc.
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2023
T able 2

Expressed in thousands of NT D
(Except as otherwise indicated)
As of December 31, 2023

Securities held by
T ranscend T aiwan

Marketable securities

Relationship with the

General

Number ofBook value

Ownership(Note 1)securities issuer (Note 2)

ledger accountshares(Note 3)(%)-

Financial assets at amortised
cost - non-current

1,850,000

-

"

-

"

Footnote
Fair value(Note 4)

Corporate bonds
T SMC Arizona Corporation U.S.
dollar-denominated corporate
bonds
International Business Machines$56,287-2,250,000

68,4851,650,000$

56,287--

68,485-47,825-47,825-

1,100,000

33,185-33,185-2,000,000

60,352-60,352-250,000

7,754

-

7,754

-

27,714-27,714-

Corporation U.S.
dollardenominated corporate bonds
Meta Platforms, Inc. U.S. dollardenominated corporate bonds
PAYPAL HOLDINGS, INC. U.S.
dollar-denominated corporate
Intel Corporation U.S. dollardenominated corporate bonds
Mercedes-Benz Finance North
America LLC U.S.
dollardenominated corporate bonds
T oyota Motor Credit Corporation
U.S. dollar-denominated corporate
bonds

-

"
"
"

"
900,000$

301,602

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 themarketable 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.

-260-

T ranscend 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, 2023
T able 3

Expressed in thousands of NT D
(Except as otherwise indicated)
Differences in transaction terms compared to
T ransaction
Relationship with theSalescounterparty(purchases)

Purchaser/seller

Counterparty

T ranscend
Information, Inc.

T ranstech T rading(Shanghai) Co., Ltd.

Subsidiary of Memhiro"

T ranscend Japan Inc.

T he Company’s
subsidiary"

T ranscend Information
Europe B.V.

"

Sales

Amount$third party transactions (Note)

Percentage ofof total sales

total notes/accounts(purchases)

Credit term

Unit price920,0559"477,224

5""

Subsidiary of Memhiro"

488,648

5"

T ranscend Information
Inc.

T he Company’s
subsidiary"

676,850

7"

T ranscend Korea Inc.

T he Company’s
subsidiary"328,522"

T ranscend Information
T rading GmbH

Subsidiary of Memhiro"

T ranscend
Information
Europe B.V.
T ranscend
Information, Inc.

T ranscend Information
T rading GmbH

Controlled by the same
ultimate parent company"

T aiwan IC Packaging
Corporation

Associate accounted forusing equity method(Purchase)(

Notes/accounts receivable (payable)

Percentage
Credit term

120 days after No significant 30 to 60 days after monthly
monthly billings
difference billings to third parties

Balance$receivable (payable)

Footnote

355,43926-"

156,821

11

-

"

"

83,998

6

-

"

"

"

30,476

2

-

3

"

"

"

39,904

3-

307,547

3

"

"

"

-

-

-

126,51121

30 days after
delivery"

7 to 60 days after delivery to
third parties

5,548

10

-

195,954)(2)

30 days aftermonthly billings"

30 to 45 days after monthly (billings to third parties

39,913)(2)-

Note: T he 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.

-261-

T ranscend Information, Inc.
Receivables from related parties reaching NT $100 million or 20% of paid-in capital or more
For the year ended December 31, 2023
T able 4

Expressed in thousands of NT D
(Except as otherwise indicated)

Overdue receivables

Balance as at
Creditor

Counterparty

T ranscend Information, Inc. T ranscend Japan Inc.
"
T ranscend Information(Shanghai), Ltd.

Relationship

December 31,

with the counterparty

2023

T he Company’s subsidiary$

T urnover rate

Amount156,821

3.64$

Amount collected

Action taken--$

subsequent to the

Allowance forbalance sheet date

doubtful accounts

76,862-T ranstech T rading (Shanghai) Co., Ltd.

Subsidiary of Memhiro

355,439

4.01

-

-

294,195-

T ranscend Information, Inc.

Ultimate parent company

252,679-

252,679

-

-

-

-262-

T ranscend Information, Inc.
Significant inter-company transactions during the period
For the year ended December 31, 2023
T able 5

Expressed in thousands of NT D
(Except as otherwise indicated)
T ransaction

NumberRelationship

General ledger(Note 1)Company nameCounterparty(Note 2)

account0

T ranscend Information, Inc.

T ranstech T rading (Shanghai) Co., Ltd.

1

Sales

"

"

T ranscend Japan Inc.

"

"

"

T ranscend Information Europe B.V.

"

"

"

Percentage of consolidated total operating
AmountT ransaction terms

revenues or total assets (Note 3)

920,055

T here is no significant
difference in unit pricefrom those to third parties.

9"477,224

"

5

"

"

488,648"

5

T ranscend Information Inc.

""

676,850"

6"

T ranscend Information T rading GmbH""

307,547

"

3

"

"

T ranscend Korea Inc.

""

328,522

"

3

"

"

T ranstech T rading (Shanghai) Co., Ltd.

"

Accounts receivable

355,439120 days after monthly billings

2

"

"

T ranscend Information (Shanghai), Ltd.

"

Accounts payable

252,679)

120 days after monthly billings

T ranscend Information Europe B.V. T ranscend Information T rading GmbH

3

Sales

126,511

T here is no significant
difference in unit pricefrom those to third parties.

1

$

(

(

(Individual transactions not exceeding 1% of the consolidated total revenue and total assets are not disclosed.)
Note 1: T he 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 todisclose 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.

-263-

1)
1

T ranscend Information, Inc.
Information on investees
For the year ended December 31, 2023
T able 6

Expressed in thousands of NT D
(Except as otherwise indicated)

Initial investment amount

Shares held as at December 31, 2023
Net profit (loss) Investment incomeof the investee

Balance as at

December 31, December 31,
Investor

Investee

Location

Main business activities

by the Company

ended December

for the year ended

31, 2023

December 31, 2023

Number of shares(%)

Book value

216,8296,600,000

100$

89,103

89,1036,400

100

93,79947,77847,778

United States Wholesale of computer memoryof America
modules and peripheral products

38,592

38,592625,000100

178,826

308,147

308,147

T ranscend Korea Inc.

Korea

Wholesale of computer memory
modules and peripheral products

6,132

6,132

40,000100

12,894

4,704

4,704

T aiwan IC Packaging
Corporation

T aiwanPackaging of Semi-conductors

354,666

354,666

21,928,036

12.51

105,138 (

176,992) (22,128)

Saffire Investment
Ltd.

Memhiro Pte Ltd.

Singapore

Investment holdings

173,702173,7028,277,609

100

812,830

26,962

26,962

Memhiro Pte Ltd.

T ranscend Information
Europe B.V.

Netherlands

Wholesale of computer memory
modules and peripheral products

1,693

1,693

100

100

250,857

6,827

6,827

T ranscend Information
T rading GmbHGermany

Wholesale of computer memory
modules and peripheral products

2,288

2,288

-

100

131,736

4,230

4,230

T ranscend Information(H.K.) Ltd.

Hong Kong

Wholesale of computer memory
modules and peripheral products

7,636

7,636

2,000,000

100

11,161

1,399

1,399

T ranscend
Information, Inc.

Saffire Investment Ltd.

B.V.I.

Investment holdings

T ranscend Japan Inc.

Japan

Wholesale of computer memory
modules and peripheral products

T ranscend Information
Inc.

2023
$

216,8292022

Ownership(loss) recognized

for the year

Balance as at

$

-264-

851,409$

29,135$

29,135

Footnote

T able 7

T ranscend Information, Inc. and Subsidiaries

Expressed in thousands of NT D

Information on investments in Mainland China(Except as otherwise indicated)Year ended December 31, 2023
Amount remitted fromT aiwan to Mainland
Accumulated
amountInvestee in
Mainland China

Main business activities

T ranscend
Manufacture and sales ofInformation
computer memory modules,(Shanghai), Ltd. storage products and disks,and lease of self-ownedbuildings
T ranstech
T rading(Shanghai) Co.,Ltd.

Paid-in capital$

Wholesale, agent, importand export and retail ofcomputer memory modules,
storage products andcomputer components

China/Amount remitted

Accumulated
Net income

Investment

Accumulatedback to T aiwan for

amount ofincome (loss)of remittance fromthe year ended

remittance(loss)

Ownership

recognizedBook value ofamountT aiwan to

December 31, 2023

from T aiwan toof investee forheld byby the Company

investments in

Investment

Mainland China

Remitted toRemitted Mainland China as of the year ended the Company for the year ended Mainland China

methodas of January 1,

Mainlandback toDecember 31,

December 31,(direct orDecember 31,

as of December（Note 1）

2023

China

T aiwan

2023

2023

indirect)2023 (Note 2)

31, 2023

150,787--

16,310--150,7872

16,3102

Investment

Ceiling onamount approved

investments in$$

150,787$

16,310

4,291

100

9,162

100

$

4,291

9,162

$

322,804

66,556by the Investment Mainland China
Accumulated amount ofCommission ofremittance from T aiwan to

the Ministry of

Investment

Mainland China as of

Economic Affairs

Commission of

December 31, 2023$

167,097

imposed by the(MOEA)$

167,097

MOEA$

11,561,226

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) T hrough investing in an existing company in the third area (Memhiro Pte Ltd.), which then invested in Mainland China.
(3) Others.
Note 2: T he 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: T he numbers in this table are expressed in New T aiwan Dollars.
Note 4: For the year ended December 31, 2023, T ranscend Information (Shanghai), Ltd. remitted back gain on investments of $817,580 (RMB 187,800 thousand) which was based on the exchange rate of RMB 1=4.35.

-265-

of investment
incomeremitted back to
T aiwan as ofDecember 31, 2023 Footnote$

2,281,608-

Note 4-

T ranscend Information, Inc.
Major shareholders information
December 31, 2023
T able 8

SharesName of major shareholders

Number of shares held

Shareholding ratio

Won Chin Investment Inc.

74,783,600

17.42

Wan An T echnology Inc.

34,149,854

7.95

Cheng Chuan T echnology Development Inc.

32,971,701

7.68

Wan Min Investment Inc.

29,726,397

6.92

Wan Chuan Investment Inc.

29,505,896

6.87

-266-

TRANSCEND INFORMATION, INC.
DETAILS OF CASH AND CASH EQUIVALENTSDECEMBER 31, 2023
(Expressed in thousands of New Taiwan Dollars)Statement 1

Items

Summary

Petty cash and cash on hand

Amount$340

Cash in banks- Checking accounts deposits

2,665- Demand deposits- Foreign currency deposits
Time deposits

335,321
USD 19,887 thousand, at exchange rate of $30.71

610,727

Other foreign currency

15,500NTD

250,000$ 1,214,553-267-

TRANSCEND INFORMATION, INC.
DETAILS OF INVENTORIESDECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 2

Items

Summary$

Raw materials
Work in progress
Finished goods
Less: Allowance for inventory
valuation loss($

AmountNet realizable
Cost
value
4,107,777 $3,988,461
423,938
487,475
532,063
850,4445,326,380
5,063,778 $
122,912)4,940,866

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 theestimated cost of completion and the estimated costs necessary to make the sale.

-268-

Note
Note 1
Note 2
Note 2

TRANSCEND INFORMATION, INC.
MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHODFOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 3
Opening balance

Additions

Number of shares
Name of investee(in thousand shares)

AmountSaffire Investment Ltd.

6,600

$ 1,676,847

Transcend Japan Inc.

6

Transcend Information Inc.

Remeasurement

Accumulated

Investment

of definedtranslation

income (loss)

benefit planadjustment

Reductions

Number of shares

Number of shares(in thousand shares)

Amount (in thousand shares)

Amount

- $

-

- ($

764,671) $29,135

222,111--- (165,245)625

153,808---

Transcend Korea Inc.

40

62,902--

Taiwan IC Packaging
Corporation

21,928

136,710--$ 2,252,378$-

from sales

ratio

7,684)

6,600

100%

468

6

100%

82,218) ($

4,778

-

31,687-30,817- (440) (

5,359)

625- (59,356)

4,704-

4,930 (

286)

- (10,968) (22,128)-($ 1,000,240) $47,306

1,524$

1,524 ($

46,041) ($Shareholding(in thousand shares)

- ($

-269-

$

Ending balance
Unrealised profit Number of shares

12,861)Market price orvalue per share

Amount
$851,409

Collateral

858,385

None

93,799100,248"100%

178,826

180,819

"

40

100%

12,894

13,792"

21,92812.51%

105,138

317,957"$ 1,242,066$

TRANSCEND INFORMATION, INC.
DETAILS OF ACCOUNTS PAYABLEDECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 4

Vendor name
A vendorAmount$Note

764,463

B vendor

456,257

C vendor

130,776

D vendor

117,290

Others321,743$

1,790,529-270-

The balance of each vendor account has notexceeded 5% of the total accounts payable.

TRANSCEND INFORMATION, INC.
DETAILS OF OPERATING COST
FOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 5

Items

AmountRaw materials used
Raw materials at the beginning
Add: Materials purchased during the year
OthersLess: Raw materials at the end
Cost of raw materials sales
Reclassified as manufacture, selling andadministrative and research and development
expenses
Consumption of materials for the year
Direct labor
Manufacturing expense
Manufacturing cost
Add: Work in progress at the beginning
Transfer from finished goods
Less: Work in progress at the end
Finished goods cost
Add: Finished goods at the beginning
Less: Finished goods at the end
Transfer into work in progress
Reclassified as manufacture, selling andadministrative and research and development
expenses
OthersCost of goods sold - finished goods
Cost of goods sold - materials
Gain on reversal of decline in market value
Operating cost

-271-

$

(
(

(

2,743,592
8,627,088
6,737
4,107,777)
43,486)14,150)7,212,004
427,482
262,3037,901,789
285,227
1,438,864
423,938)
9,201,942
528,468
532,063)
1,438,864)

(

(
(

(
(

(
$

22,533)6,769)
7,730,181
43,486364,462)7,409,205

Note

TRANSCEND INFORMATION, INC.
DETAILS OF MANUFACTURING EXPENSEFOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 6

Items
Depreciation

Summary

Amount$Note

98,305

Insurance expense

41,826

Utilities expense

26,789Maintenance fees

21,789Miscellaneous purchase

18,857

Package fees

18,373

Other expenses

The balance of each expense accounthas not exceeded 5% of the total
36,364 manufacturing expense.
$

262,303-272-

TRANSCEND INFORMATION, INC.
DETAILS OF OPERATING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 7
Selling
expenses

Items
Wages and salaries

General andadministrative
expenses$

Research anddevelopment
expenseTotal

186,468 $

75,572 $109,559 $

371,599

Export expense

58,532--58,532

Insurance expense

17,16525,9059,731

52,801

Depreciation

332

28,658376

29,366Tax

33

11,396-

11,429Other expenses$

54,553
317,083 $

40,159181,690 $-273-

13,307
132,973 $Note

The balance of each expense
account has not exceeded 5% of
108,019 the total operating expenses.
631,746

TRANSCEND INFORMATION, INC.
DETAILS OF EMPLOYEE BENEFIT AND DEPRECIATION BY FUNCTION
FOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 8
Function
NatureEmployee benefit expense
Salary expenses$
Labour and health insurance fees
Pension costs
Other personnel expenses
Directors’ remuneration
Depreciation

For the year ended December 31, 2023
Classified as
Operating Costs
391,690
37,50917,90323,65998,305Classified as
Operating Expenses$

365,889
33,383
15,945
14,667
5,710
29,366

For the year ended December 31, 2022
Classified as
Operating Costs

Total
$

757,579
70,892
33,84838,326
5,710
127,671$372,688
36,825
17,606
24,730121,635Classified as
Operating Expenses$

388,746
33,89916,27315,067
1,993
32,534

1. As at December 31, 2023 and 2022, the Company had 994 and 1,010 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:(1) Average employee benefit expense in current year was $912 thousand (‘total employee benefit expense in current year － total directors’
remuneration’ / ‘the number of employees in current year － the number of non-employee directors’).
Average employee benefit expense in previous year was $902 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 $767 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 $758 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 1.19% (‘the average employee salaries in current year － the average employee salaries inprevious year’ / the average employee salaries in previous year).
-274-

Total
$

761,434
70,72433,87939,797
1,993
154,169

TRANSCEND INFORMATION, INC.
DETAILS OF EMPLOYEE BENEFIT AND DEPRECIATION BY FUNCTION
FOR THE YEAR ENDED DECEMBER 31, 2023
(Expressed in thousands of New Taiwan dollars)Statement 8(4) For the years ended December 31, 2023 and 2022, 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 andreasonableness 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.

-275-6.6. The Company should disclose the financial impact to the Company if the Company and its
affiliated companies have incurred any financial or cash flow difficulties in 2023 and as ofthe date of this Annual Report.
None.
7. Review and Analysis of Financial Position, Financial Performance, and Risk Management
7.1. Analysis of Financial Position

Year
Current Assets
Funds and Investments (Note 1)
Property, Plant and Equipment
Intangible Assets
Other Assets (Note 2)
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Capital Stock
Capital surplus
Retained Earnings
Other Adjustments
Total Stockholders' Equity

2023

2022

16,395,267
1,495,102
1,509,348
2,889,564
22,289,281
2,702,840
317,7313,020,571
4,290,617
3,044,619
12,163,837(230,363)
19,268,710

16,254,872
713,1121,580,372
2,980,086
21,528,442
1,426,767
551,139
1,977,906
4,290,617
3,387,781
12,229,955(357,817)
19,550,536

Unit: NT$ thousands
Difference
Amount%Analysis
140,395
0.86
781,990109.66(1)(71,024)(4.49)(90,522)
760,839
1,276,073(233,408)
1,042,665(343,162)(66,118)
127,454(281,826)(3.04)
3.53
89.44(42.35)52.72(10.13)(0.54)(35.62)(1.44)

(2)
(3)

(4)

Analysis of Deviation over 20%:(1) It was mainy due to the investments made in US dollar bonds and ETF funds in 2023, such thatfunds and investments increased at the end of the period.
(2) It was mainly due to the increase of inventory purchase amount, such that accounts payable
increased at the end of the period.
(3) It was mainly due to the adoption of the book-tax difference for investment income under theequity method in 2023, such that deferred income tax liabilities decreased.
(4) It was mainly due to the increase in the stock price, such that unrealized gain on financial
assets at fair value through other comprehensive income increased.
Note 1: Including Investments accounted for using equity method, Non-current financial assets at fair value
through profit or loss, and Non-current financial assets at fair value through other comprehensive
income.
Note 2: Including Deferred tax assets, Investment property, Right-of-use assets and Other non-current
assets.

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7.2. Analysis of Financial Performance
7.2.1. Main reasons for any material change in operating revenue, operating income and income
before tax in the most recent two years
Unit: NT$ thousands
Year
Item
Operating Revenue
Operating Costs
Gross profit
Operating Expenses
Operating Profit
Non-operating income(expenses)
Other income
Other gains and losses
Financial cost
Share of loss of associates
and joint ventures accounted
for using the equity method
Total non-operating income(expenses)
Profit before income tax
Income tax expense
Profit for the year

2023

2022

10,496,172(7,451,567)
3,044,605(1,154,959)
1,889,646

12,122,350(9,399,607)
2,722,743(1,216,038)
1,506,705

Difference
Amounts(1,626,178)
1,948,040
321,862
61,079382,941

473,464
133,172(3,320)

197,409
1,643,836(1,973)

276,055(1,510,664)(1,347)139.84(91.90)
68.27

(2)
(3)

(22,128)

10,300(32,428)(314.83)(4)

581,1881,849,572(1,268,384)(68.58)2,470,834(485,999)
1,984,835

3,356,277(901,933)
2,454,344(885,443)
415,934(469,509)(26.38)(46.12)(19.13)%(13.41)(20.72)
11.82(5.02)
25.42

Analysis
(1)

(1)

(5)

Analysis of Deviation over 20% and Differnce amounts over NT$ 20,000,000:(1) It was mainly due to gradual recovery of the memory market since the fourth quarter 2023, despite thedecline in revenue, the corresponding decrease in costs but benefit from proper cost contral that led to anincrease in operating profit.
(2) It was mainly due to the increase in fixed deposit interest rates and interest payments from US dollar
bonds in 2023, consequently, the interest income increased.
(3) It was mainy due to the gain on disposal of non-current assets held for sale in 2022 ,consequently,
the other gains and losses in 2022 was higher.
(4) It was mainly due to that the gain of associate, that the investments accounted for using equity method,
Taiwan IC Packaging Corporation, Inc. was reduced in comparion to 2023, such that the Company
recognized related investment gain decreased.
(5) It was mainly due to the gain on the disposal of the right-of-use of lands, buildings, and attachments underTranscend (Shanghai) in 2022, such that income tax expenses increased.

-277-

7.2.2. Sales Volume Forecast and Basis for 2024
Item
Sales Volume Forecast in 2024/Unit: thousands
FLASH+DRAM products
25,0003,000
OthersThe Company established the forecast for the possible sales volume of each type of productbased on the industry economic condition in 2024, market research and future orders.
In 2023, upstream manufacturers have gradually seen results by reducing production toadjust market inventory, and gradually reducing inventory in the end market, so that supply
and demand return to a healthy state, and prices have gradually recovered. In addition, as
the topic of AI continues to heat up, various terminal applications are blooming, and thedemand for storage devices is also booming. In response to market demands, Transcend willpromptly adjust purchasing and inventory policies in order to flexibly adapt inventory levels.
Based on estimations from different market research institutions, end customers have
gradually completed their inventory adjustments, and the supply and demand of markets
will return to normal. In addition, the rapid growth of applications of AI and datacenterswill keep the industrial application realm as a whole at a high growth speed, where relevant
applications require big data storage so the demands for SSD products are estimated tocontinue to grow. In 2024, we will continue to enhance development and market expansion
for SSDs, industrial flash products, external storage devices, dashcams, and wearable
multimedia devices.

-278-

7.3. Analysis of Cash Flow
7.3.1. Cash Flow Analysis for the Current Year2023
Net cash flows from operating activities 1,313,881
Net cash flows from investing activities(144,869)
Net cash flows from financing activities (2,452,379)(1,283,367)

Unit:NT$ thousands
2022
Increase (Decrease)
5,110,263(3,796,382)(1,286,933)
1,142,064(2,629,543)
177,164
1,193,787(2,477,154)

Regarding the change of cash flow from operating activities, the amount in 2023 increased
by approximately NT$ 3.8 billion from the amount in 2022. It was mainly due to theincrease in inventory purchase amount.
Regarding the change of cash flow from investing activities, the amount in 2023 increased
by approximately NT$1.14 billion from the amount in 2022, and this was mainly due to thedisposal of financial assets at amortised cost in 2023 which caused higher cash inflow.
7.3.2. Liquidity Analysis for the Coming Year and Remedy for Cash Deficit
1. Operating activities: The overall gross profit is expected to grow continuously and theoperating activities will generate net cash inflow.
2. Investing activities: The Company will continue to perform appropriate investment withidle funds in order to gain stable investment profit, and it is expected to generate net cash
inflow.
3. Financing activities: Net cash outflow primarily from cash dividend payment.
Remedy for Liquidity Shortfall: Not applicable.
7.4. The Effect Upon Financial Operations of Any Major Capital Expenditures During the Most
Recent Fiscal Year
In 2023, the Company had no major capital expenditure. Up to the end of March 2024, theconsolidated cash and short-term investment position were approximately NT$ 9.5 billion.
After the deduction of relevant cash outflow items, the capital was still sufficient; therefore,
there was no risk of capital shortage.
7.5. Reinvestment Policy for the Most Recent Fiscal Year, the Main Reasons for Profits or Losses
Generated Thereby, Improvement Plans, and Investment Plans for the Coming Year
None.

-279-

7.6. Analysis of Risk Management
7.6.1. The Organization Structure of Risk Management
The organizational structure of risk management of the Company is as follows:
Organization nameScope of responsibility
Board of Directors(including the Audit
1. Establish risk management policy, structure and culture
Committee &2. Ensure the effectiveness of risk management mechanism
Remuneration Committee)
1. Execute risk management decision making
2. Cross-department
risk
management
interaction
andcommunication
Senior management level
3. Material risk early warning, assess potential loss, handle
follow-up strategy or report of risk mitigation and summarize
material risk event handling result
1. Monitor and periodically assess whether the risk control of all
departments is performed properly
Audit Office
2. Issue an audit report according to the audit result, and propose
improvement suggestions and follow up improvement progress
All departments ofheadquarters(Note)

1. Execute daily risk management activities
2. Execution of corporate management and risk decision making
3. Perform risk control activity assessment

Note: The authorities and responsibilities of all departments of headquarters are as follows:(1) FAD: Responsible for the Company’s financial analysis, accounting affairs, statements
preparation, difference analysis, fund management, planning of the Company’s taxes, finance,stock affairs and investments as well as monitoring of the cash flow of all subsidiaries, inorder to reduce financial risks.
(2) PUR: Responsible for understanding the quality condition and price trend of raw materials,
component parts, machine equipments and office supplies necessary for the products andoperation of the Company in order to perform price negotiation and purchase. It is also
responsible for maintaining the safety stock of the purchase items and assisting the handling ofslow-moving materials, in order to reduce risks of purchase management and slow-moving
inventory.
(3) PM & Marketing: Responsible for the Company’s reasonable pricing and fair distribution of
products, summarizing and analyzing the product information and pros/cons of each productline, and assisting the management of demands for customization, in order to reduce the riskof product planning management; responsible for matters related to the brand marketing
activities, strengthening of brand image, product and market information collection,
establishment and execution of marketing plans, contact and application of broadcast media,
planning of the Company’s website and assistance to sales activity arrangement and design,etc., in order to reduce risks related to brand marketing.
(4) Sales: Responsible for the establishment of market sales plan, development and maintenanceof customers, business management and promotion, collection and response to new business
opportunities, in order to reduce the market risks of new customer development, etc.
(5) R&D / Tech Support: Responsible for the research, development and design related matters forvarious products, research and development target estimation and management, new productresearch and development, handling and tracking of abnormalities, in order to reduce risks
related to research, development and design.
-280-

(6) Production: Responsible for relevant works of production schedule control, product packaging,repair and shipping operation, etc., in order to reduce risk of production capacity and shipping,etc.; responsible for the manufacturing, testing, repair of products and production technologies,
improvement of manufacturing quality etc., in order to reduce risks related to production andmanufacturing.
(7) ADM: Responsible for the management of corporate legal affairs, contracts, patents andintellectual property rights, human resource management and organization development, etc.,
in order to reduce risks of legal, administration and human resource management.
(8) Information System: Responsible for planning of information system, network establishment
and maintenance and various computer software and hardware installation and configuration
management related matters, in order to reduce risks of information security.
(9) Quality Assurance: Responsible for the establishment of the Company’s quality assurance
system, promotion of ISO system and QA management system, direct internal and external
audit and certifications, in order to reduce quality management related risks.
7.6.2. Effects of Changes in Interest Rates, Foreign Exchange Rates and Inflation on Corporate
Finance, and Future Response Measures
1. Interest rate
Unit: NT$ thousands
2023
2022
Item
Amount%Amount%Interest income
394,761
20.89%
114,926
7.63%
Profit from operations
1,889,646
100.00%1,506,705
100.00%
The Company has a sound financial system. If there is any bank borrowing, theCompany enhances the close contact with the bank with respect to the loan interest ratein order to understand the interest rate trend, thereby obtaining the most preferable loan
and reference for asset allocation. Regarding the short-term idle capital utilization, theCompany mostly uses the USD and NTD time deposits, money market fund andfinancial instruments with low risk as the investment targets.
2. Foreign exchange rates
Item
Exchange
Gains (loss)
Profit fromoperations

2023
Amount
89,591%4.74%

1,889,646

100.00%

Unit: NT$ thousands
2022
Amount%320,239
21.25%
1,506,705

100.00%The decline in exchange gains in 2023, which were mainly due to the impact of theappreciation of NTD to USD.
Due to the impact on the Company’s profit of changes in exchange rate, the Company
establishes the following countermeasures:(1) The export ratio of the Company is approximately 78%, and the main currencies are
USD and EUR. On the other hand, the main currency for purchase is USD. Throughappropriate proportion among these two types of currencies and through the offsets
between accounts receivable and accounts payable, the exchange rate fluctuation
among different currencies could be canceled out, such that the exchange rate change
would then achieve a certain level of natural hedging effect for the Company.
-281-

(2) The Company will adjust the foreign exchange position depending on the exchange
rate trend, and use appropriate financial tools to perform reasonable hedging
operation.
(3) The Company also considers the exchange rate factor during the sales order quotationin order to ensure the reasonable profit of the Company.
(4) The Company maintains close contact with the foreign exchange department of thefinancial institution, understands the exchange rate trend and promptly adjusts theforeign exchange position in order to hedge the foreign exchange risk.
(5) The Company complies with the provisions of the “Procedures for Acquisition and
Disposal of Assets” and determines the reasonable hedge ratio and hedging toolaccording to the foreign exchange market trend.
3. Inflation
The main businesses of the Company refer to the manufacturing and sales of computer
peripherals and storage application products, and there have been no material impacts
due to inflation. The Company periodically adjusts the pricing strategy and pays
attention to the market price change in order to prevent possible risks associated with
inflation.
7.6.3. Policies, Main Causes of Gain or Loss and Future Response Measures with Respect toHigh-risk, High-leveraged Investments, Lending or Endorsement Guarantees, andDerivatives Transactions
1. The Company did not engage in any high-risk or high-leveraged investments in 2023.
2. The Company did not engage in any financial derivatives transactions in 2023. In the
future, the Company will perform periodic assessment depending upon the operation
status of the Company and the change of the market trend in order to flexibly adjust
relevant hedging strategies.
3. Status of the Company’s loaning of funds to others in 2023: None.
4. Status of the Company’s endorsements and guarantees in 2023: The Company provides aguarantee for Transcend Japan Inc. amounting to JPY 2,000,000 thousands. Pursuant to
the Company’s ”Procedures for Endorsement and Guarantee,” the maximum limit ofguarantee up to the end of 2023 was NT$ 7,468,568 thousands.
7.6.4. Future Research & Development Projects and Corresponding Budget
1. R&D projects and current status of pending R&D projects in the most recent year
Please refer to “5.1.3. Research and Development Overview.”
2. R&D budget for further investment
Please refer to “5.1.3. Research and Development Overview.”
3. Main factors affecting success of R&D
Since the entrance barrier for consumer products is relatively low, for new productdevelopment, product launch must be made at the right time in order to seize the business
opportunity. Accordingly, for R&D, it is necessary to shorten the schedule, and the
product function must be able to satisfy the fast and diverse demands from end-users at
the same time. The Company will cultivate more senior and specialized R&D talents. In
addition, the embedded products require stable quality, and customization must be
performed according to the customer demands. The Company has established a dedicatedunit for such product lines in order to enhance the R&D strength.

-282-

7.6.5. Effects of and Response to Changes on Important Domestic and Foreign Policies and Laws
Relating to Corporate Finance and Business
During 2023 and as of the date of publication of this annual report, changes in related laws
have not had a significant impact on our finance and operations. The Company consistently
pays close attention to any changes in local and foreign policies and makes appropriate
amendments to our systems when necessary.
7.6.6. Effects of and Response to Changes in Technology (including information security risks)
and the Industry Relating to Corporate Finance and BusinessIn the post-pandemic era, consumer demands will shift from individuals to corporations as aresult of the diminished pandemic dividend from life normalization, while demand formemory is expected to continue to grow due to the development of 5G, AIoT, corporate
servers, and industrial computer applications. Transcend will continue to adopt the productstrategy for both channel and project sales, to strengthen research and development energy,
to improve product integrity and performance, in order to implement reasonable pricing
strategy and outstanding customer service, thereby continuously creating stable profits for
the Company.
To cope with the advancement of digital technology, the Company plans to focus on theinformation security risk and the following measures have been implemented in the current
year:(1)The global VPN connection has basically been established and enhance theauthentication mechanism, and regularly check for irregularities of the use of VPN accounts
to prevent unauthorized users from accessing our sensitive data; and (2) renew the contract
for the network system service for this year, simultaneously upgrade the information
security version, and purchase 1 sets of hardware firewall to improve the protection level.
The Company will continue to improve the information security measures, to strengthen
employees’ information security awareness and to periodically review relevant policies andfuture development direction, in order to achieve the goal of establishing a soundinformation security environment.
7.6.7. The Impact of Changes on Corporate Image on Corporate Crisis Management, and theCompany’s Response Measures
Under impact of the post-pandemic era and the overall economic change, corporate
development uncertainty is increased. Nevertheless, Transcend continues to strengthen thecompleteness of embedded products, launch new products without comprising productquality, and make product applications more diverse in order to meet the memory
requirements of different industries. Transcend is equipped with complete infrastructure,
production line and sound financial structure. In addition, the Company also emphasizes thecustomer value and customer-oriented approach. The future development goal of theCompany includes: (1) The growth momentum infused from the deep involvement of thechannel market and the expansion of industrial application projects; (2) win-win scenarios
created from cooperation on our group’s industrial projects; and (3) the professional
competencies of our sales representatives and the logistical support strengthened to create
added value by improving service quality. In the future, the Company will continue to exert
effort on the increase of product and service quality and will also convert customer
satisfaction and loyalty into stable profit of the Company.
In addition, to cooperate with the Corporate Governance 3.0 – Sustainable Development
Blueprint promoted by the government, Transcend will also actively engage in the corporate
governance, prepare ESG report and is committed to protecting the interests of shareholders-283-

and treating all shareholders equally, to enhance the functions of board of directors, toincrease information transparency, and to promote sustainable development, etc., in order toimprove international competitiveness of the Company and to fulfill the obligations for all
shareholders.
For 2023 and up to the printing date of the annual report, there have been no material risk
matters affecting the corporate image
7.6.8. Expected Benefits from, Possible Risks Relating to and Response to Merger andAcquisition Plans
None.
7.6.9. Expected Benefits from, Possible Risks Relating to and Response to Factory Expansion
Plans
None.
7.6.10. Risks Relating to and Response to Excessive Concentration of Purchasing or Sales
Operations
None.
7.6.11. Effects of, Risks Relating to and Response to Large Share Transfers or Changes inShareholdings by Directors or Shareholders with over 10% Shareholdings
None.
7.6.12. Effects of, Risks Relating to and Response to the Changes in Management Rights
None.
7.6.13. Litigation or Non-litigation Matters
None.
7.6.14. Other Major Risks and Response MeasuresNone.
7.7. Other Material Matters
The valuation accounts on the Company’s assets and liabilities include Allowance for loss on
accounts receivable, Allowance for loss on decline in market value of inventory, andFinancial assets impairment, etc. And the accounting policies adopted are as follows:
1. Allowance for loss on accounts receivable
The Company classifies customers’ accounts receivable in accordance with the credit
rating of the customer. The Group applies the simplified approach to estimate expectedcredit loss under the provision matrix basis. The Company used historical and timely
information to assess the loss rate of accounts receivable.
2. Allowance for loss on decline in market value of inventory(1) Inventories are stated at the lower of cost and net realizable value. The item by item
approach is used in applying the lower of cost and net realizable value. Net realizablevalue is the estimated selling price in the ordinary course of business, less theestimated cost of completion and applicable variable selling expenses. When the net
realizable value is lower than cost, the difference is recognized as loss on decline inmarket value of inventory.
-284-

(2) When the ending inventory has not changed for more than six months, it is deemed as
slow-moving inventory and is listed in the slow-moving inventory report. And loss for
slow-moving inventory will be 100% recognized.
(3) When the ending inventory refers to products that the Company no longer
manufactured and sold, those products are deemed as slow-moving inventory and arelisted in the slow-moving inventory report. And loss for slow-moving inventory willbe 100% recognized.
3. Financial assets impairment
For financial assets at amortised cost including accounts receivable that have a significant
financing component, at each reporting date, the Group recognizes the impairment
provision for 12 months expected credit losses if there has not been a significant increasein credit risk since initial recognition or recognizes the impairment provision for the
lifetime expected credit losses (ECLs) if such credit risk has increased since initialrecognition after taking into consideration all reasonable and verifiable information that
includes forecasts. On the other hand, for accounts receivable or contract assets that do notcontain a significant financing component, the Group recognizes the impairment provision
for lifetime ECLs.

-285-

8. Special Disclosure
8.1. Information of Affiliated Companies
8.1.1. Organizational Chart of Affiliated Companies

Note：Transcend Information (Shanghai), Ltd. and Transtech Trading (Shanghai) Co., Ltd. were merged on March 29, 2024.
After the merger, Transtech Trading (Shanghai) Co., Ltd. is the surviving company. Transcend Information (Shanghai), Ltd. wasdiscontinued after the merger.
The matters related to the merger of investment in China have been approved by the Investment Commission of the Ministry of
Economic Affairs in the letter Jing-Shou-Shen-Zi No. 11320091650 dated May 6, 2024.

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8.1.2. Summary of Affiliated Companies
Name
Saffire Investment
Ltd.
Memhiro Pte. Ltd.

Date ofincorporationAddress

Citco Building, Wickhams Cay,
12/18/1997 P.O.BOX 662, Road Town,
Tortola, B.V.I.
60 Albert Street, #14-01 OG Albert
03/14/1998
Complex, 189969 Singapore

Transcend Japan
Inc.

12/11/1996

1-8-5,Kuramae, Taito-Ku, Tokyo,
111-0051, Japan

Transcend
Information Europe
B.V.

06/28/1995

Cairostraat 40, 3047 BC,
Rotterdam,The Netherlands

Transcend
Information Inc.

03/28/1990

1645 North Brian St. Orange, CA
92867, U.S.A.

Transcend
Flughafenstrasse 52b(AirportInformation Trading 09/29/1992
Center), 22335 Hamburg, GermanyGmbH
12F, CBS Bldg., 159-1,
Transcend Korea
07/09/2008 Mokdongseo-ro, Yangcheon-gu,
Inc.
Seoul, Korea

Paid-in capital

Main scope of operationor production

216,829 Investment holdings
173,702 Investment holdings
Wholesale of computer
89,103 memory modules andperipheral products
Wholesale of computer
1,693 memory modules andperipheral products
Wholesale of computer
38,592 memory modules andperipheral products
Wholesale of computer
2,288 memory modules andperipheral products
Wholesale of computer
6,132 memory modules andperipheral products

No.1, Central Avenue, Shanghai
Minhang Export Processing
03/25/2005
Zone,Fengxian District, Shanghai,
China.

Manufacture and sales ofcomputer memory
150,787 modules, storage products
and disks, and lease of
self-owned buildings

1388 Kaixuan Road, Building T1,
Transtech Trading
09/21/2006 Room 801, Changning District,(Shanghai) Co., Ltd.
Shanghai, China

Wholesale, agent, importand export and retail of
16,310 computer memory
modules, storage products
and computer components

Transcend
Information (H.K.)
LimitedWholesale of computer
7,636 memory modules andperipheral products

Transcend
Information(Shanghai), Ltd.

Unit 17-18, 10/F, Nan Fung Comm
01/08/2013 Centre, 19 Lam Lok Street,
Kowloon Bay, Hong Kong-287-

8.1.3. Profile of Directors, Supervisors and General Managers of Affiliated Companies
Number of Shares
Name of
Name
Title
Represnetative
Shares%DirectorShu, Chung-Cheng
Memhiro Pte. Ltd.
8,277,609
100%
Director
Wang, LiWei
Saffire Investment Ltd.
DirectorShu, Chung-Cheng
6,600,000
100%
Transcend Japan Inc.
Director
Lin,Taikin
6,400
100%
Tellier, Yoann
Transcend Information Europe B.V.
Director
100
100%
Roger Jean
Transcend Information Inc.
Director
Clarence Chan
625,000
100%
DirectorShu, Chung-Won
Transcend Information Trading GmbH
100%
GeneralShu, Chung-Won
Manager
Executive
Transcend Information (Shanghai), Ltd.
Shu, Chung-Cheng
100%
Director
Executive
Transtech Trading (Shanghai) Co., Ltd.
Shu, Chung-Cheng
100%
Director
Director
Shim Dong Hoon
Transcend Korea Inc.
40,000100%
GeneralShim Dong Hoon
Manager
Transcend Information (H.K.) Limited
Director
Chen, Po-Shou
2,000,000
100%

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8.1.4. Overview of Affiliated Companies’ Operations for 2023
Unit: NT$ thousands
Name

CapitalTranscend Japan Inc.
Saffire Investment Ltd.
Memhiro Pte. Ltd.
Transcend Information Inc.
Trnascend Information Europe B.V.
Transcend Information Trading GmbH
Transcend Information (Shanghai), Ltd.
Transtech Trading (Shanghai) Co., Ltd.
Transcend Korea Inc.
Transcend Information (H.K.) Limited

89,103
216,829
173,70238,592
1,693
2,288
150,787
16,3106,132
7,636

Total Assets

Total
Liabilities

Net Worth

Net Sales

289,002858,385
812,830
227,076
345,473
152,216
327,141458,20955,011
34,578

188,754
46,257
94,616
20,4804,337
391,653
41,21923,417100,248858,385
812,830
180,819
250,857
131,736
322,804
66,556
13,792
11,161

552,136
876,008609,754
506,094
1,020,025
363,139
114,791

Profit (Loss)
Profit (Loss) Earnings perfromfor the year share (NT$)
Operations
6,368
4,778
746.5329,135
4.41(356)
26,962
3.26
21,08330,817
34.32
(720)
6,827
68,265.41
10,094
4,230(7,727)
4,291
11,460
9,162
5,037
4,704
117.61
1,384
1,399
0.70

8.1.5. Consolidated Financial Statement of Affiliated Enterprises
Please refer to page 126~197 of this Annual Report.
8.1.6. Affiliation Reports
Not applicable.
8.2. Private Placement of Securities in 2023 and as of the date of this Annual ReportNone.
8.3. Status of the Company’s Common Shares Held and Disposed by Subsidiaries in 2023 and as of the date of this Annual ReportNone.
8.4. Other Necessary Supplement
None.
9.

Latest Matters with Material Impacts on Shareholders’ Interests or Security Prices Indicated in Paragraph 3 Subparagraph 2 of Article 36 of
the Securities and Exchange Act in 2023 and as of the date of this Annual Report
None.
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Transcend Information, Inc.
No. 70, XingZhong Rd., NeiHu Dist., Taipei 114, Taiwan
Tel:886-2-2792-8000 Fax:886-2-2792-3375
https://tw.transcend-info.com

Transcend Information, Inc.

Chairman: Shu, Chung-Won