Phison Financial Reporting Incident Sentenced to 5-Year Probation

Background:
 Due to the financial report incident in 2016, the CEO of Phison Electronics Corp. K.S.Pua, was sentenced on August 10, 2022 after the second-instance appeal filed by the CEO and the trial of the Taiwan High Court.

Verdict:
Taiwan High Court rendered judgment for Phison’s financial report case occurred in 2016. In accordance with the judgment, Taiwan High Court sentenced Pua to 1 year and 10-month imprisonment for violating Article 171 Item 1 Sub-Item 1 of Securities and Exchange Act; and Taiwan High Court further sentenced Pua to 5-year probation, to make donations to public welfare organizations or groups, and to attend law-related education programs.

Impacts on Phison:
The company is operating normally. The court judgment does not influence its operation and finance.

Phison’s Response:
This case is a lawsuit concerning the company’s 2016 financial report incident. Pua, said that he respects the judgment of the High Court for the conclusion of the trial. After receiving the judgment, the manufacturer will discuss with the lawyer the direction of the follow-up processing and related matters.