Weikeng — Annual Report 2025

Nov 27, 2025

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Stock Code:3033

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2025 and 2024

Address: 11F., No.308, Sec.1, Neihu Rd., Neihu Dist., Taipei City Telephone: (02)2659-0202

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statement of Comprehensive Income 7. Consolidated Statement of Changes in Equity 8. Consolidated Statement of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Assets Pledged as security (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures items (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (14) Segment information

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1 2 3 4 5 6 7 8 9 9 9～11 11～27 27 28～63 63～64 64 64 64 64 65 65～68 69 69～70 70～71

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Representation Letter

The entities that are required to be included in the combined financial statements of WEIKENG INDUSTRIAL CO., LTD. as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, “ Consolidated Financial Statements” endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, WEIKENG INDUSTRIAL CO., LTD. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: WEIKENG INDUSTRIAL CO., LTD. Chairman: Chiu-Chiang, Hu Date: March 13, 2026

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Weikeng Industrial Co., Ltd.:

Opinion

We have audited the consolidated financial statements of Weikeng Industrial Co., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended December 31, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“ IFRSs” ), International Accounting Standards (“ IASs” ), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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 Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matters we judged shall be presented in the auditors’ report as follows:

1. Recognition of Operating Revenue

Please refer to note (4)(m) “ Revenue recognition” for accounting policies with respect to recognizing revenue, and to note (6)(q) “Revenue from contracts with customers” for explanatory notes about revenue.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

Description of key audit matters:

Weikeng Industrial Co., Ltd. is a listed company. The Group is a distributor for the sale of electronic components and computer peripheral equipment. Operating revenue is one of the significant items in the consolidated financial statements, and the amounts and changes of operating revenue may affect the users’ understanding of the entire financial statements. Therefore, the testing over revenue recognition is considered a key matter in our audits.

How the matter was addressed in our audits:

Our main audit procedures for the aforementioned key audit matters include testing the Group’s controls surrounding revenue recognition in the order-to-cash transaction cycle, including reconciliations between the general ledger and sales system; performing the detailed test of relevant vouchers, as well as assessing whether the Group’s timing on revenue recognition and the amounts recognized are in accordance with the related standards.

2. Valuation of Inventories

Please refer to note (4)(h) “ Inventories” for accounting policies with respect to valuating inventories; note (5) “Valuation of inventories” for accounting estimates and uncertainties of affairs for inventory valuation, and to note (6)(e) “Inventories” for explanatory notes about inventories and related expenses.

Description of key audit matters:

The Group is a distributor for the sale of electronic components and computer peripheral equipment. Due to the horizontal competition in the industry and constant advancement of related technologies, the price of end electronic products are volatile, and thus, affects the price of electronic components and computer peripheral equipment. Therefore, the testing over the valuation of inventories is considered a key matter in our audits.

How the matter was addressed in our audits:

Our main audit procedures for the aforementioned key audit matters include evaluating whether the policies for setting aside allowance for inventory valuation and obsolescence losses are in accordance with the Group’ s policies and related standards; as well as implementing sampling procedures to check the correctness of the aging of the inventories. In addition, we also examined the inventory aging reports, understood the subsequent sales status of slow-moving inventories; and evaluated the adopted basis of the net realizable value to assess the reasonableness of the management’ s estimates of the allowance for inventory valuation.

Other Matter

Weikeng Industrial Co., Ltd. has prepared its parent-company-only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion.

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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 with the IFRSs, IASs, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, 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 do so.

Those charged with governance (including Audit Committee) are responsible for overseeing the Group’ s financial reporting process.

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, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. 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 to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. 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.

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

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

4-3

1. 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 fair presentation.

2. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on this consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Au, Yiu-Kwan and Hsin, Yu-Ting.

KPMG

Taipei, Taiwan (Republic of China) March 13, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(expressed in thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note (6)(a)) 1110 Current financial assets at fair value through profit or loss (notes (6)(b) and (6)(i)) 1170 Notes and accounts receivable, net (note (6)(d)) 1200 Other receivables (note (6)(d)) 1300 Inventories, net (note (6)(e)) 1470 Prepayments and other current assets Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (note (6)(c)) 1600 Property, plant and equipment (note (6)(f)) 1755 Right-of-use assets (note (6)(g)) 1780 Intangible assets 1840 Deferred tax assets (note (6)(m)) 1900 Other non-current assets Total assets	December 31, 2025 Amount % $ 2,949,810 7 827 - 19,476,526 44 480,659 1 20,019,574 45 435,542 1 43,362,938 98 88,553 - 147,836 - 240,666 1 11,297 - 223,099 1 80,587 - 792,038 2 $ 44,154,976 100	December 31, 2024 Amount % 2,985,318 7 799 - 17,744,616 42 590,218 1 20,524,632 48 180,713 - 42,026,296 98 88,833 - 153,222 - 282,188 1 7,317 - 187,363 1 85,885 - 804,808 2 42,831,104 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note (6)(h)) 2120 Current financial liabilities at fair value through profit or loss (notes (6)(b) and (6)(i)) 2130 Current contract liabilities (note (6)(q)) 2170 Accounts payable 2200 Other payables 2230 Current tax liabilities 2280 Current lease liabilities (note (6)(j)) 2300 Other current liabilities 2320 Bonds payable, current portion (note (6)(i)) Non-current liabilities: 2500 Non-current financial liabilities at fair value through profit or loss (notes (6)(b) and (6)(i)) 2530 Bonds payable (note (6)(i)) 2570 Deferred tax liabilities (note (6)(m)) 2580 Non-current lease liabilities (note (6)(j)) 2640 Non-current net defined benefit liabilities (note (6)(l)) 2670 Other non-current liabilities Total liabilities Equity (note (6)(n)): 3100 Common stock 3200 Capital surplus (note (6)(i)) Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings Other equity interest: 3410 Exchange differences on translation of foreign financial statements 3420 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total equity Total liabilities and equity	December 31, 2025	December 31, 2025		December 31, 2024
			Amount	%		Amount % 17,340,753 41 1,014 - 510,424 1 8,276,821 19 951,059 2 194,693 1 135,948 - 507,673 1 575,289 1 28,493,674 66 29,000 - 2,224,804 5 973,239 2 153,589 1 41,797 - 193 - 3,422,622 8 31,916,296 74 4,742,934 11 2,539,836 6 1,383,563 3 12,354 - 1,863,670 5 3,259,587 8 464,301 1 (91,850) - 372,451 1 10,914,808 26 42,831,104 100

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income

For the years ended December 31, 2025 and 2024

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

4100 Net sales revenue (note (6)(q)) 5000 Cost of sales (note (6)(e)) Gross profit Operating expenses (notes (6)(j), (6)(l), (6)(r), (7) and (12)): 6100 Selling expenses 6200 Administrative expenses 6450 Expected credit losses (note (6)(d)) Net operating income Non-operating income and expenses: 7100 Interest income 7010 Other income (notes (6)(k) and (7)) 7230 Foreign currency exchange gains (losses), net (note (6)(s)) 7235 Gains (losses) on financial assets (liabilities) at fair value through profit or loss, net (note (6)(i)) 7050 Finance costs (notes (6)(i) and (6)(j)) 7590 Miscellaneous disbursements 7900 Profit before tax 7950 Less: Income tax expenses (note (6)(m)) 8200 Profit Other comprehensive income: 8310 Items that will not be reclassified to profit or loss 8311 Changes on remeasurements of defined benefit plans (note (6)(l)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Less: Income tax related to items that will not be reclassified to profit or loss (note (6)(m)) 8360 Items that may be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Less: Income tax related to items that will be reclassified to profit or loss (note (6)(m)) Other comprehensive income 8500 Comprehensive income Earnings per ordinary share (expressed in New Taiwan dollars) (note (6)(p)) 9750 Basic earnings per share 9850 Diluted earnings per share	2025 Amount % $108,716,379 100 104,061,130 96 4,655,249 4 2,259,173 2 585,445 - 16,162 - 2,860,780 2 1,794,469 2 39,940 - 6,834 - 393,480 - 4,592 - (1,032,302) (1) (101) - (587,557) (1) 1,206,912 1 342,828 - 864,084 1 2,352 - (80) - 471 - 1,801 - (314,150) - (62,830) - (251,320) - (249,519) - $ 614,565 1 $ 1.81 $ 1.61	2024 Amount % 89,674,523 100 84,531,750 94 5,142,773 6 2,038,242 2 578,967 1 446 - 2,617,655 3 2,525,118 3 29,332 - 27,622 - (34,208) - 8,034 - (1,078,057) (1) (681) - (1,047,958) (1) 1,477,160 2 335,288 - 1,141,872 2 19,976 - (43) - 3,995 - 15,938 - 481,060 1 96,212 - 384,848 1 400,786 1 1,542,658 3 2.56 2.25

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the years ended December 31, 2025 and 2024 (expressed in thousands of New Taiwan Dollars)

Balance at January 1, 2024 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends Profit for the year ended December 31, 2024 Other comprehensive income for the year ended December 31, 2024 Total comprehensive income for the year ended December 31, 2024 Issuance of convertible bonds Conversion of convertible bonds Balance at December 31, 2024 Appropriation and distribution of retained earnings: Legal reserve appropriated Cash dividends Reversal of special reserve Profit for the year ended December 31, 2025 Other comprehensive income for the year ended December 31, 2025 Total comprehensive income for the year ended December 31, 2025 Share-based payment transactions Changes in ownership interests in subsidiaries Conversion of convertible bonds Others Balance at December 31, 2025	Common stock $ 4,280,715 - - - - - - - - 462,219 4,742,934 - - - - - - - - - 59,878 - $ 4,802,812	Capital surplus 1,526,125 - - - - - - - 259,231 754,480 2,539,836 - - - - - - - 32,227 758 93,132 (184) 2,665,769	Retained earnings Legal reserve Special reserve Unappropriated earnings 1,304,638 - 1,667,096 78,925 - (78,925) - 12,354 (12,354) - - (870,000) 78,925 12,354 (961,279) - - 1,141,872 - - 15,981 - - 1,157,853 - - - - - - 1,383,563 12,354 1,863,670 115,785 - (115,785) - - (1,000,000) - (12,354) 12,354 115,785 (12,354) (1,103,431) - - 864,084 - - 1,881 - - 865,965 - - - - - - - - - - - - 1,499,348 - 1,626,204	Retained earnings Legal reserve Special reserve Unappropriated earnings 1,304,638 - 1,667,096 78,925 - (78,925) - 12,354 (12,354) - - (870,000) 78,925 12,354 (961,279) - - 1,141,872 - - 15,981 - - 1,157,853 - - - - - - 1,383,563 12,354 1,863,670 115,785 - (115,785) - - (1,000,000) - (12,354) 12,354 115,785 (12,354) (1,103,431) - - 864,084 - - 1,881 - - 865,965 - - - - - - - - - - - - 1,499,348 - 1,626,204	Other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value through other foreign financial statements comprehensive income 79,453 (91,807) - - - - - - - - - - 384,848 (43) 384,848 (43) - - - - 464,301 (91,850) - - - - - - - - - - (251,320) (80) (251,320) (80) - - - - - - - - 212,981 (91,930)	Total equity
					Exchange differences on translation of foreign financial statements 79,453 - - - - - 384,848 384,848 - - 464,301 - - - - - (251,320) (251,320) - - - - 212,981
			Legal reserve 1,304,638 78,925 - - 78,925 - - - - - 1,383,563 115,785 - - 115,785 - - - - - - - 1,499,348	Special reserve - - 12,354 - 12,354 - - - - - 12,354 - - (12,354) (12,354) - - - - - - - -
						8,766,220
						- - (870,000)
						(870,000)
						1,141,872 400,786
						1,542,658
						259,231 1,216,699
						10,914,808
						- (1,000,000) -
						(1,000,000)
						864,084 (249,519)
						614,565
						32,227 758 153,010 (184)
						10,715,184

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Cash Flows

For the years ended December 31, 2025 and 2024

(expressed in thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expenses Amortization expenses Expected credit losses Net gains on financial assets and liabilities at fair value through profit or loss Interest expenses Interest income Dividends income Share-based payments Gain on lease modification Others Changes in operating assets and liabilities: Increase in notes and accounts receivable Decrease (increase) in other receivables Decrease (increase) in inventories (Increase) decrease in prepayments and other current assets Increase (decrease) in accounts payable Increase in other payable Decrease in contract liabilities and other current liabilities Decrease in net defined benefit liabilities Total changes in operating assets and liabilities Total adjustments Cash flows from (used) in operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from (used in) operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Increase in other prepayments Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Proceeds from issuing bonds Repurchase of bonds Payments of lease liabilities Cash dividends paid Net cash (used in) flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of period	2025 $ 1,206,912 171,294 8,695 16,162 (4,592) 1,032,302 (39,940) - 32,985 - (38) 1,216,868 (1,748,072) 111,023 505,058 (259,344) (1,391,335) 911,261 11,499 (21,371) (7,874) 893,515 (497,820) 719,048 1,925,960 39,401 - (979,488) (237,157) 748,716 - 200 (11,480) 185 8,332 (12,201) - (14,964) 702,757 - (3,045) (154,458) (1,000,000) (454,746) (314,514) (35,508) 2,985,318 $ 2,949,810	2024 1,477,160 172,004 8,116 446 (8,034) 1,078,057 (29,332) (230) - (466) 41 1,220,602 (4,158,096) (202,904) (7,633) 787,644 (3,580,989) (1,316,027) 109,171 (517,372) (8,094) (1,732,322) (5,313,311) (4,092,709) (2,615,549) 28,951 230 (1,050,691) (316,026) (3,953,085) (11,591) - (20,136) - (17,553) (8,223) (270) (57,773) 2,638,680 2,500,000 - (160,483) (870,000) 4,108,197 477,247 574,586 2,410,732 2,985,318

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(expressed in thousands of New Taiwan Dollars, unless otherwise specified)

(1) Company history

Weikeng Industrial Co., Ltd. (the “Company”) was incorporated in Taiwan as a company limited by shares in January 1977 and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’ s registered office is 11F, No.308 Sec. 1, Neihu Rd., Neihu Dist., Taipei City. The major activities of the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) are the purchase and sale of electronic components and computer peripherals, technical service, and the import-export trade business. Please refer to note (4)(c) for related information. The Company’s common shares were listed on the Taiwan Stock Exchange (TSE).

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on March 13, 2026.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

• ●Amendments to IAS21 “Lack of Exchangeability”

• (b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

• ●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

• ●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments”

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

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WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Effective date per Interpretations Content of amendment IASB IFRS 18 “Presentation and The new standard introduces three January 1, 2027 Disclosure in Financial categories of income and expenses, two Note: On September Statements” income statement subtotals and one single 25, 2025, the FSC note on management performance issued a press release measures. The three amendments, announcing that combined with enhanced guidance on how Taiwan will adopt to disaggregate information, set the stage IFRS 18 beginning in for better and more consistent information 2028. Entities that for users, and will affect all the entities. need to adopt the new ●A more structured income statement: standard earlier may do with the under current standards, companies use endorsement of the different formats to present their results, FSC.

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

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WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies

The material accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

• (b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on the historical cost basis:

• 1) Financial instruments at fair value through profit or loss are measured at fair value (including derivative financial instruments);

• 2) Financial assets at fair value through other comprehensive income are measured at fair value;

• 3) The defined benefit liabilities are measured at fair value of the plan assets less the present value of the defined benefit obligation limited as explained in to note 4(n).

• (ii) Functional and presentation currency

The functional currency of each Group entities is determined based on the primary economic environment in which the entities operate. The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency. All financial information presented in New Taiwan Dollars has been rounded to the nearest thousand.

(Continued)

12

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Basis of Consolidation

• (i) Principle of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the noncontrolling interests having a deficit balance.

Accounting policies of subsidiaries have been adjusted to ensure consistency with the policies adopted by the Group.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

• (ii) List of subsidiaries in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Nature of operation	Shareholding
			December 31, 2025 December 31, 2024 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100
The Company 〃 〃 WKI 〃 WKS	Weikeng International Co., Ltd. (WKI) Weikeng Technology Co., Ltd. (WKZ) Weikeng Technology Pte. Ltd. (WTP) Weikeng International (Shanghai) Co., Ltd. (WKS) Weitech International Co., Ltd. (Weitech) SiUltra Electronic Technology (Shanghai) Co., Ltd. (SiU)	Electronic components computer peripherals products distribution and technical support Electronic components and technical support 〃 Electronic components computer peripherals products distribution and technical support Import and export trade of electronic components Electronic technology development and technical advisory

(Continued)

13

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Foreign currencies

• (i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

• ‧ an investment in equity securities designated as at fair value through other comprehensive income;

• ‧ a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or

‧ qualifying cash flow hedges to the extent that the hedges are effective.

• (ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the functional currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the functional currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(Continued)

14

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

• (f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes are reclassified as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL.

(Continued)

15

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

• 1) Financial assets measured at amortized cost

• A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

A financial asset measured at amortized cost is initially recognized at fair value, plus any directly attributable transaction costs. These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses, and impairment loss, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Fair value through other comprehensive income (FVOCI )

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Some accounts receivables are held within a business model whose objective is achieved by both collecting contractual cash flows and selling by the Group, therefore, those receivables are measured at FVOCI. However, they are included in the “ accounts receivables” line item.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

(Continued)

16

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established, which in the case of quoted securities is normally the exdividend date.

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets in this category are measured at fair value at initial recognition. Attributable transaction costs are recognized in profit or loss as incurred. Subsequent changes that are measured at fair value, which take into account any dividend and interest income, are recognized in profit or loss.

• 4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized costs, notes and accounts receivable, other receivable and guarantee deposit paid), accounts receivable measured at FVOCI and contract assets.

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

• ‧ debt securities that are determined to have low credit risk at the reporting date; and

• ‧ other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

(Continued)

17

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Group in full.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings’.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

• ‧ significant financial difficulty of the borrower or issuer;

• ‧ a breach of contract such as a default or being more than 90 days past due;

• ‧ the lender of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• ‧ it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• ‧ the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets, the Group recognizes the amount of expected credit losses (or reversal) in profit or loss.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

(Continued)

18

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Compound financial instruments

Compound financial instruments issued by the Group comprise convertible bonds that can be converted to ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.

The liability component of compound financial instruments is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognized at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured.

Interest related to the financial liability is recognized in profit or loss.

(Continued)

19

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

On conversion at maturity, the financial liability is reclassified to equity and no gain or loss is recognized.

• 4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

• 5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

• (iii) Derivative financial instruments and hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted-average-cost principle and includes expenditure incurred in acquiring the inventories, production or transition costs, and other costs incurred in bringing them to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less, the estimated costs of completion and selling expenses.

(Continued)

20

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) Property, plant and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straightline basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives for the current and comparative periods are as follows:

• 1) Buildings: 59 years

• 2) Transportation equipment: 4~11 years

• 3) Machinery equipment: 3~6 years

• 4) Office and other equipment: 2~7 years

Depreciation methods, useful lives and residual values are reviewed at each annual reporting date and adjusted if appropriate.

(j) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(Continued)

21

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (i) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is assessed periodically and is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• 1) fixed payments, including in-substance fixed payment;

• 2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• 1) there is a change in future lease payments arising from the change in an index or rate; or

• 2) there is a change of its assessment on whether it will exercise an extension or termination option; or

• 3) there is any lease modifications in lease subject, scope of the lease or other terms.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

(Continued)

22

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases and leases of low-value assets, including dormitories, part of offices and transportation equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

(k) Intangible assets

• (i) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

• (iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

• 1) Computer software: 1~10 years

• 2) Other intangible assets: 1~5 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(Continued)

23

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss shall be recognized immediately in profit or loss.

(m) Revenue recognition

• (i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

• 1) Sale of goods

The Group sells electronic components and computer peripherals to customers. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

The Group often offers commercial discounts and volume discounts to its customers. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts. Accumulated experience is used to estimate the discounts, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A Refund liability is recognized for expected discounts payable to customers in relation to sales made at the end of the reporting period.

For certain contracts that permit a customer to return products, revenue would not be recognized for the products expected to be returned. In addition, the Group recognized a refund liability for these contracts and an asset (and corresponding adjustment to cost of sales) for its right to recover products from customers on settling the refund liability.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

(Continued)

24

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(n) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of the defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Group, the recognized asset is limited to the total of the present value of the economic benefits available in the form of any future refunds from the plan or reductions in the future contributions to the plan. In order to calculate the present value of the economic benefits, consideration is given to any minimum funding requirements that apply to any plan in the Group. An economic benefit is available to the Group if it is realizable during the life of the plan, or on the settlement of the plan liabilities.

When the benefits of a plan are improved, the expense of the increased benefit relating to past service by employees is recognized immediately in profit or loss.

Remeasurements of the net defined benefit liability (asset), which comprise (1) actuarial gains and losses, (2) the return on plan assets (excluding interest) and (3) the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Group can reclassify the amounts recognized in other comprehensive income to retained earnings or other equity. If the amounts recognized in other comprehensive income are transferred to other equity, they shall not be reclassified to profit or loss or recognized in retained earnings in a subsequent period.

The Group recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets and the change in the present value of the defined benefit obligation.

(Continued)

25

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Termination benefits

Termination benefits are recognized as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.

(iv) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

(o) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the share appreciation rights. Any changes in the liability are recognized in profit or loss.

• (p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS37.

(Continued)

26

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group has determined that the global minimum top-up tax – which it is required to pay under Pillar Two legislation – is an income tax in the scope of IAS 12. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nor taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(Continued)

27

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The surtax on unappropriated earnings is recorded as current tax expense in the following year after the resolution to appropriate retained earnings is approved in a stockholders’ meeting.

(q) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary equity holders of the Company. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company, divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, such as convertible bonds, employee stock options granted and employee compensation.

(r) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

There are no critical judgments in applying accounting policies that have significant effect on amounts recognized in the consolidated financial statements.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of economic uncertainty is as follows:

(a) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for normal consumption, obsolescence on unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories. Please refer to note (6)(e) for further description of the valuation of inventories.

(Continued)

28

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

(a) Cash and cash equivalents

December 31, 2025 Cash on hand $ 183 Checking accounts and demand deposits 2,792,752 Time deposits 156,875 $ 2,949,810	December 31, 2024
	169 2,985,149 -
	2,985,318

Please refer to note (6)(s) for the exchange rate, interest rate risk and sensitivity analysis of the financial assets of the Group.

(b) Financial assets and liabilities at fair value through profit or loss

• (i) The details of the financial assets and liabilities at fair value through profit or loss were as follows:

December 31, 2025 Current financial assets at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic markets $ 740 Convertible bonds – embedded derivatives 87 Total $ 827 Current financial liabilities at fair value through profit or loss: Convertible bonds – embedded derivatives $ - Non-current financial liabilities at fair value through profit or loss: Convertible bonds – embedded derivatives $ 25,250	December 31, 2024
	799 -
	799
	1,014
	29,000

As of December 31, 2025 and 2024, the Group did not provide any financial assets at fair value through profit or loss as collateral for its loans.

Please refer to note (6)(s) for credit risk and currency risk of financial assets of the Group.

(Continued)

29

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

December 31, 2025 Debt investments at fair value through other comprehensive income: Overseas unlisted convertible promissory note $ 9,056 Equity investments at fair value through other comprehensive income: Domestic emerging market stocks 114 Domestic unlisted stocks 71,925 Overseas unlisted stocks 7,458 $ 88,553	December 31, 2024
	9,056 194 72,125 7,458
	88,833

• (i) Debt investments at fair value through other comprehensive income

The Group has made an assessment that the debt invesment were held within a business model whose objective was achieved by both collecting contractual cash flows and selling financial assets. Therefore, they have been classified as financial assets at fair value through other comprehensive income.

• (ii) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategy and not for trading purposes.

There were no disposals of strategic investments, nor were there any transfers of any cumulative gain or loss within equity relating to these investments in the years ended December 31, 2025 and 2024.

• (iii) The Group has fully received refunded capital of $200 from its investee company, Vision Wide Technology Co., Ltd. (VTEC), recognized as non-current financial assets at fair value through other comprehensive income, based on the resolution approved during VTEC’s shareholders’ meeting held in 2025.

• (iv) The investee company, Winsheng Material Technology Co., Ltd. (Winsheng Material), which was recognized as non-current financial assets at fair value through other comprehensive income, issued new shares for cash in the fourth quarter of 2024. The Group purchased newly issued shares of Winsheng Material amounting to $11,591, leading to an increase of the Group’ s shareholding in Winsheng Material from 1,400 thousand shares to 1,690 thousand shares.

• (v) For credit risk and market risk, please refer to note (6)(s).

• (vi) As of December 31, 2025 and 2024, the Group did not provide any financial assets at fair value through other comprehensive income as collateral for its loans.

(Continued)

30

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Notes and accounts receivable

December 31, 2025 Notes receivable $ 359,266 Accounts receivable – measured as amortized cost 15,602,757 Accounts receivable – fair value through other comprehensive income 3,650,017 19,612,040 Less: Loss allowance (135,514) $ 19,476,526	December 31, 2024 277,541 15,743,150 1,874,167 17,894,858 (150,242) 17,744,616

The Group has assessed a portion of its accounts receivable that was held within a business model whose objective is achieved by selling financial assets; therefore, such accounts receivable was measured at fair value through other comprehensive income.

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics of the customer’s ability to pay all due amounts in accordance with contract terms, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The Group’s loss allowance of notes and accounts receivable were determined as follows:

(i) The Company

Credit rating Listed company (assessed by the Group) Level A Level B Unlisted company Credit rating Listed company (assessed by the Group) Level A Level B Unlisted company		December	31, 2025
	Carrying amount $ 6,290,746 1,510,091 1,168,806 $ 8,969,643	Expected credit loss rate 0.53% 1.10% 0.96% December	Loss allowance Credit impaired 33,057 No 16,642 No 11,164 No 60,863 31, 2024
	Carrying amount $ 6,554,204 1,043,616 1,049,858 $ 8,647,678	Expected credit loss rate 0.53% 1.08% 1.13%	Loss allowance Credit impaired 34,698 No 11,296 No 11,872 No 57,866

(Continued)

31

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The aging analysis of the Company’ s notes and accounts receivable was determined as follows:

December 31, 2025 Not past due $ 8,969,643 Overdue 90 days or less - $ 8,969,643	December 31, 2024
	8,623,763 23,915
	8,647,678

(ii) Subsidiaries

Not past due Overdue 90 days or less Overdue 91 to 180 days Overdue 181 days or more Not past due Overdue 90 days or less Overdue 91 to 180 days Overdue 181 days or more	December 31, 2025	December 31, 2025
	Carrying amount Expected credit loss rate $ 9,977,520 0.02% 653,894 9.43% 3,832 100% 7,151 100% $ 10,642,397 December 31, 2024		Loss allowance
			2,004 61,664 3,832 7,151
			74,651
	Carrying amount $ 8,587,059 593,844 7,395 58,882 $ 9,247,180	Expected credit loss rate 0.02% 4.51% 70.18% 100%	Loss allowance
			1,545 26,759 5,190 58,882
			92,376

For the years ended December 31, 2025 and 2024, the movements in the allowance for notes and accounts receivable of the Group were as follows:

Balance at January 1 Impairment losses recognized Amounts written off Reclassifications to the allowance for other receivables Effect of changes in foreign exchange rates Balance at December 31	2025 $ 150,242 16,162 (26,993) (258) (3,639) $ 135,514	2024
		143,963 446 - - 5,833
		150,242

(Continued)

32

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group entered into accounts receivable factoring agreements with banks. According to the factoring agreement, the Group does not bear the loss if the account debtor does not have the ability to make payments upon the transfer of the accounts receivable factoring. The Group has not provided other guarantees except for the promissory notes, which have the same amount with the factoring, used as the guarantee for the sales return and discount. The Group received the proceeds from the discounted accounts receivable determined by agreements on the selling date. Interest is calculated and paid based on the duration and interest rate of the agreement, and the remaining amounts are received when the accounts receivable are paid by the customers. In addition, the Group has to pay a service charge based on a certain rate.

The Group derecognized the above accounts receivable because it has transferred substantially all of the risks and rewards of their ownership, and it does not have any continuing involvement by them. The amounts receivable from the financial institutions were recognized as “other receivables” upon the derecognition of those accounts receivable. As of the reporting date, the information of accounts receivable sold without recourse was as follows:

		December 31, 2025	December 31, 2025
Purchaser	Amount Derecognized $ 3,851,858	Amount Paid Advanced Unpaid 3,489,601 - December 31, 2024		Amount Recognized in Other Receivables 362,257	Range of Interest Rate Significant Transferring Terms 2.51%~5.52% None
Financial institutions
Purchaser	Amount Derecognized $ 5,158,647	Amount Paid 4,668,628	Advanced Unpaid -	Amount Recognized in Other Receivables 490,019	Range of Interest Rate Significant Transferring Terms 5.29%~6.68% None
Financial institutions

As of December 31, 2025, the notes receivable of the Group had been pledged as collaterals, please refer to note (8) .

Please refer to note (6)(s) for further credit risk information.

• (e) Inventories

December 31, 2025 Merchandise inventories $ 18,836,481 Goods in transit 1,183,093 $ 20,019,574 The details of the cost of sales were as follows: 2025 Inventory that has been sold $ 103,968,457 Inventory valuation loss and obsolescence 76,619 Loss on disposal of inventory 16,044 Others 10 $ 104,061,130	December 31, 2024
	18,231,684 2,292,948
	20,524,632
	2024
	84,459,047 60,809 11,894 -
	84,531,750

(Continued)

33

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024, the Group did not provide any inventories as collaterals for its loans.

(f) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2025 and 2024 were as follows:

Costs: Balance on January 1, 2025 Additions Disposals Effect of change in exchange rates Balance on December 31, 2025 Balance on January 1, 2024 Additions Disposals Transfer Effect of change in exchange rates Balance on December 31, 2024 Depreciaiton and impairment loss: Balance on January 1, 2025 Additions Disposals Effect of change in exchange rates Balance on December 31, 2025 Balance on January 1, 2024 Additions Disposals Effect of change in exchange rates Balance on December 31, 2024 Carrying amounts: Balance on December 31, 2025 Balance on January 1, 2024 Balance on December 31, 2024	Land $ 77,377 - - - $ 77,377 $ 77,377 - - - - $ 77,377 $ - - - - $ - $ - - - - $ - $ 77,377 $ 77,377 $ 77,377	Buildings and construction 51,836 - - - 51,836 51,836 - - - - 51,836 25,224 863 - - 26,087 24,360 864 - - 25,224 25,749 27,476 26,612	Transportation equipment	Machinery equipment 46,606 1,175 (4,304) (269) 43,208 39,939 6,311 (445) 186 615 46,606 25,145 5,931 (4,144) (154) 26,778 19,830 5,450 (445) 310 25,145 16,430 20,109 21,461	Office and other facilities equipment 119,613 10,305 (8,439) (2,559) 118,920 133,702 4,785 (22,848) - 3,974 119,613 106,272 5,945 (8,430) (2,231) 101,556 119,471 6,361 (22,807) 3,247 106,272 17,364 14,231 13,341	Total 325,130 11,480 (13,573) (3,220)
			29,698 - (830) (392) 28,476 19,797 9,040 - 100 761 29,698 15,267 3,326 (799) (234) 17,560 12,242 2,599 - 426 15,267 10,916 7,555 14,431
						319,817
						322,651 20,136 (23,293) 286 5,350
						325,130
						171,908 16,065 (13,373) (2,619)
						171,981
						175,903 15,274 (23,252) 3,983
						171,908
						147,836
						146,748
						153,222

For management purposes, the Group has leased its own office building and rented other office building for operation. The purpose of this leasing was not for earning rental income or capital appreciation, so it is classified as property, plant, and equipment.

As of December 31, 2025 and 2024, the Group did not provide any property, plant, and equipment as collaterals for its loans.

(Continued)

34

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Right-of-use assets

The cost and depreciation on leases for buildings and transportation equipment, which the Group as a lessee, were as follows:

Cost: Balance on January 1, 2025 Additions Reductions Effect of changes in exchange rates Balance on December 31, 2025 Balance on January 1, 2024 Additions Reductions Effect of changes in exchange rates Balance on December 31, 2024 Accumulated depreciation: Balance on January 1, 2025 Depreciation Reductions Effect of changes in exchange rates Balance on December 31, 2025 Balance on January 1, 2024 Depreciation Reductions Effect of changes in exchange rates Balance on December 31, 2024 Carrying amount: Balance on December 31, 2025 Balance on January 1, 2024 Balance on December 31, 2024	Buildings $ 529,461 118,378 (112,426) (9,765) $ 525,648 $ 526,735 148,890 (165,912) 19,748 $ 529,461 $ 253,489 153,065 (112,426) (5,113) $ 289,015 $ 245,407 154,078 (155,800) 9,804 $ 253,489 $ 236,633 $ 281,328 $ 275,972	Transportation equipment 10,028 - - (16) 10,012 6,967 3,933 (924) 52 10,028 3,812 2,164 - 3 5,979 2,075 2,652 (924) 9 3,812 4,033 4,892 6,216	Total 539,489 118,378 (112,426) (9,781) 535,660 533,702 152,823 (166,836) 19,800 539,489 257,301 155,229 (112,426) (5,110) 294,994 247,482 156,730 (156,724) 9,813 257,301 240,666 286,220 282,188

(Continued)

35

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Short-term borrowings

December 31, 2025 Secured bank loans $ 38,650 Unsecured bank loans 16,806,776 Supplier financing arrangements 629,782 Short-term notes and bills payable, net 1,198,084 $ 18,673,292 Unused short-term credit lines $ 7,065,813 Range of interest rates 1.88%~5.38%	December 31, 2024
	- 16,152,771 - 1,187,982
	17,340,753
	5,332,270
	1.88%~6.49%

(i) For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to note (6)(s).

(ii) For the information of collaterals for short-term borrowings; please refer to note (8).

• (iii) Supplier finance arrangements

The Group participates in a supplier finance arrangement. Under the arrangement, the bank agrees to pay amounts due to participating suppliers in respect of invoices owed by the Group and the Group repays the bank at a later date. The principal purpose of this arrangement is to facilitate efficient payment process.

The Group has derecognized the original accounts payable related to the arrangement, as a legal release obtained pursuant to the non-recourse clause and the extension of payment terms. These liabilities were reclassified as unsecured loans under short-term borrowings. As of December 31, 2025, the aforementioned supplier financing arrangement was classified as a current liability under short-term borrowings.

Accounts payable of which suppliers have received payment from the bank Range of payment due dates Accounts payables Short-term borrowings – supplier financing arrangement	December 31, 2025 $ 629,782 60days after invoice date within180 days from invoice date

Non-cash changes

There were no significant non-cash changes in the carrying amount of financial liabilities subject to supplier finance arrangements.

The payments to the bank are included within financing cash flows. For the year ended December 31, 2025, the payments of $629,782, made by the bank to the Group’s supplier were deemed as non-cash transactions.

(Continued)

36

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

There were no supplier financing arrangement for the year ended December 31, 2024. For additional information about how these arrangements affect the Group’s exposure to liquidity risk, please refer to note (6)(t).

(i) Convertible bonds payable

• (i) Non-guaranteed convertible bonds:

December 31, 2025 Aggregate principal amount $ 4,500,000 Bond discount (228,351) Cumulative repurchased amount (4,700) Cumulative converted amount (1,559,400) 2,707,549 Less: Convertible bonds payable – could be repaid with one year (426,750) Bonds payable at end of period $ 2,280,799 Embedded derivative – put and call options Included in current financial assets at fair value through profit or loss $ 87 Included in current financial liabilities at fair value through profit or loss $ - Included in non-current financial liabilities at fair value through profit or loss $ 25,250 Equity component – conversion options (included in capital surplus – conversion options) $ 284,145	December 31, 2024
	4,500,000 (296,407) (1,700) (1,401,800)
	2,800,093 (575,289)
	2,224,804
	-
	1,014
	29,000
	293,325

(ii) The Company issued the seventh and sixth domestic unsecured convertible bonds, with a face value of $2,500,000 and $2,000,000 on September 11, 2024 and June 1, 2022, respectively. The Company separated the convertible option from the liability and recognized it as equity and liability, respectively. The relevant information was as follows:

The compound interest present values of the convertible bonds’ face value at issuance The embedded derivative financial liabilities at issuance –put and call options The equity components at issuance The total amounts of the convertible bonds at issuance	The Seventh $ 2,212,250 28,000 259,750 $ 2,500,000	The Sixth
		1,860,200 25,200 114,600
		2,000,000

The equity components were recorded in capital surplus-conversion options. In accordance with IFRSs, the issue cost of the seventh and sixth domestic unsecured convertible bonds was allocated at $519 and $287 to the decrease of capital surplus-conversion options.

(Continued)

37

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) There were no issuances and repayments of bonds payable during the year ended December 31, 2025.

• (iv) The effective interest rate of the sixth convertible bonds was 1.51%. The interest expenses on convertible bonds for the years ended December 31, 2025 and 2024, were $7,186 and $19,827, respectively.

• (v) As the sixth convertible bonds have issued for three years, the bondholders may request the Company to repurchase the bonds. Therefore, based on the conservative principles, the sixth convertible bonds were recognized as current liabilities since June 1, 2024. However, it dose not indicate that the Company would repay all the liabilities within a year.

• (vi) The effective interest rate of the seventh convertible bond was 2.52%. The interest expense on convertible bonds for the years ended December 31, 2025 and 2024, were $55,994 and $16,979, respectively.

• (vii) The net gain on the recognition of financial assets and liabilities for the years ended December 31, 2025 and 2024, amounted to $4,651 and $8,085, respectively.

• (viii) The Company paid the amount of $3,045 to repurchase the convertible bonds, with a face value of $3,000 on June 2, 2025, resulting in a gain of $53 and a decrease in capital surplus of $184.

• (ix) The main terms of issuance of the sixth convertible bonds were as follows:

• 1) Duration: five years (June 1, 2022 to June 1, 2027).

• 2) Interest rate: 0%.

• 3) Redemption clause: The Company may redeem the bonds under the following circumstances:

  • a) Within the period between three months after the issuance date and 40 days before the end of duration, the Company may redeem the bonds at their principal amount if the closing prices of the Company’ s common stock on the Taiwan Stock Exchange for a period of 30 consecutive trading days has been 30% more than the conversion price in effect on each such trading day.

  • b) If at least 90% of the principal amount of the bonds has been converted, redeemed, or purchased and cancelled, the Company may redeem the bonds at their principal amount within the period between three months after the issuance date and 40 days before the end of duration.

• 4) Redemption at the option of the bondholders:

The bondholders have the right to request the Company to repurchase the bonds at a price equal to the face value, plus, an accrued premium three and four years after the issuance date. The annual interest rates for the redemption are 0.5% both three and four years after the issuance date.

(Continued)

38

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 5) Conversion clause:

  • a) Bondholders may request to have the bonds converted into the common stock of the Company in accordance with conversion clause from September 2, 2022 to June 1, 2027.

  • b) Conversion price: NTD34.27 per share. Starting from August 3, 2024 and August 17, 2025, the adjusted conversion prices due to the distribution of 2023 and 2024 retained earnings of NTD26.45 and NTD24.84, respectively.

• (x) The main terms of issuance of the seventh convertible bonds were as follows:

• 1) Duration: five years (September 11, 2024 to September 11, 2029).

• 2) Interest rate: 0%.

• 3) Redemption clause: The Company may redeem the bonds under the following circumstances:

  • a) Within the period between three months after the issuance date and 40 days before the end of duration, the Company may redeem the bonds at their principal amount if the closing prices of the Company’ s common stock on the Taiwan Stock Exchange for a period of 30 consecutive trading days has been 30% more than the conversion price in effect on each such trading day.

  • b) If at least 90% of the principal amount of the bonds has been converted, redeemed, or purchased and cancelled, the Company may redeem the bonds at their principal amount within the period between three months after the issuance date and 40 days before the end of duration.

• 4) Redemption at the option of the bondholders:

The bondholders have the right to request the Company to repurchase the bonds at a price equal to the face value in the third and fourth year after the issuance date.

• 5) Conversion clause:

• a) Bondholders may request to have the bonds converted into the common stock of the Company in accordance with conversion clause from December 12, 2024 to September 11, 2029.

• b) Conversion price: NTD36.67 per share. Starting from August 17, 2025, the adjusted conversion prices due to the distribution of 2024 retained earnings for NTD34.44.

(Continued)

39

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Lease liabilities

The details of Group’s lease liabilities were as follows:

The details of Group’s lease liabilities were as follows:
December 31, 2025 Current $ 152,103 Non-current $ 94,836	December 31, 2024
	135,948
	153,589

For the maturity analysis, please refer to note (6)(s) of financial instruments.

The amounts recognized in profit or loss were as follows:

2025 Interest expenses on lease liabilities $ 10,012 Expenses relating to short-term leases $ 3,600	2024
	7,201
	5,197

The amounts recognized in the consolidated statements of cash flows were as follows:

Total cash outflow for leases	2025 $ 168,070	2024
		172,881

(i) Real estate leases

The Group leases buildings for its office space, warehouses and dormitories. The leases of office space typically run for a period of 1 to 6 years, of warehouses for 1 to 4 years, and of dormitories for 1 to 3 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of office buildings contain extension or cancellation options exercisable by the Group before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. When the lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period will not be included within lease liabilities.

(ii) Other leases

The Group leases transportation equipment typically run for a period of 2 to 5 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The Group leases office space, dormitories, transportation equipment and parking space with lease terms of one year. Since these leases are short term, the Group elected not to recognize its right-of-use assets and lease liabilities for these leases.

(Continued)

40

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Operating lease — as lessor

As of December 31, 2025 and 2024, the future minimum lease receivables under non-cancellable leases are as follows:

Less than one year Between one and five years	December 31, 2025 $ 796 363 $ 1,159	December 31, 2024
		4,357 767
		5,124

For the years ended December 31, 2025 and 2024, the rental revenue under operating leases were $4,618 and $4,610, respectively.

The department office leases as combined leases of land and buildings. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets.

(l) Employee benefits

(i) Defined benefit plans

The present value of the defined benefit obligations and fair value of plan assets of the Company were as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2025 $ 180,750 (149,179) $ 31,571	December 31, 2024 176,668 (134,871) 41,797

The Company makes defined benefit plan contributions to the pension fund account at the Bank of Taiwan that provides pensions for employees upon retirement. The plans entitle a retired employee to receive an payment based on years of service and average salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’ s Bank of Taiwan labor pension reserve account balance amounted to $149,179 at the end of the reporting period. For information on the utilization of the labor pension fund assets including the asset allocation and yield of the fund, please refer to the website of the Labor Pension Fund Supervisory Committee.

(Continued)

41

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Company were as follows:

Defined benefit obligation at January 1 Current service costs and interest Remeasurement in net defined benefit liability Benefits paid Defined benefit obligation at December 31	2025 $ 176,668 3,181 7,274 (6,373) $ 180,750	2024 210,730 3,190 (8,061) (29,191) 176,668

• 3) Movements of defined benefit plan assets

The movements in defined benefit plan assets for the Company were as follows:

Fair value of plan assets at January 1 Contributions made Expected return on plan assets Remeasurement of the net defined benefit liability Benefits paid Fair value of plan assets at December 31	2025 $ 134,871 8,231 2,433 9,626 (5,982) $ 149,179	2024 140,863 8,089 2,127 11,915 (28,123) 134,871

• 4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company were as follows:

Current service costs Net interest on net defined benefit liability Expected return on plan assets Selling expenses Administrative expenses	2025 $ - 3,181 (2,433) $ 748 $ 547 201 $ 748	2024 - 3,190 (2,127) 1,063 769 294 1,063

(Continued)

42

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 5) Actuarial assumptions

The following are the Company’s principal actuarial assumptions:

Discount rate Future salary increases	December 31, 2025 December 31, 2024 % 1.750 % 2.000 % 3.000 % 3.000

The expected allocation payment made by the Company to the defined benefit plans for the one year period after the reporting date was $8,255.

The weighted-average duration of the defined benefit obligation is 10.41 years.

• 6) Sensitivity analysis

As of December 31, 2025 and 2024, if the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2025 Discount Rate Future salary increases December 31, 2024 Discount Rate Future salary increases	Impact on the defined benefit obligation Increase 0.25% Decrease 0.25% $ (2,647) 2,738 2,632 (2,561) (2,824) 2,913 2,811 (2,738)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company and WKZ allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of the Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company and WKZ allocates a fixed amount to the Bureau of the Labor Insurance without additional legal or constructive obligations.

(Continued)

43

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Company and WKZ expenses for the pension plan contributions to the Bureau of Labor Insurance amounted to $25,402 and $24,698 for the years ended December 31, 2025 and 2024, respectively.

Other subsidiaries recognized the pension expense, basic endowment insurance expense, and social welfare expenses amounting to $88,605 and $82,910 for the years ended December 31, 2025 and 2024, respectively.

(m) Income taxes

(i) Income tax expenses

• 1) The components of income tax for the years 2025 and 2024 were as follows:

2025 Current tax expense Current period $ 277,702 Adjustment for prior periods 29,043 306,745 Deferred tax expense Origination and reversal of temporary differences 39,775 Recognition of previously unreconized tax losses (3,692) 36,083 Income tax expense $ 342,828	2024
	314,478 2,425
	316,903
	18,385 -
	18,385
	335,288

• 2) The amounts of income tax recognized in other comprehensive income for 2025 and 2024 were as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign financial statements	2025 $ 471 $ (62,830)	2024
		3,995
		96,212

(Continued)

44

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) The reconciliations of income tax and profit before tax for 2025 and 2024 were as follows:

Profit before tax Income tax using each entities of the Group’s legal tax rate Non-deductible expenses Net investment income and tax-exempt income Change in unrecognized temporary differences Surtax on undistributed earnings Under (over) provision in prior periods Others Income tax expense	2025 $ 1,206,912 278,399 17,782 (2,867) 16,313 2,721 29,043 1,437 $ 342,828	2024 1,477,160 300,480 10,458 (2,741) 20,765 - 2,425 3,901 335,288

• (ii) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax assets

The Group’s deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences	December 31, 2025 $ 66,898	December 31, 2024 54,277

The Group assessed that the deductible temporary differences which can be offseted with the taxable income are not probable to be utilized. Hence, such temporary differences are not recognized under deferred tax assets.

• 2) Recognized deferred tax assets and liabilities

The changes in the amount of deferred tax assets and liabilities for 2025 and 2024 were as follows:

Bad debt expense over the tax limitation Deferred tax assets: Balance at January 1, 2025 $ - Recognized in profit or loss - Balance at December 31, 2025 $ - Balance at January 1, 2024 $ 692 Recognized in profit or loss (692) Balance at December 31, 2024 $ -	Loss on valuation of inventory 22,593 13,006 35,599 22,826 (233) 22,593	Allowance for sales discount 91,171 25,798 116,969 86,037 5,134 91,171	Others Total 73,599 187,363 (3,068) 35,736 70,531 223,099 80,452 190,007 (6,853) (2,644 73,599 187,363 (Continued)	Total
				187,363 35,736
				223,099
				190,007 (2,644
				187,363

45

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Deferred tax liabilities: Balance at January 1, 2025 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2025 Balance at January 1, 2024 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2024	Temporary difference from subsidiary investment $ 843,980 55,630 - $ 899,610 835,128 8,852 - $ 843,980	Defined Benefit Plans 6,296 - 471 6,767 2,301 - 3,995 6,296	Exchange differences on translation 116,074 - (62,830) 53,244 19,862 - 96,212 116,074	Others 6,889 16,189 - 23,078 - 6,889 - 6,889	Total 973,239 71,819 (62,359) 982,699 857,291 15,741 100,207 973,239

(iii) Income tax assessment

The Company’ s and WKZ’ s income tax returns have been examined and approved by the R.O.C. tax authorities until year 2023.

(iv) Global minimum top-up tax

The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

The Group is subject to the global minimum top-up tax under Pillar Two because Taiwan, where the Company operates, has implemented the income inclusion principle effective January 1, 2025. Since the statutory tax rates in Hong Kong and Singapore, where the Group’s subsidiaries operate, are 8.25%~16.5% and 17%, respectively, and are subject to the domestic minimum top-up tax effective January 1, 2025. The Group expects to be liable for additional current taxes. As of December 31, 2025, the current tax recognized in connection with the topup tax amounts $0, with the Company being the taxpayer.

(n) Capital and other equities

As of December 31, 2025 and 2024, the total number of authorized ordinary shares were 900,000 thousand shares, with par value of NTD10 per share. The total value of authorized ordinary shares amounted to $9,000,000. As of that date, 480,281 thousand shares and 474,293 thousand shares of ordinary shares were issued, respectively. All issued shares were paid up upon issuance.

(i) Common stock

The Company issued 5,988 thousand and 46,222 thousand new ordinary shares, with a par value of NTD10 per share, amounting to $59,878 and $462,219, due to the conversion of convertible bonds in the years ended December 31, 2025 and 2024, respectively. The relevant statutory registration procedures have been completed.

(Continued)

46

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

Balances on capital surplus of the Company were as follows:

Balances on capital surplus of the Company were as follows:
December 31, 2025 Additional paid in capital $ 2,310,024 Treasury share transactions 37,650 Recognition of changes in ownership interests in subsidiaries 758 Donation from shareholders 712 Convertible bonds – conversion options 284,145 Employee stock options 32,227 Others 253 $ 2,665,769	December 31, 2024
	2,207,884 37,662 - 712 293,325 - 253
	2,539,836

For the years ended December 31, 2025 and 2024, the capital surplus deriving from those convertible bonds, which were converted to common stock, amounted to $93,132 and $754,480, respectively (including the capital surplus-conversion options transferred to the capital surplus additional paid-in capital of $9,008 and $72,275, respectively).

In accordance with the Company Act, realized capital surplus can be utilized for issuing new shares or be distributed as cash dividends only after offsetting losses. The aforementioned capital surplus includes share premiums and donation gains. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the amount of capital surplus to be utilized for issuing new shares shall not exceed 10 percent of paid-in capital every year. Capital surplus increased by transferring from paid-in capital in excess of par value shall not be capitalized until the next fiscal year after the competent authority for company registrations approves registration of the capital increase.

(iii) Retained earnings

The Company’s Article of Incorporation stipulate that the Company’s earnings should first be estimated and retained to cover taxable contributions, losses, legal reserve, special reserve, or reversal of special reserve, and the remaining balance should be the distributable earnings for the current year; the Board of Directors may prepare a proposal for the distribution of earnings by combining the unappropriated earnings of the previous year. In accordance with the Company Act, if the distribution of earnings or reserves is to be made through the issuance of new shares, the Board of Directors shall prepare a proposal and submit it to the shareholders’ meeting for resolution; if the distribution is to be made through the issuance of cash, the Board of Directors is authorized to report to the shareholders’ meeting with the attendance of at least two-thirds of the directors and the resolution of a majority of the directors present. The Board of Directors shall determine the proportion of stock dividends and cash dividends to be distributed among the stockholders’ dividends with reference to the Company’ s corporate profitability, future capital expenditure plans, expansion plans, capital planning, cash flow requirements, laws and regulations, and the degree of dilution of earnings per share, and shall

(Continued)

47

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

prepare a resolution on the appropriation of earnings for submission to the shareholders’ meeting for resolution, and the amount to be distributed shall be no less than 50% of the Company’s distributable earnings for the current year, and with the amount proposed to be distributed in cash dividends to be no less than 20% of the total amount of the dividends to be distributed to the shareholders.

1) Legal reverse

When a company incurs no loss, it may, pursuant to a resolution by the shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of the legal reserve which exceeds 25% of capital may be distributed.

2) Special reverse

During earnings distribution, if the Company has already reclassified a portion of earnings to special reserve, it shall make supplemental allocation of special reserve for any difference between the amount of the current-period total net reduction of other shareholders’ equity and the amount it has already allocated. An equivalent amount of special reserve shall be allocated from the after-tax net profit in the period, plus items other than after-tax net profit in the period, that are included in the undistributed currentperiod earnings and the undistributed prior-period earnings. A portion of undistributed prior-period earnings shall be reclassified to special earnings reserve to account for cumulative changes to the net reduction of other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

The amounts for cash dividends of the Company’s earnings distribution for 2024 and 2023 decided by the meetings of directors held on March 6, 2025 and April 18, 2024 were as follows:

Dividends distributed to ordinary shareholders: Cash dividends	2024 Amount per share (in dollars) Total amount $ 2.084210 1,000,000	2023 Amount per share (in dollars) Total amount 1.894890 870,000	2023 Amount per share (in dollars) Total amount 1.894890 870,000
	Amount per share (in dollars) $ 2.084210		Total amount
			870,000

(Continued)

48

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Distribution for the earnings of 2025 was approved in the meeting of the Board of Directors held on March 13, 2026. The relevant information was as follows:

Dividends distributed to ordinary shareholders: Cash dividends	2025	2025
	Amount per share (in dollars) $ 2.082114	Total amount
		1,000,000

The actual distribution rate will be recalculated based on the number of common shares outstanding as of the announcement date. For further information, please refer to the Market Observation Post System website.

(o) Share-based payment

Based on the resolution made by the Board of Directors on May 6, 2024 and the issuance rules of employee stock options reported on the annual shareholders’ meeting held on June 20, 2024, the Company will issue a total of 10,000 units employee stock options, with each unit having the right to subscribe 1,000 shares of the Company’ s ordinary shares, and was reported to the Securities and Futures Bureau of the Financial Supervisory Commission on December 3, 2024. In light of the above matter, the Company proposes to either issue the options at once or several times, depending on the actual demand, within two years from the date of the effective notification obtained from the authorities, with the actual date of issuance to be determined by the Chairman of the Company. The Chairman of the Company has approved the issuance of 8,708 units of employee stock options on April 8, 2025.

Details of the employee stock options are as follows:

• (i) Employee stock option plan

(in thousand) Outstanding at January 1 Granted during the year Forfeited during the year Outstanding at December 31 Exercisable at December 31	For the year ended December 31, 2025 Weighted average Exercise Price (Dollars) Number of Options $ - - 15 8,708 15 (327) 14.1 8,381 14.1 -
	Weighted average Exercise Price (Dollars) $ - 15 15 14.1 14.1

• (ii) Exercise Price: The exercise price was NTD15 per share; after the adjustment for earnings distribution, the exercise price was NTD14.1 per share.

(Continued)

49

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Rights Period:

• 1) The duration of the stock options is six years. The stock options and their rights may not be transferred, pledged, gifted, or otherwise disposed of, except in the case of inheritance. Upon expiration of the duration, any unexercised stock options will be deemed forfeited, and the option holders may no longer claim their rights.

• 2) Option holders may exercise their stock options according to the following schedule after two years from the grant date:

two years from the grant date:
Vesting Period of Stock Options After 2 years After 3 years After 4 years After 5 years	Cumulative Exercisable Percentage
	40% 60% 80% 100%

• (iv) Fulfillment Method: The Company will issue new shares to fulfill the options.

• (v) Exercise Procedure: The Company will handle the capital change registration with the competent authority after the Board of Directors sets the record date for the issuance of new shares at least quarterly, in accordance with the employee stock option issuance and exercise regulations.

• (vi) The Group recognized expenses of $32,227 for the employee stock options granted to the employees of the Company in 2025. In addition, the capital surplus adjustment arising from employee stock options granted to the employees of the subsidiaries amounted to $758. The total capital surplus adjustment recognized was $32,985.

• (vii) The Company adopted the Black-Scholes model to compute the fair value of its stock options on the grant date as follow:

n the grant date as follow:
Initial exercise price (New Taiwan dollars)	15
Fair value per share of the Company’s stock at
the measurement date (New Taiwan dollars)	30
Time to maturity	6 years
Expected dividend yield	0%
Expected volatility	27.03%~27.92%
Risk-free interest rate	1.41%~1.47%
Expected life of the option	4~5.5 years
Weighted average fair value (New Taiwan
dollars/unit)	16.3~16.9 New Taiwan dollars

(Continued)

50

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Earnings per share

• (i) Basic earnings per share

The calculation of basic earnings per share as of December 31, 2025 and 2024 was based on the profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding as follows:

• 1) Profit attributable to ordinary shareholders of the Company

2025 Profit attributable to ordinary shareholders of the Company $ 864,084 2) Weighted-average number of ordinary shares (thousands) 2025 Weighted-average number of ordinary share 478,146 2025 3) Basic earnings per share (NTD) $ 1.81	2024
	1,141,872
	2024
	445,409
	2024
	2.56

(ii) Diluted earnings per share

The calculation of diluted earnings per share as of December 31, 2025 and 2024 was based on profit attributable to ordinary shareholders of the Company, and the weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares calculated as follows.

• 1) Profit attributable to ordinary shareholders of the Company (diluted)

Profit attributable to ordinary shareholders of the Company (basic) Convertible bonds payable Profit attributable to ordinary shareholders of the Company (diluted)	2025 $ 864,084 58,312 $ 922,396	2024
		1,141,872 28,542
		1,170,414

• 2) Weighted-average number of ordinary shares (thousand, diluted)

Weighted-average number of ordinary shares (basic) Effect of convertible bonds Effect of employee stock options Effect of employee stock remuneration Weighted-average number of ordinary shares (diluted) on December 31 3) Diluted earnings per share (NTD)

(Continued)

51

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Revenue from contracts with customers

• (i) Disaggregation of revenue

2025 Primary geographical markets: Taiwan $ 13,993,742 Hong Kong 54,479,319 China 32,832,911 Others 7,410,407 $ 108,716,379 Major products/ services lines Chipset/ memory components $ 56,169,331 Mixed and other components 52,545,572 Others 1,476 $ 108,716,379	2024
	12,650,842 40,553,512 31,505,758 4,964,411 89,674,523 44,600,130 45,072,911 1,482 89,674,523

• (ii) Contract balance

Notes and accounts receivable (included related parties) Less: loss allowance Contract liabilities	December 31, 2025 $ 19,612,040 (135,514) $ 19,476,526 $ 355,319	December 31, 2024 17,894,858 (150,242) 17,744,616 510,424	January 1, 2024 13,730,929 (143,963) 13,586,966 1,053,924

For the details on accounts receivable and loss allowance, please refer to note (6)(d).

The amounts of revenue recognized for the years ended December 31, 2025 and 2024 that were included in the contract liability balance at the beginning of the periods were $372,218 and $1,030,376, respectively.

The major change in the balance of contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received.

(r) Remuneration to employees and directors

The Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Company Article of Incorporation, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2.5% (in cash) of the remaining net profit shall be allocated as directors’ remuneration, and 6% to 10% (in shares or in cash) as employee remuneration, including a minimum of 7% to those entrylevel employees. The distribution shall also include those employees of the Company’s subsidiaries who meet certain requirements.

(Continued)

52

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Prior to the amendment, the Articles of Incorporation stipulated that, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2.5% (in cash) of the remaining net profit shall be allocated as directors’ remuneration, and a minimum of 6% to 10% (in shares or in cash) as employee remuneration, including those employees of the Company’s subsidiaries who meet certain requirements.

For the years ended December 31, 2025 and 2024, the accrued remuneration of the Company’ s employees (including the amount allocated to base-level employees) were $97,864 and $127,717, as well as directors were $24,466 and $31,929, respectively. These amounts were calculated by using the Company’ s profit before tax for the period before deducting the amount of remuneration to employees and directors, multiplied by the distribution ratio of remuneration to employees and directors under the Company’s articles of Incorporation, and expensed under operating expenses. If the Board of Directors resolved to distribute employees’ remuneration in the form of shares, the numbers of shares to be distributed were calculated based on the closing price of the Company’s ordinary shares one day before the date of the meeting of the Board of Directors.

The amounts, as stated in the financial statements, are identical to those of the actual distributions for 2025 and 2024. Related information would be available at the Market Observation Post System website.

(s) Financial Instruments

• (i) Credit risk

• 1) Exposure to credit risk

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

• 2) Concentration of credit risk

Because the Group caters to a wide variety of customers and has a diverse market distribution, the Group does not concentrate in any single individual customer. Therefore, there is no significant credit risk of concentration in trade receivable. In order to reduce credit risk, the Group monitors the financial conditions of its customers regularly. However, the Group does not require its customers to provide any collateral.

• 3) Receivables

For credit risk exposure of notes and accounts receivable, please refer to note (6)(d).

The amount of other financial assets at amortized cost includes other receivables which had been impaired.

(Continued)

53

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments.

Carrying Amount December 31, 2025 Non-derivative financial liabilities Secured bank loans $ 38,650 Unsecured bank loans 17,436,558 Short-term bills payable 1,198,084 Lease liabilities 246,939 Accounts payable 8,558,300 Other payables 952,270 Bonds payable (including current portion) 2,707,549 Derivative financial liabilities Convertible bonds payable – embedded derivatives 25,250 $ 31,163,600 December 31, 2024 Non-derivative financial liabilities Unsecured bank loans $ 16,152,771 Short-term bills payable 1,187,982 Lease liabilities 289,537 Accounts payable 8,276,821 Other payables 951,059 Bonds payable (including current portion) 2,800,093 Derivative financial liabilities Convertible bonds payable – embedded derivatives 30,014 $ 29,688,277	Contractual cash flows (39,429) (17,627,924) (1,200,000) (256,256) (8,558,300) (952,270) (2,935,900) - (31,570,079) (16,338,603) (1,190,000) (305,040) (8,276,821) (951,059) (3,096,500) - (30,158,023)	Within a year (39,429) (17,627,924) (1,200,000) (158,528) (8,558,300) (952,270) (435,900) - (28,972,351) (16,338,603) (1,190,000) (143,930) (8,276,821) (951,059) (596,500) - (27,496,913)	Over 1 year - - - (97,728) - - (2,500,000) - (2,597,728) - - (161,110) - - (2,500,000) - (2,661,110)

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amount.

(iii) Market risk

1) Currency risk

The Group’s significant financial assets and liabilities exposure to foreign currency risk was as follows:

Financial assets Monetary items USD USD	December 31, 2025	December 31, 2025	December 31, 2025	Foreign currency	December 31, 2024
	Foreign currency	Exchange rate	NTD		Exchange rate NTD
	$ 383,824 1,610	USD/NTD 31.375 USD/CNY 7.0872	12,042,478 50,514	368,072 6,302	USD/NTD 32.725 12,045,156 USD/CNY 7.1935 206,233

(Continued)

54

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities Monetary items USD USD	December 31, 2025	December 31, 2025	December 31, 2025	Foreign currency	December 31, 2024
	Foreign currency	Exchange rate	NTD		Exchange rate NTD
	222,012 28,558	USD/NTD 31.375 USD/CNY 7.0872	6,965,627 896,007	283,556 11,885	USD/NTD 32.725 9,279,370 USD/CNY 7.1935 388,937

2) Currency risk sensitivity analysis

The Group’s monetary items exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A change of 5% in the exchange rate of NTD against foreign currency for the years ended December 31, 2025 and 2024 would have increased (decreased) the net profit before tax as follows. The analysis is performed on the same basis for both periods.

USD (against the NTD) Appreciating 5% Depreciating 5% USD (against the CNY) Appreciating 5% Depreciating 5%	For the years ended December 31, 2025 2024 $ 253,843 138,289 (253,843) (138,289) (42,275) (9,135) 42,275 9,135

• 3) Exchange gains and losses of monetary items

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the years ended December 31, 2025 and 2024, the foreign exchange gain (loss), including both realized and unrealized, amounted to a gain of $393,480 and a loss of $34,208, respectively.

4) Equity market price risk

If the price of the fair value of equity instruments (including the stocks listed on domestic market at stock exchange (over-the-counter) market share, domestic emerging market stocks and domestic and foreign unlisted stocks) changed at the report date. (with the same analysis performed for both periods, assuming all other variable factors remain constant), it would have resulted in the change in the comprehensive income as illustrated below.

(Continued)

55

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Securities prices at reporting date Increasing 5% Decreasing 5%	2025 Other comprehensive income before tax Net income before tax $ 3,975 37 $ (3,975) (37)	2024 Other comprehensive income before tax Net income before tax 3,989 40 (3,989) (40)
	Other comprehensive income before tax $ 3,975 $ (3,975)	Other comprehensive income before tax 3,989 (3,989)

(iv) Interest rate analysis

The details of financial assets and liabilities exposed to interest rate risk were as follows:

Variable rate instruments: Financial assets Financial liabilities	Carrying amount December 31, 2025 December 31, 2024 $ 2,373,552 2,323,596 (17,475,208) (16,152,771)

The following sensitivity analysis is based on the risk exposure to interest rate on the derivative and non-derivative financial instruments on the reporting date. Regarding the assets and liabilities with variable interest rates, the analysis is based on the assumption that the amount of assets and liabilities outstanding at the reporting date were outstanding throughout the year. The rate of change is expressed as the interest rate increase or decrease by 0.25% when reporting to management internally, which also represents the Group’s management’s assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 0.25%, the Group’ s net profit before tax would have decreased or increased by $37,754 and $34,573 for the years ended December 31, 2025 and 2024, respectively, which would be mainly resulting from demand deposits, and bank loans with variable interest rates.

(v) Fair value

1) Categories and the fair value of financial instruments

The fair value of financial assets and liabilities at fair value through profit or loss, and financial assets at fair value through other comprehensive income are measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

56

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Convertible bonds – embedded derivatives Subtotal Financial assets at fair value through other comprehensive income Notes and accounts receivable, net Emerging market stocks Domestic and overseas unlisted stocks Overseas unlisted convertible promissory note Subtotal Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable, net Other receivables Guarantee deposits (recognized under other current assets and other non-current assests) Subtotal Financial liabilities at fair value through profit or loss Convertible bonds – embedded derivatives Financial liabilities measured at amortized cost Short term borrowings Lease liabilities Accounts payable Other payables Bonds payable (including current portion) Subtotal		December 31, 2025	December 31, 2025	December 31, 2025
	Carrying amount $ 740 87 827 3,650,017 114 79,383 9,056 3,738,570 2,949,810 15,826,509 392,831 127,988 19,297,138 $ 23,036,535 $ 25,250 18,673,292 246,939 8,558,300 952,270 2,707,549 31,138,350 $ 31,163,600		Fair Value
		Level 1 740 - - 114 - - - - - - - - - - - -	Level 2 - 87 - - - - - - - - 25,250 - - - - 2,718,550	Level 3 Total - 740 - 87 - - - 114 79,383 79,383 9,056 9,056 - - - - - - - - - 25,250 - - - - - - - - - 2,718,550

(Continued)

57

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Financial assets at fair value through other comprehensive income Notes and accounts receivable, net Emerging market stocks Domestic and overseas unlisted stocks Overseas unlisted convertible promissory note Subtotal Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable, net Other receivables Guarantee deposits (recognized under other current assets and other non-current assests) Subtotal Financial liabilities at fair value through profit or loss Convertible bonds – embedded derivatives Financial liabilities measured at amortized cost Short term borrowings Lease liabilities Accounts payable Other payables Bonds payable (including current portion) Subtotal		December 31, 2024	December 31, 2024	December 31, 2024
	Carrying amount $ 799 1,874,167 194 79,583 9,056 1,963,000 2,985,318 15,870,449 527,514 136,320 19,519,601 $ 21,483,400 $ 30,014 17,340,753 289,537 8,276,821 951,059 2,800,093 29,658,263 $ 29,688,277		Fair Value
		Level 1 799 - 194 - - - - - - - - - - - -	Level 2 - - - - - - - - - 30,014 - - - - 2,777,522	Level 3 Total - 799 - - - 194 79,583 79,583 9,056 9,056 - - - - - - - - - 30,014 - - - - - - - - - 2,777,522

There were no transfers of financial instruments between any levels during the years ended December 31, 2025 and 2024.

(Continued)

58

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Valuation techniques for financial instruments not measured at fair value

The Group’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

a) Financial assets measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

• 3) Valuation technique of financial instruments measured at fair value

a) Non-derivative financial instruments

If the financial instrument has a public quoted price in an active market, the public quoted price will be determined as the fair value. The measurements on fair value of the financial instruments without an active market are determined using the valuation technique or the quoted market price of its counterparts. Fair value measured using the valuation technique can be extrapolated from similar financial instruments, discounted cash flow method, or other valuation techniques which include the model used in calculating the observable market data at the consolidated balance sheet date.

The Group holds the unquoted equity investments and debt instruments that do not have an active market. The fair value of unquoted equity instruments and debt instruments is estimated using the guideline company method. The main assumptions of the method are based on the guideline company’ s price to sales ratio, price to net worth ratio, and the discount for lack of market liquidity. The estimation has been adjusted by the effect resulting from the discount of the lack of market liquidity of the equity securities and debt investments.

b) Derivative financial instruments

Measurement of fair value of derivative instruments is based on the valuation techniques that are generally accepted by the market participants. For instance, discount method or option pricing models. Fair value of forward currency exchange is usually determined by using the forward currency rate.

(Continued)

59

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 4) Reconciliations of Level 3 fair values

		Fair value through other	Fair value through other
		comprehensive income
		Unquoted	Unquoted
		equity	debt
		instruments	investments	Total
Opening balance, January 1, 2025	$	79,583	9,056	88,639
Capital refunded		(200)	-	(200)
Ending balance, December 31, 2025	$	79,383	9,056	88,439
Opening balance, January 1, 2024	$	67,992	9,056	77,048
Purchased		11,591	-	11,591
Ending balance, December 31, 2024	$	79,583	9,056	88,639

• 5) Quantified information of significant unobservable inputs (Level 3) used in fair value measurement

The Group’ s financial instruments that use Level 3 inputs to measure fair value are classified as financial assets at fair value through other comprehensive income (including investments in equity securities and debt instruments).

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income	Valuation technique Guideline Company method	Significant unobservable inputs
		‧ Price-book ratio as of December 31, 2025 and 2024 were

Inter-relationships between significant unobservable inputs and fair value measurement

• ‧ The higher the pricebook ratio, the higher the fair value

1.50~1.51 and 1.54~1.91, respectively.

Financial assets at fair Net Asset Value value through other Method comprehensive income

• ‧ Market liquidity discount rate as of December 31, 2025 and 2024 were 15.60%.

• ‧ Net asset value

• ‧ The higher the market liquidity discount rate, the lower the fair value

• ‧ Not applicable

(Continued)

60

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Financial risk management

• (i) Briefings

The Group is exposed to the following risks arising from financial instruments:

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

In this note expressed the information on risk exposure and objectives, policies and procedures of risk measurement and management. For detailed information, please refer to the related notes of each risk.

(ii) Structure of risk management

The Group’ s finance department provides business services for the overall internal departments. It sets the objectives, policies and processes for managing the risk and the methods used to measure the risk arising from both the domestic and international financial market operations. The Group minimizes the risk exposure through derivative financial instruments. The board of directors regulated the use of derivative and non-derivative financial instruments in accordance with the Group’ s policy about risks arising from financial instruments such as currency risk, interest rate risk, credit risk, the use of derivative and nonderivative financial instruments and the investments of excess liquidity. The internal auditors of the Group continue with the review of the amount of the risk exposure in accordance with the Group’ s policies and the risk management policies and procedures. The Group has no transactions in financial instruments (including derivative financial instruments) for the purpose of speculation.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investment securities.

1) Accounts receivable and other receivables

The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’ s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, when available, and in some cases bank references. Purchase limits are established for each customer, and these limits are reviewed periodically. The customers evaluated as low credit rating by the Group only have prepayment transactions with the Group.

Trade and other receivables mainly relate to a wide range of customers from different industries and geographic regions. The Group continued to assess the financial condition and credit risk of its customers, by grouping trade and other receivables based on their characteristics and will purchase credit guarantee insurance contracts if necessary.

(Continued)

61

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Because the Group caters to a wide variety of customers and has a diverse market distribution, the Group does not concentrate in any single individual customer. Therefore, there is no significant credit risk of concentration in trade receivable. In order to reduce the credit risk, the Group monitors the financial conditions of its customers regularly. However, the Group does not require its customers to provide any collateral.

2) Investments

The credit risks exposure in the bank deposits, investments with fixed income and other financial instruments are measured and monitored by the Group’s finance department. Since the Group’ s transaction counterparties and the contractually obligated counterparties are banks, financial institutes and corporate organizations with good credits, there are no compliance issues, and therefore, no significant credit risk. The finance department evaluates the counterparty’s credit condition when investing in bond investment without an active market, and do not expect to have any significant credit risk.

(iv) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

The Group participates in a supplier finance arrangement with the principal purpose of facilitating efficient payment processing of supplier invoices. The arrangement allows the Group to centralise payments of trade payables to the bank rather than paying each supplier individually.

The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group’ s management supervises the banking facilities and ensures in compliance with the terms of the loan agreements.

Borrowings from the banks and accounts receivable factoring are important sources of liquidity for the Group. For detailed information on short-term borrowings and accounts receivable factoring on December 31, 2025 and 2024, please refer to note (6)(d) and note (6)(h).

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currencies of the Group, primarily the USD, CNY and HKD.

(Continued)

62

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

When short-term assets and liabilities denominated in a foreign currency are unbalanced, the Group uses current exchange rate to buy or sell about foreign currency to ensure that the net risk is maintained at an acceptable level.

2) Interest rate risk

As the Group’s borrowings position are based on USD and NTD, the Group’s capital cost will result in an decrease (increase) when Federal Reserve (“Fed”) and Central Bank of the Republic of China (Taiwan) decrease (increase) the interest rate of USD and NTD. The Group adjusts the proportion of the USD and NTD borrowings to minimize the cost of capital, in order to reduce interest rate risk to and acceptable level.

3) Other price risk

The Group exposes to the risk of listed stock investments and open-end mutual funds due to the fluctuation of market price.

(u) Capital management

The policy of the board of directors is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Capital consists of ordinary shares, capital surplus, and retained earnings.

The Group monitors the capital structure by way of periodical review on the liability ratio. As of December 31, 2025 and 2024 the liability ratios were as follows:

Total liabilities Total assets Liability ratio	December 31, 2025 December 31, 2024 $ 33,439,792 31,916,296 44,154,976 42,831,104 76 % 75 %

As of December 31, 2025, there were no changes in the Group’s approach to capital management.

• (v) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow for the years ended December 31, 2025 and 2024, were as follows:

• (i) For the acquisition of right-of-use assets from leases, please refer to note (6)(g).

• (ii) For conversion of convertible bonds to ordinary shares, please refer to note (6)(i).

(Continued)

63

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The reconciliations of liabilities arising from financing activities were as follows:

Short-term borrowings Deposits received Lease liabilities Bonds payable Total liabilities from financing activities Short-term borrowings Deposits received Lease liabilities Bonds payable Total liabilities from financing activities	January 1, 2025 $ 17,340,753 193 289,537 2,800,093 $ 20,430,576 January 1, 2024 $ 14,702,073 193 297,171 1,768,116 $ 16,767,553	Cash flows 702,757 - (154,458) (3,045) 545,254 Cash flows 2,638,680 - (160,483) 2,500,000 4,978,197	Non-cash changes Acquisition Reduction Foreign exchange movement 629,782 - - - - - 118,378 - (6,518) - (89,499) - 748,160 (89,499) (6,518) Non-cash changes Acquisition Reduction Foreign exchange movement - - - - - - 152,823 (10,578) 10,604 - (1,468,023) - 152,823 (1,478,601) 10,604	December 31, 2025
				18,673,292 193 246,939 2,707,549
				21,627,973
				December 31, 2024
				17,340,753 193 289,537 2,800,093
				20,430,576

(7) Related-party transactions

(a) Name of related parties and their relationships with related parties

The following are related parties that have had transactions with the Group during the periods covered in the consolidated financial statements:

Related-party	Relationship
Weiji Investment Co., Ltd.	The same chairman
Genlog Industrial Co., Ltd. (Note 1)	Substantial related-party

Note 1: Guangluo Industrial Co., Ltd. completed its liquidation process on September 27, 2024.

• (b) Significant transactions with related parties

• (i) Consultancy fees from related Parties

Other related parties were commissioned to provide consulting services to the Group. The amounts were as follows:

Other related parties

2025 $ 200	2024
	200

(Continued)

64

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) Lease

The Group leased a portion of its building to its subsidiaries and related parties for office use purpose. The rentals collected monthly. The details were as follows:

2025 Other related parties $ 171	2024 175

(c) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits Assets Pledged as security: The carrying values of pledged assets were as follows: Pledged assets Pledged to secure Notes receivable Guarantee for short-term borrowings	2025 2024 $ 208,760 215,505 872 760 $ 209,632 216,265 December 31, 2025 December 31, 2024 $ 38,650 -	2025 2024 $ 208,760 215,505 872 760 $ 209,632 216,265 December 31, 2025 December 31, 2024 $ 38,650 -	2024 215,505 760
			216,265
		-

(8) Assets Pledged as security:

(9) Significant commitments and contingencies:

The balances of L/Cs for deferred payment of import value added tax and the purchase of merchandise were as follows:

December 31, 2025	December 31, 2024
$ 390,125	404,975

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(Continued)

65

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Other:

A summary of employee benefits, depreciation and amortization by function, is as follows:

	For theyears ended December 31,	For theyears ended December 31,
By function By item	2025	2024
	Operating expenses	Operating expenses
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	1,518,671 124,862 114,755 40,229 75,194 171,294 8,695	1,421,544 120,001 108,671 35,950 75,126 172,004 8,116

(13) Other disclosures items:

• (a) Information on significant transaction:

The following were the information on significant transactions required by the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2025:

• (i) Lending to other parties:

(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:
													(In thousands of new Taiwan dollars)
No.	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing	Note
													Item	Value
0	The Company	WKI	Other receivable	Y	1,000,000	1,000,000	941,250	5.04%- 5.50%	Short-term financing	-	Operating demand	-		-	2,143,036	4,286,073	Note 3

Note 1 ： The total amount of funds loaned to others by the Company shall not exceed 40% of the net worth of the Company’s latest financial statement.

Note 2 ： When a short-term financing facility with the Company is necessary, the total amount for lending to any company shall not exceed 20% of the net worth of the Company’s latest financial statement.

Note 3 ： The transaction had been eliminated in the consolidated financial statements.

(Continued)

66

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Guarantees and endorsements for other parties:

		(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)
No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary (Note 2)	Subsidiary endorsements/ guarantees to third parties on behalf of parent company (Note 2)	Endorsements/ guarantees to third parties on behalf of companies in Mainland China (Note 2)
		Name	Relationship with the Company
0 〃 〃	The Company 〃 〃	WKI WTP WKS	100％owned subsidiary 100％owned subsidiary 100％owned subsidiary	16,072,776 16,072,776 16,072,776	11,141,200 1,507,200 4,342,652	10,976,500 1,506,000 4,056,764	7,544,463 431,143 2,692,306	- - -	% 102.44 % 14.05 % 37.86	32,145,552 32,145,552 32,145,552	Y Y Y	N N N	N N Y

Note 1 ： The total amount of the guarantee provided by the Company shall not exceed three hundred percent (300%) of the higher amount between the Company’s capital amount and net worth. However, for any individual entity whose voting shares are 50% or more owned, directly or indirectly, by the Company shall not exceed fifty percent (50%) of the maximum amount for guarantee on recent audited or reviewed financial statements.

Note 2 ： For those entities as the guarantor to the subsidiary, subsidiary as the guarantor to the company, or the guarantor that located in China, were filled in “Y”.

(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

joint	ventures):	ventures):
								(Shares/units (thousands))
Name of holder	Category and name of security	Relationship with company	Account title		Ending b	alance		Highest b during t	alance he year	Note
				Shares/Units (thousands)	Carrying amount	Percentage of ownership (%)	Fair value	Shares/Units (thousands)	Percentage of ownership (%)
The Company 〃 〃 〃 〃 〃 〃 〃 〃	EBM Technologies Inc. Clientron Corp. Paradigm I Venture Capital Company (Paradigm I) Paradigm Venture Capital Corporation (PVC Corp.) InnoBridge Venture Fund I, L.P. (InnoBridge) Shin Kong Global Venture Capital Corp. (SKGVC) Vision Wide Technology Co., Ltd. (VTEC) Winsheng Material Technology Co., Ltd. (Winsheng Material) SiTune Corporation Convertible Promissory Note (SiTune)	- - - - - - - - -	Current financial assets mandatorily measured at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〃 〃 〃 〃 〃 〃 〃	34 15 750 230 - 720 800 1,690 -	740 114 7,458 2,301 - 7,200 8,833 53,591 9,056	% - % 0.02 % 6.79 % 10.49 % 9.90 % 12.00 % 1.57 % 5.08 % -	740 114 7,458 2,301 - 7,200 8,833 53,591 9,056	34 15 750 230 - 720 800 1,690 -	% - % 0.02 % 6.79 % 10.49 % 9.90 % 12.00 % 1.57 % 5.18 % -

(Continued)

67

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NTD100 million or 20% of the capital stock:

(In thousands)

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchases/ (Sales)	Amount	Percentage of total purchases/ (sales)	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company 〃 The Company WTP WKI 〃 WKI WKS	WKI 〃 WTP The Company The Company 〃 WKS WKI	100% owned subsidiary 100% owned subsidiary 100% owned subsidiary Parent company Parent company Parent company Subsidiary Parent company	(Sales) Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases	(179,597) (USD(5,672)) 290,760 (USD9,210) (371,087) (USD(12,006)) 371,087 (USD12,006) 179,597 (USD5,672) (290,760) (USD(9,210)) (5,392,214) (USD(172,955)) 5,392,214 (USD172,955)	% (0.39) % 0.69 % (0.81) % 18.13 % 0.35 % (0.55) % (10.32) % 35.25	OA30 〃 〃 〃 〃 〃 OA60 〃	No significant difference with other customers No significant difference with other suppliers No significant difference with other customers No significant difference with other suppliers No significant difference with other suppliers No significant difference with other customers No significant difference with other customers No significant difference with other suppliers	No significant difference with other customers No significant difference with other suppliers No significant difference with other customers No significant difference with other suppliers No significant difference with other suppliers No significant difference with other customers No significant difference with other customers No significant difference with other suppliers	19,436 (USD619) (87) (USD(3)) 172,822 (USD5,508) (172,822) (USD(5,508)) (19,436) (USD(619)) 87 (USD3) 895,967 (USD28,557) (895,967) (USD(28,557))	0.21 % - % 1.90 % (32.65) % (0.41) % - % 11.07 % (58.32) %

Note: The amounts of the transaction and the ending balance had been offset in the consolidated financial statements.

• (v) Receivables from related parties with amounts exceeding the lower of NTD100 million or 20% of the capital stock:

(In thousands)

Name of company	Counter- party	Nature of relationship	Ending balance	Turnover rate	Ov	erdue	Amounts received in subsequent period (Note)	Allowance for bad debt	s Note
					Amount	Action taken
The Company The Company WKI	WKI WTP WKS	100% owned subsidiary 100% owned subsidiary Subsidiaries	Other receivable 1,266,270 (USD40,359) Accounts receivable 172,822 (USD5,508) Accounts receivable 895,967 (USD28,557)	Note 2 3.79 9.59	- - -	- - -	USD35,712 USD1,486 USD25,704	- - -	The amounts of the transaction and the ending balance had been offset in the consolidated financial statements. 〃 〃

Note1: Information as of March 6, 2026.

Note 2: Other receivables arising from lending fund and credit and service management revenue received from subsidiaries.

(Continued)

68

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vi) Business relationships and significant intercompany transactions:

(In thousands)

				(In thousands)	(In thousands)	(In thousands)	(In thousands)
No. (Note 1)	Name of company	Name of counter-party	Nature of relationship (Note 2)	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 〃 〃 〃 〃 〃 1 〃 〃 2	The Company 〃 〃 〃 〃 〃 WKI 〃 〃 WKS	WKI 〃 〃 〃 WTP 〃 The Company WKS 〃 WKI	1 〃 〃 〃 〃 〃 2 3 〃 〃	Sales Revenue Management and Credit Service Revenue Other Receivable Other Receivable Sales Revenue Accounts Receivable Sales Revenue Sales Revenue Accounts Receivable Service Revenue	179,597 530,181 285,368 980,902 371,087 172,822 290,760 5,392,214 895,967 252,872	The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. The price is set by percentage of the contract and the receivable is received quarterly. The price is set by percentage of the contract and the receivable is received quarterly. The loan bears interest at a rate of 5.04% to 5.50%. The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. The price is marked up based on operating cost, and the receivables depend on funding demand and OA60. The price is marked up based on operating cost, and the receivables depend on funding demand and OA60. The price is set by percentage of the contract, OA30.	0.17% 0.49% 0.65% 2.22% 0.34% 0.39% 0.27% 4.96% 2.03% 0.23%

Note 1: The numbers filled in as follows:

1. 0 represents the Company.

2. Subsidiaries are sorted in a numerical order starting from 1.

Note 2: Relationship with the transactions labeled as follows:

• 1 represents the transactions from the parent company to its subsidiaries.

• 2 represents the transactions from the subsidiaries to the parent company.

• 3 represents the transactions between subsidiaries.

(Continued)

69

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Information on investments:

The following are the information on investees for the year ended December 31, 2025 (excluding information on investments in Mainland China):

												(In	thousands)
Name of investor	Name of investee	Location	Main businesses and products	Original inves	tment amount		Highest		The highest the pe	holdings in riod	Net income (losses) of investee	Investment income (losses) of investor	Note
				December 31, 2025	December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying amount	Shares (In Thousands)	Percentage of Ownership
The Company 〃 〃 WKI	WKI WKZ WTP Total Weitech	Hong Kong Taiwan Singapore Hong Kong	Electronic components computer peripherals products distribution and technical support Electronic components and technical support 〃 Import and export trade of electronic components	$ 1,620,445 12,983 293,327 $ 1,926,755 0.41 (HKD0.1)	1,620,445 12,983 293,327 1,926,755 0.41 (HKD0.1)	552,450 1,589 12,413 -	100% 100% 100% 100%	7,331,990 30,151 469,784	552,450 1,589 12,413 -	100% 100% 100% 100%	273,126 2,346 5,023 329 (USD11)	273,126 2,346 5,023	Subsidiary 〃 〃 〃
								7,831,925				280,495
								3,578 (USD114)				329 (USD11)

• (c) Information on investment in Mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

													(In	thousands)
Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Invest flow	ment s	Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee (Note 2)	Percentage of ownership	Highest ba the	lance during year	Investment income (losses) of investor (Note 2)	Book value (Note 3)	Accumulated remittance of earnings in current period
					Outflow (Note 3)	Inflow				Shares/ Units	Highest Percentage of ownership
WKS SiU	Electronic components computer peripherals products distribution and technical support Electronic technology development and technical advisory	786,647 (USD25,000) 5,067 (CNY1,000)	Note 1, 4 Note 1, 5	304,594 (USD9,800) -	- -	- -	304,594 (USD9,800) -	(106,266 (USD(3,408) 255 (USD8	) ) 100% ) 100%	- -	% 100 % 100	(106,266) (USD(3,408)) 255 (USD8)	462,301 (USD14,735) 7,716 (USD246)	- -

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WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA (Note 3)	Upper Limit on Investment
304,594 (USD9,800)	784,375 (USD25,000)	6,429,110

• Note 1: Investment in Mainland China was through a company in the third area.

• Note 2: The investment gains and losses of the current period are recognized according to the financial statements, which have been reviewed by the Company’ s independent auditors, and were translated into New Taiwan Dollars at the average exchange rates.

• Note 3: The currency was translated into New Taiwan Dollars at the exchange rate of USD 1 to NTD 31.375 at the end of reporting period.

• Note 4: The difference was due to Weikeng International Co., Ltd.’ s investment of USD15,200 thousand on Weikeng International (Shanghai) Co., Ltd. using its own funds.

• Note 5: The difference was due to Weikeng International (Shanghai) Co., Ltd.’ s investment of CNY1,000 thousand on SiUltra Electronic Technology (Shanghai) Co., Ltd. using its own funds.

• (iii) Significant transactions:

Please refer to Information on significant transactions for the information on significant direct or indirect transactions, which were eliminated in the preparation of consolidated financial statements, between the Group and the investee companies in Mainland China for the year ended December 31, 2025.

(14) Segment information:

• (a) The Group has only one operating segment, which is the electronic components segment, of which, the major activities are the purchase and sales of electronic components and computer peripherals, technical service, as well as the import/export trade business. The Group’s information of operating segment are consistent with the consolidated financial statements. Please refer to the consolidated statements of comprehensive income and the consolidated balance sheets for the segment profit and assets, respectively.

• (b) Product and service information

The Group operates in a single industry, the main industry for the trading of electronic components and computer peripheral products. Please refer to note (6)(q).

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WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Geographic information

Please refer to note (6)(q) for the geographic information on the Group’ s sales presented by destination of sales and the stated below is the geographic information on the Group’s non-current assets presented by location.

Non-current Assets:

Area Taiwan China Singapore	2025 $ 234,514 221,372 24,500 $ 480,386	2024
		296,712 221,943 9,957
		528,612

Non-current assets include property, plant and equipment, intangible assets, right-of-use assets and other assets, not including deferred tax assets, pension fund assets and financial assets at fair value through other comprehensive income.

(d) Information about major customers

There were no individual customers who accounted for over 10% of consolidated net sales in 2025 and 2024.