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WELLTEND — AGM Information 2024
Jun 17, 2024
52254_rns_2024-06-17_3087f893-cefd-41a7-8067-b0c300ea32b3.pdf
AGM Information
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WELLTEND TECHNOLOGY CORPORATION
Year 2024 Annual Meeting Minutes of Shareholders
Time ： 9:00 a.m. on Thursday, June 13, 2024.
Place ： 1F., No.61, Dongxing Road, Xinyi District, Taipei City(Visionary Leadership
Center, Room VLC01)
Type of Meeting ： Physical Meeting
Total outstanding shares ： 95,890,000 shares.
Total shares represented by shareholders present in person or by proxy: 68,332,028
shares. The percentage of shares held by shareholders present in person or by proxy ： 71.26 %.
Chairman ： Yun-Teng Chang (Chairman of the Board)
Directors present ： Yun-Teng Chang 、 Kuei-Yu Chang 、 Hsiu-Li Chen
Year Jan Industrial Co., Ltd.
Accountant Yu-Ting Xin 、 Lawyer Bo-Wei Wu .
Independent Director present ： Ching-Ju Wu 、 Meng-Chung Wu 、 Chang-Kuo Feng
I. Call the Meeting to Order ： The aggregate shareholding of the shareholders present in person or by proxy constituted a quorum. The Chairman called the meeting to
order.
II. Chairperson Remarks ： (omitted)
III. Report Matters:
Report No.1
Subject:
2023 Business Report.
Explanation:
The 2023 Business Report is refer to attachment 1. No question was raised by Shareholder.
Report No.2
Subject:
2023 Audit Committee’s Review Report.
Explanation:
The 2023 Audit Committee’s Review Report is refer to attachment 2.
No question was raised by Shareholder.
Report No.3
Subject:
Remuneration to Employees, and Directors.
Explanation:
The Company will appropriate NT$ 3,400,000 for employees’ remuneration and NT$ 3,400,000 for Directors’ remuneration according to the Article 29 of the Articles of Incorporation, and approved by the Boards of Directors held on March 12 2024. There is no discrepancy between the above remuneration amounts and the estimated figure for the fiscal year these expenses are recognized.
No question was raised by Shareholder.
Report No.4
Subject:
The Report of the Distribution of 2023 Profits.
Explanation:
-
According to the Article 29-1 of the Articles of Incorporation, the Board of Directors is authorized to distribute the dividends and bonuses in cash, and report to the Shareholders’ Meeting.
-
The Company had distributed cash dividends of NT$0.3 per share, totaling NT$ 28,767,000. The cash dividends will be distributed pro rata and be rounded down to the nearest dollar (under one dollar is rounded down). The fractional balance of all dividends less than NT$1 will be summed up and transferred to other income of the Company.
-
Upon the approval of the Board of Directors, it is proposed that the Chairman be authorized to resolve the ex-dividend date, distribution date, and other relevant issues. In the event that a buyback of shares, or transferring treasury shares, and cancellation, it is proposed that the Chairman be authorized to adjust based on the number of actual shares outstanding on the record date for distribution.
No question was raised by Shareholder.
Report No.5
Subject:
Other Report Matters: Report of Shareholders' Proposals.
Explanation:
The shareholders’ proposal for the 2024 Annual General Shareholders’ Meeting has been disclosed in the website of Taiwan Stock Exchange Market Observation Post System in accordance with Article 172-1 of the Company Law (the acceptance period for shareholder proposals is from March 29, 2024 to April 8, 2024), and no shareholder proposals until the deadline. No question was raised by Shareholder.
IV.Proposals ：
1.
Proposed by the Board
Proposal:
Revised of the Proposal for Distribution of 2022 Profits. Explanation:
When the Company distributed earnings in 2022, the impact of the cancellation of treasury shares on retained earnings was not included in the deduction of undistributed earnings for the year, resulting in undistributed retained earnings at the beginning of 2023 (i.e. undistributed retained earnings at the end of 2022) and the legal reserve are incorrect. Now the Company revised it.( Revised 2022 Profit Distribution Table is refer to attachment 3.)
Resolution ： RESOLVED,that the above proposal be and hereby was approved as proposed. Voting Results: Shares present at the time of voting(Including electronic votes) ： 68,302,028 votes
| 68,302,028 votes | 68,302,028 votes | |
|---|---|---|
| Voting Results | % of the represented sharepresent |
|
| Votes in favor (Includingelectronic votes) |
68,228,912 votes | 99.89 % |
| Votes against (Includingelectronic votes) |
4,265 votes | 00.01 % |
| Invalid Votes (Includingelectronic votes) |
0 votes | 00.00 % |
| Votes abstained / Not Voted (Includingelectronic votes) |
68,851 votes | 0.10 % |
No question was raised by Shareholder.
2.
Proposed by the Board
Proposal:
Adoption of the 2023 Business Report and Financial Statements.
Explanation:
-
(1) The Company’s 2023 Financial Statements, including the Individual Financial Report and Consolidated Financial Report, were audited by independent auditors, Yu-Ting Xin and Yiu-Kwan Au of KPMG. Also Business Report and Financial Statements have been approved by the Board of Directors and examined by the Audit Committee.
-
(2) The 2023 Business Report is refer to attachment 1, and the above-mentioned Financial Statements are refer to Attachment 4.
Resolution ： RESOLVED,that the above proposal be and hereby was approved as proposed.
Voting Results: Shares present at the time of voting(Including electronic votes) ： 68,302,028 votes
| 68,302,028 votes | 68,302,028 votes | |
|---|---|---|
| Voting Results | % of the represented sharepresent |
|
| Votes in favor (Includingelectronic votes) |
68,230,921 votes | 99.89 % |
| Votes against (Includingelectronic votes) |
2,265 votes | 00.01 % |
| Invalid Votes (Includingelectronic votes) |
0 votes | 00.00 % |
| Votes abstained / Not Voted (Includingelectronic votes) |
68,842 votes | 0.10 % |
No question was raised by Shareholder.
3.
Proposed by the Board
Proposal:
Adoption of the Proposal for Distribution of 2023 Profits
Explanation:
-
(1) 2023 net profit after tax is NT$ 128,580,873. After setting aside the Legal Reserve of NT$ 12,858,087, and then reduce Special Reserves net reduction to other equity of NT$ 12,504,134, the undistributed earnings are NT$ 443,621,931 and the proposed dividend to shareholders is NT$ 28,767,000, cash dividend for NT $0.3 per share.
-
(2) 2023 Profit Distribution Table is refer to attachment 5.
Resolution ： RESOLVED,that the above proposal be and hereby was approved as proposed.
Voting Results: Shares present at the time of voting(Including electronic votes) ： 68,302,028 votes
| 68,302,028 votes | 68,302,028 votes | |
|---|---|---|
| Voting Results | % of the represented sharepresent |
|
| Votes in favor (Includingelectronic votes) |
68,234,016 votes | 99.90 % |
| Votes against (Includingelectronic votes) |
4,258 votes | 0.01 % |
| Invalid Votes (Includingelectronic votes) |
0 votes | 0.00 % |
| Votes abstained / Not Voted (Includingelectronic votes) |
63,754 votes | 0.09 % |
No question was raised by Shareholder.
V.Questions and Motions ： None.
VI.Adjournment ： 09:13 a.m. June 13, 2024
Chairman ： Yun-Teng Chang Recorder ： Hsiao-Ching Huang
Notice to readers
This English version is a summary translation of the Chinese version and is not an official document of the Shareholders’ Meeting. If there is any discrepancy between the English version and the Chinese version, the Chinese version shall prevail.
【 Attachment 1 】
2023 Business Report
-
I. Business Results Report for 2023:
-
Consolidated operating revenue and gross profit margin: The Group’s consolidated operating revenue in 2023 was NT$2,996,638,000, an decrease of 23.32% compared to 2022’s consolidated operating revenue of NT$3,908,184,000. Net profit after tax in 2023 was NT$128,669,000, an decrease of NT$55,521,000 from the NT$184,190,000 in net profit after tax seen in 2022, and the 2023 earnings per share came to NT$1.34.
In respect to operating gross profit: the operating gross profit margin for 2022 and 2021 came to 19.04% and 20.23%, respectively.
-
Faced with the impact of industrial transformation and market integration in recent years, and under the influence of unfavorable factors such as price competition across all industries as well as rising raw material prices and global economics, the Company is still actively investing in the development of new customers and new products so that can strive for the mainstream consumer products business. Moreover, we are actively controlling costs and improving internal operating efficiency to allow overall profitability to remain at a certain level.
-
(I) Consolidated operating and financial revenues and expenditures:
Unit: NT$/NT$ thousand
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Increase/ Growth
Item 2022 2023
(decrease) rate %
Operating
3,908,184 2,996,638 (911,546) -23.32
revenue
Operating
3,185,291 2,426,021 (759,270) -23.84
costs
Operating
429,011 388,472 (40,539) -9.45
expenses
Operating
293,882 182,145 (111,737) -38.02
profit
Non-operating
income and 17,971 5,208 (12,763) -71.02
expenses
Net profit for
184,190 128,669 (55,521) -30.14
the period
----- End of picture text -----
-
(II) Budget implementation status: The Company’s financial forecast for 2023 has not been disclosed to the public, and this is therefore not applicable.
-
(III) Consolidated profitability analysis:
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2022 2023
Debt to asset ratio (%) 52 48
Ratio of long-term funds to property, plant, and
370 381
equipment (%)
Current ratio (%) 165 178
Quick ratio (%) 112 132
Return on assets (%) 6.58 4.63
Return on equity (%) 13.37 8.52
Net profit before tax to paid-in capital ratio (%) 32.52 19.54
Net profit rate (%) 5.00 4.00
Earnings per share (NT$) 1.92 1.34
----- End of picture text -----
II. Business plan summary for 2024
-
(I) Strengthen the production base in Southeast Asia, improve factory management efficiency and division of labor among factories, strengthen inventory management capabilities, effectively control production costs, and improve production and sales mechanisms.
-
(II) Actively deploy international cooperation, participate in international business exhibitions, expand sales reach, quickly collect industry intelligence and strengthen marketing capabilities, and commit to product diversification development and operation to expand our business niche.
-
(III) Strengthen the R&D team, improve R&D capabilities, grasp the development trends of new markets, new specifications and new technologies, develop a diversified product line, create corporate competitive advantages, and strive to establish long-term and stable relationships with large international customers.
-
(IV) Be customer-oriented and close to market leaders, provide customers with a variety of products and services, strengthen customer relationship management, continue to promote the development and introduction of new customers, and expand overall market share.
-
(V) Effectively integrate group resources, undertake flexible allocation of positions to preserve growth momentum, and cultivate talent needed for sustainable operations; promote the optimization of operating processes to ensure the flow of information while improving overall operating efficiency.
III. Future development strategy of the Company
In recent years, the Company has continued to provide customers with high-quality products; comprehensively improved the process level and energy in design, process, quality control and testing; and continued to achieve the goal of high growth and diversified development of product lines. At the same time, we will continue to deepen our existing product lines and customers, expand service levels, and be customer-oriented
and close to market leaders. We can thus provide customers with a variety of products and services while taking advantage of economies of scale in production. Today, the development of network and digitalization has far exceeded prior visions of the structure of the digital age. It is not only mobile applications that have become the main media products for public information, services, and transactions. In terms of living, popular requirements for the quality of life and digital home appliances can provide more personalized and precise services. In respect to driving, there is safer traffic quality through the Internet of Vehicles to communicate and exchange information between owners, vehicles, and traffic systems to provide a safer and more comfortable experience. Above, we can see the blueprints of the future world under development and the Company is committed to working closely with customers in the relevant industrial chains whether in automotive electronics, medical care, or smart homes, to provide more services and high-end products.
In terms of operations management, the Group will uphold the principle of prudent and pragmatic operations to train and reserve technical, business and management talent over the long term to strengthen human capital, cultivate the Company’s development potential, and continue to conduct product research and development to meet future product demand. In the future, we will also strengthen the market ties between the two sides of the Taiwan Strait and Southeast Asia. We shall coordinate production capacity to fully grasp market changes and needs for the sake of providing all-round customer satisfaction and trust so that we can increase market share among clients. We shall continue to strengthen project management capabilities and improve project management quality and human resource utilization efficiency as we strive for robust and large-scale long-term service customers, thereby improving the quality of earnings to create more fruitful and stable operating results. In addition to actively developing new products and providing integrated services, the Group shall also improve operational efficiency and personnel productivity through the integration of information systems. Furthermore, the resources of the Group’s reinvested companies can be integrated to maximize the benefits of the Group.
IV. Impact of external competitive environment, regulatory environment, and overall business environment:
In recent years, changes in product preferences among end consumers for products have made market competition more intense. In addition to raw material prices and international exchange rate fluctuations, the acquisition of labor and cost control have to be appropriate for the opportunity to maintain an advantageous profit. Due to rising wage costs in China and the rise of red supply chains, the domestic connector industry began to move production lines to emerging countries in Southeast Asia. Some peers with more capital and technology advantages expanded the deployment of production line automation and imported more automation equipment to reduce operating costs. The Group will continue to deploy production bases in Southeast Asia, expand our economies
of scale, strengthen the operation of automated equipment and of upstream and downstream integration, and improve production efficiency. We shall do so in order to reduce overall costs, make production quality more reliable, and improve customer trust and dependence. In addition, we shall strengthen the development of niche products and continue to develop new products, expanding the market for high value-added products and improving product competitiveness.
We consider ourselves to be the best supplier of connection harnesses. The products we provide are important components of electronic products and the basic backbone structure of information systems. As consumer terminal products and digital services continue to develop, the application scope of wire harness products and information system services is also becoming increasingly extensive. Welltend’s management team has been deeply involved in the electronics industry for many years. We have profound production management experience and the operating performance of a multinational enterprise, and have a timely grasp of market trends, expand new application areas, Although there are still many uncertainties in the economic environment and industries across all countries, we will continue to improve quality, reduce costs, cultivate talent, and increase per capita output value. We shall thus grow and thrive on a stable foundation, continuously expanding to new customers and new markets, strengthening new product development capabilities, and improving our market acumen to fully grasp the development trends of new products. Looking to the future, the Company integrates ESG concepts into corporate operations, upholds professional knowledge, teamwork, adheres to integrity, provides good services and technology, attaches great importance to the protection of customers, society, the environment and employees, pursues performance while implementing sustainable development. We believe that in the new year, the Group’s management team must be able to operate with a good performance to repay the trust and investment of all our shareholders. Finally, I would like to wish you all good health and all the best.
Chairman: Manager: Accounting Supervisor: Yun-Teng Chang Jia-Xiang Lin Wen-Pin Chen
【 Attachment 2 】
Welltend Technology Corporation
Review Report of the Audit Committee
The Board of Directors has submitted the Company's 2023 parent company only financial statements and consolidated financial statements after the audit by Yu-Ting Xin and Yiu-Kwan Au of KPMG and issued a report, together with the business report and the profit distribution proposal. After review by the Audit Committee, it is found that there is no discrepancy, and reporting for verification is requested in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.
Sincerely
2024 General Meeting of Shareholders of the Company
Welltend Technology Corporation
Convener of Audit Committee: Ching-Ju Wu
March 12 2024
【Attachment 3】
WELLTEND TECHNOLOGY CORPORATION
2022 Revised Profit Distribution Table
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----- Start of picture text -----
Unit: NT$ Dollar
Item Amount
Beginning Balance of Undistributed Earnings $ 185,957,993
Add: 2022 Net Profit After Tax 184,188,159
Less: Legal Reserve (18,166,721)
Less: cancellation of treasury shares (2,520,953)
Add: Reversal of special reserve resulting from other equity 58,067,801
Distributable Net Profit 407,526,279
Distributable Item:
Dividend to Shareholders—Cash Dividends ( NT$0.7 per share) (67,123,000)
Ending Balance of Undistributed Earnings $ 340,403,279
----- End of picture text -----
Chairman ： Manager ： Accounting Supervisor ： Yun-Teng Chang Jia-Xiang Lin Wen-Pin Chen
【 Attachment 4 】
Independent Auditors’ Report
To the Board of Directors of Welltend Technology Corporation:
Opinion
We have completed our review of the balance sheet of Welltend Technology Corporation for the years ended December 31, 2023 and 2022, and the statements of comprehensive income, statements of changes in equity, and the statements of cash flows for the years ended December 31, 2023 and 2022, as well as the notes to the parent company only financial statements (including a summary of significant accounting policies).
In our opinion, the aforementioned parent company only financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. They are sufficient to adequately express the financial status of Welltend Technology Corporation as of December 31, 2023 and 2022, and its financial performance and cash flows for the years ended December 31, 2023 and 2022.
Basis for Opinion
We perform audit work in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants as well as the auditing standards. Our responsibilities under these Standards are further explained in the section on Responsibilities of the accountants for auditing the parent company only financial statements. Personnel subject to rules of independence under our offices adhere to the Norm of Professional Ethics for Certified Public Accountants and remain detached and independent from Welltend Technology Corporation, and they fulfill other responsibilities of the Norm. We believe that sufficient and appropriate audit evidence has been obtained to serve as a basis for expressing an audit opinion.
Key Audit Matters
Key audit matters refer to the most important matters for the audit of Welltend Technology Corporation's 2023 parent company only financial statements based on our professional judgment. These matters have been addressed in the process of reviewing the parent company only financial statements as a whole and in forming an audit opinion, and we do not express a separate opinion on these matters. Key audit matters that we judge should be communicated in the audit report are as follows:
I. Revenue recognition
For accounting policies on revenue recognition, please refer to Revenue Recognition in Note 4 (XIII) of the Notes to the Parent Company Only Financial Statements. For descriptions of revenue, please refer to Revenue from Customer Contracts in Note 6 (XIII) of the Notes to the Parent Company Only Financial Statements. Explanation of key audit matters:
The main businesses of Welltend Technology Corporation are information systems and consulting services and the sale of wires and connectors and so on. Therefore, revenue is one of the important items in the financial statements. The amount and changes of operating revenue may affect the understanding of financial statement users regarding the financial statements as a whole. Therefore, the test of revenue recognition is one of our important evaluation items in performing audits of the financial statements of Welltend Technology Corporation.
Corresponding audit procedures:
Our main audit procedures for the above-mentioned key audit matters include testing the control of the revenue and collection operation cycle, implementing revenue audit procedures and detailed tests, performing correspondence audit procedures for accounts receivable, and performing spot checks of contract liabilities. Furthermore, we evaluate whether the time of opening revenue recognition is handled in accordance with the relevant standards.
II. Revenue recognition – Equity method investments – Subsidiaries
For equity method investment accounting policies, please refer to Invested Subsidiaries under Note 4 (VIII) of the parent company-only financial statements. For explanation of equity method investments, please refer to Note 6 (IV) of the parent-company only financial statements.
Explanation of key audit matters:
Some subsidiaries of Welltend Technology Corporation held under the equity method that amount invested in subsidiaries as of December 31, 2023 was NT$1,606,659 thousand constituting a material proportion of total assets amounting to 64%. From the perspective of consolidation, the amounts and changes in its sales revenues may affect the financial statement users' understanding of the overall financial statements. Therefore, we list this as one of the important evaluation items in performing audits of the parent-company only financial statements of Welltend Technology Corporation. Corresponding audit procedures:
Our main audit procedures for the above-mentioned key audit matters include testing the control of the revenue and collection operation cycles of a portion of subsidiaries invested in using the equity method, implementing revenue audit analytical procedures and detailed tests, performing correspondence audit procedures for accounts receivable. Furthermore, we evaluate whether the timing of revenue recognition is handled in accordance with the relevant standards.
Responsibilities of Management and Those Charged with Governance for Parent Company Only Financial Statements
The responsibility of management is to prepare properly expressed parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and to maintain the necessary internal controls in connection with the preparation of the parent company only financial statements to ensure that the parent company only financial statements are free from material misrepresentation that could result from fraud or error.
When preparing the parent company only financial statements, the responsibilities of management also include evaluating the ability of Welltend Technology Corporation to continue operating, the disclosure of related matters, and the adoption of a going-concern accounting basis unless management intends to liquidate Welltend Technology Corporation or cease operations, or there is no other practical alternative to liquidation or business closure.
The governance units of Welltend Technology Corporation (including the Audit Committee) are responsible for supervising the financial reporting process.
Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements
The purpose of our audit of the parent company only financial statements is to obtain reasonable assurance as to whether there is a material misrepresentation of the parent company only financial statements as a whole that could result from fraud or error, and to issue an audit report. Reasonable assurance means a high degree of assurance. However, there is no guarantee that an audit carried out in accordance with the auditing standards will detect material misrepresentations in the parent company only financial statements. Misrepresentation may result from fraud or error. Misrepresentations of individual amounts or aggregates are considered material if they would reasonably be expected to affect economic decisions made by users of the parent company only financial statements.
We apply professional judgment and professional skepticism when conducting audits in accordance with the auditing standards. We also perform the following tasks:
-
Identify and evaluate the risk of material misrepresentation in the parent company only financial statements resulting from fraud or error; design and implement appropriate countermeasures for the evaluated risks; and obtain sufficient and appropriate evidence to serve as the basis for the audit opinion. Because fraud may involve complicity, forgery, deliberate omission, misrepresentation, or circumvention of internal controls, the risk of not detecting a material misrepresentation caused by fraud is higher than that arising from error.
-
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 internal control of Welltend Technology Corporation.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
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 ability of Welltend Technology Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause Welltend Technology Corporation to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient and appropriate audit evidence for the financial information of investee companies using the equity method so as to express an opinion on the parent company only financial statements. We are responsible for the guidance, supervision and execution of audit cases. and we are also responsible for forming audit opinions on Welltend Technology Corporation.
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 2023 parent company only financial statements of Welltend Technology Corporation and are therefore the key audit matters. We describe these matters in our audit 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 impact 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
Yu-Ting Hsin and Yiu-Kwan Au.
KPMG
Taipei, Taiwan (Republic of China) March 12, 2024
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’ 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.
Balance Sheet
| December 31,2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 128,786 5 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 162,760 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 10,136 1 1210 Other receivables - related parties (Note VII) 285 - 1300 Net inventories (Note VI (III)) 54,452 2 1470 Other current assets 1,631 - 1476 Other financial assets - current (Note VIII) 34,806 1 Total current assets 392,856 16 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,887,668 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 183,334 7 1755 Right-of-use assets (Note VI (VI)) 2,567 - 1780 Intangible assets 12,025 1 1840 Deferred tax assets (Note VI (X)) 3,145 - 1900 Other non-current assets (Note VIII) 28,240 1 Total non-current assets 2,116,979 84 |
December 31,2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 128,786 5 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 162,760 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 10,136 1 1210 Other receivables - related parties (Note VII) 285 - 1300 Net inventories (Note VI (III)) 54,452 2 1470 Other current assets 1,631 - 1476 Other financial assets - current (Note VIII) 34,806 1 Total current assets 392,856 16 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,887,668 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 183,334 7 1755 Right-of-use assets (Note VI (VI)) 2,567 - 1780 Intangible assets 12,025 1 1840 Deferred tax assets (Note VI (X)) 3,145 - 1900 Other non-current assets (Note VIII) 28,240 1 Total non-current assets 2,116,979 84 |
December 31,2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 128,786 5 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 162,760 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 10,136 1 1210 Other receivables - related parties (Note VII) 285 - 1300 Net inventories (Note VI (III)) 54,452 2 1470 Other current assets 1,631 - 1476 Other financial assets - current (Note VIII) 34,806 1 Total current assets 392,856 16 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,887,668 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 183,334 7 1755 Right-of-use assets (Note VI (VI)) 2,567 - 1780 Intangible assets 12,025 1 1840 Deferred tax assets (Note VI (X)) 3,145 - 1900 Other non-current assets (Note VIII) 28,240 1 Total non-current assets 2,116,979 84 |
||
|---|---|---|---|---|
| Amount 33,870 179,348 15,784 219 121,915 2,049 34,800 |
||||
392,856 |
16 |
387,985 |
||
1,887,668 183,334 2,567 12,025 3,145 28,240 |
75 7 - 1 - 1 |
1,869,000 182,506 4,834 12,523 2,411 24,752 |
||
2,116,979 |
84 |
2,096,026 |
||
Total assets
$ 2,509,835 100 2,484,011 100
Chairman: Yun-Teng Chang
Manager: Jia-Xiang Lin
18
Welltend Technology Corporation
Statement of Comprehensive Income
For the years ended December 31, 2023 and 2022
Unit: NT$ thousand
| 4000 Operating revenue(Notes VI (XIII)and VII): 4110 Net sales revenue 4800 Other operating revenue Net operating revenue 5000 Operating costs(Notes VI (III), VII, and XII): 5110 Cost of goods sold 5800 Other operating costs Total operating costs 5910 Operating margin Operating expenses(Notes VI (VIII), VI (IX), VI (XIV), VII, and XII): 6100 Marketing expenses 6200 Management expenses 6201 Expected credit loss (Note VI (II)) 6900 Operating profit Non-operating income and expenses: 7100 Interest income (Note VII) 7010 Other income (Note VII) 7230 Net foreign currency exchange gains (losses) (Note VI (XV)) 7375 Share of interest in subsidiaries recognized using the equity method 7510 Interest expense (Note VI (VIII)) 7590 Sundry expenses 7900 Net profit before tax 7950 Less: Income tax expense(Note VI (X)) Net profit for the period 8300 Other comprehensive income: 8360 Components of other comprehensive income subsequently reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8300 Other comprehensive income for the period (net after tax) 8500 Total comprehensive income for the period Earnings per share (NT$)(Note VI (XII)) 9750 Basic earnings per share (NT$) 9850 Diluted earnings per share (NT$) |
2023 | % 82 18 |
2022 | |||
|---|---|---|---|---|---|---|
| Amount $ 622,888 132,974 |
Amount 1,105,295 145,082 |
% 88 12 100 79 3 82 18 8 6 - 14 4 - - - 13 (1) - 12 16 1 15 5 5 20 1.92 1.91 |
||||
| 755,862 | 100 | 1,250,377 | ||||
| 546,442 49,888 |
72 7 |
992,023 34,546 |
||||
| 596,330 | 79 | 1,026,569 | ||||
| 159,532 | 21 | 223,808 | ||||
| 68,011 66,757 5,955 |
9 9 - |
97,667 77,792 2,417 |
||||
| 140,723 | 18 | 177,876 | ||||
| 18,809 | 3 | 45,932 | ||||
| 918 3,247 (3,005) 166,229 (12,514) (364) |
- - - 22 (2) - |
168 2,853 5,752 157,516 (9,987) (257) |
||||
154,511 |
20 | 156,045 |
||||
| 173,320 44,739 |
23 6 |
201,977 17,789 |
||||
| 128,581 | 17 | 184,188 | ||||
| (12,505) | (2) | 58,068 | ||||
(12,505) |
(2) | 58,068 | ||||
$ 116,076 |
15 | 242,256 | ||||
$ |
1.34 1.34 |
|||||
| $ |
(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin
Accounting Supervisor: Wen-Pin Chen
19
Welltend Technology Corporation Statement of Changes in Equity For the years ended December 31, 2023 and 2022
Unit: NT$ thousand
| Balance on January 1, 2022 Earnings allocation and distribution: Legal reserve approproated Special reserve approproated Cash dividends of ordinary share Common stock dividend distributable Capitalisation of employee compensation Net profit for the period Other comprehensive income for the period Total comprehensive income for the period Cancellation of treasury shares Balance on December 31, 2022 Earnings allocation and distribution: Legal reserve approproated Special reserve approproated Cash dividends of ordinary share Net profit for the period Other comprehensive income for the period Total comprehensive income for the period Balance on December 31, 2023 |
Share capital from common stock |
Additional paid-in capital 7,991 - - - - 1,275 1,275 - - - (1,741) 7,525 - - - - - - - 7,525 |
Retained earnings | Retained earnings | Total 513,444 - - (27,900) (27,900) - (55,800) 184,188 - 184,188 (2,521) 639,311 - - (67,123) (67,123) 128,581 - 128,581 700,769 |
Other equity | Treasury shares (14,262) - - - - - - - - - 14,262 - - - - - - - - - |
Total equity |
|
|---|---|---|---|---|---|---|---|---|---|
| Exchange differences on translation of foreign financial statements (178,096) - - - - - - - 58,068 58,068 - (120,028) - - - - - (12,505) (12,505) (132,533) |
|||||||||
| Legal reserve 80,516 13,074 - - - - 13,074 - - - - 93,590 18,419 - - 18,419 - - - 112,009 |
Special reserve 126,636 - 51,460 - - - 51,460 - - - - 178,096 - (58,068) - (58,068) - - - 120,028 |
Undistribu ted surplus earnings 306,292 (13,074) (51,460) (27,900) (27,900) - (120,334) 184,188 - 184,188 (2,521) 367,625 (18,419) 58,068 (67,123) (27,474) 128,581 - 128,581 468,732 |
|||||||
| $ 940,000 - - - 27,900 1,000 28,900 - - - (10,000) 958,900 - - - - - - - $ 958,900 |
1,269,077 - - (27,900) - 2,275 (25,625) 184,188 58,068 242,256 - 1,485,708 - - (67,123) (67,123) 128,581 (12,505) 116,076 1,534,661 |
Chairman: Yun-Teng Chang
Please refer to the attached notes to the parent company only financial statements) Manager: Jia-Xiang Lin Accounting Supervisor: Wen-Pin Chen
20
Welltend Technology Corporation
Statement of Cash Flows
For the years ended December 31, 2023 and 2022
Unit: NT$ thousand
| Cash flows from operating activities: Net profit before tax for the period Adjustments: Adjustments to reconcile profit Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Share of interest in subsidiaries recognized using the equity method Gain on disposal of property, plant, and equipment Total adjustments to reconcile profit (loss) Changes in assets and liabilities related to operating activities: Net changes in assets related to operating activities, net: Notes and accounts receivable Accounts receivable - related parties Inventories Other current assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: Contract liabilities Notes and accounts payable (including related parties) Other payables Other current liabilities Total net changes in liabilities related to operating activities Net changes in assets and liabilities related to operating activities Total adjustments Cash inflow generated from operations Interest received Dividend received Interest paid Income tax paid Net cash inflow (outflows) from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Disposal of property, plant, and equipment (Increase) decrease in refundable deposits Increase in other receivables-related parties Acquisition of intangible assets (Increase) decrease in other financial assets Net cash (outflows) inflows from investing activities Cash flows from financing activities: Increase in short-term borrowings Repayment of lease liability principal Issuance of cash dividend Net cash outflows from financing activities Net increase (decrease) in cash and cash equivalents for the period Cash and cash equivalents at the start of period Cash and cash equivalents at the end of period |
2023 $ 173,320 |
2022 201,977 |
|---|---|---|
| 7,328 2,148 5,955 12,514 (918) (166,229) - |
7,985 1,898 2,417 9,987 (168) (157,516) (37) |
|
| (139,202) | (135,434) |
|
10,633 5,648 67,463 418 |
(86,545) (2,243) 98,776 (195) |
|
| 84,162 | 9,793 |
|
| (26,891) (20,814) (13,508) 341 |
(111,721) 22,999 15,100 2,899 |
|
| (60,872) | (70,723) | |
23,290 |
(60,930) |
|
| (115,912) | (196,394) |
|
57,408 918 135,056 (12,563) (10,418) |
5,613 168 - (9,722) (933) |
|
170,401 |
(4,874) |
|
| (5,889) - (3,488) (66) (1,650) (6) |
(1,391) 37 3,530 (12) (875) 7,000 |
|
(11,099) |
8,289 | |
5,000 (2,263) (67,123) |
1,044 (1,943) (27,900) |
|
(64,386) |
(28,799) |
|
94,916 33,870 |
(25,384) 59,254 |
|
| $ 128,786 |
33,870 |
(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin
Accounting Supervisor: Wen-Pin Chen
21
Independent Auditors’ Report
To the Board of Directors of Welltend Technology Corporation:
Opinion
We have completed our review of the balance sheet of Welltend Technology Corporation and its Subsidiaries (Welltend Group) Consolidated for the years ended December 31, 2023 and 2022, and the consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the years ended December 31, 2023 and 2022, as well as the notes to the consolidated financial statements (including a summary of significant accounting policies).
In our opinion, the aforementioned consolidated financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission. They are sufficient to adequately express the consolidated financial status of Welltend Group as of December 31, 2023 and 2022, and its consolidated financial performance and consolidated cash flows for the years ended December 31, 2023 and 2022.
Basis for Opinion
We perform audit work in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants as well as the auditing standards. Our responsibilities under these Standards are further explained in the section on Responsibilities of the accountants for auditing the consolidated financial statements. Personnel subject to rules of independence under our offices adhere to the Norm of Professional Ethics for Certified Public Accountants and remain detached and independent from Welltend Group, and they fulfill other responsibilities of the Norm. We believe that sufficient and appropriate audit evidence has been obtained to serve as a basis for expressing an audit opinion.
Key Audit Matters
Key audit matters refer to the most important matters for the audit of Welltend Technology Group's 2023 consolidated financial statements based on our professional
22
judgment. These matters have been addressed in the process of reviewing the consolidated financial statements as a whole and in forming an audit opinion, and we do not express a separate opinion on these matters. Key audit matters that we judge should be communicated in the audit report are as follows:
Revenue recognition
For accounting policies on revenue recognition, please refer to Revenue Recognition in Note 4 (XIII) of the Notes to the Consolidated Financial Statements. For descriptions of revenue, please refer to Revenue from Customer Contracts in Note 6 (XII) of the Notes to the Consolidated Financial Statements.
Explanation of key audit matters:
The main businesses of Welltend Group are information systems and consulting services and the sale of wires and connectors. Therefore, revenue is one of the important items in its financial statements. The amount and changes of operating revenue may affect the understanding of financial statement users regarding the financial statements as a whole. Therefore, the test of revenue recognition is one of our important evaluation items in performing audits of the financial statements of Welltend Technology Group. Corresponding audit procedures:
Our main audit procedures for the above-mentioned key audit matters include testing the control of the revenue and collection operation cycle, implementing revenue audit procedures and detailed tests, performing correspondence audit procedures for accounts receivable, and performing spot checks of the Information Services Department’s contract liabilities. Furthermore, we evaluate whether the timing of operating revenue recognition is handled in accordance with the relevant bulletins.
Other Matters
Welltend Technology Corporation has prepared parent company only financial statements for 2023 and 2022, and the audit report with unqualified opinion that we have issued is on file for reference.
Responsibilities of Management and Those Charged with Governance for the
Consolidated Financial Statements
The responsibility of management is to prepare properly expressed consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission, and to maintain the necessary internal controls in connection with the preparation of the consolidated financial
23
statements to ensure that the consolidated financial statements are free from material misrepresentation that could result from fraud or error.
When preparing the consolidated financial statements, the responsibilities of management also include evaluating the ability of Welltend Group to continue operating, the disclosure of related matters, and the adoption of a going-concern accounting basis unless management intends to liquidate Welltend Group or cease operations, or there is no other practical alternative to liquidation or business closure.The governance units of Welltend Group (including the Audit Committee) are responsible for supervising the financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
The purpose of our audit of the consolidated financial statements is to obtain reasonable assurance as to whether there is a material misrepresentation of the consolidated financial statements as a whole that could result from fraud or error, and to issue an audit report. Reasonable assurance means a high degree of assurance. However, there is no guarantee that an audit carried out in accordance with the auditing standards will detect material misrepresentations in the consolidated financial statements. Misrepresentation may result from fraud or error. Misrepresentations of individual amounts or aggregates are considered material if they would reasonably be expected to affect economic decisions made by users of the consolidated financial statements.
We apply professional judgment and professional skepticism when conducting audits in accordance with the auditing standards. We also perform the following tasks:
-
Identify and evaluate the risk of material misrepresentation in the consolidated financial statements resulting from fraud or error; design and implement appropriate countermeasures for the evaluated risks; and obtain sufficient and appropriate evidence to serve as the basis for the audit opinion. Because fraud may involve complicity, forgery, deliberate omission, misrepresentation, or circumvention of internal controls, the risk of not detecting a material misrepresentation caused by fraud is higher than that arising from error.
-
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 internal control of Welltend Technology Group.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management’s use of the going concern basis of
24
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 ability of Welltend Technology Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit 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 audit report. However, future events or conditions may cause Welltend Technology Group to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
-
Obtain sufficient and appropriate audit evidence for the financial information of entities within the Group so as to express an opinion on the consolidated financial statements. We are responsible for the guidance, supervision and execution of Group audit cases and we are also responsible for forming audit opinions on the Group’s financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 2023 consolidated financial statements of Welltend Technology Group and are therefore the key audit matters. We describe these matters in our audit 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 impact 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 Yu-Ting Hsin and Yiu-Kwan Au.
25
KPMG
Taipei, Taiwan (Republic of China) March 12, 2024
Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated statement of 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’ 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.
26
Welltend Technology Corporation and Subsidiaries
Consolidated Balance Sheet
December 31, 2023and 2022
Unit: NT$ thousand
| Assets Current assets: 1100 Cash and cash equivalents (Note VI (I)) 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIV)) 1300 Net inventories (Note VI (III)) 1470 Other current assets(Note VI (IX)) 1476 Other financial assets - current (Note VIII) Non-current assets: 1600 Property, plant, and equipment (Notes VI (V) and VIII) 1755 Right-of-use assets (Notes VI (VI)) 1780 Intangible assets 1840 Deferred tax assets (Note VI (XI)) 1900 Other non-current assets (Note VIII) Total assets |
December 31, 2023 | December 31, 2023 | December 31, | December 31, | 2022 % 17 33 25 4 1 80 14 2 2 - 2 20 100 Liabilities and equity Current liabilities: 2100 Short-term borrowings (Notes VI (VII),VII and VIII) 2130 Current contract liabilities (Note VI (XIV)) 2170 Notes and accounts payable 2200 Other payables (Note VI (VIII) and VII) 2230 Current Tax Liabilities 2280 Current lease liabilities (Notes VI (IX) and VII) 2300 Other current liabilities Non-current liabilities: 2570 Deferred tax liabilities (Note VI (XI)) 2580 Non-current lease liabilities (Notes VI (IX) and VII) 2600 Other non-current liabilities Total liabilities Equity attributable to owners of parent(Note VI (XII)): 3100 Capital stock 3200 Additional paid-in capital 3300 Retained earnings 3400 Other equity 36XX Non-controlling interests Total equity Total liabilities and equity |
December 31, 2023 | December 31, 2023 | December 31, | December 31, | 2022 % 23 2 14 6 2 1 1 |
|---|---|---|---|---|---|---|---|---|---|---|
| Amount $ 827,360 841,117 594,251 61,907 36,849 |
% | Amount 530,360 997,775 779,205 132,237 36,547 |
Amount $ 696,000 26,374 372,604 135,539 51,905 25,699 21,177 |
% | Amount 691,000 55,892 443,594 185,172 64,069 31,592 30,471 |
|||||
28 29 20 2 1 80 14 2 2 - 2 20 100 |
24 1 12 4 2 1 1 |
|||||||||
2,361,484 |
2,476,124 |
|||||||||
421,128 43,838 43,908 4,545 59,858 |
426,974 72,958 44,414 3,440 56,164 |
|||||||||
1,329,298 |
45 |
1,501,790 |
49 |
|||||||
51,135 19,164 301 |
2 1 - |
49,319 42,709 434 |
2 1 - |
|||||||
573,277 |
603,950 |
70,600 | 3 |
92,462 | 3 |
|||||
$ 2,934,761 |
3,080,074 |
1,399,898 | 48 |
1,594,252 | 52 |
|||||
958,900 7,525 700,769 (132,533) |
33 - 24 (5) |
958,900 7,525 639,311 (120,028) |
31 - 21 (4) |
|||||||
1,534,661 |
52 |
1,485,708 |
48 |
|||||||
202 |
- |
114 |
- |
|||||||
| 1,534,863 | 52 |
1,485,822 | 48 |
|||||||
$ 2,934,761 |
100 |
3,080,074 |
100 |
(Please refer to the attached notes to the parent company only financial statements) Manager: Jia-Xiang Lin
Chairman: Yun-Teng Chang
Accounting Supervisor: Wen-Pin Chen
27
Welltend Technology Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income January 1 to December 31, 2023and 2022
Unit: NT$ thousand
| Operating revenue(Note VI (XIV)): 4110 Net sales revenue 4800 Other operating revenue Operating costs(Notes VI (III), VI (IX), VI (X), VII, and XII): 5110 Cost of goods sold 5800 Other operating costs 5910 Operating margin Operating expenses(Notes VI (VIX), VI (X), VI (XV), VII, and XII): 6100 Marketing expenses 6200 Management expenses 6450 Expected credit loss (Note VI (II)) 6900 Operating profit Non-operating income and expenses: 7010 Other revenue 7100 Interest income 7230 Net foreign currency exchange gain (losses) (Note VI (XVI)) 7510 Interest expense (Notes VI (IX) and VII) 7590 Sundry expenses 7900 Net profit before tax 7950 Less: Income tax expense(Note VI (XI)) Net profit for the period 8300 Other comprehensive income: 8360 Components of other comprehensive income subsequently reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8300 Other comprehensive income for the period Total comprehensive income for the period Net profit for the period attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Earnings per share(Note VI (XIII)) 9750 Basic earnings per share (Unit: NT$) 9850 Diluted earnings per share (Unit: NT$) |
2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|
| Amount $ 2,769,325 227,313 |
Amount 3,606,201 301,983 |
% 92 8 100 79 3 82 18 6 5 - 11 7 - - 1 - - - 8 3 5 1 1 6 5 - 5 6 - 6 1.92 1.91 |
|||||
| 2,996,638 | 100 | 3,908,184 | |||||
| 2,316,651 109,370 |
77 4 |
3,074,581 110,710 |
|||||
| 2,426,021 | 81 | 3,185,291 | |||||
| 570,617 | 19 | 722,893 | |||||
| 152,419 206,667 29,386 |
5 7 1 |
211,837 214,174 3,000 |
|||||
| 388,472 | 13 | 429,011 | |||||
| 182,145 | 6 | 293,882 | |||||
| 14,421 6,381 3,550 (13,265) (5,879) |
- - - - - |
10,834 2,610 23,714 (11,233) (7,954) |
|||||
5,208 |
- |
17,971 |
|||||
| 187,353 58,684 |
6 2 |
311,853 127,663 |
|||||
| 128,669 | 4 | 184,190 | |||||
| (12,505) | - - 4 |
58,068 | |||||
(12,505) |
58,068 | ||||||
$ 116,164 |
242,258 | ||||||
$ 128,581 88 |
4 - |
184,188 2 |
|||||
| $ 128,669 |
4 |
184,190 | |||||
$ 116,076 88 |
4 - |
242,256 2 |
|||||
| $ 116,164 |
4 | 242,258 | |||||
| $ | 1.34 1.34 |
||||||
| $ |
(Please refer to the attached notes to the parent company only financial statements)
Manager: Jia-Xiang Lin
Chairman: Yun-Teng Chang
Accounting Supervisor: Wen-Pin Chen
28
Welltend Technology Corporation and Subsidiaries
Consolidated Statement of Changes in Equity
January 1 to December 31, 2023 and 2022
Unit: NT$ thousand
Equity attributable to owners of parent
Other equity
| Balance on January 1, 2022 Earnings allocation and distribution: Legal reserve approproated Special reserve approproated Cash dividends of ordinary share Common stock dividend distributable Capitalisation of employee compensation Net profit for the period Other comprehensive income for the period Total comprehensive income for the period Cancellation of treasury shares Balance on December 31, 2022 Earnings allocation and distribution: Legal reserve approproated Reversal of special reserve Cash dividends of ordinary share Net profit for the period Other comprehensive income for the period Total comprehensive income for the period Balance on December 31, 2023 |
Share capital from common stock |
Additional paid-in capital 7,991 |
Retained earnings | Retained earnings | Total 513,444 |
Exchange differences on translation of foreign financial statements (178,096) |
Treasury shares (14,262) |
Total equity attributable to owners of the parent company 1,269,077 |
Non-contro lling interests 112 - - - - - - 2 - 2 - 114 - - - - 88 - 88 202 |
Total equity | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Legal reserve 80,516 13,074 - - - - 13,074 - - - - 93,590 18,419 - - 18,419 - - - 112,009 |
Special reserve |
||||||||||
| 1,269,189 - - (27,900) - 2,275 (25,625) 184,190 58,068 242,258 - 1,485,822 - - (67,123) (67,123) 128,669 (12,505) 116,164 1,534,863 |
|||||||||||
| $ 940,000 | 126,636 | ||||||||||
| - - - 27,900 1,000 |
- - - - 1,275 |
- 51,460 - - - |
(13,074) (51,460) (27,900) (27,900) - |
- - (27,900) (27,900) - |
- - - - - |
- - - - - |
- - (27,900) - 2,275 |
||||
| 28,900 | 1,275 | 51,460 | (120,334) | (55,800) | - | - | (25,625) | ||||
| - - |
- - |
- - |
184,188 - |
184,188 - |
- 58,068 |
- - |
184,188 58,068 |
||||
| - | - | - | 184,188 | 184,188 | 58,068 | - | 242,256 | ||||
| (10,000) | (1,741) | - | (2,521) | (2,521) | - | 14,262 | - | ||||
| 958,900 | 7,525 | 178,096 | 367,625 | 639,311 | (120,028) | - | 1,485,708 | ||||
| - - - |
- - - |
- (58,068) - |
(18,419) 58,068 (67,123) |
- - (67,123) |
- - - |
- - - |
- - (67,123) |
||||
| - | - | (58,068) | (27,474) | (67,123) | - | - | (67,123) | ||||
| - - |
- - |
- - |
128,581 - |
128,581 - |
- (12,505) |
- - |
128,581 (12,505) |
||||
| - | - | - | 128,581 | 128,581 | (12,505) | - | 116,076 | ||||
| $ 958,900 | 7,525 | 120,028 | 468,732 | 700,769 | (132,533) | - | 1,534,661 |
(Please refer to the attached notes to the parent company only financial statements) Manager: Jia-Xiang Lin
Accounting Supervisor: Wen-Pin Chen
Chairman: Yun-Teng Chang
29
Welltend Technology Corporation and Subsidiaries
Consolidated Statement of Cash Flows
January 1 to December 31, 2023 and 2022
Unit: NT$ thousand
| Cash flows from operating activities: Net profit before tax for the period Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Loss on disposal of property, plant, and equipment Lease modification benefits Total adjustments to reconcile profit (loss) Changes in assets and liabilities related to operating activities: Net changes in assets related to operating activities, net: Notes and accounts receivable Inventories Other current assets Other financial assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: Contract liabilities Notes and accounts payable Other payables Other current liabilities Other liabilities related to operating activities Net changes in assets and liabilities related to operating activities Total adjustments Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash inflow from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Disposal of property, plant, and equipment Decrease (Increase) in refundable deposits Decrease (Increase) in other non-current assets Acquisition of intangible assets Decrease other financial assets Net cash outflows from investing activities Cash flows from financing activities: Short-term borrowings Repayment of lease liability principal Decrease in other non-current liabilities Issuance of cash dividend Net cash outflows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents for the period Cash and cash equivalents at start of period Cash and cash equivalents at end of period |
2023 $ 187,353 |
2022 311,853 |
|---|---|---|
| 81,864 2,155 29,386 13,265 (6,381) - - |
78,345 1,922 3,000 11,233 (2,610) 841 (3) |
|
| 120,289 | 92,728 |
|
| 127,272 184,954 71,053 (302) |
(211,000) 97,388 (51,321) (290) |
|
382,977 |
(165,223) |
|
| (29,518) (70,990) (49,584) (9,294) |
(147,714) 90,635 43,750 1,483 (11,846) (177,069) |
|
(159,386) |
||
223,591 |
||
| 343,880 | (84,341) |
|
| 531,233 6,063 (13,314) (69,169) |
227,512 4,039 (10,968) (62,484) |
|
454,813 |
158,099 |
|
| (40,555) - (4,875) (1,285) (1,649) - |
(46,088) 97 5,010 4,436 (875) 7,000 |
|
| (48,364) | (30,420) | |
5,000 (32,175) (132) (67,123) |
1,044 (30,883) - (27,900) |
|
(94,430) |
(57,739) |
|
(15,019) |
47,609 |
|
297,000 530,360 |
117,549 412,811 |
|
| $ 827,360 |
530,360 |
(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin Accounting Supervisor: Wen-Pin Chen
Accounting Supervisor: Wen-Pin Chen
30
【 Attachment 5 】
WELLTEND TECHNOLOGY CORPORATION
2023 Profit Distribution Table
==> picture [476 x 243] intentionally omitted <==
----- Start of picture text -----
Unit: NT$ Dollar
Item Amount
Beginning Balance of Undistributed Earnings $ 340,403,279
Add: 2023 Net Profit After Tax 128,580,873
Less: Legal Reserve (12,858,087)
Less Special Reserve net reduction to other equity (12,504,134)
Distributable Net Profit 443,621,931
Distributable Item:
Dividend to Shareholders—Cash Dividends ( NT$0.3 per share) (28,767,000)
Ending Balance of Undistributed Earnings $ 414,854,931
----- End of picture text -----
Chairman ： Manager ： Accounting Supervisor ： Yun-Teng Chang Jia-Xiang Lin Wen-Pin Chen
31