Stock code: 3021

Welltend Technology Corporation

Parent Company Only Financial Statements and Independent Auditors’ Report

For the Years Ended December 31, 2022 and 2021

Company address: 6F, No. 59, Dongxing Road, Taipei City Tel: (02) 8768-2688

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Items	Page
I.Cover Page	1
II.Table of Contents	2
III.Independent Auditors’ Report	3
IV.Balance Sheet	4
V.Statement of Comprehensive Income	5
VI.Statement of Changes in Equity	6
VII.Statement of Cash Flows	7
VIII.Notes to the Parent Company Only Financial Statements
(I) Company history	8
(II) Approval date and procedures of the financial statements	8
(III) New standards, amendments, and interpretations adopted	8`～`10
(IV) Summary of significant accounting policies	11`～`24
(V) Significant accounting assumptions and judgments, and major	24`～`25
sources of estimation uncertainty
(VI) Explanation of significant accounts	25`～`47
(VII) Related-party transactions	47`～`49
(VIII) Pledged assets	49`～`50
(IX) Significant commitments and contingencies	50
(X) Losses due to major disasters	50
(XI) Significant subsequent events	50
(XII) Other	50`～`52
(XIII) Other disclosures
1. Information on significant transactions	52`～`54
2. Information on investees	54`～`55
3. Information on investment in mainland China	55`～`56
4. Information about the main shareholders	56`～`57
(XIV) Segment information	57
IX.Tables of the details of significant accounts	58`～`64

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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, 2022 and 2021, and the statements of comprehensive income, statements of changes in equity, and the statements of cash flows for the years ended December 31, 2022 and 2021, 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, 2022 and 2021, and its financial performance and cash flows for the years ended December 31, 2022 and 2021.

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 2022 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:

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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 are mainly engaged in sales of wires and connectors. The amount invested in subsidiaries as of December 31, 2022 was NT$1,093,730 thousand constituting a material proportion of total assets amounting to 44%. From the perspective of consolidation, revenue from wires and connectors constitutes an important source of revenue. 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 subsidiariesinvested 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.

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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

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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 2022 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.

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The engagement partners on the audit resulting in this independent auditors’ report are Yi-Wen Wang and Yiu-Kwan Au.

KPMG

Taipei, Taiwan (Republic of China) March 23, 2023

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.

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Welltend Technology Corporation

Balance Sheet

December 31, 2022 and 2021

Unit: NT$ thousand

December 31,2022 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 33,870 1 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 179,348 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 15,784 1 1210 Other receivables - related parties (Note VII) 219 - 1300 Net inventories (Note VI (III)) 121,915 5 1470 Other current assets 2,049 - 1476 Other financial assets - current (Note VIII) 34,800 1 Total current assets 387,985 15 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,869,000 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 182,506 8 1755 Right-of-use assets (Note VI (VI)) 4,834 - 1780 Intangible assets 12,523 1 1840 Deferred tax assets (Note VI (X)) 2,411 - 1900 Other non-current assets (Note VIII) 24,752 1 Total non-current assets 2,096,026 85 Total assets $ 2,484,011 100	December 31,2022 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 33,870 1 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 179,348 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 15,784 1 1210 Other receivables - related parties (Note VII) 219 - 1300 Net inventories (Note VI (III)) 121,915 5 1470 Other current assets 2,049 - 1476 Other financial assets - current (Note VIII) 34,800 1 Total current assets 387,985 15 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,869,000 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 182,506 8 1755 Right-of-use assets (Note VI (VI)) 4,834 - 1780 Intangible assets 12,523 1 1840 Deferred tax assets (Note VI (X)) 2,411 - 1900 Other non-current assets (Note VIII) 24,752 1 Total non-current assets 2,096,026 85 Total assets $ 2,484,011 100	December 31,2021 Amount % 59,254 3 95,220 4 13,541 1 207 - 220,829 9 1,854 - 41,800 2	December 31,2021 Amount % 59,254 3 95,220 4 13,541 1 207 - 220,829 9 1,854 - 41,800 2
		Amount 59,254 95,220 13,541 207 220,829 1,854 41,800

387,985	15	432,705	19
1,869,000 182,506 4,834 12,523 2,411 24,752	75 8 - 1 - 1	1,653,416 186,995 3,201 13,546 2,604 28,282	71 8 - 1 - 1
2,096,026	85	1,888,044	81
$ 2,484,011	100	2,320,749	100

December 31,2022 Amount % $ 691,000 28 47,286 2 139,433 6 60,745 2 4,929 - 2,264 - 11,452 -	December 31,2022 Amount % $ 691,000 28 47,286 2 139,433 6 60,745 2 4,929 - 2,264 - 11,452 -	December 31,2021 Amount % 689,956 30 159,007 7 116,434 5 47,655 2 812 - 1,055 - 8,553 -	December 31,2021 Amount % 689,956 30 159,007 7 116,434 5 47,655 2 812 - 1,055 - 8,553 -
Amount $ 691,000 47,286 139,433 60,745 4,929 2,264 11,452		Amount 689,956 159,007 116,434 47,655 812 1,055 8,553
957,109	38	1,023,472	44
38,252 2,594 348	2 - -	25,706 2,146 348	1 - -
41,194	2	28,200	1
998,303	40	1,051,672	45
958,900 7,525 639,311 (120,028) -	39 - 26 (5) -	940,000 7,991 513,444 (178,096) (14,262)	41 - 22 (8) -
1,485,708	60	1,269,077	55
$ 2,484,011	100	2,320,749	100

(Please refer to the attached notes to the parent company only financial statements) Manager: Hsiang-Yu Wang

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation

Statement of Comprehensive Income

For the years ended December 31, 2022 and 2021

Unit: NT$ thousand

2022	% 88 12	2021
Amount $ 1,105,295 145,082		Amount 896,838 143,985	% 86 14 100 77 3 80 20 10 6 - 16 4 - - - 12 (1) - 11 15 2 13 (5) (5) 8 1.36 1.36

1,250,377	100	1,040,823
992,023 34,546	79 3	802,985 31,471
1,026,569	82	834,456
223,808	18	206,367
97,667 77,792 2,417	8 6 -	101,719 64,000 8
177,876	14	165,727
45,932	4	40,640
168 2,853 5,752 157,516 (9,987) (257)	- - - 13 (1) -	347 2,019 (1,812) 123,629 (8,569) (171)
156,045	12	115,443
201,977 17,789	16 1	156,083 25,354
184,188	15	130,729
58,068	5	(51,460)
58,068	5	(51,460)
$ 242,256	20	79,269
$	1.92 1.91
$

(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Hsiang-Yu Wang

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation Statement of Changes in Equity For the years ended December 31, 2022 and 2021

Unit: NT$ thousand

Share capital from common stock		Retained earnings	Retained earnings	Other equity	Total equity
				Exchange differences on translation of foreign financial statements (126,636) - - - - - (51,460) (51,460) (178,096) - - - - - - - 58,068 58,068 - (120,028)
	Legal reserve 70,918 9,598 - - 9,598 - - - 80,516 13,074 - - - - 13,074 - - - - 93,590	Special reserve 124,887 - 1,749 - 1,749 - - - 126,636 - 51,460 - - - 51,460 - - - - 178,096	Undistribu ted surplus earnings 252,010 (9,598) (1,749) (65,100) (76,447) 130,729 - 130,729 306,292 (13,074) (51,460) (27,900) (27,900) - (120,334) 184,188 - 184,188 (2,521) 367,625
$ 940,000 - - - - - - - 940,000 - - - 27,900 1,000 28,900 - - - (10,000) $ 958,900					1,254,908 - - (65,100) (65,100) 130,729 (51,460) 79,269 1,269,077 - - (27,900) - 2,275 (25,625) 184,188 58,068 242,256 - 1,485,708

Chairman: Yun-Teng Chang

Please refer to the attached notes to the parent company only financial statements) Manager: Hsiang-Yu Wang Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation

Statement of Cash Flows

For the years ended December 31, 2022 and 2021

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: Increase in notes and accounts receivable Increase in accounts receivable - related parties Decrease in inventories (Increase) decrease in other current assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: (Decrease) increase in contract liabilities Increase (decrease) in notes and accounts payable (including related parties) Increase in other payables Increase in 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 Interest paid Income tax paid Net cash (outflows) inflow from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Disposal of property, plant, and equipment Decrease in refundable deposits (Increase) decrease in other receivables-related parties Acquisition of intangible assets Decrease in other financial assets Net cash inflows from investing activities Cash flows from financing activities: Increase in short-term borrowings Repayment of lease liability principal Increase in other non-current liabilities Issuance of cash dividend Net cash outflows from financing activities Net (decrease) increase 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	2022 $ 201,977	2021 156,083
	7,985 1,898 2,417 9,987 (168) (157,516) (37)	8,146 1,831 8 8,569 (347) (123,629) -
	(135,434)	(105,422)
	(86,545) (2,243) 98,776 (195)	(35,996) (2,720) 2,939 1,184
	9,793	(34,593)
	(111,721) 22,999 15,100 2,899	24,074 (16,875) 2,125 1,717
	(70,723)	11,041
	(60,930)	(23,552)
	(196,364)	(128,974)
	5,613 168 (9,722) (933)	27,109 347 (8,699) (1,643)
	(4,874)	17,114
	(1,391) 37 3,530 (12) (875) 7,000	(2,978) - 3,016 57,611 (1,052) 1,500
	8,289	58,097
	1,044 (1,943) - (27,900)	37,088 (1,078) 100 (65,100)
	(28,799)	(28,990)
	(25,384) 59,254	46,221 13,033
	$ 33,870	59,254

(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Hsiang-Yu Wang

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation Notes to the Parent Company Only Financial Statements 2022 and 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

I. Company history

Welltend Technology Corporation (“the Company”) was established in June 1993, and the general meeting of shareholders on June 13, 2008 resolved to change the Company’s name from Weidao Technology Co., Ltd., to Weizhan Information Co., Ltd. On June 13, 2013, the general meeting of shareholders resolved to change the Company’s from Weizhan Information Co., Ltd., to Welltend Technology Corporation. Its main businesses are the sale of wires and connectors and the integrated planning and implementation of information systems and consulting services.

II. Approval date and procedures for adoption of financial statements

The parent company only financial statements were authorized for issuance by the Board of Directors on March 23, 2023.

III. New standards, amendments and interpretations adopted

(I) Impact of adopting the newly issued and revised standards and interpretations approved by the Financial Supervisory Commission

The Company has been applying the following newly amended IFRSs since January 1,

2022, and this has not materially affected the parent company only financial statements.

Amendments to IAS 16 “Property, Plant and Equipment — Proceeds before Intended Use”
Amendments to IAS 37 “Onerous Contracts — Cost of Fulfilling a Contract”
Annual reform of IFRS 2018-2020 cycle
Amendments to IFRS 3 “References to the Conceptual Framework”
(II) Impact of the adoption of the IFRSs approved by the Financial Supervisory Commission

The Company has evaluated that the application of the following newly amended IFRSs effective from January 1, 2023, will not materially affect the parent company only financial statements.

Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Single Transaction”

(III) Impact of newly issued and revised standards and interpretations not yet approved by the FSC

The following standards and interpretations have been issued and amended by the International Accounting Standards Board (IASB) but have not yet been endorsed by the FSC and may be relevant to the Company:

Newly published or revised standards Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-Current Liabilities with Covenants”	Main amended content IAS 1 currently stipulates that a liability that does not have an unconditional right to defer settlement for at least twelve months after the reporting period should be classified as current. The amendment deletes the requirement that the right should be unconditional and instead requires that the right must exist and be substantive at the end of the reporting period. The amendment clarifies how an enterprise should classify liabilities that are paid off by issuing its own equity instruments (such as convertible bonds). After reconsidering certain aspects of the 2020 IAS 1 amendments, the new amendment clarifies that only contractual terms in compliance on or before the reporting date affect the classification of a liability as a current or non-current liability. The contractual terms to which a business is bound after the reporting date (i.e., future terms) do not affect the classification of liabilities at that date. However, when non-current liabilities are subject to future contractual terms, a company must disclose information to help users of financial statements understand the risk that such liabilities may be repaid within twelve months of the reporting date.	Effective date of announcement by the IASB
		January 1, 2024 January 1, 2024

The Company is evaluating the impact of its initial adoption of the above mentioned standards and interpretations on its financial position and financial performance. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and revised standards that have not yet been approved to have a material impact on the parent company only financial statements.

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an
Investor and Its Associate or Joint Venture”
IFRS 17 "Insurance Contracts" and amendments to IFRS 17
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

IV. Summary of significant accounting policies

Significant accounting policies adopted in these parent company only financial statements are summarized below. Unless otherwise stated, the following accounting policies have been

consistently applied to all periods of expression in these parent company only financial statements.

(I) Statement of compliance

The parent company only financial statements reports are prepared in accordance with

the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of compilation

1. Measurement basis

These parent company only financial statements are prepared on a historical cost basis.

Functional currency and presentation currency

The Company uses the currency of the main economic environment in which it operates as its functional currency. This parent company only financial statements are presented in the Company's functional currency, the New Taiwan dollar. All financial information presented in New Taiwan dollars is in thousands of New Taiwan dollars.

(III) Foreign currencies

1. Foreign currency transactions

Foreign currency transactions are translated into the functional currency based on the exchange rate on the transaction date. At the end of each subsequent reporting period (hereinafter referred to as the reporting date), the foreign currency monetary items are converted into the functional currency according to the exchange rate on that date. Foreign currency non-monetary items measured at fair value are converted into the functional currency at the exchange rate on the day when the fair value was measured. Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction.

Foreign currency translation differences arising from translation are normally recognized in income. However, the following situations are recognized in other comprehensive income:

(1) Designated as equity investments at fair value through other comprehensive

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

income;

(2) Designated as financial liabilities of foreign operations’ net investment in hedging that are within the effective scope of hedging; or
(3) Qualified cash flow hedging that is within the effective scope of hedging.
Foreign operations

Assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisitions, are converted into New Taiwan dollars according to the exchange rate on the reporting date. Income and expense items are converted into New Taiwan dollars according to the average exchange rate of the current period. Exchange differences that arise are recognized in other comprehensive income.

When disposal of foreign operations results in a loss of control, joint control, or significant influence, the accumulated exchange difference with respect to the foreign operations is fully reclassified as income. In the event of partial disposal of a subsidiary that includes foreign operations, the relevant accumulated exchange difference shall be re-attributed to non-controlling interest on a pro rata basis. In the event of partial disposal of an investment involving an affiliate or joint venture that includes foreign operations, the relevant accumulated exchange difference shall be reclassified to income on a pro rata basis.

For monetary receivables or payables of foreign operations, if there is no repayment plan and it is impossible to repay in the foreseeable future, the foreign currency exchange gains and losses arising therefrom are regarded as part of the net investment in the foreign operations and are recognized as other comprehensive income.

(IV) Classification criteria for distinguishing current and non-current assets and liabilities

Assets that meet one of the following conditions are classified as current assets, and all other assets that are not current assets are classified as non-current assets:

The asset is expected to be realized during the normal operating cycle, or it is intended to be sold or consumed;
The asset is held primarily for trading purposes;
The asset is expected to be realized within twelve months of the reporting period; or
The asset constitutes cash or cash equivalents, unless there are other restrictions on exchanging the asset or using it to settle a liability at least twelve months after the reporting period.

Liabilities that meet one of the following conditions are classified as current liabilities, and all other liabilities that are not current liabilities are classified as non-current liabilities:

The liability is expected to be settled during the normal operating cycle;

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

The liability is held primarily for trading purposes;
The liability is expected to be settled when it comes due within twelve months of the reporting period; or
The liability does not have an unconditional right to defer settlement for at least twelve months after the reporting period. The terms of the liability may be subject to the option of the counterparty to issue equity instruments resulting in its repayment and this does not affect its classification.
(V) Cash and cash equivalents

Cash includes cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible into fixed amounts of cash with little risk of changes in value. Fixed deposits that meet the above definition and are held for short-term cash commitments rather than investment or other purposes are presented in cash equivalents.

(VI) Financial instruments

Accounts receivable and debt securities issued are originally recognized as they are incurred. All other financial assets and financial liabilities are originally recognized when the Company becomes a party to the contractual terms of the financial instrument. Financial assets not measured at fair value through profit or loss (except for accounts receivable that do not contain significant financial components) or financial liabilities that are originally measured at fair value plus transaction costs directly attributable to the acquisition or issue. Accounts receivable that do not contain significant financial components are originally measured at their transaction prices.

1. Financial assets

For the purchase or sale of financial assets in accordance with customary trading practices, all purchases and sales of financial assets of the Company classified in the same manner shall be accounted for on the trading day.

Financial assets are classified as financial assets measured at amortized cost at the time of original recognition.

The Company will reclassify all affected financial assets from the first day of the next reporting period only when changing the business model of the financial assets under management.

(1) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions and are not specified as measured at fair value through profit or loss are measured at amortized cost:

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

The financial asset is held under an operating model for the purpose of collecting contractual cash flows.
The contractual terms of the financial asset give rise to cash flows on specific dates entirely for the payment of principal and interest on the outstanding principal amount.

The assets are subsequently calculated by adding or subtracting the original

recognized amount to the accumulated amortization amount calculated using the

effective interest method, and adjusting any measure of post amortized cost of allowance losses. Interest income, foreign currency exchange gains and losses and impairment losses are recognized in income. Upon derecognition, profits or losses shall be included in income.

(2) Impairment of financial assets

The Company recognizes loss allowance for expected credit losses on financial assets measured at amortized cost (including cash and cash equivalents, notes receivable and accounts receivable, other receivables, deposits and other financial assets, etc.).

The following financial assets are measured against loss allowance based on the

twelve-month expected credit loss amount, with the remainder measured by the amount of expected lifetime credit losses:

Judgment that debt securities have low credit risk at the date of reporting; and
The credit risk of other debt securities and bank deposits has not increased significantly since the original recognition (i.e., the risk of default during the expected lifetime of the financial instrument).

Loss allowance for accounts receivable and contractual assets is measured based on the amount of expected lifetime credit losses.

Expected lifetime credit losses refers to the expected credit losses arising from all possible default events during the expected life of a financial instrument.

Twelve-month expected credit loss indicates expected credit losses arising from possible defaults of financial instruments within twelve months after the reporting date (or a shorter period, if the expected term of the financial instrument is less than twelve months).

The maximum period for measuring expected credit losses is the longest contract period during which the Company is exposed to credit risk.

In determining whether credit risk has increased significantly since the original

~13~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

recognition, the Company considers reasonable and corroborating information (available without excessive cost or investment), including qualitative and quantitative information, and analysis based on the Company's historical experience, credit evaluation, and forward-looking information.

If the credit risk rating of a financial instrument is equivalent to the globally defined “investment grade” (which is an investment grade of BBB- from Standard & Poor's, an investment grade of Baa3 from Moody's, or an investment grade of twA from Taiwan Ratings Corp., or above that level), the Company considers the debt securities to have a low credit risk. Time deposits held by the Company are considered to have low credit risk because the transaction counterparties and the performing parties are financial institutions at investment grade or above.

If a contract payment is overdue for more than 30 days, the Company assumes that the credit risk of the financial assets has increased significantly.

If a contract payment is more than 120 days overdue, or the borrower is unlikely to meet its credit obligations to pay the full amount to the Company, the Company considers the financial asset to be in default.

Expected credit loss is a weighted estimate of the probability of credit loss over the expected life of a financial instrument. Credit loss is measured at the present value of all cash shortfalls; that is, the difference between the cash flows that the Company can receive under the contract and the cash flows that the Company expects to receive. Expected credit loss is discounted at the effective interest rate of the financial asset.

On each reporting date, the Company evaluates whether financial assets measured at amortized cost are credit-impaired. A financial asset is credit-impaired when one or more events adversely affecting the estimated future cash flows of a financial asset have occurred. Evidence of credit impairment of financial assets includes the following observable information:

Material financial difficulties of the borrower or issuer;
Breach of contract, such as being delayed or overdue for more than 120 days;
For economic or contractual reasons related to the debtor's financial hardship, the Company grants concessions that the debtor would not otherwise consider;
The debtor is likely to file for bankruptcy or other financial restructuring; or
The active market for the financial asset disappears due to financial difficulties. The loss allowance for financial assets measured at amortized cost is deducted
from the carrying amount of the assets.

When the Company is unable to reasonably anticipate the recovery of financial

~14~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

assets, in whole or in part, it directly reduces the total carrying amount of its financial assets. For corporate accounts, the Company analyzes the time and amount of the write-off on an individual basis based on whether it is reasonably expected to be recoverable. The Company does not expect a material reversal of the written-off amount. However, financial assets that have been written off remain enforceable, in order to comply with the Company's procedures for recovering overdue amounts.

(3) Derecognition of financial assets

The Company derecognizes financial assets only when the contractual right to cash flows from the asset is terminated, or when the financial asset has been transferred and substantially all of the risks and rewards of ownership of the asset have been transferred to another enterprise, or where almost all of the risks and rewards of neither transfer nor retention of title have been retained and control of the financial asset has not been retained.

When the Company enters into a transaction to transfer financial assets, if all or substantially all risks and rewards of title to the transferred assets are retained, these shall continue to be recognized on the balance sheet.

Financial liabilities and equity instruments
(1) Classification of liabilities or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity according to the substance of the contractual agreement and the definition of financial liabilities and equity instruments.

(2) Equity instruments

An equity instrument is any contract that recognizes the Company's remaining interest in assets less all of its liabilities. Equity instruments issued by the Company are recognized at the price obtained after deducting direct issue costs.

(3) Treasury shares

When repurchasing equity instruments recognized by the Company, the consideration paid is recognized as a decrease in equity (including directly attributable costs). The repurchased shares are classified as treasury shares. Subsequent sales or re-issuance of treasury shares shall be recognized as an increase in equity and the surplus or loss arising from the transaction shall be recognized as additional paid-in capital or retained earnings (if the additional paid-in capital is insufficient to offset it). (4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or at fair value through profit or loss. Financial liabilities that are held for trading, derivative instruments

~15~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

or specified at the time of original recognition are classified as measured at fair value through profit or loss. Financial liabilities measured at fair value through profit and loss are measured at fair value, and the underlying net profit and loss, including any interest expense, are recognized in income.

Other financial liabilities are measured at fair value plus directly attributable transaction costs at the time of original recognition; they are subsequently measured at amortized cost using the effective interest method. Interest expense and exchange gains and losses are recognized in income. Upon derecognition, any profit or loss shall also be recognized in income.

(5) Derecognition of financial liabilities

Financial liabilities are derecognized when the Company’s contractual obligations have been fulfilled or cancelled or have expired. When the terms of financial liabilities are modified and there is a material difference in the cash flows of the modified liabilities, the original financial liabilities are derecognized and the new financial liabilities are recognized at fair value on the basis of the revised terms.

When derecognizing financial liabilities, the difference between its carrying amount and the total consideration paid or payable is recognized as income (including any non-cash assets transferred or liabilities assumed).

(6) Mutual offsetting of financial assets and liabilities

Financial assets and financial liabilities are only offset and expressed in the balance sheet in net amounts when the Company currently has a legally enforceable right to offset and intends to close the assets and liquidate the liabilities on a net basis or realize them simultaneously.

(VII) Inventories

Inventories are measured at the lowest of cost and net realizable value. Costs include acquisition, production or processing costs, and other costs incurred in bringing them to the location and condition available for use, calculated using a weighted average. Net realizable value refers to the estimated selling price under normal business less the estimated cost of estimated completion and the estimated cost of completing the sale.

(VIII) Invested subsidiaries

When preparing the parent company only financial statements, the Company adopts the equity method to evaluate invested companies with control. Under the equity method, current profit and loss and other comprehensive income in the parent company only financial statements and the current profit and loss and other comprehensive income in the financial statements prepared on a consolidated basis are the same as those attributable to

~16~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

the owners of the parent company. Moreover, owner's equity in the parent company only financial statements is the same as the equity attributable to the owners of the parent company in the financial statements prepared on a consolidated basis.

When changes in the Company's ownership interests in a subsidiary that do not result in a loss of control, they are treated as an equity transaction with the owner.

(IX) Property, plant, and equipment

1. Identification and measurement

Items of property, plant and equipment are measured at cost (including capitalized borrowing costs) less accumulated depreciation and any accumulated impairment.

When the service lives of major components of property, plant and equipment are different, they shall be treated as separate items (major components) of property, plant, and equipment.

Disposal gain or loss of property, plant and equipment is recognized in income.

Subsequent costs

Subsequent expenses are capitalized only when there is a high probability that their future economic benefits will flow to the Company.

3. Depreciation

Depreciation is calculated on the basis of the cost of assets less the residual value and is recognized as profit or loss within the estimated life of each component using the straight-line method.

Land is not depreciated.

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

(1) Buildings and factories: 20 to 50 years.
(2) Machinery and equipment: 3 to 5 years.
(3) Office equipment and other equipment: 2 to 8 years.

The Company reviews the depreciation method, useful life, and salvage value on each reporting date and makes appropriate adjustments when necessary.

(X) Leases

The Company evaluates whether the contract constitutes or includes a lease on the date of formation of the contract; if the contract assigns control over the use of an identified asset for a period of time in exchange for consideration, the contract constitutes or includes a lease.

1. Lessee

When the Company is the lessee, it recognizes right-of-use assets and lease

liabilities on the lease commencement date. Right-of-use assets are initially measured at

~17~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

cost; this cost includes the original measure of the lease liability to adjust any lease payments paid on or before the lease commencement date, plus the original direct costs incurred and the estimated costs for dismantling, removing and restoring the location or the underlying asset and is also net of any rental incentives received.

The right-of-use asset is subsequently depreciated on a straight-line basis from the lease inception date to the expiry of the useful life of the right-of-use asset or the expiry of the lease term, whichever is earlier. Furthermore, the Company regularly evaluates whether the right-of-use asset is impaired and handles any impairment losses that have occurred. The right-of-use asset is adjusted in conjunction with the remeasurement of the lease liability.

The lease liability is initially measured at the present value of the unpaid lease payments at the inception date of the lease. If the interest rate implied by the lease is easily determined, then the discount rate is that rate; if it is not easily determined, the incremental borrowing rate of the Group shall be used. Generally speaking, the Company adopts its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of lease liabilities include:

(1) Fixed payments, including substantial fixed payments;
(2) Lease payments based on changes in an index or rate, as measured by the index or rate on the date of lease commencement as the original measure.
(3) The residual value guarantee amount expected to be paid; and
(4) The exercise price or penalty payable when it is reasonably determined that the option to purchase or terminate the lease will be exercised.

Interest on lease liabilities is subsequently accrued using the effective interest method and remeasurement of the amount occurs in the event of the following:

(1) Changes in the index or rate used to determine lease payments result in changes in future lease payments;
(2) There is a change in the residual value guarantee amount expected to be paid;
(3) There is a change in the evaluation of the option to purchase the underlying asset;
(4) There is a change in the estimate of whether to exercise the option to extend or terminate, and the evaluation of the lease period is changed; and
(5) Modification of the subject matter, scope or other terms of the lease.

When the lease liability is remeasured as a result of the aforementioned changes in the index or rate used to determine lease payments and the assessment of options to extend or terminate the lease, this constitutes a corresponding adjustment to the carrying amount of the right-of-use asset; and when the carrying amount of the right-of-use asset

~18~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

is reduced to zero, the remaining remeasured amount is recognized in income. For lease modifications that reduce the scope of the lease, these constitute a reduction in the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease. The difference between this and the remeasured amount of the lease liability is recognized in income.

The Company presents right-of-use assets and lease liabilities that do not meet the definition of investment real property as separate line items in the balance sheet.

For short-term leasing of parking spaces and office equipment and leasing of low-value underlying assets, the Company chooses not to recognize right-of-use assets and lease liabilities. Instead, the related lease payments are recognized as expenses on a straight-line basis over the lease term.

2. Lessor

In transactions where the Company is the lessor, classification of lease contracts is made by whether they transfer substantially all risks and rewards of ownership of the underlying asset on the lease inception date. If this is the case, it is classified as a finance lease; otherwise, it is classified as an operating lease. At the time of evaluation, the Company considers relevant specific indicators including whether the lease period covers the main portion of the economic life of the underlying asset.

If the Company is a sublease lessor, the main lease and sublease transactions are handled separately. The classification of sublease transactions is also evaluated with the right-of-use asset arising from the main lease. If the main lease is a short-term lease and the recognition exemption applies, the sublease transaction should be classified as an operating lease.

If the agreement contains lease and non-lease components, the Company shall allocate the consideration in the contract using the requirements of IFRS 15.

For assets held under a finance lease, the amount of the net investment in the lease is presented as finance lease receivable. The original direct costs incurred as a result of the negotiation and arrangement of the operating lease are included in the net amount of the lease investment. The net lease investment is in a form that reflects a fixed rate of return in each period and apportionment over the lease term is recognized as interest income. For operating leases, the Company recognizes lease payments received as rental income over the lease term on a straight-line basis.

(XI) Intangible assets

1. Identification and measurement

Goodwill arising from the acquisition of a subsidiary is measured in terms of cost

~19~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

less accumulated impairment.

Expenses related to research activities are recognized under income at the time incurred.

Development expenditures are capitalized only made when they can be reliably measured, the technical or commercial feasibility of the product or process has been achieved, and it is probable that future economic benefits will flow to the Company, and the Company intends and has sufficient resources to complete the development and to use or sell the asset. Other development expenditures are recognized under income when incurred. After the original recognition, the capitalized development expense is measured by the amount of its costs less accumulated amortization and accumulated impairment.

Other intangible assets acquired by the Company with a limited period of durability, including customer relationships and patent rights and trademark rights, are measured by the amount of cost less accumulated amortization and cumulative impairment.

Subsequent expenditures

Subsequent expenditures are capitalized only to the extent that they increase the future economic benefits of the underlying asset. All other expenses are recognized under income as incurred, including internally developed goodwill and branding.

Amortization

Except for goodwill, amortization is calculated based on the cost of the asset less the estimated residual value. When an intangible asset is ready for use, it is recognized under income using the straight-line method over its estimated useful life.

(XII) Impairment on non-financial assets

The Company assesses on each reporting date whether there is an indication that the carrying amount of a non-financial asset may be impaired (except inventories and deferred tax assets). If any indication is present, the recoverable amount of the asset is estimated. Goodwill is regularly tested for impairment annually.

For the purpose of the impairment test, a group of assets whose cash inflows are largely independent of the cash inflows of other individual assets or groups of assets constitute the smallest identifiable group of assets. Goodwill acquired in a business combination is allocated to each cash-generating unit or group of cash-generating units that is expected to benefit from the synergies of the combination.

The recoverable amount is the higher of the individual asset or cash-generating unit's fair value less costs of disposal and its value in use. When evaluating value in use, estimated future cash flows are discounted to present value using a pre-tax discount rate.

~20~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

The discount rate should reflect current market evaluation of the time value of money and the risks specific to the asset or cash-generating unit.

If the recoverable amount of an individual asset or cash-generating unit is less than the carrying amount, impairment losses are recognized.

Impairment losses are recognized immediately under income, and first reduce the carrying amount of the amortized goodwill of the cash-generating unit. The carrying amount of each asset is reduced in proportion to the carrying amount of each other asset in the unit.

Goodwill impairment losses are not reversed. Non-financial assets other than goodwill are to be reversed only to the extent of not exceeding the carrying amount of the asset (net of depreciation or amortization) that would have been determined if an impairment loss had not been recognized in prior years.

(XIII) Income recognition

1. Revenue from customer contracts

Revenue is measured at the consideration to which the goods or services are expected to be acquired by the transfer of goods or services. The Company recognizes revenue when the control of the goods or services is transferred to the customer and the performance obligation is satisfied. The Company's main revenue items are described as follows:

(1) Sale of goods

The Company sells wire and connectors. The Company recognizes revenue at the time of the transfer of control over the products. The transfer of control over the product means that the product has been delivered to the customer, the customer can completely decide the sales channel and price of the product, and there are no outstanding obligations that will affect the customer's acceptance of the product. Delivery occurs when the product is shipped to a specific location, its obsolescence and risk of loss has passed to the customer, and the customer has accepted the product in accordance with the sales contract, the acceptance clause has expired, or when the Company has objective evidence that all acceptance conditions have been met.

The Company recognizes accounts receivable when the goods are delivered, because the Company has the right to unconditionally receive consideration at that time. (2) Information systems and consulting services

The Company provides corporate information system and advisory services and recognizes associated revenue during the financial reporting period for the provision of

~21~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

services. A fixed-price contract is based on the proportion of services actually provided to total services as of the reporting date, and the revenue is gradually recognized over time.

Some contracts contain multiple deliverables, such as hardware procurement and installation and system maintenance services. Most of them are services that do not include integration services and can be performed by other parties, so they are regarded as a separate performance obligation and the transaction price is apportioned on the basis of the separate selling price. If the price cannot be directly observed, it is estimated at the expected cost plus profit and the individual selling price. If the contract includes the purchase and installation of hardware, it is recognized as revenue from the hardware at the time of delivery of the hardware, the transfer of legal ownership and the acceptance of the customer.

If circumstances change, estimates of revenue, costs and degree of completion will be revised and the changes will be reflected in profit or loss during the period when management becomes aware of the changes.

Under a fixed-price contract, the customer pays a fixed amount according to the agreed timeline. If the services already provided exceed the payment, a contractual asset is recognized; if the payment exceeds the services already provided, a contractual liability is recognized.

A maintenance contract is based on the number of hours for which the service is provided and the revenue is recognized in the amount of the invoice that the Company is entitled to issue. The Company requests payment from the customer on a monthly or quarterly basis, and the consideration can be charged after the invoice is issued.

(3) Financial components

The Company expects that the time between the transfer of goods or services to the customer by all client contracts and the time between the customer's payment for such goods or services does not exceed one year, and therefore the Company does not adjust the time value of money for the transaction price.

(XIV) Employee benefits

1. Defined contribution plans

The contribution obligation of the defined contribution pension plan is the employee benefit expense recognized under income during the period of service provided by the employee.

2. Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis

~22~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

and are recognized as expenses at the time of provision of the relevant services. In connection with the amount expected to be paid under the short-term cash bonus or dividend plan, if it is a result of the employee's past provision of services, the Company has a current statutory or presumptive payment obligation, and the obligation can be reliably estimated, the amount shall be recognized as a liability.

(XV) Income taxes

Income tax includes current and deferred income tax. Except for those items related to business combinations or items directly recognized in equity or other comprehensive income, current income tax and deferred income tax are recognized under income.

The Company has determined that the interest or penalty related to income tax does not meet the definition of income tax (including uncertain tax treatment), so the accounting treatment of IAS 37 is applied.

Current income tax includes the estimated income tax payable or tax refund payable based on the taxable income (loss) of the current year, and any adjustment to the income tax or tax refund payable in the previous year. After its amount reflects the income tax-related uncertainties, if any, it is the best estimate of the amount expected to be paid or received measured at the statutory tax rate or substantive legislative tax rate at the reporting date.

Deferred tax is the measurement and recognition of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their tax base. Deferred tax is not recognized for temporary differences arising from:

Assets or liabilities that are not originally recognized in the transaction of a business combination, and do not affect accounting profits and taxable income (losses) at the time of the transaction;
Temporary differences arising from investments in subsidiaries, affiliates and joint venture interests where the Group can control the timing of the reversal of the temporary difference and it is probable that it will be not reversed in the foreseeable future; and
Taxable temporary differences arising from the original recognition of goodwill. Unused tax losses and unused income tax credits are recognized as deferred tax

assets at a later stage of the rollover with the deductible temporary differences, to the extent that there is a high probability that future tax income will be available. Furthermore, they are re-evaluated each reporting date to reduce the relevant income tax benefits to the extent that they are not likely to be realized; or to the extent that there is a high probability that sufficient taxable income will be reversed to the amount already reduced.

Deferred income tax is measured at the rate at which temporary differences are

~23~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

expected to be reversed, based on the statutory or substantial legislative rates at the

date of reporting, and reflects the uncertainty (if any) associated with income tax.

The Company only offsets deferred tax assets and deferred tax liabilities if the following conditions are simultaneously met:

There is a statutory enforcement right to offset the current income tax assets and the current income tax liabilities against each other; and
Deferred tax assets and deferred tax liabilities are related to one of the following taxpayers subject to income tax by the same tax authority;
(1) The same taxpayer; or
(2) Different taxpayers, but each entity intends to pay off the current income tax liabilities and assets on a net basis, or realize the assets and liquidation liabilities at the same time, during each future period in which the deferred tax assets are expected to be recovered and the deferred tax liabilities are expected to be repaid.

The undistributed surplus earnings of the Company are subject to income tax on profit-making enterprises. This is recognized as current income tax expense after a profit distribution proposal is approved by the shareholders' meeting in the following year.

(XVI) Earnings per share

The Company presents basic and diluted earnings per share attributable to holders of ordinary shares of the Company. The basic earnings per share of the Company are the profit or loss attributable to the holders of ordinary shares of the Company, calculated by dividing by the weighted average number of ordinary shares outstanding for the period. Diluted earnings per share refers to the profit and loss attributable to the holders of the Company's ordinary shares and the weighted average number of ordinary shares outstanding, calculated after separately adjusting for the effect of all potential dilutive ordinary shares. The Company's potential dilutive ordinary shares include estimates of employee compensation.

(XVII) Segment information

The Company has disclosed segment information in the consolidated financial statements, so the parent company only financial statements do not disclose segment information.

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the parent company only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers requires management to make judgments, estimates and assumptions that affect the application of the

~24~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Management continues to review estimates and underlying assumptions, and changes in

accounting estimates are recognized during the period of change and for future periods affected.

The Company's accounting policies do not involve material uncertainties in judgments, estimates, and assumptions, and there are no matters that have a significant impact on the amounts recognized in the parent company only financial statements.

VI. Explanation of significant accounts

(I) Cash and cash equivalents

Cash on hand Demand and foreign currency deposits Time deposits		December 31, 2022 $ 145 9,157 24,568 $ 33,870	December 31, 2021
			$ 145 59,109 -
			$ 59,254

Please refer to Note VI (XV) for the fair value sensitivity analysis and interest rate risk of the Company's financial assets and liabilities.

(2) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance Net notes and accounts receivable Net accounts receivable - related parties		December 31, 2022 $ 2,279 195,301 197,580 (2,448 ) $ 195,132 $ 179,348 $ 15,784	December 31, 2021
			$ 3,742 105,050 108,792 (31 ) $ 108,761 $ 95,220 $ 13,541

The Company uses a simplified approach to estimate expected credit losses for all notes and accounts receivable; i.e., they are measured by lifetime expected credit losses. For measurement purpose, these notes and accounts receivable are grouped by common credit risk characteristics that represent the customer's ability to pay all amounts due in accordance with the contractual terms. Forward-looking information such as historical credit loss experience and reasonable forecast of future economic conditions has been incorporated. Analysis of the expected credit losses of notes and accounts receivable for December 31, 2022 and 2021, is as follows:

~25~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Credit rating	December 31, 2022 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 178,535 - - 19,045 12.85% 2,448 $ 197,580 2,448	December 31, 2022 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 178,535 - - 19,045 12.85% 2,448 $ 197,580 2,448	December 31, 2022 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 178,535 - - 19,045 12.85% 2,448 $ 197,580 2,448
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio
Level A Level B	$ 178,535 19,045	- 12.85%
	$ 197,580		2,448

Credit rating	December 31, 2021 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 106,952 - - 1,840 1.68% 31 $ 108,792 31	December 31, 2021 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 106,952 - - 1,840 1.68% 31 $ 108,792 31	December 31, 2021 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 106,952 - - 1,840 1.68% 31 $ 108,792 31
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio
Level A Level B	$ 106,952 1,840	- 1.68%
	$ 108,792		31

Aging analysis of the Company's notes and accounts receivable is as follows:

Not yet past due 0 to 90 days past due 90 to 180 days past due More than 180 days past due	December 31, 2022 $ 138,471 36,803 6,340 15,966 $ 197,580	December 31, 2021
		$ 85,991 20,128 1,027 1,646
		$ 108,792

Changes in the Company's loss allowance for notes receivable and accounts receivable were as follows:

Opening balance at start of period Impairment losses recognized Balance at end of period	2022 $ 31 2,417 $ 2,448	2021
		$ 23 8 $ 31

Allowance for doubtful accounts is mainly based on historical payment behavior and extensive analysis of the credit ratings of the target customers. The Company believes that the overdue portion of accounts receivable for which allowance for doubtful accounts has

~26~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

not yet been provided is still recoverable.

As of December 31, 2022 and 2021, none of the Company's notes and accounts receivable were pledged as collateral.

Please see note VI (XV) for the sensitivity analysis of exchange rates for the Company's notes and accounts receivable for 2022 and 2021.

(III) Inventories

s and accounts receivable for 2022 and 2021. tories
Goods held for sale	December 31, 2022 $ 121,915	December 31, 2021
		$ 220,829

The cost of inventories recognized as cost of goods sold and as expenses by the Company in 2022 and 2021 were NT$990,985 thousand and NT$802,823 thousand, respectively.
Details of expenses and losses related to inventory recognition of the Company in 2022 and 2021 are as follows:

nd 2021 are as follows:
Write-down and losses from inactive inventory	2022 $ 1,038	2021
		$ 162

As of December 31, 2022 and 2021, none of the Company's inventories were pledged as collateral.
(IV) Investments accounted for using the equity method

The Company’s financial information for investments accounted for using the equity method at the reporting date was as follows:

hod at the reporting date was as follows:
Subsidiary	December 31, 2022 $ 1,869,000	December 31, 2021
		$ 1,653,416

Please refer to the 2022 consolidated financial statements.
As of December 31, 2022 and 2021, none of the Company's investments under the equity method were pledged as collateral.
(V) Property, plant, and equipment

Details of changes in cost and depreciation of property, plant, and equipment of the Company in 2022 and 2021 are as follows:

~27~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Cost: Balance on January 1, 2022 Add Transfers Disposal Balance on December 31, 2022 Balance on January 1, 2021 Add Transfers Balance on December 31, 2021 Depreciation: Balance on January 1, 2022 Depreciation in the current year Disposal Balance on December 31, 2022 Balance on January 1, 2021 Depreciation in the current year Disposal Balance on December 31, 2021 Carrying amounts: December 31, 2022 January 1, 2021 December 31, 2021	Land $ 140,142 - - - $ 140,142 $ 140,142 - - $ 140,142 $ - - - $ - $ - - - $ - $ 140,142 $ 140,142 $ 140,142	Buildings 75,094 78 - - 75,172 74,618 476 - 75,094 34,973 2,084 - 37,057 32,789 2,184 - 34,973 38,115 41,829 40,121	Office equipment and others 34,913 1,313 138 (7,647) 28,717 34,318 2,502 (1,907) 34,913 28,181 3,934 (7,647) 24,468 25,189 4,899 (1,907) 28,181 4,249 9,129 6,732	Total 250,149 1,391 138 (7,647) 244,031 249,078 2,978 (1,907) 250,149 63,154 6,018 (7,647) 61,525 57,978 7,083 (1,907) 63,154 182,506 191,100 186,995

Please see Note VIII for details of long-term borrowings and financing lines guaranteed by a portion of property, plant, and equipment as of December 31, 2022 and 2021.

(VI) Right-of-use assets

Details of changes in the cost and depreciation of the Company's leased buildings and others are as follows:

~28~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Building $ 2,123 3,600	Others 1,078 -	Total 3,201 3,600 6,801 3,189 3,201 (3,189) 3,201 - 1,967 1,967 2,126 1,063 (3,189) - 4,834 1,063 3,201 December 31, 2021
$ 5,723	1,078
$ 2,115 2,123 (2,115)	1,074 1,078 (1,074)
$ 2,123	1,078
$ - 1,608	- 359
$ 1,608	359
$ 1,410 705 (2,115)	716 358 (1,074)
$ -	-
$ 4,115	719
$ 705	358
$ 2,123	1,078

		1470,000 140,000 79,956
		689,956
		279,200
		1%~1.33%

(VII) Short-term loans

For information about the Company's interest rate and liquidity risks, please refer to Note VI (XV) for details.
The Company's short-term loan amounts are jointly and severally guaranteed by key management personnel; please refer to Note VII for details.
Please refer to Note VIII for the details of the related assets of the Company pledged as collateral.

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Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(VIII) Lease liabilities

Book value of the Company’s lease liabilities is as follows:

Current Non-current	December 31, 2022 $ 2,264 $ 2,594	December 31, 2021
		1,055
		2,146

For the maturity analysis of financial instruments, please refer to Note VI (XV). Amounts recognized as profit or loss are as follows:

2022 Interest expense on lease liabilities $ 59 Variable lease payments not included in the measurement of lease liabilities $ 33 Gains from sublease of right-of-use assets $ 1,825 Expenses related to short term leases $ 305 Expenses related to leases of low value assets (excluding short term leases of low value assets) $ 50 Amounts recognized in the statements of cash flows are as follows: 2022 Total cash flows from leases $ 2,390	2022 Interest expense on lease liabilities $ 59 Variable lease payments not included in the measurement of lease liabilities $ 33 Gains from sublease of right-of-use assets $ 1,825 Expenses related to short term leases $ 305 Expenses related to leases of low value assets (excluding short term leases of low value assets) $ 50 Amounts recognized in the statements of cash flows are as follows: 2022 Total cash flows from leases $ 2,390	2021
		8
		128
		1,825
		916
		49
		2021
	$ 2,390	2,179

1. Leasing of buildings

The Company leased buildings as office premises in December 31, 2022 and 2021. The lease term of the office premises was three years, and the lease included the option to extend the lease term for the same period as the original contract.

2. Other leases

The lease period of parking space leased by the Company is three years.

Lease payments for some contracts are calculated based on the actual usage of the lease.

The Company also leases other equipment with contract terms of three years. These

leases are short-term or leases of low value items. The Company has elected not to recognize right of use assets and lease liabilities for these leases.

(IX) Employee benefits

The defined contribution plan of the Company is in accordance with the provisions of

the Labor Pension Act. In accordance with the contribution rate of 6% of workers’ monthly

~30~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

wages, a contribution is transferred to the individual accounts of the labor pension fund of the Bureau of Labor Insurance. After the Company has allocated a fixed amount to the Bureau of Labor Insurance under this plan, it has no statutory or presumptive obligation to pay additional amounts.

The pension expenses under the Company's 2022 and 2021 defined pension contributions were NT$6,135 thousand and NT$5,980 thousand, respectively, and were transferred to the Bureau of Labor Insurance.

(X) Income taxes
Income tax expense
(1) The Company's expenses for 2022 and 2021 were as follows:

Income tax expense for the current period: Generated in the current period Undistributed surplus earnings Undervaluation (overvaluation) for the prior period Deferred tax expense Income tax expense	2022 $ 4,418 520 112 5,050 12,739 $ 17,789	2021 (351) 812 (321 ) 140 25,214 25,354

(2) The Company's 2022 and 2021 income tax expenses and pre-tax net profits were adjusted as follows:

Net profit before tax Income tax calculated at the domestic tax rate of the Company's location Net amount of domestic investment gains and losses Changes in unrecognized temporary differences Current-year losses for which no deferred tax asset was recognized Undistributed surplus earnings Undervaluation (overvaluation) for the prior period Others Income tax expense	2022 $ 201,977 $ 40,395 (8,045) (13,418) (2,763) 520 1,100 - $ 17,789	2021 156,083 31,217 (1,568) (4,794) - 812 (321) 8 25,354

~31~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

Temporary differences related to investment subsidiaries on December 31, 2022 and 2021, are due to the Company's control over the timing of the reversal of these temporary differences. Therefore, no deferred tax liabilities were recognized. Relevant amounts were as follows:

		December	December	December
		31, 2022	31,	2021
Aggregated amount of temporary differences related
to investment subsidiaries	$	850,357		807,729
Amounts not recognized as deferred tax liabilities	$	186,213		174,558
) Items not recognized as deferred tax assets by the Company are as follows:
		December	December
		31, 2022	31,	2021
Deductible temporary differences	$	-		1,763
Tax loss		-		2,763
	$	-		4,526

(2) Items not recognized as deferred tax assets by the Company are as follows:

(3) Recognized deferred tax assets and liabilities

Changes in deferred tax assets and liabilities for 2022 and 2021 are as follows: Investment income recognized under the equity method (foreign) Other Total Deferred tax liabilities: Balance on January 1, 2022 $ 25,706 - 25,706 Debit/(credit) income 12,096 450 12,546 Balance on December 31, 2022 $ 37,802 450 38,252 Balance on January 1, 2021 $ 6,674 - 6,674 Debit/(credit) income 19,032 - 19,032 Balance on December 31, 2021 $ 25,706 - 25,706	Changes in deferred tax assets and liabilities for 2022 and 2021 are as follows: Investment income recognized under the equity method (foreign) Other Total Deferred tax liabilities: Balance on January 1, 2022 $ 25,706 - 25,706 Debit/(credit) income 12,096 450 12,546 Balance on December 31, 2022 $ 37,802 450 38,252 Balance on January 1, 2021 $ 6,674 - 6,674 Debit/(credit) income 19,032 - 19,032 Balance on December 31, 2021 $ 25,706 - 25,706	Changes in deferred tax assets and liabilities for 2022 and 2021 are as follows: Investment income recognized under the equity method (foreign) Other Total Deferred tax liabilities: Balance on January 1, 2022 $ 25,706 - 25,706 Debit/(credit) income 12,096 450 12,546 Balance on December 31, 2022 $ 37,802 450 38,252 Balance on January 1, 2021 $ 6,674 - 6,674 Debit/(credit) income 19,032 - 19,032 Balance on December 31, 2021 $ 25,706 - 25,706
$ 25,706 12,096
$ 37,802	450	38,252
$ 6,674 19,032	- -	6,674 19,032
$ 25,706	-	25,706

~32~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Deferred tax assets: Balance on January 1, 2022 (Debit)/credit income Balance on December 31, 2022 Balance on January 1, 2021 (Debit)/credit income Balance on December 31, 2021	Tax loss	Other - 2,411 2,411 - - -	Total 2,604 (193)
	$ 2,604 (2,604)
	$ -		2,411
	$ 8,786 (6,182)		8,786 (6,182)
	$ 2,604		2,604

The Company’s tax returns for the years up to 2020 were examined and approved by the tax authority.

(XI) Capital and other equity

For both December 31, 2022 and December 2021, the total authorized capital stock of the Company was NT$2,700,000 thousand and the par value was NT$10 per share, for 270,000 thousand shares. The total number of shares specified above constitutes ordinary shares, with the number of issued shares amounting to NT$95,890 thousand and NT$94,000 thousand, respectively. All payments for issued shares have been received.

The reconciliation table of the number of outstanding shares of the Company in 2022 and 2021 is as follows:

Unit: Thousand shares

Starting balance on January 1 Issuance of stock dividend Issuance of employee stock remuneration Cancellation of treasury shares Ending balance on December 31	Common stock 2022 2021 94,000 94,000 2,790 - 100 - (1,000) - 95,890 94,000	Common stock 2022 2021 94,000 94,000 2,790 - 100 - (1,000) - 95,890 94,000	Common stock 2022 2021 94,000 94,000 2,790 - 100 - (1,000) - 95,890 94,000

	95,890		94,000

1. Additional paid-in capital

According to the provisions of the Company Act, additional paid-in capital must first make up for losses and only then can realized additional paid-in capital be converted into capital or into cash dividends for issuance. Realized additional paid-in capital referred to in the preceding paragraph includes the excess from the issuance of shares in excess of the par value and from the receipt of gifts. In accordance with the provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the total amount of additional paid-in capital allocated to be replenished each year may not

~33~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

exceed 10% of the paid-in capital.

2. Retained earnings

If there is a surplus in the annual final accounts, then in accordance with the Articles of Incorporation of the Company and after paying income tax on profit-making enterprises and making up for losses in prior years, 10% should first be set aside as legal reserve. However, when the legal reserve has reached the level of the Company's paid-in capital, this limitation shall not apply. Furthermore, appropriate special reserve or reversals shall be set aside in accordance with the decrees or regulations of the competent authority. If there is any remaining balance, a proposal for the distribution of this balance plus accumulated undistributed surplus earnings from the previous period shall be formulated by the Board of Directors. When issuing new shares, such distribution shall be made after a resolution of the shareholders' meeting.

In accordance with the provisions of Paragraph 5, Article 240 of the Company Act, the Company authorizes the Board of Directors to pay dividends and bonuses for all or part of the legal reserve and additional paid-in capital as provided for in Paragraph 1, Article 241 of the Company Act per resolution passed by the majority of directors present at a Board meeting attended by more than two thirds of the directors. The dividends and bonuses shall be paid by way of issuing cash, and it shall be reported to the shareholders' meeting.

In response to the growth of operations and investment needs, the Company has adopted the following dividend distribution principles at this stage:

The Company is in a stage of business growth, and the dividend distribution policy depends on the Company's current and future investment environment, capital needs, domestic and international competition, capital budget, etc. Taking into account the interests of shareholders, balancing dividends and the Company's long-term financial planning, etc., every year the Board of Directors shall draw up a distribution plan in accordance with the law and submit it for resolution by the shareholders’ meeting. Shareholders' dividends may be distributed in cash or stock. The proportion of cash dividend distribution shall be no less than 10% of the total dividends. However, the cash dividend distribution ratio can still be adjusted according to the operating conditions of the current year.

(1) Legal reserve

When the Company has no losses, then subject to a resolution of the shareholders' meeting, issuance shall be made of new shares or cash with the legal reserve. However, this is limited to the portion of the reserve exceeding 25% of the paid-in capital.

~34~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(2) Special reserve

Pursuant to Order issued by the Financial Supervisory Commission, when the Company distributes its distributable surplus, then for the net deduction of other shareholders' equity incurred in the current year, special reserve of the same amount is withdrawn from the current income and the undistributed surplus of the previous period. If the amount of the deduction of other shareholders' equity accumulated in the previous period is not distributed, special reserve of the same amount from the undistributed surplus of the previous period shall not be distributed. In the event of a subsequent reversal of the amount of the deduction of shareholders' equity, earnings are distributed on the reversal portion.

(3) Earnings distribution

The Company respectively passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings for 2021 on March 22, 2022 and the amount of stock dividends under appropriation of earnings for 2021 on June 14, 2022. On August 4, 2021, the shareholders' meeting passed a resolution on appropriation of earnings for 2020. The dividend amounts to be distributed to owners were as follows:

2021	2021	2020 Dividend rate(NT$) Amount 0.70 65,100 - - $ 65,100
Dividend rate(NT$) $ 0.30 0.30	Amount	Dividend rate(NT$) 0.70 -
	27,900 27,900
	$ 55,800

On March 23, 2023, the Board of Directors of the Company proposed the earnings distribution for 2022 with the amount of dividends distributed to owners as follows:

Dividends distributed to owners of ordinary shares: Cash dividend	2022 Dividend rate (NT$) Amount $ 0.70 $ 67,123
	Dividend rate (NT$) $ 0.70

Cash dividends and stock dividends are calculated based on the 95,890 thousand shares of the Company that have been issued as of March 23, 2023, and that are entitled to participate in the distribution.

~35~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

3. Treasury shares

In accordance with Article 28-2 of the Securities and Exchange Act, the Company buys back treasury shares for the purpose of transferring shares to employees. Details of changes in treasury shares in 2022 and 2021 are as follows:

2022 Number of shares (thousand shares) Amount 1,000 $ 14,262 (1,000) (14,262) - $ -	2022 Number of shares (thousand shares) Amount 1,000 $ 14,262 (1,000) (14,262) - $ -	2021	2021
Number of shares (thousand shares) 1,000 (1,000)		Number of shares (thousand shares)	Amount
		1,000 -	14,262 -
-	$ -	1,000	14,262

In accordance with provisions of the Securities and Exchange Act, the proportion of shares bought back by the Company may not exceed 10% of the total issued shares of the Company; the total amount of the shares purchased may not exceed the amount of retained earnings plus issued share premium and realized additional paid-in capital; shares repurchased as a result of the transfer of shares to employees shall be transferred within three years from the date of purchase, and if the transfer is not made within the time limit, then Company’s unissued shares shall be deemed to have been cancelled. In addition, treasury shares may not be pledged and no shareholder rights may be enjoyed before transfer.

(XII) Earnings per share

The Company's basic earnings per share and diluted earnings per share are calculated as follows:

Basic earnings per share: Net profit attributable to holders of ordinary shares of the Company Weighted average number of ordinary shares outstanding (thousand shares) Basic earnings per share (NT$)	2022 $ 184,188	2021 130,729
	95,868	95,790
	$ 1.92	1.36

~36~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Diluted earnings per share: Net profit attributable to holders of ordinary shares of the Company (diluted) Weighted average number of ordinary shares outstanding (basic) (thousand shares) Impact of employee stock remuneration Weighted average number of ordinary shares outstanding (diluted) (thousand shares) Diluted earnings per share (NT$) (XIII) Revenue from customer contracts 1. Details of revenue Information Services Department Primary regional markets: Taiwan $ 1,209,114 Mainland China 16,613 $ 1,225,727 Information Services Department Primary regional markets: Taiwan $ 1,001,971 Mainland China 16,194 $ 1,018,165 2. Contract balances December 31, 2022 Notes receivable $ 2,279 Accounts receivable 195,301 Less: Loss allowance (2,448 ) $ 195,132 Contract liabilities $ 47,286		2022 $ 184,188	2021 130,729
		95,868 432	95,790 230
		96,300	96,020
		$ 1.91	1.36
		2022
Information Services Department $ 1,209,114 16,613	Wire & Connectors Department - 24,650

$ 1,225,727	24,650
	2021
Information Services Department	Information Services Department
$ 1,001,971 16,194	- 22,658 22,658 December 31, 2021 3,742 105,050 (31 ) 108,761 159,007
$ 1,018,165
December 31, 2022 $ 2,279 195,301 (2,448 ) $ 195,132 $ 47,286

~37~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Please refer to Note VI (II) for the details of notes and accounts receivable and their impairment.

The opening balances of contract liabilities for January 1, 2022 and 2021, and the amounts recognized as revenue in 2022 and 2021 were NT$152,964 thousand and NT$133,709 thousand, respectively.

Changes in contract assets and contract liabilities are mainly due to the difference between the time when the Company transfers goods or services to customers to satisfy performance obligations and when customers pay.

(XIV) Remuneration of employees and of directors and supervisors

In accordance with the Company’s Articles of Incorporation, if there is profit for the year then no less than 1% and no more than 10% shall be allocated for employee remuneration by a resolution of the Board of Directors and in the form of stock or cash distributions. Distribution recipients are to include employees of affiliated companies who meet certain conditions. Out of the aforementioned profit amount of the Company, no more than 3% should be appropriated by a resolution of the Board of Directors as remuneration for directors and supervisors (constitutes director remuneration after the establishment of the Audit Committee).

Distribution proposals for employee remuneration and remuneration of directors and supervisors (constitutes director remuneration after the establishment of the Audit Committee) shall be reported to the shareholders' meeting. However, when the Company still has accumulated losses, the compensation amounts should be reserved in advance before the remuneration of employees and the remuneration of directors is allocated according to the aforementioned proportions.

The estimated amounts of employee remuneration of the Company in 2022 and 2021 were NT$7,700 thousand and NT$4,840 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$6,400 thousand and NT$4,500 thousand. These refer to the amounts before deducting the remuneration of employees and the remuneration of directors and supervisors from the net profit before tax of the Company for each period. After deducting the accumulated losses, the balance is multiplied by the remuneration of employees and directors and supervisors stipulated in the Company’s Articles of Incorporation The remuneration distribution percentage is an estimate basis and is presented as an operating expense for each period. (In all of the above instances, after the establishment of the Audit Committee, supervisor remuneration constitutes director remuneration.) If the Board of Directors decides to pay employee compensation in stock, the numbers of shares to be distributed are calculated based on the closing price of the Company one day before the date of the meeting of the Board of Directors.

~38~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

In respect to the remuneration of employees, directors, and supervisors allocated by the above-mentioned resolutions of the Board of Directors, there were no differences between these amounts and the estimated amounts in the Company's 2022 and 2021 consolidated financial statements. (After the establishment of the Audit Committee, supervisor remuneration constitutes director remuneration.) Relevant information can be inquired through the Market Observation Post System.

(XV) Financial instruments

1. Credit risk

1) Amount of maximum credit risk exposure

The carrying amounts of financial assets and contract assets represent the maximum credit exposure amount.

(2) Concentration of credit risk

Since the Company has a large customer base, there is no significant concentration of transactions with a single customer and the sales area is dispersed. Therefore, there is no risk of significant concentration of credit risk in accounts receivable. In order to reduce credit risk, the Company also regularly and continuously evaluates the financial status of customers. However, customers are usually not required to provide collateral.

(3) Credit risk of receivables

For details of credit risk exposure information and credit impairment of notes receivable and accounts receivable, please refer to Note VI (II).

2. Liquidity risk

The table below shows the contractual maturity dates of financial liabilities, including estimated interest and impact of netting agreements.

December 31, 2022 Non-derivative financial liabilities Short-term bank loans Lease liabilities Notes and accounts payable Other payables Deposits received (accounted for as other non-current liabilities)	Carrying amount	Contractual cash flows	Within 1year	1 to 2years	Over 2years - (305) - - (348)
	$ 691,000 4,858 139,433 60,745 348	(692,430) (4,919) (139,433) (60,745) (348)	(692,430) (2,307) (139,433) (60,745) -	- (2,307) - - -
	$ 896,384	(897,875)	(894,915)	(2,307)	(653)

~39~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

December 31, 2021 Non-derivative financial liabilities Short-term bank loans Short-term notes and bills payable Lease liabilities Notes and accounts payable Other payables Deposits received (accounted for as other non-current liabilities)	Carrying amount	Contractual cash flows	Within 1year	1 to 2years	Over 2years - - (1,086) - - (348)
	$ 610,000 79,956 3,201 116,434 47,655 348	(611,271) (80,000) (3,258) (116,434) (47,655) (348)	(611,271) (80,000) (1,086) (116,434) (47,655) -	- - (1,086) - - -
	$ 857,594	(858,966)	(856,446)	(1,086)	(1,434)

The Company does not expect that the cash flows included in the maturity analysis could occur significantly earlier or in significantly different amounts.

3. Exchange rate risk

(1) Exposure to exchange rate risk

The financial assets and liabilities of the Company exposed to significant foreign currency exchange rate risk are as follows:

Financial assets Monetary items USD HKD Financial liabilities Monetary items USD	December 31, 2022	December 31, 2022	December 31, 2022	Foreign currency unit: $ thousand December 31, 2021	Foreign currency unit: $ thousand December 31, 2021	Foreign currency unit: $ thousand December 31, 2021
	Foreign currency	Exchange Rate	TWD	Foreign currency	Exchange Rate USD/TWD =27.68 HKD/TWD =3.549 USD/TWD =27.68	TWD
	$ 1,312 4,008 219	USD/TWD =30.71 HKD/TWD =3.938 USD/TWD =30.71	40,285 15,784 6,728	1,518 2,004 146		42,018 7,112 4,041

(2) Sensitivity analysis

The exchange rate risk of the Company's monetary items mainly comes from cash and cash equivalents, accounts receivable, other receivables and accounts payable denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If the TWD had depreciated or appreciated by 5% against the USD or RMB as of December 31, 2022 and 2021, then with all other factors remaining constant the impact on net profit before tax in 2022 and 2021 would be as follows:

~40~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

USD (versus TWD) Appreciate 5% Depreciate 5% HKD (versus TWD) Appreciate 5% Depreciate 5%	December 31, 2022 $ 1,678 (1,678) 789 (789)	December 31, 2021
		1,899 (1,899) 356 (356)

(3) Exchange gains and losses on monetary items

For information on exchange gains and losses on monetary items of the Company, foreign currency exchange gains (losses) in 2022 and 2021 (both realized and unrealized) amounted to NT$5,752 thousand and (NT$1,812) thousand.

4. Interest rate analysis

The Company's financial asset and financial liability interest rate risk exposure is listed in the following table:

Variable rate instruments (book amounts): Financial assets Financial liabilities	December 31, 2022 $ 9,157 531,000	December 31, 2021 59,109 610,000

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Company’s internal key management reported the increases and decreases in interest rates, and changes in interest rates of 25 basis points are considered by management to be reasonably possible.

If interest rates had increased or decreased by 25 basis points, and with all other variables held constant, the Company's net profit before tax in 2022 and 2021 would have decreased or increased by NT$1,305 thousand and NT$1,377 thousand, respectively. This would mainly be due to variable interest rate demand deposits and borrowings of the Company.

~41~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

5. Fair value information

(1) Fair value hierarchy

The carrying amounts and fair values of the Company's financial assets and financial liabilities are listed below (including fair value rating information; however, provided that the carrying amount of financial instruments other than fair value is a reasonable approximation of fair value, and in the case of lease liabilities, there is no requirement to disclose fair value information):

	December 31, 2022	December 31, 2022	December 31, 2022
Carrying amount $ 33,870 195,132 219 34,800 24,752		Fair value
	Level 1 - - - - - - - - - - -	Level 2 - - - - - - - - - - -	Level 3 - - - - - - - - - - -	Total
				- - - - - - - - - - -
$ 288,773
$ 691,000 139,433 60,745 2,264 2,594 348
$ 896,384

~42~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

	December 31, 2021	December 31, 2021	December 31, 2021
Carrying amount $ 59,254 108,761 207 41,800 28,282		Fair value
	Level 1 - - - - - - - - - - -	Level 2 - - - - - - - - - - -	Level 3 - - - - - - - - - - -	Total
				- - - - - - - - - - -
$ 238,304
$ 689,956 116,434 47,655 1,055 2,146 348
$ 857,594

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

The management of the Company believes that the carrying amounts of the Company's financial assets and financial liabilities measured at amortized cost in the parent company only financial statements are close to their fair values.

(XVI) Financial risk management

1. Overview

The Company is exposed to the following risks as a result of the use of financial instruments:

(1) Credit risk

~43~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(2) Liquidity risk

(3) Market risk

This note presents the Company's exposure information for each of the above risks, the Company's objectives, policies and procedures for measuring and managing the risks. For further quantitative disclosures, please refer to the notes to the parent company only financial statements.

2. Risk management structure

The Company's financial department provides services for various businesses, coordinates access to domestic and international financial market operations, and supervises and manages the financial risks associated with the Company’s operations through internal risk reports that analyze risk exposure according to the level and breadth of risk. The use of financial instruments is governed by the policies adopted by the Board of Directors of the Company. These constitute written principles for exchange rate risk, interest rate risk, credit risk, the use of non-derivative financial instruments, and the investment of surplus liquidity. Internal auditors continuously review policy compliance and exposure limits. The Company does not trade in financial instruments for speculative purposes (including derivative financial instruments).

3. Credit risk

Credit risk is the risk of financial loss of the Company due to the failure of the customer or counterparty of the financial instrument to perform its contractual obligations. This arises mainly from the Company's accounts receivable from customers and securities investments.

(1) Accounts receivable and other receivables

The Company has established a credit policy under which the Company is required to analyze the credit rating of each new customer individually before giving standard payment and shipping conditions and terms. The Company's review includes external ratings where available, and bank letters in certain circumstances. Purchasing limits are established on a case-by-case basis. Such limits are subject to periodic review. Customers who do not meet the Company's benchmark credit rating may only trade with the Company on an advance receipt basis.

Accounts receivable cover a wide range of customers and are spread across different industries and geographic regions. The Company continuously evaluates the financial situation of its accounts receivable clients and, if necessary, purchases credit guarantee insurance contracts.

~44~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(2) Investments

The credit risk of bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Company's financial department. Since the Company's transaction counterparties and other parties are all creditworthy banks and financial institutions as well as corporate organizations and government agencies at investment grade and above, there are no material performance concerns and therefore no significant credit risk.

(3) Guarantees

It is the Company's policy to provide financial guarantees only to wholly-owned subsidiaries. Please refer to Note XIII (I) for information on endorsements/guarantees by the Company for subsidiaries as of December 31, 2022.

4. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support the Company's operations and mitigate the impact of fluctuations in cash flows. The Company's management monitors the use of bank financing lines and ensures compliance with the terms of loan contracts.

Bank borrowings are an important source of liquidity for the Company. Please refer to Note VI (VII) for unused bank facilities of the Company as of December 31, 2022 and 2021.

5. Market risk

Market risk refers to changes in market prices such as changes in exchange rates, interest rates, and equity instrument prices, and the risk that affects the Company's earnings or the value of financial instruments it holds. The objective of market risk management is to control the exposure to market risk to within an acceptable range and to optimize returns on investment.

(1) Exchange rate risk

The Company is exposed to exchange rate risk arising from sales, purchases and borrowing transactions that are not denominated in the functional currency. The main transaction currencies are New Taiwan dollar and US dollar.

~45~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Loan interest is priced in the currency of the principal of the loan. Generally speaking, the currency of the loan is the same as the currency of the cash flows generated by the Company’s operations, mainly New Taiwan dollar. In this case, it provides economic hedging without the need to use derivatives. Therefore, hedging accounting is not used.

For monetary assets and liabilities denominated in other foreign currencies, when short-term imbalances occur, the Company buys or sells foreign currencies at real-time exchange rates to ensure that the net risk exposure remains at an acceptable level. (2) Interest rate risk

As the Company borrows funds at both fixed and floating interest rates, cash flow risk arises from the borrowing of funds at floating interest rates. The Company manages interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

(XVII) Capital management

Based on the characteristics of the current operating industry and the future development of the Company, and considering factors such as changes in the external environment, the Company plans its capital management to ensure that it has the necessary financial resources and operating plans to meet the needs of future working capital, capital expenditure, debt repayment, and dividend payments. Management uses appropriate total debt/equity ratios, ratios of interest-bearing debt to equity, or other financial ratios to determine the optimal capitalization of the Company. It enhances shareholder returns by optimizing debt and equity balances while maintaining a sound capital base. Debt-to-equity ratios as of the reporting dates were as follows:

s as of the reporting dates were as follows:
Total liabilities Total equity Interest-bearing debt Debt-to-equity ratio Ratio of interest-bearing debt to equity	December 31, 2022 $ 998,303 1,485,708 691,000 67% 47%	December 31, 2021
		1,051,672 1,269,077 689,956 83% 54%

(XVIII) Investing and financing activities not affecting current cash flows

The Company's non-cash transaction investment and financing activities in 2022 and

2021 were undertaken to obtain right-of-use assets via leasing; please refer to Note VI (VI) for details.

Reconciliation of liabilities from financing activities is as follows:

~46~

Notes to the Parent Company Only Financial Statements of Welltend Technology

Corporation (continued)

January 1, 2022 $ 689,956 348 3,201	Cash flows 1,044 - (1,943)	December 31, 2022 691,000 348 4,858


$ 693,505	(899)	696,206
January 1, 2021 $ 652,868 248 1,078	Cash flows 37,088 100 (1,078)	December 31, 2021 689,956 348 3,201

$ 654,194	36,110	693,505

VII. Related party transactions

(I) Names and relationship with related parties

The Company's subsidiaries and other related parties involved in transactions with the Company during the periods covered by these parent company only financial statements were as follows:

Name of related party

CHLERAISE ELECTRONIC CORPORATION (CELERAISE) CELERAISE (THAILAND) CO., LTD (THAILAND) Celeraise Investments Limited (Celeraise Hong Kong) Leadpak Industrial Co., Ltd. (Leadpak Industrial, formerly Bor Sheng Industrial Co., Ltd.)

Celeraise Technology Corporation (Celeraise Technology) Shanghai Zhansheng Electronics Co., Ltd. (Shanghai

Relationship with the Company

Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company

Subsidiary of the Company Subsidiary of the Company

Zhansheng)

Yield Profit International Enterprise Limited (Yield Profit International)

Jet Success Technology Development Limited (Jet Success) Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan Yiguan)

Mr. Yun-Teng Chang

Subsidiary of the Company

Subsidiary of the Company Subsidiary of the Company

Chairman of the Company

~47~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(II) Significant transactions with related parties

1. Operating revenue

The amounts of significant sales of the Company to related parties were as follows:

Subsidiary	2022 $ 20,818	2021 24,745

The Company has no sales prices for Celeraise Hong Kong and Kunshan Yiguan to compare with those for general customers. The sales prices for Celeraise Technology are not significantly different from that of ordinary customers. The Company's credit conditions for Celeraise Technology are determined according to the credit conditions of the final purchaser of each project. The credit conditions for Celeraise Hong Kong and Kunshan Yiguan are 60 days. Payments are made according to financial needs. There is no significant difference from general customers, and the credit period for general customers is 30 to 60 days.

2. Purchases

The amounts of purchases of the Company from related parties were as follows:

Subsidiary Celeraise Hong Kong Others	2022 $ 21,819 1,275	2021 19,857 23
	$ 23,094	19,880

Purchase prices of the Company for related parties constitute the final selling prices of the finished products minus a certain percentage, and payment terms are based on their funding needs.

3. Receivables from related parties

Details of the Company's receivables from related parties are as follows:

Accounts	Related party category Subsidiary: Celeraise Hong Kong Celeraise Technology	December 31, 2022 $ 15,784 -	December 31, 2021
Accounts receivable			7,136 6,405
		$ 15,784	13,541

~48~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

4. Payables to related parties

Details of the Company's receivables from related parties are as follows:

Accounts	Relatedparty category Subsidiary:	December 31, 2022 $ 6,532	December 31, 2021
Accounts payable			3,924

5. Loans to related parties

The amounts of funds loaned by the Company as of December 31, 2022 and 2021 each came to NT$0 thousand. Moreover, loans of funds to related parties were unsecured and interest-bearing at an interest rate of 1.5%. Interest income in 2022 and 2021

amounted to NT$0 thousand and NT$297 thousand, respectively; and interest receivable for the years ended December 31, 2022 and 2021, amounted to NT$219 thousand and

NT$207 thousand, respectively, accounted for as other receivables - related parties.

6. Endorsements/Guarantees

Details of performance guarantees provided by related parties to the Company are as follows:

Subsidiary	December 31, 2022 $ 40,446	December 31, 2021 38,440

7. Leases

The Company leases some office floors to its subsidiaries and rent is charged

monthly. Rental income for both 2022 and 2021 was NT$1,080 thousand. As of December 31, 2022 and 2021, all relevant funds had been recovered.

(III) Key management personnel transactions

Compensation of key management personnel includes:

pensation of key management personnel includes:
Short-term employee benefits	2022	2021 26,657
	$ 31,676

2. Guarantees provided

The total amounts of the Company's short-term loan contracts for December 31, 2022 and 2021, were NT$1,141,775 thousand and NT$969,200 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

VIII. Pledged assets

Details of book values of assets provided by the Company as collateral against pledges are as follows:

~49~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Asset name	Purpose ofpledge	December 31, 2022 $ 140,142 38,115 34,800 - 24,752	December 31, 2021 123,514 33,505 26,800 15,000 28,282
Property, plant, and equipment - land Property, plant, and equipment - buildings Restricted bank deposits (accounted for as other financial assets - current) Time deposits (accounted for as other financial assets - current) Deposits made (accounted for as other non-current assets)	Short-term loans Short-term loans Bank loans and performance guarantees, etc. Bank loans and performance guarantees, etc. Performance guarantees and bid deposits
		$ 237,809	227,101

IX. Significant commitments and contingencies: None `.`

X. Losses due to major disasters: None.

XI. Significant subsequent events: None.

XII. Other

The summary of current period employee benefits, depreciation, and amortization, by function, is as follows:

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Function 2022 2021
Under Under Under Under
Total Total
Nature operating operating operating operating
costs expenses costs expenses
Employee benefit expense
Salary expense 8,318 108,357 116,675 - 105,019 105,019
Health and labor insurance
expense 916 11,470 12,386 - 12,051 12,051
Pension expense 431 5,704 6,135 - 5,980 5,980
Director's remuneration - 6,735 6,735 - 3,530 3,530
Other employee benefit expense 462 6,330 6,792 - 6,401 6,401
Depreciation expense 1,458 6,527 7,985 2,126 5,930 8,146
Amortization expense - 1,898 1,898 - 1,831 1,831
----- End of picture text -----

~50~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Additional information on the number of employees and employee benefit expenses of the Company in 2022 and 2021 is as follows:

2022 and 2021 is as follows:
Number of employees Number of directors who do not concurrently serve as employees Average employee benefit expense Average employee salary expense Adjustments in average employee salary expense Supervisor's remuneration	2022	2021
	177	177
	7	7
	$ 835	761
	$ 686	618
	11%	-
	$ -

he Company's salary and remuneration policy information is as follows (including directors,

supervisors, managers, and employees):

1. Employees:

The Company formulates employee salary policies according to the market salary level, the requirements of the responsibilities of each functional grade and the operation needs of the organization, and takes the employee's academic experience, rank, responsibilities, and personal work performance as an important basis for salary verification.

The Company's annual salary adjustment range is determined according to evaluations of operating conditions, budget, price levels, and market salary levels. The extent of individual salary adjustments of employees will be determined according to their performance and their salary competitiveness compared with employees of the same level. In addition, employees who are promoted according to the Employee Promotion Management Procedures shall see adjustments according to the adjustment of their responsibilities and their original salaries.

The Company's salaries include recurring salaries (basic salary and fixed allowances paid on a monthly basis) as well as non-recurring salaries (non-monthly allowances, overtime pay, bonuses, employee compensation, etc.).

2. Managers:

The appointment of the general manager and deputy general managers (level) are handled in accordance with the provisions of the Company's rules. The remuneration policy is determined according to the scope of powers and responsibilities of the position, the achievement rate of the Company's overall operating goals, individual performance, and academic experience, and with reference to the salary levels of the same nature in the industry market.

~51~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

3. Directors and supervisors:

Compensation of directors and supervisors includes travel expenses, remuneration, and the remuneration of directors and supervisors via earnings distributions. In accordance with the Company’s Articles of Incorporation, the remuneration of directors and supervisors shall account for no more than 3% of distributed earnings after a resolution by the Board of Directors, and it shall be reported to the shareholders’ meeting. Please see Note VI (XIV) for the relevant provisions of the Articles of Incorporation of the Company.

XIII. Other disclosures

(I) Information on significant transactions

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Company in 2022:

1. Loans to other parties:

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Number company lending funds The Name of borrower account Current a related Whether party during the Highest amount period Balance at period end of amountActual usage Interest rate Purposes financing borrowerof fund for the Transaction two amount for business between parties financingReasons for short term bad debtAllowance for NameCollateral Value counterpartieLoan limit for individual s Total loan limit
1 Jiun Tai THAILAND Other receivables Y 33,781 33,781 33,781 2% Short-term financing - Operating turnover - None - (Note 1)104,611 (Note 1)104,266
1 Jiun Tai Celeraise Hong Kong Other receivables Y 16,108 15,355 15,355 1.5% Short-term financing - Operating turnover - None - (Note 1)104,611 (Note 1)104,611
2 Jet Success Yield Profit International Other receivables Y 23,195 22,111 22,111 1.5% Short-term financing - Operating turnover - None - (Note 2)366,320 (Note 2)366,320
2 Jet Success Celeraise Hong Kong Other receivables Y 141,746 - - 1.5% Short-term financing - Operating turnover - None - (Note 2)366,320 (Note 2)366,320
2 Jet Success CELERAISE Other receivables Y 16,108 15,355 15,355 2% Short-term financing - Operating turnover - None - (Note 2)146,528 (Note 2)146,528
3 Shanghai Zhansheng Huizhou Zhanmao Other receivables Y 50,242 49,149 49,149 1.5% Short-term financing - Operating turnover - None - (Note 3)123,567 (Note 3)123,567
Celeraise THAILAND Other Y 45,101 42,994 42,994 2% Short-term - Operating - None - 426,975 426,975
4 Hong Kong receivables financing turnover (Note 4) (Note 4)
----- End of picture text -----

Note 1: In accordance with Jiun Tai’s Operational “Procedures for Loaning Funds to Others”, the total amount of funds loaned may not

exceed 100% of Jiun Tai's net value. If there is a need for short-term financing with Jiun Tai, the loan amount may not exceed 100% of Jiun Tai's net value. Further, the total amount of foreign intercompany loans where Jiun Tai does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.
Note 2: In accordance with Jet Success’s “Operational Procedures for Loaning Funds to Others”, the total amount of funds loaned may not exceed 100% of Jet Success's net value. If there is a need for short-term financing with Jet Success, the loan amount may not exceed 100% of Jet Success's net value. Separately, the total amount of intercompany loans to foreign companies where Jet Success does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.
Note 3: In accordance with Shanghai Zhansheng’s “Operational Procedures for Loaning Funds to Others”, the total amount of funds loaned may not exceed 100% of Shanghai Zhansheng's net value. If there is a need for short-term financing with Shanghai Zhansheng, the loan amount may not exceed 100% of Shanghai Zhansheng's net value. Separately, the total amount of intercompany loans where Shanghai Zhansheng does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.
Note 4: In accordance with Celeraise Hong Kong’s “Operational Procedures for Loaning Funds to Others”, the total amount of funds loaned may not exceed 100% of Celeraise Hong Kong's net value. If there is a need for short-term financing with Celeraise Hong Kong, the loan amount may not exceed 100% of Celeraise Hong Kong's net value. Separately, the total amount of intercompany loans where Celeraise Hong Kong does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 5: The above transactions have been eliminated in the preparation of the consolidated financial statements.

~52~

Notes to the Parent Company Only Financial Statements of Welltend Technology

Corporation (continued)

2. Guarantees and endorsements for other parties:

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Number Name of Counterparty of guarantee and Endorsement/ Maximum Balance of Actual usage Guarantee Ratio of cumulative Endorseme Endorseme Endorseme Endorsemen
endorsement/guara endorsement guarantee endorseme endorseme amount amount by endorsement/guara nt/guarante nt/guarante nt/guarante ts/guarantee
ntee company Company name Relationship limit for single nt/guarante nt/guarante endorsement of ntee amount to net e maximum e of parent e of s to the
enterprise e balance e at end of property value of the most company subsidiarie mainland
for the period guarantees recent financial for s for parent China
current statements subsidiarie company region
period s
The Company Celeraise Hong Subsidiary of the 1,485,708 80,538 76,775 - - 5.17% 1,485,708 Y N N
0 Kong/Jiun Tai Company (Note 2)
" Celeraise Hong Subsidiary of the 1,485,708 146,645 142,130 - - 9.57% 1,485,708 Y N N
0 Kong/Yield Profit Company (Note 3)
International/Cele
raise Technology
Celeraise The Company Parent company 346,561 48,208 40,446 40,446 - 58.35% 346,561 N Y N
1 Technology
----- End of picture text -----

Note 1: The total amount of the Company's external endorsements/guarantees may not exceed 100% of the Company's net value. The amount of endorsements/guarantees for a single enterprise may not exceed 100% of the Company's net value.
Note 2: A shared quota guarantee is provided for Celeraise Hong Kong and Jiun Tai of NT$76,775 thousand (US$2,500 thousand). Note 3: A joint guarantee is provided for Celeraise Hong Kong, Yield Profit International, and Celeraise Technology of NT$142,130 thousand (US$3,000 thousand and NT$50,000).
Note 4: Endorsements/guarantees made by Celeraise Technology are made in accordance with that company’s Management Measures for Loans and Endorsements/Guarantees. The total amount of external endorsements/guarantees may not exceed 500% of the company's net value, and the amount of endorsements/guarantees for a single enterprise may not exceed 500% of the company's net value.
Securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): None.
Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20% of the paid-in capital: None.
Acquisition of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Disposal of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Related party transactions for purchases and sales with amounts exceeding NT$100 million or 20% of the paid-in capital:

							Unit: NT$ thousand	Unit: NT$ thousand	Unit: NT$ thousand
Company buying (selling) goods Transaction counterparty		Relationship		Transactio	n status		Circumstances and reasons why trading conditions are different from ordinary transactions Notes and accounts receivable (payable) Notes
			Buying (selling) goods	Amount (Note 1)	Ratio of total purchas es (sales) Credit period		Unit price Credit period		Balance (Note 3) Ratio of total notes and accounts receivable (payable)
Celeraise Hong Kong CELERAISE	CELERAISE Celeraise Hong Kong	Ultimate parent company is the same Ultimate parent company is the same	(Sales) Purchase	(398,095) 398,095	(40) % 62 %	Monthly settlement is 270 days, and the payments are made based on funding needs Monthly settlement is 270 days, and the payments are made based on funding needs	No significant difference with general customers No significant difference with general customers	No significant difference with general customers No significant difference with general customers	130,840 42% Note 1 (130,840) (66)% Note 1

~53~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

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Company Transaction Relationship Transaction status Circumstances and Notes and accounts Notes
buying counterparty reasons why trading
(selling) conditions are receivable (payable)
goods different from ordinary
transactions
Buying Amount Ratio of Credit Unit price Credit Balance Ratio of
(selling) (Note 1) total period period (Note 3) total notes
goods purchas and
es accounts
(sales) receivable
(payable)
Huizhou Celeraise Hong Ultimate parent (Sales) (370,493) (52) % Monthly No No significant 118,650 52%Note 1
Zhanmao Kong company is the settlement is significant difference with
same 270 days, difference general
and the with general customers
payments customers
are made
based on
funding
needs
Celeraise Huizhou Zhanmao Ultimate parent Purchase 370,493 37 % Monthly No No significant (118,650) (40)% Note 1
Hong Kong company is the settlement is significant difference with
same 270 days, difference general
and the with general customers
payments customers
are made
based on
funding
needs
Celeraise Huizhou Zhanmao Ultimate parent (Sales) (151,292) (15) % Monthly No No significant 176,511 57% Note 1
Hong Kong company is the settlement is significant difference with
same 270 days, difference general
and the with general customers
payments customers
are made
based on
funding
needs
Huizhou Celeraise Hong Ultimate parent Purchase 151,292 40 % Monthly No No significant (176,511) (66)% Note 1
Zhanmao Kong company is the settlement is significant difference with
same 270 days, difference general
and the with general customers
payments customers
are made
based on
funding
needs
----- End of picture text -----

Note 1: The above transactions have been eliminated in the preparation of the consolidated financial statements.

Receivables from related parties with amounts exceeding NT$100 million or 20% of the

paid-in capital:

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Unit: NT$ thousand
Company with Transaction Relationship Balance of Turnover Receivables overdue from Receivables Amount of
accounts counterparty receivables rate related parties amount from allowance
receivable from related Amount Action taken related parties for doubtful
parties recovered after accounts
the period
Celeraise Hong Kong Huizhou Ultimate parent 176,511 93% - 17,321 -
Zhanmao company is the
same
Celeraise Hong Kong CELERAISE Ultimate parent 130,840 406% - 60,479 -
company is the
same
Huizhou Zhanmao Celeraise Hong Ultimate parent 118,650 426% - 39,001 -
Kong company is the
same
----- End of picture text -----

Note 1: Information up to February 28, 2023. Note 2: The transactions listed on the left have been eliminated in the preparation of the consolidated financial statements.

Trading in derivative instruments: None.
(II) Information on investees
The Company's reinvestment business information is as follows (excluding investment in mainland China companies):

~54~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

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Unit: Foreign currency thousands / thousand shares
Investing Investee company Region Main business items Original investment amount Held at end of period Profit or loss of Investment Notes
company name the investee gains and
name End of current End of prior Number of Ratio Carrying amount company for the losses
period period shares current period recognized in
(Note 2) the current
period (Note 2)
The A Team British Investment, trading, 16,538 16,538 500 100% 974 - - Subsidiary
Company Virgin and holding company
Islands
The Jiun Tai Hong Holding company 280,890 280,890 59,920 100% 267,120 (2,987) (2,987) 〃
Company Kong
The Celeraise Technology Taiwan Information service 30,000 30,000 3,000 100% 69,315 39,928 39,927 〃
Company industry
The Leadpak Industrial Taiwan International trade 29,810 29,810 2,981 99.36% 17,778 300 298 〃
Company and other wholesale
and retail trade
The Celeraise Hong Kong Hong Manufacture and sale 382,646 382,646 50,300 99.99% 1,093,730 56,930 56,930 〃
Company Kong of wire and cable
connectors and
connectors
The CELERAISE Philippine Manufacture and sale 25,532 25,532 400 100% 255,661 44,708 44,708 〃
Company s of wire and cable
connectors and
connectors
The THAILAND Thailand Manufacture and sale 182,136 182,136 18,275 100% 164,422 18,640 18,640 〃
Company of wire and cable
connectors and
connectors
Jiun Tai Celeraise Hong Kong Hong Manufacture and sale 1 1 - 1
Kong of wire and cable (HKD0.16) (HKD0.16) 0.01% (HKD0.16) - Recognized by 〃
connectors and (Note 1) (Note 1) (Note 1)
connectors Jiun Tai
Celeraise Yield Profit Hong Investment, trading, 61,433 61,433 15,600 100% 313,566 60,290 Recognized by Sub-subsi
Hong Kong International Kong and holding company (HKD15,600) (HKD15,600) (HKD79,626) (HKD15,820) Celeraise Hong diary
(Note 1) (Note 1) (Note 1) (Note 2) Kong
Jet Success Hong Investment, trading, 30,716 30,716 7,800 100% 366,320 (3,226) 〃〃
〃 Kong and holding company (HKD7,800) (HKD7,800) (HKD93,022) (HKD(846))
(Note 1) (Note 1) (Note 1) (Note 2)
----- End of picture text -----

Note 1: Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date. Note 2: Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.

(III) Information on investment in mainland China
Relevant information such as the name and main business items of the investee company in mainland China:

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Unit: Foreign currency thousands / thousand shares
Mainland China company nameinvestee Main business items amount (Note 3)Paid-in capital Investment method the current period amount remitted the beginning of from Taiwan at Accumulated investment (Note 3) Investment amount Outflowrecovered in the current remitted or period Inflow from Taiwan at the end of the current amount remitted period (Note 3)Accumulated investment Profit or loss of the investee company period (Note 4) for the current Company's direct Shareholding investment ratio of the or indirect recognized in the Investment gains (Notes 4 and 5) current period and losses investments at the end of the period Book value of (Note 3) repatriated up to the current Investment income period
Shanghai R&D and production of 15,355 Note 1 15,355 - - 15,355 - 100% - - -
Minshi industrial automation (US$500) (US$500) (US$500)
control, product quality
control, communication,
and electronic network
computing software
Shanghai Production of electronics, 51,439 Note 2 224,183 - - 224,183 5,899 100% 5,395 130,490 -
Zhansheng cable connectors, (US$1,675) (US$7,300) (US$7,300) (RMB1,334) (RMB1,220) (RMB29,603)
telephone spare parts and
small household
appliances; sales of the
company's own products
Shenzhen Manufacture and sale of 46,363 Note 2 - - - - (8,831) 100% (5,728) 32,933 -
Zhansheng wire and cable connectors (US$515 (RMB(1,997)) (HKD(1,503)) (HKD8,363)
and connectors RMB$6,930)
(Note 6)
Celeraise Production and sale of wire - Note 2 30,710 - - 30,710 (Note 8) -% - (Note 8) -
Chenzhou connectors, electronic wire (US$1,000) (US$1,000)
products, etc.
Kunshan Manufacture and sale of 30,710 Note 2 30,710 - - 30,710 2,901 100% 2,900 360,307 -
Yiguan wire and cable connectors (US$1,000) (US$1,000) (US$1,000) (RMB656) (HKD761) (HKD91,495)
and connectors, etc.
Huizhou Production and sale of wire 51,593 Note 2 - - - - 60,741 100% 60,724 336,872 -
Zhanmao connectors, electronic wire (US$1,680) (RMB13,736) (HKD15,934) (HKD85,544)
products and packaging (Note 7)
materials, etc.
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Limitations on investment in mainland China:

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

Accumulated investment amount Investment amount Investment limit for the
Company remitted from Taiwan to approved by the Investment mainland China area in
name mainland China at the end of the Commission of the Ministry accordance with the
current period (Note 3) of Economic Affairs (Note 3) regulations of the
Investment Commission
of the Ministry of
Economic Affairs
The Company 300,958 (USD9,800) 371,284 (USD12,090) 891,425
----- End of picture text -----

Note 1: Reinvestment in mainland China through investment and establishment of companies in a third region.

~55~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Note 2: Reinvestment in mainland China companies by reinvesting in existing companies in a third region.

Note 3: Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date.

Note 4: Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.

Note 5: Investment gains and losses for the current period are recognized based on the financial statements of the invested company that have been verified and certified by the CPAs of the Taiwan parent company.

Note 6: Constitutes reinvestment undertaken by Celeraise Hong Kong through investment of US$515 thousand of its own funds and use of fixed assets.

Note 7: The difference between the remitted investment amount and the Company's remittance is the reinvestment of US$1,680 thousand made by Celeraise Hong Kong, Yield Profit International, and Jet Success using their own funds.

Note 8: Celeraise Chenzhou Industry completed the liquidation process in June 2018 and the investment amount was reimbursed in July 2018.

Note 9: The above transactions have been eliminated in the preparation of the consolidated financial statements.

Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Company and mainland China investee companies in 2022 (eliminated in the preparation of the consolidated statements), please see the description detailed under the "Information on Material Transactions” as well as “Business relationships and significant intercompany transactions”.

(IV) Information on principal shareholders:

nsactions”. rmation on principal shareholders:
	Unit: Shares
Shares Principal shareholder name	Number of shares held Shareholding percentage
Year Jan Industrial Co., Ltd.	11,152,634 11.63%
Jiayu Investment Co., Ltd.	9,485,167 9.89%
Jusheng Investment Co., Ltd.	8,842,241 9.22%
Wei Yi Investment Co., Ltd.	7,792,774 8.12%
Shih Chieh Wei Co., Ltd.	7,715,421	8.04%

Note: (1) The information of major shareholders in this table is published by the depository and clearing company on the last business day at the end of each quarter, calculating shareholder ownership of the company with information on the delivery of more than 5% of ordinary shares that have been completed without physical registration (including treasury shares). As for the share capital

~56~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

recorded in the company's financial statements and the actual number of shares that the company has completed without physical registration, there may be discrepancies or differences due to the different basis for preparation and calculation.

(2) If the above-mentioned information is of shares delivered to a trust by a shareholder, it is disclosed by the individual account of the trustor whose trust account is opened by the trustee. As for insider equity declarations of shareholders holding more than 10% of shares made in accordance with the Securities and Exchange Act, such shareholdings include own-held shares plus shares that are delivered to a trust and that have the right to exercise decision-making power over the trust property. Please refer to the Market Observation Post System for insider equity declaration information.

XIV. Segment information

Please refer to the 2022 consolidated financial statements for details.

~57~

Welltend Technology Corporation

Schedule of cash and cash equivalents

December 31, 2022

Unit: NT$ thousand

Item Summary Cash on hand Demand deposits Foreign currency deposits USD 124 thousand @30.71 Time deposits USD 800 thousand @30.71 Schedule of notes and accounts receivable - non-related parties	Amount $ 145 5,349 3,808 24,568 $ 33,870

Customer name Notes receivable: Others (Note) Accounts receivable: Company V Company AA Company Z Others (Note) Less: Loss allowance Total	Summary Operating revenue from non-related parties Operating revenue from non-related parties `〃` `〃`	Amount $ 2,279
		41,030 21,893 14,279 102,315
		179,517 (2,448)
		$ 179,348

Note: The balance of each item does not exceed 5% of the amount of this account and is not listed separately.

~58~

Welltend Technology Corporation

Schedule of inventories

December 31, 2022

Unit: NT$ thousand

Item Goods held for sale Less: Allowance for depreciation and inactive inventory Total	Amount Cost Net realizable value $ 123,665 125,538 (1,750) $ 121,915	Amount Cost Net realizable value $ 123,665 125,538 (1,750) $ 121,915
	Cost
	$ 123,665 (1,750)	125,538

	$ 121,915

~59~

Units: NT$ thousand / Original currency thousand

Welltend Technology Corporation

Schedule of changes in investments using the

equity method

January 1 to December 31, 2022

Number of shares: Thousand shares

Name	Opening balance at start ofperiod	Opening balance at start ofperiod	Additions this period	Additions this period	Reductions this period	Reductions this period	Investment gains (losses) recognized under the equity method	Exchange differences on translation of foreign financial statements	Balance at end ofperiod	Balance at end ofperiod	Balance at end ofperiod	Total market price or net value	Provision of guarantee or pledge Notes
	Number of shares	Amount	Number of shares	Amount - - - - - - -	Number of shares	Amount - - - - - - -			Number of shares	Shareholdin g percentage	Amount 974 267,120 17,778 69,315 1,093,730 255,661 164,422
A-Team Tech Jiun Tai Leadpak Industrial Celeraise Technology Celeraise Hong Kong CELERAISE THAILAND	500$ 960 59,920 266,257 2,981 17,480 3,000 29,388 50,300 996,827 400 207,137 3,275 135,367 $ 1,653,416		- - - - - - -		- - - - - - -		- (2,987) 298 39,927 56,930 44,708 18,640	14 3,850 - - 39,973 3,816 10,415 58,068	500 59,920 2,981 3,000 50,300 400 3,275	100% 100% 99.36% 100% 99.99% 99.99% 99.99%		974 261,528 17,794 69,312 1,067,438 255,661 164,422	None `〃` `〃` `〃` `〃` `〃` `〃`
		$ 1,653,416		-		-	157,516				1,869,000

~60~

Welltend Technology Corporation

Schedule of changes in property, plant, and equipment

December 31, 2022

Please see Note VI (V)

Schedule of short-term loans

Creditor bank First Commercial Bank Shin Kong Bank CTBC Mega Bank Citibank Taiwan Cooperative Bank DBS Bank SCSB Bank	Summary Contract period Operating turnover amount 111.06~112.05 `〃` 111.04~112.04 `〃` 111.04~112.04 `〃` 111.11~112.11 `〃` 111.03~112.03 `〃` 111.10~112.10 `〃` 111.04~112.04 `〃` 111.04~112.04	Interest rate	Financing amount Collateral or guarantee $ 420,000 Land and buildings 75,000 Certificates of deposit 250,000 None 100,000 Land and buildings 76,775 Reimbursement account 40,000 Reimbursement account 100,000 Reimbursement account 80,000 Land and buildings	Amount
		1.48%~1.52% - 1.44%~1.60% 1.40%~1.68% 1.30%~1.57% 1.65%~1.85% 1.25%~1.65% 1.65%		340,000 - 160,000 - 60,000 1,000 80,000 50,000
				$ 691,000

~61~

Welltend Technology Corporation Schedule of notes and accounts payable December 31, 2022

Unit: NT$ thousand

Customer name Notes payable Accounts payable: Company J Company H Company I Company X Company Y Others (Note) Accounts payable - related parties Total	Summary Operating expenses from non-related parties Operating expenses from non-related parties `〃` `〃` `〃` `〃` `〃` Operating expenses of related persons	Amount
		$ -
		$ 24,594 33,589 11,889 9,222 8,446 45,161
		132,901 6,532
		$ 139,433

Note: The balance of each item does not exceed 5% of the amount of this account and is not listed separately.

Schedule of other payables

Item Salaries and bonuses payable Employee compensation payable Others (Note) Remuneration payable to directors Health insurance premiums payable	Summary Salary in December 2022 and estimated year-end bonus in 2022 Labor fees and withholdings, etc., payable Labor fees, business tax and withholdings, etc., payable		Amount
			$ 36,337 7,700 6,812 6,400 3,496
			$ 60,745

Note: The balance of each account does not exceed 5% of the amount of this account and is not listed separately.

~62~

Welltend Technology Corporation Schedule of operating revenue

January 1 to December 31, 2022

Unit: NT$ thousand

Item Sales revenue: Information products Wire and connectors Less: Returns and discounts Others Net operating revenue	Quantity	Amount $ 1,089,424 24,650
		1,114,074 (8,779)
		1,105,295 145,082
		$ 1,250,377

~63~

Welltend Technology Corporation

Schedule of operating costs

January 1 to December 31, 2022

Unit: NT$ thousand

Item Starting inventory Add: Incoming material for this period Less: Ending inventory Cost of goods sold Other operating costs Losses from inventory depreciation and inactive inventory Total	Amount
	$ 221,540 893,110 (123,665)
	990,985 34,546 1,038
	$ 1,026,569

Schedule of operating expenses

Item Salary expenses Depreciation Insurance expenses Employees’ compensation Remuneration of directors Others (Note) Total	Marketing Expenses $ 72,235 1,338 8,616 - - 15,478 $ 97,667	Management Expenses
		36,122 5,189 3,625 7,700 6,400 18,755
		77,791

Note: The balance of each item does not exceed 5% of the amount of this account and is not listed separately.

~64~

AI assistant

WELLTEND — Annual Report 2022

52254_rns_2022-11-09_760f07a1-4a05-46aa-b914-73c9b5158d4a.pdf

Welltend Technology Corporation

Parent Company Only Financial Statements and Independent Auditors’ Report

Table of Contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

I. Revenue recognition

II. Revenue recognition – Equity method investments – Subsidiaries

Responsibilities of Management and Those Charged with Governance for Parent Company Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

KPMG

Notes to Readers

Welltend Technology Corporation

Balance Sheet

December 31, 2022 and 2021

Unit: NT$ thousand

Welltend Technology Corporation

Statement of Comprehensive Income

For the years ended December 31, 2022 and 2021

Unit: NT$ thousand

Welltend Technology Corporation Statement of Changes in Equity For the years ended December 31, 2022 and 2021

Unit: NT$ thousand

Welltend Technology Corporation

Statement of Cash Flows

For the years ended December 31, 2022 and 2021

Unit: NT$ thousand

Welltend Technology Corporation Notes to the Parent Company Only Financial Statements 2022 and 2021

I. Company history

II. Approval date and procedures for adoption of financial statements

III. New standards, amendments and interpretations adopted

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

IV. Summary of significant accounting policies

1. Measurement basis

1. Foreign currency transactions

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

1. Financial assets

(1) Financial assets measured at amortized cost

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

1. Identification and measurement

3. Depreciation

(X) Leases

1. Lessee

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

2. Lessor

(XI) Intangible assets

1. Identification and measurement

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

1. Revenue from customer contracts

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(3) Financial components

(XIV) Employee benefits

1. Defined contribution plans

2. Short-term employee benefits

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

VI. Explanation of significant accounts

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(VI) Right-of-use assets

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(VII) Short-term loans

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (continued)

(VIII) Lease liabilities

1. Leasing of buildings

2. Other leases

WELLTEND Annual Report 2022

IX. Significant commitments and contingencies: None `.`