Stock code: 3021

Welltend Technology Corporation and Subsidiaries[Consolidated Financial Statements With ] Independent Auditors’ Report

For the Years Ended December 31, 2024 and 2023

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

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Item I. Cover Page II. Table of Contents III. Representation Letter IV. Independent Auditors’ Report V. Consolidated Balance Sheet VI. Consolidated Statement of Comprehensive Income VII. Consolidated Statement of Changes in Equity VIII. Consolidated Statement of Cash Flows IX. Notes to the Consolidated Financial Statements (I) Company history (II) Approval date and procedures of the consolidated financial statements (III) New standards, amendments, and interpretations adopted (IV) Summary of significant accounting policies (V) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (VI) Explanation of significant accounts (VII) Related-party transactions (VIII) Pledged assets (IX) Significant commitments and contingencies (X) Losses due to major disasters (XI) Significant subsequent events (XII) Other (XIII) Other disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investment in mainland China 4. Information on principal shareholders (XIV) Segment information	Page
	1 2 3 4 5 6 7 8 9 9 9 9~11 11~30 30~31 31~56 56~58 58~59 59 59 59 59~60 60 60~64 64~65 65~66 66 67~68

Item
I. Cover Page
II. Table of Contents
III. Representation Letter
IV. Independent Auditors’ Report
V. Consolidated Balance Sheet
VI. Consolidated Statement of Comprehensive Income
VII. Consolidated Statement of Changes in Equity
VIII. Consolidated Statement of Cash Flows
IX. Notes to the Consolidated Financial Statements
(I) Company history
(II) Approval date and procedures of the consolidated financial
statements
(III) New standards, amendments, and interpretations adopted
(IV) Summary of significant accounting policies
(V) Significant accounting assumptions and judgments, and major
sources of estimation uncertainty
(VI) Explanation of significant accounts
(VII) Related-party transactions
(VIII) Pledged assets
(IX) Significant commitments and contingencies
(X) Losses due to major disasters
(XI) Significant subsequent events
(XII) Other
(XIII) Other disclosures
1. Information on significant transactions
2. Information on investees
3. Information on investment in mainland China
4. Information on principal shareholders
(XIV) Segment information

Page

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11~30
30~31
31~56
56~58
58~59
59
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59~60
60
60~64
64~65
65~66
66
67~68

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Representation Letter

The entities that are required to be included in the combined financial statements of Welltend Technology Corporation as of and for the year ended December 31, 2024 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements. " endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Welltend Technology Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Welltend Technology Corporation Chairman: Yun-Teng Chang Date: March 26, 2025

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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 and its Subsidiaries (Welltend Group) Consolidated for the years ended December 31, 2024 and 2023, and the consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the years ended December 31, 2024 and 2023, as well as the notes to the consolidated financial statements (including a summary of significant accounting policies).

In our opinion, the aforementioned consolidated financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission. They are sufficient to adequately express the consolidated financial status of Welltend Group as of December 31, 2024 and 2023, and its consolidated financial performance and consolidated cash flows for the years ended December 31, 2024 and 2023.

Basis for Opinion

We perform audit work in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants as well as the auditing standards. Our responsibilities under these Standards are further explained in the section on Responsibilities of the accountants for auditing the consolidated financial statements. Personnel subject to rules of independence under our offices adhere to the Norm of Professional Ethics for Certified Public Accountants and remain detached and independent from Welltend Group, and they fulfill other responsibilities of the Norm. We believe that sufficient and appropriate audit evidence has been obtained to serve as a basis for expressing an audit opinion.

Key Matters

As stated in Note 12(II) to the consolidated financial statements, due to the discovery that one of its employees was involved in illegal activities such as forging documents and stealing and selling inventory, which resulted in losses, the Welltend Group has submitted the case to judicial investigation and intends to seek compensation for the relevant losses from the employee. Our auditor has not revised our audit opinion as a result.

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Key Audit Matters

Key audit matters refer to the most important matters for the audit of Welltend Technology Group's 2024 consolidated financial statements based on our professional judgment. These matters have been addressed in the process of reviewing the consolidated financial statements as a whole and in forming an audit opinion, and we do not express a separate opinion on these matters. Key audit matters that we judge should be communicated in the audit report are as follows:

Revenue recognition

For accounting policies on revenue recognition, please refer to Revenue Recognition in Note 4 (XIII) of the Notes to the Consolidated Financial Statements. For descriptions of revenue, please refer to Revenue from Customer Contracts in Note 6 (XIV) of the Notes to the Consolidated Financial Statements.

Explanation of key audit matters:

The main businesses of Welltend Group are information systems and consulting services and the sale of wires and connectors. Therefore, revenue is one of the important items in its financial statements. The amount and changes of operating revenue may affect the understanding of financial statement users regarding the financial statements as a whole. Therefore, the test of revenue recognition is one of our important evaluation items in performing audits of the financial statements of Welltend Group.

Corresponding audit procedures:

(1) Wires and connectors division

Our main audit procedures for the above-mentioned key audit matters include:

I. testing the control of the revenue and collection operation cycle
II. implementing revenue audit procedures and detailed tests
III. performing correspondence audit procedures for accounts receivable
IV. Evaluate whether the timing of revenue recognition is in compliance with relevant gazette regulations.
(2) Information services division
As stated in the Emphasis of Matters section, in 2024, the Welltend Group discovered that an employee of the Information Department was suspected of forging documents and stealing inventory, resulting in false listing of revenue and accounts receivable. Therefore, the existence and accuracy of the department's operating income became an important evaluation item.

Our main audit procedures for the above-mentioned key audit matters include:

I. Interview and confirm with the lawyers of the audited companies to understand the impact of pending or potential litigation cases on the companies
II. Implement income verification procedures, check relevant vouchers and send letters to confirm customer transaction amounts, and expand the sample of random checks

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on the information department's income to verify its authenticity

III. Conduct confirmation of customer transaction amounts for the employee’s revenue and accounts receivable
IV. Evaluate the reasons for overdue accounts receivable to confirm the authenticity of the transaction
V. Evaluate whether the timing of revenue recognition is in compliance with relevant gazette regulations.

Other Matters

Welltend Technology Corporation has prepared parent company only financial statements for 2024 and 2023, and the audit report with unqualified opinion that we have issued is on file for reference.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The responsibility of management is to prepare properly expressed consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission, and to maintain the necessary internal controls in connection with the preparation of the consolidated financial statements to ensure that the consolidated financial statements are free from material misrepresentation that could result from fraud or error.

When preparing the consolidated financial statements, the responsibilities of management also include evaluating the ability of Welltend Group to continue operating, the disclosure of related matters, and the adoption of a going-concern accounting basis unless management intends to liquidate Welltend Group or cease operations, or there is no other practical alternative to liquidation or business closure.

The governance units of Welltend Group (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

The purpose of our audit of the consolidated financial statements is to obtain reasonable assurance as to whether there is a material misrepresentation of the consolidated financial statements as a whole that could result from fraud or error, and to issue an audit report. Reasonable assurance means a high degree of assurance. However, there is no guarantee that an audit carried out in accordance with the auditing standards will detect material misrepresentations in the consolidated financial statements. Misrepresentation may result from fraud or error. Misrepresentations of individual amounts or aggregates are considered material if they would reasonably be expected to affect economic decisions made by users of

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the consolidated financial statements.

We apply professional judgment and professional skepticism when conducting audits in
accordance with the auditing standards. We also perform the following tasks:
Identify and evaluate the risk of material misrepresentation in the consolidated financial statements resulting from fraud or error; design and implement appropriate countermeasures for the evaluated risks; and obtain sufficient and appropriate evidence to serve as the basis for the audit opinion. Because fraud may involve complicity, forgery, deliberate omission, misrepresentation, or circumvention of internal controls, the risk of not detecting a material misrepresentation caused by fraud is higher than that arising from error.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Welltend Technology Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of Welltend Technology Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause Welltend Technology Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence for the financial information of entities within the Group so as to express an opinion on the consolidated financial statements. We are responsible for the guidance, supervision and execution of Group audit cases and we are also responsible for forming audit opinions on the Group’s financial statements.

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

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

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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 2024 consolidated financial statements of Welltend Technology Group and are therefore the key audit matters. We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse impact of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

KPMG Taipei, Taiwan (Republic of China) March 26, 2025

Notes to Readers

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

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

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Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

Unit: NT$ thousand

December 31,	2024	December 31,	December 31,	2024	December 31,	2023 % 24 1 12 4 2 1 1
Amount $ 946,019 829,391 608,764 78,140 98,273	%	Amount 827,360 823,858 602,412 61,907 36,849	Amount $ 698,000 39,666 457,762 145,314 34,172 13,387 28,620	%	Amount 696,000 26,374 372,604 135,539 51,905 25,699 21,177
	30 26 19 3 3 81 13 1 1 - 4 19 100			22 1 14 5 1 - 1
2,560,587		2,352,386
416,867 37,297 41,884 8,804 106,988		421,128 43,838 43,908 4,545 59,858
			1,416,921	44	1,329,298	45
			55,747 24,661 358	2 1 -	51,135 19,164 301	2 1 -
611,840		573,277	80,766	3	70,600	3
$ 3,172,427		2,925,663	1,497,687	47	1,399,898	48
			958,900 7,525 718,389 (52,336)	30 - 23 (1)	958,900 7,525 691,671 (132,533)	33 - 24 (5)
			1,632,478	52	1,525,563	52
			42,262	1	202	-
			1,674,740	53	1,525,765	52
			$ 3,172,427	100	2,925,663	100

(Please refer to the attached notes to the parent company only financial statements) Manager: Jia-Xiang Lin

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

2024		2023
Amount $ 3,470,396 2,889,484	%	Amount 2,978,383 2,411,683	% 100 81 19 5 7 1 13 6 - - - - - - 6 2 4 - - - - 4 4 - 4 4 - 4 1.25 1.24
	100 83
580,912	17	566,700
144,915 235,850 3,171	4 7 -	152,419 206,667 27,910
383,936	11	386,996
196,976	6	179,704
7,343 15,716 26,219 (14,248) (81,078)	- - 1 - (2)	14,421 6,381 3,550 (13,265) (12,363)
(46,948)	(1)	(1,276)
150,928 95,757	5 3	178,428 58,684
55,171	2	119,744
80,197 -	2 -	(12,505) -
80,197	2	(12,505)
80,197	2	(12,505)
$ 135,368	4	107,239
$ 55,485 (314)	2 -	119,656 88
$ 55,171	2	119,744
$ 135,682 (314)	4 -	107,151 88
$ 135,368	4	107,239
$	0.58 0.58
$

(Please refer to the attached notes to the parent company only financial statements)

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

Manager: Jia-Xiang Lin

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Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Equity attributable to owners of parent

Share capital from common stock	Additional paid-in capital		Retained earnings	Retained earnings		Other equity	Total equity attributable to owners of the parent company 1,485,535	Total equity
						Exchange differences on translation of foreign financial statements
		Legal reserve 93,590 18,419 - - 18,419 - - - 112,009 12,606 - - 12,606 - - - - - 124,615	Special reserve Undistribute d surplus earnings 178,096 367,452 - (18,419) (58,068) 58,068 - (67,123) (58,068) (27,474) - 119,656 - - - 119,656 120,028 459,634 - (12,606) 12,505 (12,505) - (28,767) 12,505 (53,878) - 55,485 - - - 55,485 - - - - 132,533 461,241		Total
								1,485,649 - - (67,123) (67,123) 119,744 (12,505) 107,239 1,525,765 - - (28,767) (28,767) 55,171 80,197 107,239 42,383 (9) 1,674,740
$ 958,900	7,525		178,096		639,138	(120,028)
- - -	- - -		- (58,068) -	(18,419) 58,068 (67,123)	- - (67,123)	- - -	- - (67,123)
-	-		(58,068)	(27,474)	(67,123)	-	(67,123)
- -	- -		- -	119,656 -	119,656 -	- (12,505)	119,656 (12,505)
-	-		-	119,656	119,656	(12,505)	107,151
958,900	7,525		120,028	459,634	691,671	(132,533)	1,525,563
- - -	- - -		- 12,505 -	(12,606) (12,505) (28,767)	- - (28,767)	- - -	- - (28,767)
-	-		12,505	(53,878)	(28,767)	-	(28,767)
- -	- -		- -	55,485 -	55,485 -	- 80,197	55,485 80,197
-	-		-	55,485	55,485	80,197	135,682
- -	- -		- -	- -	- -	- -	- -
$ 958,900	7,525		132,533	461,241	718,389	(52,336)	1,632,478

Chairman: Yun-Teng Chang

(Please refer to the attached notes to the parent company only financial statements) Manager: Jia-Xiang Lin Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation and Subsidiaries Consolidated Statement of Cash Flows

January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Cash flows from operating activities: Net profit before tax for the period Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Other item Total adjustments to reconcile profit (loss) Changes in assets and liabilities related to operating activities: Net changes in assets related to operating activities, net: Notes and accounts receivable Inventories Other current assets Other financial assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: Contract liabilities Notes and accounts payable Other payables Other current liabilities Other liabilities related to operating activities Net changes in assets and liabilities related to operating activities Total adjustments Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash inflow from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Disposal of property, plant, and equipment Decrease (Increase) in refundable deposits Decrease (Increase) in other non-current assets Acquisition of intangible assets Decrease other financial assets Net cash outflows from investing activities Cash flows from financing activities: Short-term borrowings Increase (decrease) in deposits received Repayment of lease liability principal Issuance of cash dividend Change in non-controlling interests Net cash outflows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents for the period Cash and cash equivalents at start of period Cash and cash equivalents at end of period	2024 $ 150,928	2023 178,428 81,864 2,155 27,910 13,265 (6,381) - 118,813 144,455 178,312 71,053 (302) 393,518 (29,518) (70,990) (49,584) (9,434) (159,526) 233,992 352,805 531,233 6,063 (13,314) (69,169) 454,813 (40,555) - (4,875) (1,285) (1,649) - (48,364) 5,000 (132) (32,175) (67,123) - (94,430) (15,019) 297,000 530,360 827,360
	78,649 3,019 3,171 14,248 (15,716) 209
	85,580
	(9,182) (6,352) (13,728) (39)
	(29,301)
	13,292 85,158 9,678 7,443
	115,571
	86,270
	169,850
	320,778 15,530 (14,160) (114,901)
	207,247
	(27,080) 61 (8,177) (995) (53,937) (45,567)
	(135,695)
	2,000 56 (33,044) (28,767) 42,383
	(17,372)
	64,479
	118,659 827,360
	$ 946,019

(Please refer to the attached notes to the parent company only financial statements) Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2024 and 2023

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

I. Company history

Welltend Technology Corporation (“the Company”) was established in June 1993. Its main businesses are the sale of wires and connectors and the integrated planning and implementation of information systems and consulting services. The composition of the Company's consolidated financial statements includes the Company and subsidiaries of the Company (hereinafter collectively referred to as “the Group”). Please refer to Note 4

(II) for an explanation of the main businesses of the Group.

II. Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on March 26, 2025.

III. New standards, amendments and interpretations adopted

(I) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.
The Group has initially adopted the new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024 ：
 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
 Amendments to IAS 1 “Non-current Liabilities with Covenants”
 Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
 Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(II) The impact of IFRS endorsed by the FSC but not yet effective
The Group assesses that the adoption of the (following) new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its consolidated financial statements ：
 Amendments to IAS21“Lack of Exchangeability”
 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7.
(III) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

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Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements”	Content of amendment The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. The amendment clarifies how an enterprise should classify liabilities that are paid off by issuing its own equity instruments (such as convertible bonds).	Effective date per IASB
		January 1, 2024

A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.
Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

Annual

The amendments set out:

January 1, 2026

Improvements to 1. IFRS 1 “First-time Adoption of International Financial
IFRS Accounting Standards Reporting Standards”:

The amendments address a potential confusion arising from an inconsistency in wording between paragraph B6 of IFRS 1 and requirements for hedge accounting in IFRS 9 Financial Instruments.

2. IFRS 7 “Financial Instruments: Disclosures”:

The amendments address a potential confusion in IFRS 7 arising from an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value Measurement was issued.

3. IFRS 9 “Financial Instruments”:

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Derecognition of a lease liability

The IASB’s amendment states that if a lease liability is derecognized, then the derecognition will be accounted for under IFRS 9, (i.e. the difference between the carrying amount and the consideration paid is recognized in profit or loss). However, when a lease liability is modified, the modification will be accounted for under IFRS 16 Leases.

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Standards or Interpretations Annual Improvements to IFRS Accounting Standards	Content of amendment Transaction price The amendments require companies to initially measure a trade receivable without a significant financing component at the amount determined by applying IFRS 15 Revenue from Contracts with Customers. The amendments remove the conflict between IFRS 9 and IFRS 15 over the amount at which a trade receivable is initially measured. 4. IFRS 10 “Consolidated Financial Statements”: The amendments clarify the determination of a ‘de facto agent’. 5. IAS 7 “Statement of Cash Flows”: The amendments address a potential confusion in applying paragraph 37 of IAS 7 that arises from the use of the term ‘cost method’.	Effective date per IASB
		January 1, 2026

The Group is evaluating the impact on its consolidated financial position and

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

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

 Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
 IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
 IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7.
 Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

IV. Summary of significant accounting policies

Significant accounting policies adopted in these consolidated financial statements are summarized below. Unless otherwise stated, the following accounting policies have been consistently applied to all periods of expression in these consolidated financial statements.

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter the “Regulations”) and with the International Financial Reporting

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Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission (hereinafter the “FSC-approved IFRSs”).

(II) Basis of compilation
Measurement basis

These consolidated financial statements are prepared on a historical cost basis.

Functional currency and presentation currency

Each entity in the Group uses the currency of the main economic environment in which it operates as its functional currency. These consolidated 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) Basis of consolidation
Principles for the preparation of the consolidated financial statements

The preparation of the consolidated financial statements includes the Company and entities controlled by the Company (i.e., subsidiaries). When the Company is exposed to, or has rights to, variable returns from its participation in the investee entity, and has the ability to affect those returns through power over the investee entity, the Company controls that entity.

Starting from the date of acquisition of control of the subsidiary, its financial statements are included in the consolidated financial statements, until the date of loss of control. Transactions, balances, and any unrealized gains and losses within the Group have been completely eliminated in the preparation of the consolidated financial statements. The total comprehensive income of subsidiaries is attributed to the owners of the Company and non-controlling interests, respectively. This is true even if the non-controlling interest thus becomes a loss balance.

The financial statements of subsidiaries have been adjusted appropriately so that their accounting policies are consistent with those used by the Group. When changes in the Group's ownership interests in a subsidiary do not result in a loss of control of the subsidiary, they are treated as an equity transaction with the owner. The difference between the adjustment for non-controlling interests and the fair value of the consideration paid or received is directly recognized in equity and attributed to the owners of the Company.

List of subsidiaries in the consolidated financial statements Subsidiaries included in these consolidated financial statements include:

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Investing company name	Subsidiary name A-Team Tech Inc. (A-Team) JIUN TAI CORPORATION LIMITED (JIUN TAI) CELERAISE ELECTRONIC CORPORATION (CELERAISE) CELERAISE (THAILAND) Co., Ltd. (THAILAND) KING HONG Co., Ltd. (KING HONG) HONG YI CABLE CO., LTD. (HONG YI) Celeraise Investments Limited (Celeraise Hong Kong) Leadpak Industrial Co., Ltd. (Leadpak Industrial, formerly Bor Sheng Industrial Co., Ltd.) Celeraise Technology Corporation (Celeraise Technology) Minshi Computer Technology (Shanghai) Co., Ltd. (Shanghai Minshi)	Nature of business Investment, trading, and holding company Holding company Manufacture and sale of wire and cable connectors and connectors Manufacture and sale of wire and cable connectors and connectors International trade and other wholesale and retail trade International trade and other wholesale and retail trade Manufacture and sale of wire and cable connectors and connectors International trade and other wholesale and retail trade Automatic control equipment engineering industry, computer equipment installation industry, etc. R&D and production of industrial automation control, product quality control, communication, and electronic network computer software	Shareholding ratio December 31, 2024 December 31, 2023 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 51.00% -% 52.00% -% 100.00% 100.00% 99.36% 99.36% 100.00% 100.00% 100.00% 100.00%	Note
			December 31, 2024
The Company The Company The Company The Company The Company The Company The Company and JIUN TAI The Company The Company A-Team			100.00% 100.00% 100.00% 100.00% 51.00% 52.00% 100.00% 99.36% 100.00% 100.00%	Note 1 Note 2 Note 3 Note 5

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Investing company name	Subsidiary name Nature of business Shanghai Zhansheng Electronics Co., Ltd. (Shanghai Zhansheng) Production of electronics, wire connectors, telephone spare parts and small household appliances; sale of the company's own products Welltrend Technology Co., Ltd. (Welltrend) Manufacture and sale of wire and cable connectors and connectors Yield Profit International Enterprise Limited (Yield Profit International) Investment, trading, and holding company Jet Success Technology Development Limited (Jet Success) Investment, trading, and holding company Shenzhen Zhansheng Electric Power Co., Ltd. (Shenzhen Zhansheng) Manufacture and sale of wire and cable connectors and connectors Zhan Mao Electronics Enterprise (Huizhou) Co., Ltd. (Huizhou Zhan Mao) Manufacture and sale of wire and cable connectors and connectors Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan Yiguan) Manufacture and sale of wire and cable connectors and connectors	Shareholding ratio December 31, 2024 December 31, 2023 100.00% 100.00% 80.00% -% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	Shareholding ratio December 31, 2024 December 31, 2023 100.00% 100.00% 80.00% -% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	Note
JIUN TAI JIUN TAI Celeraise Hong Kong Celeraise Hong Kong Celeraise Hong Kong Yield Profit International Jet Success		100.00% 80.00% 100.00% 100.00% 100.00% 100.00% 100.00%	100.00% -% 100.00% 100.00% 100.00% 100.00% 100.00%	Note 4

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Note1: CELRAISE was established in March 2015, 0.01% of the equity acquired in CELERAISE is held in the name of third

party considering the relevant regulations of Philippines.

Note2: THAILAND was established in June 2017, 0.01% of the equity acquired in THAILAND is held in the name of third party considering the relevant regulations of Thailand.

Note3: KING HONG was established in April 2024.

Note4: Welltrend was established in July 2024

Note5: HONG YI was established in November 2024.

(IV) Foreign currency

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 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

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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.

(V) 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;
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
It does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(VI) 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.

(VII) 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 Group 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 Group 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 Group 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:

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.

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 Group 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 12-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.

In determining whether credit risk has increased significantly since the original recognition, the Group considers reasonable and corroborating information (available without excessive cost or investment), including qualitative and quantitative information, and analysis based on the Group's historical experience, credit evaluation, and forward-looking information.

If a contract payment is overdue for more than 30 days, the Group 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 Group, the Group considers the financial asset to be in default.

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

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

twA from Taiwan Ratings Corp., or above that level), the Group considers the debt securities to have a low credit risk.

Time deposits held by the Group are considered to have low credit risk because the transaction counterparties and the performing parties are financial institutions at investment grade or above.

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 Group is exposed to credit risk.

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 Group can receive under the contract and the cash flows that the Group expects to receive. Expected credit loss is discounted at the effective interest rate of the financial asset.

On each reporting date, the Group 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 Group 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

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

deducted from the carrying amount of the assets.

When the Group is unable to reasonably anticipate the recovery of financial assets, in whole or in part, it directly reduces the total carrying amount of its financial assets. For corporate accounts, the Group analyzes the time and amount of the write-off on an individual basis based on whether it is reasonably expected to be recoverable. The Group 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 Group's procedures for recovering overdue amounts

(3) Derecognition of financial assets

The Group 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 Group 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 Group 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 transactions

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

(3) 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 or specified at the time of original recognition are

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 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.

(4) Derecognition of financial liabilities

Financial liabilities are derecognized when the Group’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).

(5) 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 Group 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.

(VIII) 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. The cost of finished goods and work-in-progress inventories includes an appropriate proportion of manufacturing overhead allocated to normal production capacity. 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.

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(IX) Property, plant and equipment

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 Group.

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: 2 to 50 years.
(2) Machinery and equipment: 2 to 10 years.
(3) Office equipment and other equipment: 2 to 10 years.

The Group reviews the depreciation method, useful life, and salvage value on

each annual reporting date and makes appropriate adjustments when necessary.

(X) Leases

The Group 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

The Group recognizes right-of-use assets and lease liabilities on the lease commencement date. Right-of-use assets are initially measured at cost; this cost includes the original measure of the lease liability to adjust any lease payments

~22~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 Group 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 Group 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

~23~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

corresponding adjustment to the carrying amount of the right-of-use asset; and when the carrying amount of the right-of-use asset 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 Group 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 Group 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.

Lessor

In transactions where the Group 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 Group considers relevant specific indicators including whether the lease period covers the main portion of the economic life of the underlying asset.

If the Group 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 Group 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 Group recognizes

~24~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 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 Group, and the Group 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 Group 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.

2. 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.

3. 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, the cost of computer software is recognized under income using the straight-line method based on its estimated useful life of 1 to 10 years.

The Group reviews the amortization method, useful life, and salvage value of the intangible asset on each annual reporting date and makes appropriate adjustments when necessary.

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(XII) Impairment on non-financial assets

The Group 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. 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 Group recognizes revenue when the control of the goods or services is transferred to the customer and the performance obligation is satisfied. The Group's main revenue items are described as follows:

~26~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(1) Sale of goods

The Group manufactures and sells wire, connectors and information equipment. The Group 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 Group has objective evidence that all acceptance conditions have been met.

The Group recognizes accounts receivable when the goods are delivered, because the Group has the right to unconditionally receive consideration at that time.

(2) Information systems and consulting services

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

~27~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 Group is entitled to issue. The Group 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 Group 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 Group 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 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 Group 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 Group 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

~28~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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, and 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:

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

The Group 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

~29~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(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.
(XVI) Earnings per share

The Group presents basic and diluted earnings per share attributable to holders of ordinary shares of the Company. The basic earnings per share of the Group 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 Group's potential dilutive ordinary shares include estimates of employee compensation.

(XVII) Segment information

Operating segments from an integral part of the Group and are engaged in business activities that may earn revenue and incur expenses (including income and expenses related to transactions between other components of the Group). The operating results of all operating segments are regularly reviewed by the principal operational decision makers of the Group to make decisions about allocating resources to the segments and measure their performance. Each operating segment has separate financial information.

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

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

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

~30~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

The Group's accounting policies do not involve material uncertainties in judgments, and there are no matters that have a significant impact on the amounts recognized in the consolidated financial statements.

VI. Explanation of significant accounts

(I) Cash and cash equivalents

Cash on hand Demand and foreign currency deposits Time deposits		December 31, 2024 $ 1,447 653,886 290,686 $ 946,019		December 31, 2023
				1,821 583,633 241,906
				827,360

As of December 31, 2024, time deposits with original maturity more than 3 months amounting to NT$ 44,788 thousand were recognized as other financial assets – current.

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

(2) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance		December 31, 2024 $ 1,028 848,113 849,141 (19,750) $ 829,391		December 31, 2023
				4,739 848,668 853,407 (29,549) 823,858

The Group 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 loss of the notes receivable and accounts receivable of the Group is as follows:

~31~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Credit rating	December 31, 2024 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 823,199 0.14% 1,162 25,942 71.65% 18,588 $ 849,141 19,750 December 31, 2023 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 777,863 -% - 75,544 39.11% 29,549 $ 853,407 29,549	December 31, 2024 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 823,199 0.14% 1,162 25,942 71.65% 18,588 $ 849,141 19,750 December 31, 2023 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 777,863 -% - 75,544 39.11% 29,549 $ 853,407 29,549
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio
Level A Level B Credit rating	$ 823,199 25,942
	$ 849,141
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio
Level A Level B	$ 777,863 75,544	-% 39.11%
	$ 853,407

Aging analysis of the Group'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, 2024 $ 758,839 60,870 9,176 20,256 $ 849,141	December 31, 2023
		667,635 105,130 16,381 64,261
		853,407

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

Opening balance at start of period Impairment losses recognized Amount written off due to non-recoverability during the current year Foreign exchange gains Balance at end of period	2024 $ 29,549 3,171 (13,448) 478 $ 19,750	2023
		23,872 27,910 (22,041) (192) 29,549

~32~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Loss allowance is mainly based on historical payment behavior and extensive analysis of the credit ratings of the target customers. The Group believes that the overdue portion of accounts receivable for which loss allowance has not yet been provided is still recoverable.

As of December 31, 2024 and 2023, none of the Group's notes and accounts receivable were pledged as collateral.

Please see note VI (XVI) for the risk and sensitivity analysis of exchange rates for the Group's notes and accounts receivable for 2024 and 2023. (III) Inventories

Raw materials Works in process Finished goods Goods held for sale	December 31, 2024 $ 343,857 75,968 75,116 113,823 $ 608,764	December 31, 2023 357,113 88,026 74,932 82,341 602,412

The cost of inventories recognized as cost of goods sold and as expenses by the Group in 2024 and 2023 were NT$ 2,865,882 thousand and NT$ 2,379,867 thousand respectively.
Details of inventories recognized as cost of goods sold and as expenses by the Group in 2024 and 2023 were as follows:

Group in 2024 and 2023 were as follows:
Write-down of inventories		For theyears ended December 31,
		2024	2023
	$ 23,602		31,816

As of December 31, 2024 and 2023, none of the Group's inventories were pledged as collateral.

~33~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(IV) Other Current and Non-current Assets

The details of the other current and non-current assets of the consolidated company are as follows:

Other current assets

Tax credits Prepaid expense Others Other financial assets Restricted bank deposits Time deposits over three months Others Other non-current Assets Deposits made Prepaid equipment Others	December 31, 2024 $ 42,251 17,025 18,864 $ 78,140 December 31, 2024 $ 43,949 44,788 9,536 $ 98,273 December 31, 2024 $ 58,050 46,122 2,816 $ 106,988	December 31, 2023 38,673 9,706 13,528 61,907 December 31, 2023 34,800 - 2,049 36,849 December 31, 2023 56,487 - 3,371 59,858

2. Other financial assets

3. Other non-current Assets

For information on the credit risk of other financial assets of the Group as of 2024 and 2023, please refer to note VI (XVI).

(V) Property, plant, and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Group were as follows:

Cost or deemed cost: Balance on January 1, 2024 Add Disposal	Land $ 204,252 - -	Buildings 153,332 - -	Machinery and equipment 325,715 15,866 (10,615)	Office equipment and others 161,276 11,214 (14,960)	Total 844,575 27,080 (25,575)

~34~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Land Transfers - Effect of movements in exchange rates 4,266 Balance on December 31, 2024 $ 208,518 Balance on January 1, 2023 $ 203,683 Add - Disposal - Transfers - Effect of movements in exchange rates 569 Balance on December 31, 2023 $ 204,252 Depreciation and impairment loss: Balance on January 1, 2024 $ - Depreciation in the current year - Disposal - Effect of movements in exchange rates - Balance on December 31, 2024 $ - Balance on January 1, 2023 $ - Depreciation in the current year - Disposal - Effect of movements in exchange rates - Balance on December 31, 2023 $ - Carrying amounts: December 31, 2024 $ 208,518 January 1, 2023 $ 203,683 December 31, 2023 $ 204,252	Buildings - 4,792	Machinery and equipment - 13,729	Office equipment and others (189) 5,308	Total (189) 28,095
$ 208,518	158,124	344,695	162,649	873,986
	152,993 - - - 339	317,698 13,791 (8,312) 2,466 72	141,201 26,764 (6,106) - (583)	815,575 40,555 (14,418) 2,466 397
$ 204,252	153,332	325,715	161,276	844,575
	55,707 5,552 - 835	250,916 20,182 (10,543) 8,842	116,824 20,174 (14,951) 3,581	423,447 45,908 (25,494) 13,258
$ -	62,094	269,397	125,628	457,119
	50,191 5,581 - (65)	238,700 20,399 (8,312) 129	99,710 24,036 (6,106) (816)	388,601 50,016 (14,418) (752)
$ -	55,707	250,916	116,824	423,447
$ 208,518	96,030	75,298	37,021	416,867
$ 203,683	102,802	78,998	41,491	426,974
$ 204,252	97,625	74,799	44,452	421,128

The Group signed a contract with a non-related party in August 2024 to purchase assets such as real estate and equipment. The total contract price is THB$ 121,553 thousand. As of September 30, 2024, the prepayment is NT$ 38,511 thousand (THB$ 40,000 thousand) were recognized as other non-current assets.

Please see Note VIII for details of circumstances in which property, plant and equipment of the Group were used to provide loans and financing and guarantees for customs duties as of December 31, 2023 and 2022.

~35~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(VI) Right-of-use assets

Details of changes in right-of-use assets recognized as leased premises and buildings, transportation equipment and other assets of the Group, and their cost and depreciation, are as follows:

Right-of-use asset costs: Balance on January 1, 2024 Add Less Effect of movements in exchange rates Balance on December 31, 2024 Balance on January 1, 2023 Add Less Effect of movements in exchange rates Balance on December 31, 2023 Right-of-use asset depreciation: Balance on January 1, 2024 Depreciation in the current year Less Effect of movements in exchange rates Balance on December 31, 2024 Balance on January 1, 2023 Depreciation in the current year Less Effect of movements in exchange rates Balance on December 31, 2023 Carrying amounts: December 31, 2024 January 1, 2023 December 31, 2023	Buildings $ 111,053 20,981 (27,264) 3,546 $ 108,316 $ 111,749 2,806 (2,528) (974) $ 111,053 $ 68,901 31,579 (27,264) 2,373 $ 75,589 $ 41,489 30,820 (2,528) (880) $ 68,901 $ 32,727 $ 70,260 $ 42,152		Transportati on equipment and others 3,759 3,893 (1,078) 284 6,858 3,735 - - 24 3,759 2,073 1,162 (1,078) 131 2,288 1,037 1,028 - 8 2,073 4,570 2,698 1,686		Total 114,812 24,874 (28,342) 3,830 115,174 115,484 2,806 (2,528) (950) 114,812 70,974 32,741 (28,342) 2,504 77,877 42,526 31,848 (2,528) (872) 70,974 37,297 72,958 43,838

~36~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

The Group leased factories and offices from other related parties as of December 31, 2023 and 2022, please refer to Note VII for details.

(VII) Short-term loans

Details of short-term loans of the Group are as follows:

Non-Secured bank loans Secured bank loans Total Unused credit line Interest rate	December 31, 2024		December 31, 2023 335,000 361,000 696,000 403,763 0.50%~2.078%
	$ 198,000 500,000
	$ 698,000
	$ 516,963
	1.87%~2.487%

For information about the Group's exchange and interest rate and liquidity risks, and sensitivity analysis, please refer to Note VI (XVI) for details.
The Group's short-term borrowings and 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 Group pledged as collateral.

(VIII) Other payables

Details of Other payables of the Group are as follows:

Salaries and annual bonuses payable Payable for remuneration due to directors and employees Other expenses payable	December 31, 2024	December 31, 2023 83,420 8,040 44,079 135,539
	$ 88,017 7,290 50,007
	$ 145,314

Other expenses payable mainly constitute payables in the form of labor fees, service fees, health and labor insurance, transport fees, and related miscellaneous expenses payable.

~37~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(IX) Lease liabilities

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

December 31, 2024 Current $ 13,387 Non-current $ 24,661 For the maturity analysis, please refer to Note VI (XVI). Amounts recognized as profit or loss are as follows: 2024 Interest expense on lease liabilities $ 627 Variable lease payments not included in the measurement of lease liabilities $ 78 Gains from sublease of right-of-use assets $ 746 Expenses related to short term leases $ 1,043 Expenses related to leases of low value assets (excluding short term leases of low value assets) $ 246 Amounts recognized in the consolidated statements of cash flows 2024 Total cash flows from leases $ 35,038	December 31, 2024	December 31, 2023 25,699 19,164 2023
		760 38 746 2,949 154 are as follows: 2023
	$ 35,038	36,076

1. Leasing of buildings

The Group leases buildings as offices and factories. The lease period for is three years for offices and 3 to 20 years for factories. Some leases include the option to extend the lease term for the same period as the original contract.

2. Other leases

The lease period of parking space and transport equipment leased by the Group is 3 years.

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

The Group also leases office space and office equipment and vehicle with contract terms of 1 to 5 years. These leases are low-value items. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

~38~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(X) Employee benefits

The defined contribution plan of the Company and its subsidiaries within the jurisdiction of the Republic of China is in accordance with the provisions of the Labor Pension Act. In accordance with the contribution rate of 6% of workers’ monthly wages, a contribution is transferred to the individual accounts of the labor pension fund of the Bureau of Labor Insurance. After the Group 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 of the Company and its subsidiaries within the jurisdiction of the Republic of China under the 2024 and 2023 defined pension contributions were NT$ 12,516 thousand and NT$ 11,661 thousand respectively, and were transferred to the Bureau of Labor Insurance.

Other subsidiaries included in the preparation of the consolidated financial statements recognized defined pension contributions and endowment insurance premiums of NT$ 13,109 thousand and NT$ 12,177 thousand in 2024 and 2023, respectively.

(XI) Income taxes

1. Income tax expense

(1) Details of income tax expenses of the Group in 2024 and 2023 are as follows:

Income tax expense for the current period: Current period Undistributed surplus earnings Adjustment for prior periods Deferred tax expense Income tax expense	2024 $ 86,947 3,723 4,920		2023 50,005 7,836 - 57,841 843 58,684

	95,590
	167
	$ 95,757

(2) The Group's 2024 and 2023 income tax expenses and pre-tax net profits were adjusted as follows:

~39~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Net profit before tax Income tax using local tax rate of each entity Current-year losses for which no deferred tax asset was recognized Changes in unrecognized temporary differences Investment tax credit (Over) under provision in prior periods Undistributed surplus earnings Non-deductible expenses and others Income tax expense	2024 $ 187,353 $ 56,871 - 18,046 (3,163) 4,920 3,723 15,360 $ 95,757	2023
		187,353 65,689 (1,663) (6,157) - - 7,836 (7,021) 58,684

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

Temporary differences related to investment subsidiaries on December 31, 2024 and 2023, are due to the Group's control over the timing of the reversal of these temporary differences. Therefore, no deferred tax liabilities were recognized. Relevant amounts were as follows:

gnized. Relevant amounts were as follows:
Unrecognized deferred tax liabilities	December 31, 2024 $ 172,393	December 31, 2023
		155,150

(2) Unrecognized deferred tax assets: None

(3) Recognized deferred tax liabilities and assets

Changes in deferred tax liabilities and assets for 2023 and 2022 are as follows:

~40~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Deferred tax liabilities: Balance on January 1, 2024 Debit/(credit) income Effect of movements in exchange rates Balance on December 31, 2024 Balance on January 1, 2023 Debit/(credit) income Effect of movements in exchange rates Balance on December 31, 2023 Deferred tax assets: Balance on January 1, 2024 (Debit)/credit income Effect of movements in exchange rates Balance on December 31, 2024 Balance on January 1, 2023 (Debit)/credit income Balance on December 31, 2023	Investment income recognized under the equity method (foreign)	Others 6,275 (6,199) 186	Total 51,135 4,426 186 55,747 49,319 1,948 (132) 51,135 Inventory impairment and bad debt losses and others $ 4,545 4,259 - $ 8,804 $ 3,440 1,105 $ 4,545
	$ 44,860 10,625 -
	$ 55,485	262
	$ 37,802 7,058 -	11,517 (5,110) (132)
	$ 44,860	6,275

3. Income tax approval status

Tax returns by the Company, by Celeraise Technology and by Leadpak Industrial for the years up to 2022 were examined and approved by the tax authority.

(XII) Capital and other equity

For both December 31, 2024 and December 31, 2023, 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

~41~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

amounting to NT$ 95,890 thousand. All payments for issued shares have been received.

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 exceed 10% of the paid-in capital.

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 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

~42~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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.

(2) Special reserve

In accordance with the rulings issued by the FSC, a special reserve equal to the total amount of items that are accounted for as deductions from shareholders' equity shall be set aside from the after-tax net profit in the period, plus items other than the after-tax net profit in the period, that are included in the current-period undistributed earnings and prior-period undistributed earnings. This special reserve shall revert to retained earnings and be made available for distribution when the items that are accounted for as deductions from shareholders' equity are reversed in subsequent periods.

(3) Earnings distribution

The Company respectively passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings for 2023 and 2022 on March 12, 2024 and March 23, 2023.Other earnings distribution for 2023 and 2022 were approved by the general meetings of shareholder held on June 13, 2024 and June 13, 2023, respectively. The dividend amounts to be distributed to owners were as follows:

Dividends distributed to owners of ordinary shares: Cash dividend	2023	2023	2023		2022 Dividend rate (NT$) Amount 0.70 67,123
	Dividend rate (NT$) $ 0.30		Amount		Dividend rate (NT$) 0.70
			28,767

On March 26 2025, the Board of Directors of the Company proposed the earnings distribution for 2024 with the amount of dividends distributed to owners as follows:

~43~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

			2024
			Dividend
		rate (NT$)		Amount
Dividends distributed to owners of ordinary shares:
Cash dividend		$	0.30	28,767
rnings per share
The Group's basic earnings per share and diluted	earnings per share			are
lculated as follows:
			2024	2023
Basic earnings per share:
Net profit attributable to holders of ordinary
shares of the Company	$		55,485	119,656
Weighted average number of ordinary shares
outstanding (thousand shares)			95,890	95,890
Basic earnings per share (NT$)	$		0.58	1.25
Diluted earnings per share:
Net profit attributable to holders of ordinary
shares of the Company (diluted)	$		55,485	119,656
Weighted average number of ordinary shares
outstanding (basic) (thousand shares)			95,890	95,890
Impact of employee stock remuneration			168	247
Weighted average number of ordinary shares
outstanding (diluted) (thousand shares)			96,058	96,137
Diluted earnings per share (NT$)	$		0.58	1.24

(XIII) Earnings per share

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

~44~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(XIV) Revenue from customer contracts
Details of revenue

Primary regional markets: Taiwan Mainland China Philippines Thailand Primary regional markets: Taiwan Mainland China Philippines Thailand tract balances Notes receivable Accounts receivable Less: Loss allowance Contract liabilities		2024	Total 1,414,732 1,124,607 563,541 367,516 3,470,396 Total 1,152,141 1,017,510 464,710 344,022 2,978,383 January 1, 2023 2,459 1,017,636 (23,872) 996,223 55,892
	Information Services Department $ 1,390,973 - - - $ 1,390,973	Wire & Connectors Department 23,759 1,124,607 563,541 367,516 2,079,423 2023
	Information Services Department $ 1,152,141 - - - $ 1,152,141 December 31, 2024 $ 1,028 848,113 (19,750) $ 829,391 $ 39,666	Wire & Connectors Department - 1,017,510 464,710 344,022 1,826,242 December 31, 2023 4,739 848,668 (29,549) 823,858 26,374

2. Contract balances

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

~45~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

The opening balances of contract liabilities for January 1, 2024 and 2023, and the amounts recognized as revenue in 2024 and 2023 were NT$ 20,508 thousand and NT$ 39,678 thousand, respectively.

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

(XV) 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).

The estimated amounts of employee remuneration of the Company in 2024 and 2023 were NT$ 3,000 thousand and NT$ 3,400 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$ 3,000 thousand and NT$ 3,400 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.

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 2024 and 2023 consolidated financial statements. (After the establishment of the Audit Committee, supervisor remuneration constitutes director remuneration.)

~46~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Relevant information can be inquired through the Market Observation Post System.

(XVI) 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 Group 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 Group 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, 2024 Non-derivative financial liabilities Short-term bank loans Notes and accounts payable Other payables Lease liabilities - current and non-current Deposits received (accounted for as other non-current liabilities)	Carrying amount	Contractual cash flows (699,282) (457,762) (145,314) (40,249) (358)	Within 1year	1to 2years	Over 2years - - - (20,157) (358) (20,515)
	$ 698,000 457,762 145,314 34,048 358		(699,282) (457,762) (145,314) (13,877) -	- - - (6,215) -
	$ 1,339,482	(1,342,965)	(1,316,235)	(6,215)

~47~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

December 31, 2023 Non-derivative financial liabilities Short-term bank loans Notes and accounts payable Other payables Lease liabilities - current and non-current Deposits received (accounted for as other non-current liabilities)	Carrying amount	Contractual cash flows	Within 1year	1to 2years	Over 2years - - - (17,672) (301) (17,973)
	$ 696,000 372,604 135,539 44,863 301	(697,625) (372,604) (135,539) (46,995) (301)	(697,625) (372,604) (135,539) (26,114) -	- - - (3,209) -
	$ 1,249,307	(1,253,064)	(1,231,882)	(3,209)

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

Exchange rate risk
(1) Exposure to exchange rate risk

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

Financial assets Monetary items USD USD USD USD USD	December 31, 2024	December 31, 2024	December 31, 2024	Foreign currency unit: $ thousand December 31, 2023	Foreign currency unit: $ thousand December 31, 2023	Foreign currency unit: $ thousand December 31, 2023
	Foreign currency	Exchange rate USD/TWD =32.785 USD/RMB =7.321 USD/HKD =7.765 USD/PHP =57.822 USD/THB =34.080	TWD	Foreign currency	Exchange rate	TWD
	$ 5,485 18,406 22,474 5,456 2,288		179,831 603,442 736,823 178,868 75,006	5,479 18,206 18,206 6,691 1,528	USD/TWD =30.705 USD/RMB =7.096 USD/HKD =7.815 USD/PHP =55.324 USD/THB =34.041	168,222 559,003 559,007 205,443 46,916

~48~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Financial liabilities Monetary items USD USD USD USD USD	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2023	December 31, 2023	December 31, 2023
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
	509 3,182 10,141 4,265 5,266	USD/TWD =32.785 USD/RMB =7.321 USD/HKD =7.765 USD/PHP =57.822 USD/THB =34.080	16,699 104,310 332,476 139,833 172,661	1,020 2,903 7,546 4,953 5,979	USD/TWD =30.705 USD/RMB =7.096 USD/HKD =7.815 USD/PHP =55.324 USD/THB =34.041	31,326 89,144 231,708 152,083 183,584

(2) Sensitivity analysis

The exchange rate risk of the Group's monetary items mainly comes from cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If foreign currencies had depreciated or appreciated by 5% against the TWD, RMB, HKD, PHP, and THB as of December 31, 2024 and 2023, then with all other factors remaining constant the impact on income in 2024 and 2023 would be as follows:

USD (versus TWD) Appreciate 5% Depreciate 5% USD (versus RMB) Appreciate 5% Depreciate 5% USD (versus HKD) Appreciate 5% Depreciate 5%	December 31, 2024 $ 8,157 (8,157) 24,957 (24,957) 20,217 (20,217)	December 31, 2023 6,845 (6,845) 23,493 (23,493) 16,365 (16,365)

~49~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

USD (versus PHP) Appreciate 5% Depreciate 5% USD (versus THB) Appreciate 5% Depreciate 5%	December 31, 2024 1,952 (1,952) (4,883) 4,883	December 31, 2023 2,668 (2,668) (6,833) 6,833

(3) Exchange gains and losses on monetary items

Due to the wide variety of functional currencies of the Group, the exchange profit and loss information of monetary items is disclosed by means of consolidation. In 2024 and 2023, the net exchange gains (including realized and unrealized) amounted to NT$ 26,219 thousand and NT$ 3,550 thousand, respectively.

4. Interest rate analysis

The Group'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, 2024 $ 724,549 680,000	December 31, 2023 618,423 361,000

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 Group’s internal key management reports increase 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 Group’s pre-tax profit and loss in 2024 and 2023 would be as follows, mainly due to the Group’s variable interest rate demand deposits and borrowings:

~50~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Interest rates increase by 25 bps Interest rates decrease by 25 bps	2024 $ 156 (156)	2023 644 (644)

5. Fair value information

(1) Type and fair value of financial instruments

The carrying amounts and fair values of the Group'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, 2024	December 31, 2024	December 31, 2024
Carrying amount $ 946,019 829,391 98,273 58,050		Fair value
	Level 1 - - - - - - - - - -	Level 2 - - - - - - - - - -	Level 3 - - - - - - - - - -	Total
				- - - - - - - - - -
$ 1,931,733
$ 698,000 457,762 145,314 13,387 24,661 358
$ 1,339,482

~51~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

	December 31, 2023	December 31, 2023	December 31, 2023
Carrying amount $ 827,360 823,858 36,849 56,487		Fair value
	Level 1 - - - - - - - - - -	Level 2 - - - - - - - - - -	Level 3 - - - - - - - - - -	Total
				- - - - - - - - - -
$ 1,744,554
$ 696,000 372,604 135,539 25,699 19,164 301
$ 1,249,307

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

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

(XVII) Financial risk management

1. Overview

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

(1) Credit risk

(2) Liquidity risk

(3) Market risk

This note presents the Group's exposure information for each of the above

~52~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

risks, the Group's objectives, policies, and procedures for measuring and managing the risks. For further quantitative disclosures, please refer to the notes to the consolidated financial statements.

Risk management structure

The Group'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 Group’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 Group 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 Group due to the failure of the customer or counterparty of the financial instrument to perform its contractual obligations. This arises mainly from the Group's accounts receivable from customers and securities investments.

(1) Accounts receivable and other receivables

The Group has established a credit policy under which the Group is required to analyze the credit rating of each new customer individually before giving standard payment and shipping conditions and terms. The Group'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 Group's benchmark credit rating may only trade with the Group on an advance receipt basis.

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

Since the Group has a large customer base, there is no significant

~53~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 Group also regularly and continuously evaluates the financial status of customers. However, customers are usually not required to provide collateral.

(2) Investments

The credit risk of bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Group's financial department. Since the Group'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 Group's policy to provide financial guarantees only to wholly-owned subsidiaries. Please refer to Note XIII (I) for information on endorsements/guarantees by the Group for subsidiaries as of December 31, 2024.

4. Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group's operations and mitigate the impact of fluctuations in cash flows. The Group'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 Group. Please refer to Note VI (VII) for unused bank facilities of the Group as of December 31, 2024 and 2023.

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 Group'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.

(3) Exchange rate risk

The Group is exposed to exchange rate risk arising from sales, purchases and borrowing transactions that are not denominated in the functional currency.

~54~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

The main transaction currencies are New Taiwan dollar and US dollar. 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 Group’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 Group 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 Group borrows funds at both fixed and floating interest rates, cash flow risk arises from the borrowing of funds at floating interest rates. The Group manages interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

(XIVIII) Capital management

Based on the characteristics of the current operating industry and the future development of the Group, and considering factors such as changes in the external environment, the Group 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 Group. 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:

ollows:
Total liabilities Total equity Interest-bearing debt Debt-to-equity ratio Ratio of interest-bearing debt to equity	December 31, 2024	December 31, 2023
	$ 1,497,687 1,674,740 698,000 89% 42%	1,399,898 1,525,765 696,000 92% 46%

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

~55~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

The Group's non-cash transaction investment and financing activities in 2024 and 2023 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:

Non-cash	changes Exchange rate changes - 1 1,355	December 31, 2024
Others - - 24,874 24,874 Non-cash
		698,000 358 38,048 736,406 December 31, 2023 696,000 301 44,863 741,164
	1,356
	changes Exchange rate changes - (1) (69)
Others - - 2,806 2,806
	(70)

VII. Related party transactions

(I) Names and relationship with related parties

Parties involved in transactions with the Group during the periods covered by

these consolidated financial statements were as follows:

Name of related party Relationship with the Group

Mr. Yun-Teng Chang Chairman of the Company Ms. Kui-Yu Chang Director of the Company Kunshan Mingmao Electronics The responsible person is a relative within Co., Ltd. (Kunshan Mingmao) one degree of kinship of the chairman of the Company

Year Jan Industrial Co., Ltd. The responsible person is a relative within one degree of kinship of the chairman of the Company

~56~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Name of related party Relationship with the Group ILOFA REALTY INC. (ILOFA) The responsible person is a director of the Company

(II) Significant transactions with related parties
Payables to related parties

Details of lease liabilities to related parties for the Group’s leasing of real estate to related parties are as follows:

te to related parties are as follows:
Accounts Related party category Other payables Senior management `〃` Other related parties	December 31, 2024 $ 3,441 5,066	December 31, 2023 2,736 4,892 7,628
	$ 8,507

Leases
(1) In January and April of 2022, the Group leased offices and parking spaces from other related parties, Year Jan Industrial Co., Ltd. with the rent determined by market conditions and signing 1 year lease agreement. The expected renewal period is 3 years. The total contract values were NT$ 5,825 thousand and NT$ 1,097 thousand, respectively.
(2) The Group leased a plant from another related party, Kunshan Mingmao, with the rent determined by market conditions and signing 1 year lease agreement. The expected lease term is 3 years, and the total contract value is NT$ 58,236 thousand.
(3) In January of 2019, the lease of the plant was renewed with other related parties, ILOFA The rent determined by market conditions and signing a 2 years lease agreement. The expected lease term is 20 years, and the total contract value is NT$ 27,701 thousand.
(4) In May of 2020, the Group leased offices from Key management personnel of the Group, and the rent was determined according to market conditions. The expected lease term is 3 years and the total contract value is NT$ 2,417 thousand. In May of 2023, the lease of the office was renewed with Key management personnel of the Group and signing 3 years lease agreement. The expected lease term is 3 years, and the total contract value is NT$ 2,819 thousand. The total amounts of the deposits deposited on December 31, 2024 and December 31, 2023, were all HKD$ 18 thousand and were recorded under

~57~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

other non-current assets.

(5) Details of its lease liabilities and interest expenses are as follows ：

YEAR JAN Kunshan Mingmao ILOFA Senior management	Lease liability balance December 31, 2024 December 31, 2023 $ 5,498 2,595 - 18,521 17,315 18,038 1,338 2,163 $ 24,151 41,317	Interest expense 2024 2023 18 44 118 329 245 259 26 25 407 657
	December 31, 2024 $ 5,498 - 17,315 1,338 $ 24,151	2024 18 118 245 26 407

(III) Key management personnel transactions
Compensation of key management personnel includes:

Short-term employee benefits

es:
2024	2023
$ 30,171	31,428

2. Guarantees provided

The total amounts of the Group's loan contracts for December 31, 2024 and 2023 were NT$ 1,214,963 thousand and NT$ 1,099,763 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

VIII. Pledged assets

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

Asset name	Purpose of pledge	December 31, 2024 $ 140,142 34,594 42,500 1,449 6,614	December 31, 2023 140,142 36,295 34,800 - -
Property, plant, and equipment - land Property, plant, and equipment - buildings Restricted bank deposits (accounted for as other financial assets - current) Restricted bank deposits (accounted for as other financial assets - current) Deposits made (accounted for as other non-current assets)	short-term loans short-term loans short-term loans Litigation security deposit Performance guarantees and bid deposits

~58~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Asset name	Purpose of pledge	December 31, 2024 58,050	December 31, 2023 56,487 267,724
Deposits made (accounted for as other non-current assets)	Performance guarantees and bid deposits
		$ 283,349

IX. Significant commitments and contingencies:

(1) Significant commitments:
As of December 31, 2024, the Group has signed an unpaid payment for real estate, equipment, etc. of NT$ 78,454 thousand (THB$ 81,553 thousand).

X. Losses due to major disasters: None.

XI. Significant subsequent events:

(1) On December 31, 2024, the company obtained the right-to-use assets of NT$ 92,173 thousand (RMB$ 20,583 thousand) through the resolution of the board of directors, and signed a contract with the related party, Kunshan Mingmao, to lease the factory in January 2025. The first period of the lease is from January 1, 2025 to December 31, 2029.

XII. Other

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

Function Nature	2024	2024	2024	2023	2023	2023
	Under operating costs	Under operating expenses	Total	Under operating costs	Under operating expenses	Total
Employee benefit expense Salary expense Health and labor insurance expense Pension expense Other employee benefit expense	388,081 25,411 17,109 16,692	189,391 13,524 8,516 12,826	577,472 38,935 25,625 29,518	322,555 20,453 14,381 15,997	192,599 15,340 9,457 12,660	515,154 35,793 23,838 28,657

~59~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Function Nature	2024	2024	2024	2023 Under operating costs Under operating expenses Total 58,139 23,725 81,864 - 2,155 2,155	2023 Under operating costs Under operating expenses Total 58,139 23,725 81,864 - 2,155 2,155
	Under operating costs	Under operating expenses	Total	Under operating costs	Under operating expenses
Depreciation expense Amortization expense	58,318 -	20,331 3,019	78,649 3,019	58,139 -	23,725 2,155

(II) Other

The Group discovered that an employee in the Information Services Department was involved in fraudulent activities in December 2024, t, including document forgery and the theft of inventory. The loss by the Group in 2024 and 2023 were NT$ 75,703 thousand and NT$ 6,484 thousand respectively. These losses were recorded under other losses. As of December 31, 2024, the cumulative loss from the aforementioned incident totaled NT$ 82,187 thousand.

Regarding the employee's illegal activities, the Group has conducted an internal investigation and has dismissed the employee. The case has been referred to the judicial authorities for further investigation, with the aim of holding the employee accountable and seeking compensation for the related losses. The case is still under investigation, and after evaluation, it has been determined that the incident has not had a significant impact on the Group's operations or financial position.

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 Group in 2024:

1. Loans to other parties:

Number	The company lending funds	Name of borrower	Current account	Whether a related party	Highest amount during the period	Balance at end of period	Actual usage amount	Interest rate	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short term financing	Allowance for bad debt	Collateral	Collateral	Loan limit for individual counterparties	Total loan limit
													Name	Value
1 1 2 3 4 4	Jiun Tai Jiun Tai Shanghai Zhansheng Shenzhen Zhansheng Celeraise Hong Kong Celeraise Hong Kong	THAILAND Yield Profit International Huizhou Zhanmao Huizhou Zhanmao THAILAND CELERAISE	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Y Y Y Y Y Y	31,290 24,790 26,937 31,815 55,735 15,645	22,950 24,753 - 31,346 55,735 -	22,950 24,753 - 31,346 55,735 -	4.0% 1.5% 1.5% 1.5% 4.0% 2.0%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - - -	Operating turnover Operating turnover Operating turnover Operating turnover Operating turnover Operating turnover	- - - - - -	None None None None None None	- - - - - -	112,378 280,944 102,583 163,394 472,438 472,438	280,944 280,944 102,583 163,394 1,181,095 1,181,095

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 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

~60~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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 3: In accordance with Shenzhen Zhansheng’s “Operational Procedures for Loaning Funds to Others”, the total amount of funds loaned may not exceed 500% of Celeraise Hong Kong's net value. If there is a need for short-term financing with Shenzhen Zhansheng, the loan amount may not exceed 500% of Shenzhen Zhansheng's net value. Separately, the total amount of intercompany loans where Shenzhen 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.

Guarantees and endorsements for other parties:

Number	Name of endorsement/ guarantee company	Counterparty of guarantee and endorsement	Counterparty of guarantee and endorsement	Endorsement/ guarantee limit for single enterprise	Maximum endorsement/ guarantee balance for the current period	Balance of endorsement/ guarantee at end of period	Actual usage amount	Guarantee amount by endorsement of property guarantees	Ratio of cumulative endorsement/ guarantee amount to net value of the most recent financial statements	Endorsement/ guarantee maximum	Endorsement/ guarantee of parent company for subsidiaries	Endorsement/ guarantee of subsidiaries for parent company	Endorsements/ guarantees to the mainland China region
		Company name	Relationship
0 0 1	The Company `〃` Celeraise Technology	Celeraise Hong Kong/Jiun Tai Celeraise Technology The Company	Subsidiary of the Company Subsidiary of the Company Parent company	1,632,478 1,632,478 353,170	82,088 50,000 80,088	81,963 50,000 80,088	- - 80,088	- - -	5.02% 3.06% 113.38%	1,632,478 1,632,478 353,170	Y Y N	N N Y	N N N

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$ 81,963 thousand (US$2,500 thousand). Note 3: 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.

Note 4: The counterparty of the above endorsement/guarantee is the entity preparing the consolidated financial statements.

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	Transa		ction status		Circumstance why trading c different fro transa	s and reasons onditions are m ordinary ctions	Notes and accounts receivable (payable)		Notes
			Buying (selling) goods	Amount (Note 1)	Ratio of total purchase s (sales)	Credit period	Unit price	Credit period	Balance	Ratio of total notes and accounts receivable (payable)
Huizhou Zhanmao Celeraise Hong Kong	Celeraise Hong Kong Huizhou Zhanmao	Ultimate parent company is the same Ultimate parent company is the same	(Sales) Purchase	(462,562) 462,562	(64) % 72 %	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	Prices are not significantly different from those of ordinary customers Prices are not significantly different from those of ordinary customers	General customer monthly settlement 60 to 90 days General customer monthly settlement 60 to 90 days	257,107 (261,756)	50% (82)%	Note 1 Note 1

~61~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Company buying (selling) goods	Transaction counterparty	Relationship	Trans	Trans	action status	action status	Circumstance why trading c different fro transa	s and reasons onditions are m ordinary ctions	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Notes
			Buying (selling) goods	Amount (Note 1)	Ratio of total purchase s (sales)	Credit period	Unit price	Credit period	Balance	Ratio of total notes and accounts receivable (payable)
Celeraise Hong Kong Huizhou Zhanmao Leadpak Industrial CELERAISE ELECTRON IC CORPORA TION	Huizhou Zhanmao Celeraise Hong Kong CELERAISE ELECTRONIC CORPORATIO N Leadpak Industrial	Ultimate parent company is the same Ultimate parent company is the same Ultimate parent company is the same Ultimate parent company is the same	(Sales) Purchase (Sales) Purchase	(133,649) 133,649 (245,382) 245,382	(18) % 23 % (100) % 45 %	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 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	Prices are not significantly different from those of ordinary customers Prices are not significantly different from those of ordinary customers Prices are not significantly different from those of ordinary customers Prices are not significantly different from those of ordinary customers	General customer monthly settlement 60 to 90 days General customer monthly settlement 60 to 90 days General customer monthly settlement 60 to 90 days General customer monthly settlement 60 to 90 days	97,510 (97,778) 10,672 (10,672)	29% (55)% 100% (8)%	Note 1 Note 1 Note 1 Note 1

Note 1: The transactions listed on the left 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:

Unit: NT$ thousand

Company with accounts receivable	Transaction counterparty	Relationship	Balance of receivables from related parties	Turnover rate	Receivables overdue from related parties	Receivables overdue from related parties	Receivables amount from related parties recovered after the period	Amount of allowance for doubtful accounts
					Amount	Action taken
Celeraise Hong Kong H Z Huizhou Zhanmao C K	uizhou hanmao eleraise Hong ong	Ultimate parent company is the same Ultimate parent company is the same	97,510 257,107	1.56 2.07	- -		8,472 92,657	- -

Note 1: Information up to February 28, 2025.

Note 2: The transactions listed on the left have been eliminated in the preparation of the consolidated financial statements.

9. Trading in derivative instruments: None.

Business relationships and significant intercompany transactions:

Number (Note 1)	Name of transaction person	Name of counterparty	Relationship with transaction person (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Ratio to consolidated total revenue or total assets
1 1 1	Celeraise Hong Kong Celeraise Hong Kong Celeraise Hong Kong	Huizhou Zhanmao Huizhou Zhanmao THAILAND	3 3 3	Sales revenue Accounts receivable Other receivable (Note 3)	133,649 97,510 56,450	Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Interest rate 4.0%	3.85% 3.08% 1.78%

~62~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Number (Note 1)	Name of transaction person	Name of counterparty	Relationship with transaction person (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Ratio to consolidated total revenue or total assets
2 2 2 2 3 3 3 3 3 3 3 3 4	Kunshan Yiguan Kunshan Yiguan Kunshan Yiguan Kunshan Yiguan Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Huizhou Zhanmao Leadpak Industrial	Shanghai Zhansheng Shanghai Zhansheng Celeraise Hong Kong Celeraise Hong Kong Celeraise Hong Kong Celeraise Hong Kong CELERAISE CELERAISE Kunshan Yiguan Kunshan Yiguan THAILAND THAILAND CELERAISE	3 3 3 3 3 3 3 3 3 3 3 3 3	Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Accounts receivable Sales revenue	45,601 11,709 46,709 25,879 462,562 257,107 45,614 118,807 19,736 4,902 23,007 71,792 245,382	Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs	1.31% 0.37% 1.35% 0.82% 13.33% 8.10% 1.31% 3.74% 0.57% 0.15% 0.66% 2.26% 7.07%

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Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Number (Note 1)	Name of transaction person	Name of counterparty	Relationship with transaction person (Note 2)	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Ratio to consolidated total revenue or total assets
4 6 6 7	Leadpak Industrial Jiun Tai Jiun Tai Shanghai Zhansheng	CELERAISE THAILAND Yield Profit International Huizhou Zhanmao	3 3 3 3	Accounts receivable Other receivable (Note 3) Other receivable (Note 3) Other receivable (Note 3)	10,672 23,507 25,454 31,770	Prices are not significantly different from those of ordinary customers, monthly settlement is 270 days, and payments are received according to funding needs Interest rate 4.0% Interest rate 1.5% Interest rate 1.5%	0.34% 0.74% 0.80% 1.00%

Note 1: Numbers are filled in according to the following: 1. The parent company is 0.

Subsidiaries are numbered in sequence starting from 1.

Note 2: Relationship is classified into three types:

Parent company to subsidiary.
Subsidiary to parent company.
Subsidiary to subsidiary.

Note 3: Lending funds (including interests).

(II) Information on investees

1. The Group's reinvestment business information is as follows (excluding

investment in mainland China companies):

								Unit: Foreign currenc	Unit: Foreign currenc	Unit: Foreign currenc	ythousands / thousand shares	ythousands / thousand shares	ythousands / thousand shares
Investing company name	Investee company name	Region	Main business items	Original investment amount		Held at end		of period	Highest level of holdings inthe period		Profit or loss of the investee company for the current period (Note 2)	Investment gains and losses recognized in the current period (Note 2)	Notes
				End of current period (Note 1)	End of prior period (Note 1)	Number of shares	Ratio	Carrying amount (Note 1)	Number of shares	Sharehold ing ratio
The Company The Company The Company The Company The Company The Company The Company The Company The Company Jiun Tai Jiun Tai Celeraise Hong Kong Celeraise Hong Kong	A Team Jiun Tai Celeraise Technology Leadpak Industrial KING HONG HONG YI Celeraise Hong Kong CELERAISE THAILAND Celeraise Hong Kong Welltrend Yield Profit International Jet Success	British Virgin Islands Hong Kong Taiwan Taiwan Taiwan Taiwan Hong Kong Philippine s Thailand Hong Kong Thailand Hong Kong Hong Kong	Investment, trading, and holding company Holding company Information service industry International trade and other wholesale and retail trade International trade and other wholesale and retail trade International trade and other wholesale and retail trade Manufacture and sale of wire and cable connectors and connectors Manufacture and sale of wire and cable connectors and connectors Manufacture and sale of wire and cable connectors and connectors Manufacture and sale of wire and cable connectors and connectors Manufacture and sale of wire and cable connectors and connectors Investment, trading, and holding company Investment, trading, and holding company	16,538 267,498 30,000 29,810 5,100 15,600 191,996 25,532 182,136 1 (HKD 0.16) 89,667 (RMB 19,603) 65,863 (HKD 15,600) 32,932 (HKD 7,800)	16,538 241,922 30,000 29,810 - - 191,996 25,532 182,136 1 (HKD0.16) - 65,863 (HKD 15,600) 32,932 (HKD 7,800)	500 66,160 3,000 2,981 510 1,560 50,300 400 18,275 - 960 15,600 7,800	100% 100% 100% 99.36% 51% 52% 99.99% 100% 100% 0.01% 80% 0 100% 0 100%	990 286,535 79,635 50,255 5,125 15,590 1,207,387 234,897 180,897 1 (HKD0.16) 90,433 (RMB 20,195) 377,57 (HKD 96,100) 300,58 (HKD 76,505)	500 66,160 3,000 2,981 510 1,560 50,300 400 18,275 - 960 15,600 7,800	100% 100% 100% 99.36% 51% 52% 99.99% 100% 100% 0.01% 80% 100% 100%	- 6,837 33,521 22,838 49 (19) 133,679 (13,089) (20) - (2,375) (RMB (533)) 81,431 (HKD 19,779) 12,450 (HKD 3,024)	- 6,837 33,518 20,308 25 (10) 133,679 (13,089) (20) Recognized by Jiun Tai Recognized by Jiun Tai Recognized by Celeraise Hong Kong `〃`	Subsidiary `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Sub-subsid iary Sub-subsid iary `〃`

~64~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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. Note 3: The above transactions have been eliminated in the preparation of the consolidated financial statements.

(III) Information on investment in mainland China

1. Relevant information such as the name and main business items of the investee

company in mainland China:

										Unit: Foreigncurrency thousands / thousand shares	Unit: Foreigncurrency thousands / thousand shares	Unit: Foreigncurrency thousands / thousand shares	Unit: Foreigncurrency thousands / thousand shares	Unit: Foreigncurrency thousands / thousand shares
Mainland China investee company name	Main business items	Paid-in capital amount (Note 3)	Investme nt method	Accumulated investment amount remitted from Taiwan at the beginning of the current period (Note 3)	Investment amount remitted or recovered in the currentperiod		Accumulated investment amount remitted from Taiwan at the end of the current period (Note 3)	Profit or loss of the investee company for the current period (Note 4)	Shareholding ratio of the Company's direct or indirect investment	Highest level of holdings in the period		Investment gains and losses recognized in the current period (Notes 4 and 5)	Book value of investments at the end of the period (Note 3)	Investment income repatriated up to the current period
					Outflow	Inflow				Thousand shares / thousand units	Shareholdin g ratio
Shanghai Minshi Shanghai Zhansheng Shenzhen Zhansheng Celeraise Chenzhou Kunshan Yiguan Huizhou Zhanmao	R&D and production of industrial automation control, product quality control, communication, and electronic network computing software Production of electronics, cable connectors, telephone spare parts and small household appliances; sales of the company's own products Manufacture and sale of wire and cable connectors and connectors Production and sale of wire connectors, electronic wire products, etc. Manufacture and sale of wire and cable connectors and connectors, etc. Production and sale of wire connectors, electronic wire products and packaging materials, etc.	16,393 (US 500) 54,915 (US 1,675) 47,917 (US 515 RMB 6,930) (Note 6) - 32,785 (US 1,000) 55,079 (US$ 1,680) (Note 7)	Note 1 Note 2 Note 2 Note 2 Note 2 Note 2	16,393 (US 500) 239,331 (US 7,300) - 32,785 (US 1,000) 32,785 (US 1,000) -	- - - - - -	- - - - - -	16,393 (US 500) 239,331 (US 7,300) - 32,785 (US 1,000) 32,785 (US 1,000) -	- 4,134 (RMB 928) (7,897) (RMB (1,773)) (Note 8) 11,038 (RMB 2,478) 83,923 (RMB 18,840)	100% 100% 100% - 100% 100%	- - - - - -	100% 100% 100% -% 100% 100%	- 3,627 (RMB 814) (7,897) (HKD (1,918)) - 11,038 (HKD 2,681) 83,923 (HKD 20,384)	- 108,592 (RMB 24,250) 32,678 (HKD 7,740) (Note 8) 251,855 (HKD 59,653) 452,434 (HKD 107,161)	- 37,609 (RMB 8,500) - - 130,371 (RMB 30,071) 44,748 (RMB 10,630)

2. Limitations on investment in mainland China:

Company name	Accumulated investment amount remitted from Taiwan to mainland China at the end of the current period (Note 3)	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (Note 3)	Investment limit for the mainland China area in accordance with the regulations of the Investment Commission of the Ministry of Economic Affairs
The Company	321,293(USD 9,800)	396,371(USD 12,090)	979,487

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

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: The recognition of investment gains and losses of Shanghai Zhansheng and Shenzhen Zhansheng in the current

period is based on the self-reported financial statements of the investee companies. Other investee companies' 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.

~65~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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.

Note 10: Shanghai Zhansheng passed the surplus distribution plan through resolution of the board of directors in July 2024 and September 2023, distributing cash dividends of RMB$ 1,500 thousand and RMB$ 7,000 thousand respectively.

Note 11: Kunshan Yiguan passed the surplus distribution plan through resolution of the board of directors in July 2024 and September 2023, distributing cash dividends of RMB$ 14,253 thousand and RMB$ 15,818 thousand respectively.

Note 12: Huizhou Zhanmao passed the surplus distribution plan through resolution of the board of directors in November 2024, distributing cash dividends of RMB$ 10,630 thousand to Yield Profit International. As of the balance sheet date, it has not yet been repatriated to Taiwan.
Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Group and mainland China investee companies in 2024

(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:

Unit: Shares

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.	7,768,421	8.10%

~66~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

XIV. Segment information

(I) General information

The Group is divided into operating segments by different products and labor services. Of these, the segments that should be reported are the Information Service Department and the Wire & Connectors Department. The main business of the Information Service Department is the integrated planning and implementation of information systems and consulting services. The main business of the Wire & Connectors Department is the production and sale of computer peripherals, smart home appliances, communication equipment, and game consoles.

The Group does not allocate income tax expense, non-operating gains and losses and net profit or loss from non-controlling interests to reportable segments. Amounts for reportable departments are consistent with reports used by operating decision makers. The roup has not allocated assets and liabilities to reportable segments for the purpose of operating decision makers to measure divisional assets and liabilities. The accounting policies of the operating segments are the same as the summary of significant accounting policies described in Note 4.

(II) Reportable information on segment profit and loss, segment assets, segment liabilities, and their measurement basis

The Group’s operating segment information and reconciliation are as follows:

		2024
Information services $ 1,390,973 4,933 $ 1,395,906 $ 73,501	Wire and connectors	Other segments	Adjustment s and eliminations
	2,079,423 1,092,690 3,172,113 129,726	- -	- (1,097,623)
		-	(1,097,623)
		-	(6,251)

~67~

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

		2023
Information services $ 1,152,141 17,311 $ 1,169,452 $ 83,034	Wire and connectors	Other segments	Adjustment s and eliminations
	1,826,242 839,381 2,665,623 104,220	- -	- (856,692)
		-	(856,692)
		-	(7,550)

(III) Information on geographic differentiation

Information on geographic differentiation within the Group is as follows.

Revenue is classified based on the geographic locations of the customer, while

non-current assets are classified according to the geographic locations of the assets.

(1) Revenue from external customers: Please refer to Note VI(XIV) for details.
(2) Non-current assets:

Region Non-current assets: Taiwan Mainland China Philippines Thailand	December 31, 2024 $ 204,150 102,374 46,503 191,959		December 31, 2023 202,664 108,901 53,661 147,019 512,245

	$ 544,986

Non-current assets include property, plant and equipment, right-of-use assets, intangible assets, and other assets. However, deferred tax assets are excluded.

(IV) Information on major customers:

The Group’s customers whose revenue from external customers accounts for more than 10% of consolidated operating revenues are as follows:

The customer from the Wire & Connectors Department	2024		2023
	$ 371,208		311,412

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AI assistant

WELLTEND — Annual Report 2024

52254_rns_2024-11-14_1ee35c8b-0003-4f37-876f-ef85fb3a049e.pdf

Welltend Technology Corporation and Subsidiaries[Consolidated Financial Statements With ] Independent Auditors’ Report

Table of Contents

Representation Letter

Independent Auditors’ Report

To the Board of Directors of Welltend Technology Corporation:

Opinion

Basis for Opinion

Key Matters

Key Audit Matters

Other Matters

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

the consolidated financial statements.

Notes to Readers

Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Equity attributable to owners of parent

Welltend Technology Corporation and Subsidiaries Consolidated Statement of Cash Flows

January 1 to December 31, 2024 and 2023

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2024 and 2023

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

I. Company history

II. Approval date and procedures of the consolidated financial statements

III. New standards, amendments and interpretations adopted

Annual

2. IFRS 7 “Financial Instruments: Disclosures”:

3. IFRS 9 “Financial Instruments”:

Derecognition of a lease liability

IV. Summary of significant accounting policies

(I) Statement of compliance

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(IV) Foreign currency

1. Foreign currency transactions

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(VI) Cash and cash equivalents

(VII) Financial instruments

1. Financial assets

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(IX) Property, plant and equipment

1. Lessee

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(XI) Intangible assets

1. Identification and measurement

2. Subsequent expenditures

3. Amortization

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(XII) Impairment on non-financial assets

1. Revenue from customer contracts

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(1) Sale of goods

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

(XIV) Employee benefits

1. Defined contribution plans

2. Short-term employee benefits

(XV) Income taxes

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

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

Notes to the Consolidated Financial Statements of Welltend Technology Corporation and Subsidiaries (continued)

VI. Explanation of significant accounts

WELLTEND Annual Report 2024