Stock code: 3021

Welltend Technology Corporation

Parent Company Only Financial Statements and Independent Auditors’ Report

For the Years Ended December 31, 2023 and 2022

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

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Items	Page
I. Cover Page	1
II. Table of Contents	2
III. Independent Auditors’ Report	3
IV. Balance Sheet	4
V. Statement of Comprehensive Income	5
VI. Statement of Changes in Equity	6
VII. Statement of Cash Flows	7
VIII. Notes to the Parent Company Only Financial Statements
(I) Company history	8
(II) Approval date and procedures of the financial statements	8
(III) New standards, amendments, and interpretations adopted	8`～`9
(IV) Summary of significant accounting policies	9`～`24
(V) Significant accounting assumptions and judgments, and major	24
sources of estimation uncertainty
(VI) Explanation of significant accounts	24`～`45
(VII) Related-party transactions	45`～`48
(VIII) Pledged assets	48
(IX) Significant commitments and contingencies	48
(X) Losses due to major disasters	48
(XI) Significant subsequent events	49
(XII) Other	49`～`50
(XIII) Other disclosures
1. Information on significant transactions	50`～`52
2. Information on investees	53
3. Information on investment in mainland China	53`～`54
4. Information about the main shareholders	55
(XIV) Segment information	55
IX. Tables of the details of significant accounts	56`～`63

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Independent Auditors’ Report

To the Board of Directors of Welltend Technology Corporation:

Opinion

We have completed our review of the balance sheet of Welltend Technology Corporation for the years ended December 31, 2023 and 2022, and the statements of comprehensive income, statements of changes in equity, and the statements of cash flows for the years ended December 31, 2023 and 2022, as well as the notes to the parent company only financial statements (including a summary of significant accounting policies).

In our opinion, the aforementioned parent company only financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. They are sufficient to adequately express the financial status of Welltend Technology Corporation as of December 31, 2023 and 2022, and its financial performance and cash flows for the years ended December 31, 2023 and 2022.

Basis for Opinion

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

Key Audit Matters

Key audit matters refer to the most important matters for the audit of Welltend Technology Corporation's 2023 parent company only financial statements based on our professional judgment. These matters have been addressed in the process of reviewing the parent company only financial statements as a whole and in forming an audit opinion, and we do not express a separate opinion on these matters. Key audit matters that we judge should be communicated in the audit report are as follows:

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I. Revenue recognition

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

Explanation of key audit matters:

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

Our main audit procedures for the above-mentioned key audit matters include testing the control of the revenue and collection operation cycle, implementing revenue audit procedures and detailed tests, performing correspondence audit procedures for accounts receivable, and performing spot checks of contract liabilities. Furthermore, we evaluate whether the time of opening revenue recognition is handled in accordance with the relevant standards.

II. Revenue recognition – Equity method investments – Subsidiaries

For equity method investment accounting policies, please refer to Invested Subsidiaries under Note 4 (VIII) of the parent company-only financial statements. For explanation of equity method investments, please refer to Note 6 (IV) of the parent-company only financial statements. Explanation of key audit matters:

Some subsidiaries of Welltend Technology Corporation held under the equity method that amount invested in subsidiaries as of December 31, 2023 was NT$1,606,659 thousand constituting a material proportion of total assets amounting to 64%. From the perspective of consolidation, the amounts and changes in its sales revenues may affect the financial statement users' understanding of the overall financial statements. Therefore, we list this as one of the important evaluation items in performing audits of the parent-company only financial statements of Welltend Technology Corporation.

Corresponding audit procedures:

Our main audit procedures for the above-mentioned key audit matters include testing the control of the revenue and collection operation cycles of a portion of subsidiariesinvested in using the equity method, implementing revenue audit analytical procedures and detailed tests, performing correspondence audit procedures for accounts receivable. Furthermore, we evaluate whether the timing of revenue recognition is handled in accordance with the relevant standards.

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

Financial Statements

The responsibility of management is to prepare properly expressed parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and to maintain the necessary internal controls in connection with the preparation of the parent company only financial statements to ensure that the parent company only financial statements are free from material misrepresentation that could result from fraud or error.

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

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

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

The purpose of our audit of the parent company only financial statements is to obtain reasonable assurance as to whether there is a material misrepresentation of the parent company only financial statements as a whole that could result from fraud or error, and to issue an audit report. Reasonable assurance means a high degree of assurance. However, there is no guarantee that an audit carried out in accordance with the auditing standards will detect material misrepresentations in the parent company only financial statements. Misrepresentation may result from fraud or error.

Misrepresentations of individual amounts or aggregates are considered material if they would reasonably be expected to affect economic decisions made by users of the parent company only financial statements.

We apply professional judgment and professional skepticism when conducting audits in accordance with the auditing standards. We also perform the following tasks:

Identify and evaluate the risk of material misrepresentation in the parent company only financial statements resulting from fraud or error; design and implement appropriate countermeasures for the evaluated risks; and obtain sufficient and appropriate evidence to serve as the basis for the audit opinion. Because fraud may involve complicity, forgery, deliberate omission, misrepresentation, or circumvention of internal controls, the risk of not detecting a material misrepresentation caused by fraud is higher than that arising from error.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Welltend Technology Corporation.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

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estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of Welltend Technology Corporation to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause Welltend Technology Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence for the financial information of investee companies using the equity method so as to express an opinion on the parent company only financial statements. We are responsible for the guidance, supervision and execution of audit cases. and we are also responsible for forming audit opinions on Welltend Technology Corporation.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 2023 parent company only financial statements of Welltend Technology Corporation and are therefore the key audit matters. We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse impact of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

KPMG

Taipei, Taiwan (Republic of China) March 12, 2024

Notes to Readers

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

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

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Welltend Technology Corporation

Balance Sheet

December 31, 2023 and 2022

Unit: NT$ thousand

December 31,2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 128,786 5 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 162,760 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 10,136 1 1210 Other receivables - related parties (Note VII) 285 - 1300 Net inventories (Note VI (III)) 54,452 2 1470 Other current assets 1,631 - 1476 Other financial assets - current (Note VIII) 34,806 1 Total current assets 392,856 16 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,887,668 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 183,334 7 1755 Right-of-use assets (Note VI (VI)) 2,567 - 1780 Intangible assets 12,025 1 1840 Deferred tax assets (Note VI (X)) 3,145 - 1900 Other non-current assets (Note VIII) 28,240 1 Total non-current assets 2,116,979 84 Total assets $ 2,509,835 100	December 31,2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note VI (I)) $ 128,786 5 1170 Net notes and accounts receivable (Notes VI (II) and VI (XIII)) 162,760 7 1180 Net accounts receivable - related parties (Notes VI (II) and VII) 10,136 1 1210 Other receivables - related parties (Note VII) 285 - 1300 Net inventories (Note VI (III)) 54,452 2 1470 Other current assets 1,631 - 1476 Other financial assets - current (Note VIII) 34,806 1 Total current assets 392,856 16 Non-current assets: 1550 Investments accounted for using the equity method (Note VI (IV)) 1,887,668 75 1600 Property, plant, and equipment (Notes VI (V) and VIII) 183,334 7 1755 Right-of-use assets (Note VI (VI)) 2,567 - 1780 Intangible assets 12,025 1 1840 Deferred tax assets (Note VI (X)) 3,145 - 1900 Other non-current assets (Note VIII) 28,240 1 Total non-current assets 2,116,979 84 Total assets $ 2,509,835 100	Liabilities and equity Current liabilities: 2100 Short-term borrowings (Notes VI (VII), VII and VIII) 2130 Current contract liabilities (Note VI (XIII)) 2170 Notes and accounts payable (including related parties) (Note VII) 2219 Other payables 2230 Current tax liabilities 2280 Current lease liabilities (Note VI (VIII)) 2300 Other current liabilities Total current liabilities Non-current liabilities: 2570 Deferred tax liabilities (Note VI (X)) 2580 Non-current lease liabilities (Note VI (VIII)) 2600 Other non-current liabilities Total non-current liabilities Total liabilities Equity(Note VI (XI)): 3100 Capital stock 3200 Additional paid-in capital 3300 Retained earnings 3400 Other equity Total equity Total liabilities and equity December 31,2022 Amount % 33,870 1 179,348 7 15,784 1 219 - 121,915 5 2,049 - 34,800 1 387,985 15 1,869,000 75 182,506 8 4,834 - 12,523 1 2,411 - 24,752 1 2,096,026 85 2,484,011 100	December 31,2023 Amount % $ 696,000 28 20,395 1 118,619 5 47,188 2 33,376 1 2,290 - 11,793 -	December 31,2023 Amount % $ 696,000 28 20,395 1 118,619 5 47,188 2 33,376 1 2,290 - 11,793 -	December 31,2022 Amount % 691,000 28 47,286 2 139,433 6 60,745 2 4,929 - 2,264 - 11,452 -	December 31,2022 Amount % 691,000 28 47,286 2 139,433 6 60,745 2 4,929 - 2,264 - 11,452 -
		Amount 33,870 179,348 15,784 219 121,915 2,049 34,800	Amount $ 696,000 20,395 118,619 47,188 33,376 2,290 11,793		Amount 691,000 47,286 139,433 60,745 4,929 2,264 11,452

392,856	16	387,985	929,661	37	957,109	38
1,887,668 183,334 2,567 12,025 3,145 28,240	75 7 - 1 - 1	1,869,000 182,506 4,834 12,523 2,411 24,752	44,860 305 348	2 - -	38,252 2,594 348	2 - -
			45,513	2	41,194	2
			975,174	39	998,303	40
			958,900 7,525 700,769 (132,533)	38 - 28 (5)	958,900 7,525 639,311 (120,028)	39 - 26 (5)
2,116,979	84	2,096,026
$ 2,509,835	100	2,484,011
			1,534,661	61	1,485,708	60
			$ 2,509,835	100	2,484,011	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 Statement of Comprehensive Income

For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

2023	% 82 18	2022
Amount $ 622,888 132,974		Amount 1,105,295 145,082	% 88 12 100 79 3 82 18 8 6 - 14 4 - - - 13 (1) - 12 16 1 15 5 5 20 1.92 1.91
755,862	100	1,250,377
546,442 49,888	72 7	992,023 34,546
596,330	79	1,026,569
159,532	21	223,808
68,011 66,757 5,955	9 9 -	97,667 77,792 2,417
140,723	18	177,876
18,809	3	45,932
918 3,247 (3,005) 166,229 (12,514) (364)	- - - 22 (2) -	168 2,853 5,752 157,516 (9,987) (257)
154,511	20	156,045
173,320 44,739	23 6	201,977 17,789
128,581	17	184,188
(12,505)	(2)	58,068
(12,505)	(2)	58,068
$ 116,076	15	242,256
$	1.34 1.34
$

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

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation Statement of Changes in Equity For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

Share capital from common stock		Retained earnings	Retained earnings		Other equity	Total equity
					Exchange differences on translation of foreign financial statements (178,096) - - - - - - - 58,068 58,068 - (120,028) - - - - - (12,505) (12,505) (132,533)
	Legal reserve 80,516 13,074 - - - - 13,074 - - - - 93,590 18,419 - - 18,419 - - - 112,009	Special reserve 126,636 - 51,460 - - - 51,460 - - - - 178,096 - (58,068) - (58,068) - - - 120,028	Undistribu ted surplus earnings 306,292 (13,074) (51,460) (27,900) (27,900) - (120,334) 184,188 - 184,188 (2,521) 367,625 (18,419) 58,068 (67,123) (27,474) 128,581 - 128,581 468,732	Total
$ 940,000 - - - 27,900 1,000 28,900 - - - (10,000) 958,900 - - - - - - - $ 958,900				513,444 - - (27,900) (27,900) - (55,800) 184,188 - 184,188 (2,521) 639,311 - - (67,123) (67,123) 128,581 - 128,581 700,769		1,269,077 - - (27,900) - 2,275 (25,625) 184,188 58,068 242,256 - 1,485,708 - - (67,123) (67,123) 128,581 (12,505) 116,076 1,534,661

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

Statement of Cash Flows

For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

Cash flows from operating activities: Net profit before tax for the period Adjustments: Adjustments to reconcile profit Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Share of interest in subsidiaries recognized using the equity method Gain on disposal of property, plant, and equipment Total adjustments to reconcile profit (loss) Changes in assets and liabilities related to operating activities: Net changes in assets related to operating activities, net: Notes and accounts receivable Accounts receivable - related parties Inventories Other current assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: Contract liabilities Notes and accounts payable (including related parties) Other payables Other current liabilities Total net changes in liabilities related to operating activities Net changes in assets and liabilities related to operating activities Total adjustments Cash inflow generated from operations Interest received Dividend received Interest paid Income tax paid Net cash inflow (outflows) from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Disposal of property, plant, and equipment (Increase) decrease in refundable deposits Increase in other receivables-related parties Acquisition of intangible assets (Increase) decrease in other financial assets Net cash (outflows) inflows from investing activities Cash flows from financing activities: Increase in short-term borrowings Repayment of lease liability principal Issuance of cash dividend Net cash outflows from financing activities Net increase (decrease) in cash and cash equivalents for the period Cash and cash equivalents at the start of period Cash and cash equivalents at the end of period	2023 $ 173,320	2022 201,977
	7,328 2,148 5,955 12,514 (918) (166,229) -	7,985 1,898 2,417 9,987 (168) (157,516) (37)
	(139,202)	(135,434)
	10,633 5,648 67,463 418	(86,545) (2,243) 98,776 (195)
	84,162	9,793
	(26,891) (20,814) (13,508) 341	(111,721) 22,999 15,100 2,899
	(60,872)	(70,723)
	23,290	(60,930)
	(115,912)	(196,394)
	57,408 918 135,056 (12,563) (10,418)	5,613 168 - (9,722) (933)
	170,401	(4,874)
	(5,889) - (3,488) (66) (1,650) (6)	(1,391) 37 3,530 (12) (875) 7,000
	(11,099)	8,289
	5,000 (2,263) (67,123)	1,044 (1,943) (27,900)
	(64,386)	(28,799)
	94,916 33,870	(25,384) 59,254
	$ 128,786	33,870

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

Accounting Supervisor: Wen-Pin Chen

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

Welltend Technology Corporation Notes to the Parent Company Only Financial Statements 2023 and 2022

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

I. Company history

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

II. Approval date and procedures for adoption of financial statements

The parent company only financial statements were authorized for issuance by the Board of Directors on March 12, 2024.

III. New standards, amendments and interpretations adopted

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

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

2023, and this has not materially affected the parent company only financial statements.

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

The Group has initially adopted the (following) new amendment, which do not have a significant impact on its consolidated financial statements, from May 23, 2023 ：

 Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules”

(II) Impact of the adoption of the IFRSs approved by the Financial Supervisory Commission The Company has evaluated that the application of the following newly amended IFRSs effective from January 1, 2024, will not materially affect the parent company only financial statements.

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
Amendments to IAS 1 “Non-current Liabilities with Covenants”

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

Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(III) Impact of newly issued and revised standards and interpretations not yet approved by the
FSC

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

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 17 “Insurance Contracts” and amendments to IFRS 17
Amendments to IFRS 17: “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”
Amendments to IAS21“Lack of Exchangeability”

IV. Summary of significant accounting policies

Significant accounting policies adopted in these parent company only financial statements

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

(I) Statement of compliance

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

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

(II) Basis of compilation

1. Measurement basis

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

Functional currency and presentation currency

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

(III) Foreign currencies
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

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

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

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

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

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

The asset is expected to be realized during the normal operating cycle, or it is intended to

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

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
The liability does not have an unconditional right to defer settlement for at least twelve months after the reporting period. The terms of the liability may be subject to the option of the counterparty to issue equity instruments resulting in its repayment and this does not affect its classification.
(V) Cash and cash equivalents

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

(VI) Financial instruments

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

1. Financial assets

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

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

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

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

(1) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions and are not specified as

measured at fair value through profit or loss are measured at amortized cost:

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

The assets are subsequently calculated by adding or subtracting the original recognized amount to the accumulated amortization amount calculated using the effective interest method, and adjusting any measure of post amortized cost of allowance losses. Interest income, foreign currency exchange gains and losses and impairment losses are recognized in income. Upon derecognition, profits or losses shall be included in income.

(2) Impairment of financial assets

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

The following financial assets are measured against loss allowance based on the twelve-month expected credit loss amount, with the remainder measured by the amount of expected lifetime credit losses:

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

Loss allowance for accounts receivable and contractual assets is measured based

on the amount of expected lifetime credit losses.

In determining whether credit risk has increased significantly since the original

recognition, the Company considers reasonable and corroborating information

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

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

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

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

If the credit risk rating of a financial instrument is equivalent to the globally defined “investment grade” (which is an investment grade of BBB- from Standard & Poor's, an investment grade of Baa3 from Moody's, or an investment grade of twA from Taiwan Ratings Corp., or above that level), the Company considers the debt securities to have a low credit risk.

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

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

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

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

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

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

Material financial difficulties of the borrower or issuer;

~13~

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

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

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

(3) Derecognition of financial assets

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

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

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

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

(2) Equity instruments

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

~14~

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

(3) Treasury shares

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

(4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or at fair value through profit or loss. Financial liabilities that are held for trading, derivative instruments or specified at the time of original recognition are classified as measured at fair value through profit or loss. Financial liabilities measured at fair value through profit and loss are measured at fair value, and the underlying net profit and loss, including any interest expense, are recognized in income.

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

(5) Derecognition of financial liabilities

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

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

(6) Mutual offsetting of financial assets and liabilities

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

~15~

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

(VII) Inventories

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

(VIII) Invested subsidiaries

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

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

(IX) Property, plant, and equipment

1. Identification and measurement

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

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

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

2. Subsequent costs

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

3. Depreciation

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

Land is not depreciated.

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

~16~

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

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

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

(X) Leases

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

1. Lessee

When the Company is the lessee, it recognizes right-of-use assets and lease liabilities on the lease commencement date. Right-of-use assets are initially measured at cost; this cost includes the original measure of the lease liability to adjust any lease payments paid on or before the lease commencement date, plus the original direct costs incurred and the estimated costs for dismantling, removing and restoring the location or the underlying asset and is also net of any rental incentives received.

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

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

Lease payments included in the measurement of lease liabilities include:

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

~17~

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

Interest on lease liabilities is subsequently accrued using the effective interest

method and remeasurement of the amount occurs in the event of the following:

(1) Changes in the index or rate used to determine lease payments result in changes in future lease payments;

(2) There is a change in the residual value guarantee amount expected to be paid;

(3) There is a change in the evaluation of the option to purchase the underlying asset;

(4) There is a change in the estimate of whether to exercise the option to extend or

terminate, and the evaluation of the lease period is changed; and

(5) Modification of the subject matter, scope or other terms of the lease.

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

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

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

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

2. Lessor

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

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

~18~

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

operating lease.

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

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

(XI) Intangible assets

1. Identification and measurement

Goodwill arising from the acquisition of a subsidiary is measured in terms of cost less accumulated impairment.

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

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

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

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.

~19~

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

(XII) Impairment on non-financial assets

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

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

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

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

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

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

(XIII) Income recognition

1. Revenue from customer contracts

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

(1) Sale of goods

The Company sells wire, connectors and information equipment. The Company recognizes revenue at the time of the transfer of control over the products. The transfer of control over the product means that the product has been delivered to the customer,

~20~

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

the customer can completely decide the sales channel and price of the product, and there are no outstanding obligations that will affect the customer's acceptance of the product. Delivery occurs when the product is shipped to a specific location, its obsolescence and risk of loss has passed to the customer, and the customer has accepted the product in accordance with the sales contract, the acceptance clause has expired, or when the Company has objective evidence that all acceptance conditions have been met.

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

The Company provides corporate information system and advisory services and recognizes associated revenue during the financial reporting period for the provision of services. A fixed-price contract is based on the proportion of services actually provided to total services as of the reporting date, and the revenue is gradually recognized over time.

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

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

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

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

~21~

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

(3) Financial components

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

(XIV) Employee benefits

1. Defined contribution plans

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

2. Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are recognized as expenses at the time of provision of the relevant services.

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

(XV) Income taxes

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

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

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

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

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

~22~

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

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.

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

expected to be reversed, based on the statutory or substantial legislative rates at the date of reporting, and reflects the uncertainty (if any) associated with income tax.

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

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

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

(XVII) Segment information

~23~

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

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

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

The preparation of the parent company only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Management continues to review estimates and underlying assumptions, and changes in accounting estimates are recognized during the period of change and for future periods affected.

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

VI. Explanation of significant accounts

(I) Cash and cash equivalents

d cash equivalents
Cash on hand Demand and foreign currency deposits Time deposits	December 31, 2023 $ 120 68,742 59,924 $ 128,786	December 31, 2022
		145 9,157 24,568
		33,870

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

(2) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance Net notes and accounts receivable Net accounts receivable - related parties		December 31, 2023 $ 4,450 176,849 181,299 (8,403 ) $ 172,896 $ 162,760 $ 10,136		December 31, 2022
				2,279 195,301 197,580 (2,448 ) 195,132 179,348 15,784

~24~

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

The Company uses a simplified approach to estimate expected credit losses for all notes and accounts receivable; i.e., they are measured by lifetime expected credit losses. For measurement purpose, these notes and accounts receivable are grouped by common credit risk characteristics that represent the customer's ability to pay all amounts due in accordance with the contractual terms. Forward-looking information such as historical credit loss experience and reasonable forecast of future economic conditions has been incorporated. Analysis of the expected credit losses of notes and accounts receivable for December 31, 2023 and 2022, is as follows:

Credit rating	December 31, 2023 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 157,431 - - 23,868 35.21% 8,403 $ 181,299 8,403	December 31, 2023 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 157,431 - - 23,868 35.21% 8,403 $ 181,299 8,403	December 31, 2023 Carrying amount of notes and accounts receivable Weighted average expected credit loss ratio Allowance for lifetime expected credit losses $ 157,431 - - 23,868 35.21% 8,403 $ 181,299 8,403
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio
Level A Level B	$ 157,431 23,868	- 35.21%
	$ 181,299		8,403

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

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

Not yet past due 0 to 90 days past due 90 to 180 days past due More than 180 days past due	December 31, 2023 $ 134,892 19,722 9,979 16,706 $ 181,299	December 31, 2022 138,471 36,803 6,340 15,966 197,580

Changes in the Company's loss allowance for notes receivable and accounts receivable

~25~

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

were as follows:

Opening balance at start of period Impairment losses recognized Balance at end of period	2023 $ 2,448 5,955 $ 8,403	2022
		31 2,417 2,448

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

As of December 31, 2023 and 2022, none of the Company's notes and accounts receivable were pledged as collateral.

Please see note VI (XV) for the sensitivity analysis of exchange rates for the Company's notes and accounts receivable for 2023 and 2022.

(III) Inventories

Goods held for sale	December 31, 2023	December 31, 2022
	$ 54,452	121,915

The cost of inventories recognized as cost of goods sold and as expenses by the Company in 2023 and 2022 were NT$546,938 thousand and NT$990,985 thousand, respectively.
Details of expenses and losses related to inventory recognition of the Company in 2023
and 2022 are as follows:

d 2022 are as follows:
Write-down and losses from inactive inventory(reversed)	2023 $ (496)	2022
		1,038

As of December 31, 2023 and 2022, none of the Company's inventories were pledged as collateral.
(IV) Investments accounted for using the equity method

The Company’s financial information for investments accounted for using the equity

method at the reporting date was as follows:

Subsidiary	December 31, 2023	December 31, 2022
	$ 1,887,668	1,869,000

Please refer to the 2023 consolidated financial statements.
As of December 31, 2023 and 2022, none of the Company's investments under the equity method were pledged as collateral.

~26~

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

(V) Property, plant, and equipment

Details of changes in cost and depreciation of property, plant, and equipment of the Company in 2023 and 2022 are as follows:

Cost: Balance on January 1, 2023 Add Disposal Balance on December 31, 2023 Balance on January 1, 2022 Add Disposal Transfers Balance on December 31, 2022 Depreciation: Balance on January 1, 2023 Depreciation Disposal Balance on December 31, 2022 Balance on January 1, 2022 Depreciation Disposal Balance on December 31, 2022 Carrying amounts: December 31, 2023 January 1, 2022 December 31, 2022	Land $ 140,142 - - $ 140,142 $ 140,142 - - - $ 140,142 $ - - - $ - $ - - - $ - $ 140,142 $ 140,142 $ 140,142	Buildings 75,172 - - 75,172 75,094 78 - - 75,172 37,057 1,820 - 38,877 34,973 2,084 - 37,057 36,295 40,121 38,115	Machinery and equipment - 884 - 884 - - - - - - 57 - 57 - - - - 827 - -	Office equipment and others 28,717 5,005 (3,897) 29,825 34,913 1,313 (7,647) 138 28,717 24,468 3,184 (3,897) 23,755 28,181 3,934 (7,647) 24,468 6,070 6,732 4,249	Total 244,031 5,889 (3,897)
					246,023
					250,149 1,391 (7,647) 138
					244,031
					61,525 5,061 (3,897)
					62,689
					63,154 6,018 (7,647)
					61,525
					183,334
					186,995
					182,506

Please see Note VIII for details of long-term borrowings and financing lines

guaranteed by a portion of property, plant, and equipment as of December 31, 2023 and 2022.

(VI) Right-of-use assets

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

~27~

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

Right-of-use asset costs: Balance on January 1, 2023(December 31, 2023) Balance on January 1, 2022 Add Balance on December 31, 2022 Right-of-use asset depreciation: Balance on January 1, 2023 Depreciation Balance on December 31, 2023 Balance on January 1, 2022 Depreciation Balance on December 31, 2022 Carrying amounts: December 31, 2023 January 1, 2022 December 31, 2022 (VII) Short-term loans Secured bank loans Unsecured bank loans Total Unused credit line Interest rate	Building $ 5,723	Building $ 5,723
	$
	$	2,123 3,600
	$	5,723
	$	1,608 1,908
	$	3,516
	$	- 1,608
	$	1,608
	$	2,207
	$	2,123
	$	4,115

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

~28~

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

(VIII) Lease liabilities

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

Current Non-current	December 31, 2023	December 31, 2022
	$ 2,290 $ 305	2,264
		2,594

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

Interest expense on lease liabilities Variable lease payments not included in the measurement of lease liabilities Gains from sublease of right-of-use assets Expenses related to short term leases Expenses related to leases of low value assets (excluding short term leases of low value assets)	2023	2022
	$ 44 $ 37 $ 1,825 $ 3 $ 73	59
		33
		1,825
		305
		50

Amounts recognized in the statements of cash flows are as follows:

Total cash flows from leases	2023	2022
	$ 2,420	2,390

1. Leasing of buildings

The Company leased buildings as office premises. The lease term of the office premises was 3 years, and the lease included the option to extend the lease term for the same period as the original contract.

2. Other leases

The lease period of parking space leased by the Company is 3 years.

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

The Company also leases other equipment with contract terms of 1 year. These leases are short-term or leases of low value items. The Company has elected not to recognize right of use assets and lease liabilities for these leases.

(IX) Employee benefits

~29~

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

The defined contribution plan of the Company is in accordance with the provisions of the Labor Pension Act. In accordance with the contribution rate of 6% of workers’ monthly wages, a contribution is transferred to the individual accounts of the labor pension fund of the Bureau of Labor Insurance. After the Company has allocated a fixed amount to the Bureau of Labor Insurance under this plan, it has no statutory or presumptive obligation to pay additional amounts.

The pension expenses under the Company's 2023 and 2022 defined pension contributions were NT$6,428 thousand and NT$6,135 thousand, respectively, and were transferred to the Bureau of Labor Insurance.

(X) Income taxes
Income tax expense
(1) The Company's expenses for 2023 and 2022 were as follows:

Income tax expense for the current period: Generated in the current period Undistributed surplus earnings Undervaluation (overvaluation) for the prior period Deferred tax expense Income tax expense	2023 $ 31,173 7,836 (144 ) 38,865 5,874 $ 44,739	2022 4,418 520 112 5,050 12,739 17,789

(2) The Company's 2023 and 2022 income tax expenses and pre-tax net profits were adjusted as follows:

Net profit before tax Income tax calculated at the domestic tax rate of the Company's location Net amount of domestic investment gains and losses Foreign dividend income Changes in unrecognized temporary differences Current-year losses for which no deferred tax asset was recognized Undistributed surplus earnings Undervaluation (overvaluation) for the prior period Others Income tax expense	2023	2022
	$ 173,320 $ 34,664 (9,076) 16,212 (5,945) - 7,836 (195) 1,243 $ 44,739	201,977 40,395 (8,045) - (13,418) (2,763) 520 1,100 - 17,789

~30~

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

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

Temporary differences related to investment subsidiaries on December 31, 2023 and 2022, are due to the Company's control over the timing of the reversal of these temporary differences. Therefore, no deferred tax liabilities were recognized. Relevant amounts were as follows:

Aggregated amount of temporary differences related to investment subsidiaries Amounts not recognized as deferred tax liabilities	December 31, 2023 $ 775,749 $ 155,150	December 31, 2022
		690,172
		138,034

(2) Items not recognized as deferred tax assets by the Company are as follows: None

(3) Recognized deferred tax assets and liabilities

Changes in deferred tax assets and liabilities for 2023 and 2022 are Investment income recognized under the equity method (foreign) Other Deferred tax liabilities: Balance on January 1, 2023 $ 37,802 450 Debit/(credit) income 7,058 (450) Balance on December 31, 2023 $ 44,860 - Balance on January 1, 2022 $ 25,706 - Debit/(credit) income 12,096 450 Balance on December 31, 2022 $ 37,802 450 Tax loss Other Deferred tax assets: Balance on January 1, 2023 $ - 2,411 (Debit)/credit income - 734 Balance on December 31, 2023$ - 3,145 Balance on January 1, 2022 $ 2,604 - (Debit)/credit income (2,604) 2,411 Balance on December 31, 2022$ - 2,411	Changes in deferred tax assets and liabilities for 2023 and 2022 are Investment income recognized under the equity method (foreign) Other Deferred tax liabilities: Balance on January 1, 2023 $ 37,802 450 Debit/(credit) income 7,058 (450) Balance on December 31, 2023 $ 44,860 - Balance on January 1, 2022 $ 25,706 - Debit/(credit) income 12,096 450 Balance on December 31, 2022 $ 37,802 450 Tax loss Other Deferred tax assets: Balance on January 1, 2023 $ - 2,411 (Debit)/credit income - 734 Balance on December 31, 2023$ - 3,145 Balance on January 1, 2022 $ 2,604 - (Debit)/credit income (2,604) 2,411 Balance on December 31, 2022$ - 2,411	Changes in deferred tax assets and liabilities for 2023 and 2022 are Investment income recognized under the equity method (foreign) Other Deferred tax liabilities: Balance on January 1, 2023 $ 37,802 450 Debit/(credit) income 7,058 (450) Balance on December 31, 2023 $ 44,860 - Balance on January 1, 2022 $ 25,706 - Debit/(credit) income 12,096 450 Balance on December 31, 2022 $ 37,802 450 Tax loss Other Deferred tax assets: Balance on January 1, 2023 $ - 2,411 (Debit)/credit income - 734 Balance on December 31, 2023$ - 3,145 Balance on January 1, 2022 $ 2,604 - (Debit)/credit income (2,604) 2,411 Balance on December 31, 2022$ - 2,411	as follows: Total 38,252 6,608 44,860 25,706 12,546 38,252 Total 2,411 734 3,145 2,604 (193) 2,411
	$ 37,802 7,058
	$ 44,860	-
	$ 25,706 12,096	- 450
	$ 37,802	450
	Tax loss	Other 2,411 734 3,145
	$ - -
	$ -
	$ 2,604 (2,604)	- 2,411 2,411
	$ -

The Company’s tax returns for the years up to 2021 were examined and approved by the tax authority.

~31~

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

(XI) Capital and other equity

For both December 31, 2023 and December 2022, the total authorized capital stock of the Company was NT$2,700,000 thousand and the par value was NT$10 per share, for 270,000 thousand shares. The total number of shares specified above constitutes ordinary shares, with the number of issued shares amounting to NT$95,890 thousand. All payments for issued shares have been received.

The reconciliation table of the number of outstanding shares of the Company in 2023 and 2022 is as follows:

Unit: Thousand shares

2022 is as follows:	Unit: Thousand shares	Unit: Thousand shares
Starting balance on January 1 Issuance of stock dividend Issuance of employee stock remuneration Cancellation of treasury shares Ending balance on December 31	Common stock 2023 2022 95,890 94,000 - 2,790 - 100 - (1,000) 95,890 95,890
		2022
		94,000 2,790 100 (1,000) 95,890

1. Additional paid-in capital

According to the provisions of the Company Act, additional paid-in capital must first make up for losses and only then can realized additional paid-in capital be converted into capital or into cash dividends for issuance. Realized additional paid-in capital referred to in the preceding paragraph includes the excess from the issuance of shares in excess of the par value and from the receipt of gifts. In accordance with the provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the total amount of additional paid-in capital allocated to be replenished each year may not exceed 10% of the paid-in capital.

2. Retained earnings

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

~32~

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

a resolution of the shareholders' meeting.

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

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

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

(1) Legal reserve

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

(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.

~33~

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

(3) Earnings distribution

The Company respectively passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings for 2022 and 2021 on March 23, 2023 and March 22, 2022.Other earnings distribution for 2022 and 2021 were approved by the general meetings of shareholder held on June 13, 2023 and June 14, 2022, respectively. The dividend amounts to be distributed to owners were as follows:

2022	2021 Dividend rate (NT$) Amount 0.30 27,900 0.30 27,900 55,800	2021 Dividend rate (NT$) Amount 0.30 27,900 0.30 27,900 55,800
Amount	Dividend rate (NT$) 0.30 0.30
67,123 -
$ 67,123		55,800

On March 12 2024, the Board of Directors of the Company proposed the earnings distribution for 2023 with the amount of dividends distributed to owners as follows:

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

Cash dividends and stock dividends are calculated based on the 95,890 thousand shares of the Company that have been issued as of March 12, 2024, and that are entitled to participate in the distribution.

3. Treasury shares

In accordance with Article 28-2 of the Securities and Exchange Act, the Company

buys back treasury shares for the purpose of transferring shares to employees. Details of changes in treasury shares in 2023 and 2022 are as follows:

Treasury shares at start of period Cancellations this period Treasury shares at end of period	2022 Number of shares (thousand shares) Amount 1,000 $ 14,262 (1,000) (14,262)	2022 Number of shares (thousand shares) Amount 1,000 $ 14,262 (1,000) (14,262)
	Number of shares (thousand shares)
	1,000 (1,000)	$ 14,262 (14,262)
	-	$ -

~34~

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

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

(XII) Earnings per share

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

Basic earnings per share: Net profit attributable to holders of ordinary shares of the Company Weighted average number of ordinary shares outstanding (thousand shares) Basic earnings per share (NT$) Diluted earnings per share: Net profit attributable to holders of ordinary shares of the Company (diluted) Weighted average number of ordinary shares outstanding (basic) (thousand shares) Impact of employee stock remuneration Weighted average number of ordinary shares outstanding (diluted) (thousand shares) Diluted earnings per share (NT$)	2023 $ 128,581	2022 184,188 95,868 1.92 184,188 95,868 432 96,300 1.91
	95,890
	$ 1.34
	$ 128,581
	95,890 247
	96,137
	$ 1.34

(XIII) Revenue from customer contracts

~35~

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

1. Details of revenue

2023 Information Wire & Services Connectors Department Department Total

Primary regional markets: Taiwan Mainland China Primary regional markets: Taiwan Mainland China ract balances Notes receivable Accounts receivable Less: Loss allowance Contract liabilities	$ 717,040 19,573	$ 717,040 19,573	- 19,249	- 19,249	717,040 38,822 755,862 Information Services Department 1,209,114 41,263 1,250,377 January 1, 2022 3,742 105,050 (31 ) 108,761 159,007
	$ 736,613		19,249
			2022
	Information Services Department		Information Services Department
	$ 1,209,114 16,613		- 24,650 24,650 December 31, 2022 2,279 195,301 (2,448 ) 195,132 47,286
	$ 1,225,727
	December 31, 2023 $ 4,450 176,849 (8,403 ) $ 172,896 $ 20,395

2. Contract balances

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

impairment.

The opening balances of contract liabilities for January 1, 2023 and 2022, and the amounts recognized as revenue in 2023 and 2022 were NT$35,945 thousand and NT$152,964 thousand, respectively.

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

(XIV) Remuneration of employees and of directors and supervisors

In accordance with the Company’s Articles of Incorporation, if there is profit for the year then no less than 1% and no more than 10% shall be allocated for employee remuneration by a resolution of the Board of Directors and in the form of stock or cash distributions.

~36~

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

Distribution recipients are to include employees of affiliated companies who meet certain conditions. Out of the aforementioned profit amount of the Company, no more than 3% should be appropriated by a resolution of the Board of Directors as remuneration for directors and supervisors (constitutes director remuneration after the establishment of the Audit Committee).

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

The estimated amounts of employee remuneration of the Company in 2023 and 2022 were NT$3,400 thousand and NT$7,700 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$3,400 thousand and NT$6,400 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 2023 and 2022 consolidated financial statements. (After the establishment of the Audit Committee, supervisor remuneration constitutes director remuneration.) Relevant information can be inquired through the Market Observation Post System.

(XV) Financial instruments

1. Credit risk

1) Amount of maximum credit risk exposure

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

~37~

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

(2) Concentration of credit risk

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

(3) Credit risk of receivables

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

2. Liquidity risk

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

Carrying amount	Contractual cash flows	Within 1year	1 to 2years	Over 2years - - - - (348)
$ 696,000 2,595 118,619 47,188 348	(697,625) (2,613) (118,619) (47,188) (348)	(697,625) (2,307) (118,619) (47,188) -	- (306) - - -
$ 864,750	(866,393)	(865,739)	(306)	(348)
$ 691,000 4,858 139,433 60,745 348	(692,430) (4,919) (139,433) (60,745) (348)	(692,430) (2,307) (139,433) (60,745) -	- (2,307) - - -	- (305) - - (348)
$ 896,384	(897,875)	(894,915)	(2,307)	(653)

~38~

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

The Company 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 Company exposed to significant foreign currency exchange rate risk are as follows:

Financial assets Monetary items USD HKD Financial liabilities Monetary items USD	December 31, 2023	December 31, 2023	December 31, 2023	Foreign currency unit: $ thousand December 31, 2022	Foreign currency unit: $ thousand December 31, 2022	Foreign currency unit: $ thousand December 31, 2022
	Foreign currency	Exchange Rate	TWD	Foreign currency	Exchange Rate	TWD
	$ 4,058 2,004 238	USD/TWD =30.705 HKD/TWD =3.929 USD/TWD =30.705	124,608 7,874 7,313	1,312 4,008 219	USD/TWD =30.71 HKD/TWD =3.938 USD/TWD =30.71	40,285 15,784 6,728

(2) Sensitivity analysis

The exchange rate risk of the Company's monetary items mainly comes from cash

and cash equivalents, accounts receivable, other receivables and accounts payable denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If the TWD had depreciated or appreciated by 5% against the USD or RMB as of December 31, 2023 and 2022, then with all other factors remaining constant the impact on net profit before tax in 2023 and 2022 would be as follows:

USD (versus TWD) Appreciate 5% Depreciate 5% HKD (versus TWD) Appreciate 5% Depreciate 5%	December 31, 2023 $ 5,865 (5,865) 394 (394)	December 31, 2022
		1,678 (1,678) 789 (789)

(3) Exchange gains and losses on monetary items

For information on exchange gains and losses on monetary items of the Company,

foreign currency exchange gains (losses) in 2023 and 2022 (both realized and unrealized) amounted to (NT$3,005) thousand and NT$5,752 thousand.

~39~

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

4. Interest rate analysis

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

Variable rate instruments (book amounts): Financial assets Financial liabilities	December 31, 2023 $ 103,542 361,000	December 31, 2022
		43,957 531,000

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

If interest rates had increased or decreased by 25 basis points, and with all other variables held constant, the Company's net profit before tax in 2023 and 2022 would have decreased or increased by NT$644 thousand and NT$1,218 thousand, respectively. This would mainly be due to variable interest rate demand deposits and borrowings of the Company.

5. Fair value information

(1) Fair value hierarchy

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

	December 31, 2023	December 31, 2023	December 31, 2023
Carrying amount $ 128,786 172,896 285		Fair value
	Level 1 - - -	Level 2 - - -	Level 3 - - -	Total
				- - -

~40~

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

	December 31, 2023	December 31, 2023	December 31, 2023
Carrying amount 34,806 28,240		Fair value
	Level 1 Level 2 Level 3 - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2022			Total
				- - - - - - - -
$ 365,013
$ 696,000 118,691 47,188 2,290 305 348
$ 864,750

Carrying amount $ 33,870 195,132 219 34,800 24,752		Fair value		Total - - - - -
	Level 1 - - - - -	Level 2 - - - - -	Level 3 - - - - -
$ 288,773

~41~

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

	December 31, 2022	December 31, 2022	December 31, 2022
Carrying amount $ 691,000 139,433 60,745 2,264 2,594 348		Fair value
	Level 1 - - - - - -	Level 2 - - - - - -	Level 3 - - - - - -	Total
				- - - - - -
$ 896,384

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

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

(XVI) Financial risk management

1. Overview

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

(1) Credit risk

(2) Liquidity risk

(3) Market risk

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

2. Risk management structure

The Company's financial department provides services for various businesses, coordinates access to domestic and international financial market operations, and supervises and manages the financial risks associated with the Company’s operations through internal risk reports that analyze risk exposure according to the level and breadth of risk. The use of financial instruments is governed by the policies adopted by the Board of Directors of the Company. These constitute written principles for exchange rate risk,

~42~

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

interest rate risk, credit risk, the use of non-derivative financial instruments, and the investment of surplus liquidity. Internal auditors continuously review policy compliance and exposure limits. The Company does not trade in financial instruments for speculative purposes (including derivative financial instruments).

3. Credit risk

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

(1) Accounts receivable and other receivables

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

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

(2) Investments

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

~43~

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

(3) Guarantees

It is the Company's policy to provide financial guarantees only to wholly-owned subsidiaries. Please refer to Note XIII (I) for information on endorsements/guarantees by the Company for subsidiaries as of December 31, 2023.

4. Liquidity risk

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

Bank borrowings are an important source of liquidity for the Company. Please refer to Note VI (VII) for unused bank facilities of the Company as of December 31, 2023 and 2022.

5. Market risk

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

(1) Exchange rate risk

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

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

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

(2) Interest rate risk

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

~44~

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

(XVII) Capital management

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

Total liabilities Total equity Interest-bearing debt Debt-to-equity ratio Ratio of interest-bearing debt to equity	December 31, 2023 $ 975,174 1,534,661 696,000 64% 45%	December 31, 2022 998,303 1,485,708 691,000 67% 47%

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

The Company's non-cash transaction investment and financing activities in 2023 and 2022 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:

Short-term loans Deposits received Lease liabilities Total liabilities from financing activities Short-term loans Deposits received Lease liabilities Total liabilities from financing activities	January 1, 2023 $ 691,000 348 4,858	Cash flows 5,000 - (2,263)		Non-cash changes Others - - - - Others - - 3,600 3,600	December 31, 2023 696,000 348 2,595 698,943 December 31, 2022 691,000 348 4,858 696,206


	$ 696,206	2,737
	January 1, 2022 $ 689,956 348 3,201	Cash flows 1,044 - (1,943)

	$ 693,505	(899)

~45~

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

VII. Related party transactions

(I) Names and relationship with related parties

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

Name of related party CHLERAISE ELECTRONIC CORPORATION (CELERAISE) CELERAISE (THAILAND) CO., LTD (THAILAND) Celeraise Investments Limited (Celeraise Hong Kong) Leadpak Industrial Co., Ltd. (Leadpak Industrial, formerly Bor Sheng Industrial Co., Ltd.) Celeraise Technology Corporation (Celeraise Technology) Shanghai Zhansheng Electronics Co., Ltd. (Shanghai Zhansheng) Yield Profit International Enterprise Limited (Yield Profit International) Jet Success Technology Development Limited (Jet Success) Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan Yiguan) Mr. Yun-Teng Chang	Relationship with the Company
	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Chairman of the Company

Name of related party
CHLERAISE ELECTRONIC CORPORATION (CELERAISE)
CELERAISE (THAILAND) CO., LTD (THAILAND)
Celeraise Investments Limited (Celeraise Hong Kong)
Leadpak Industrial Co., Ltd. (Leadpak Industrial, formerly Bor
Sheng Industrial Co., Ltd.)
Celeraise Technology Corporation (Celeraise Technology)
Shanghai Zhansheng Electronics Co., Ltd. (Shanghai
Zhansheng)
Yield Profit International Enterprise Limited (Yield Profit
International)
Jet Success Technology Development Limited (Jet Success)
Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan
Yiguan)
Mr. Yun-Teng Chang

Relationship with the
Company

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

(II) Significant transactions with related parties

1. Operating revenue

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

Subsidiary	2023 $ 23,871	2022 20,818

The Company has no sales prices for subsidiary to compare with those for general customers. The sales prices for Celeraise Technology are not significantly different from that of ordinary customers. The Company's credit conditions for Celeraise Technology are determined according to the credit conditions of the final purchaser of each project. The credit conditions for subsidiary are 270 days. Payments are made according to financial needs. There is no significant difference from general customers, and the credit period for general customers is 30 to 60 days.

~46~

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

2. Purchases

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

Subsidiary Celeraise Hong Kong Others	2023 $ 22,022 3,167	2022 21,819 1,275
	$ 25,189	23,094

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

3. Receivables from related parties

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

Accounts Related party category Accounts receivable Subsidiary: Celeraise Hong Kong Shanghai Zhansheng THAILAND	December 31, 2023 $ 7,874 990 1,272 $ 10,136	December 31, 2022
		15,784 - - 15,784

4. Payables to related parties

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

Accounts Related party category Accounts payable Subsidiary:	December 31, 2023 $ 7,472	December 31, 2022
		6,532

5. Loans to related parties

Interest receivable arising from the company’s previous loans to related parties; and interest receivable for the years ended December 31, 2023 and 2022, amounted to

NT$285 thousand and NT$219 thousand, respectively, accounted for as other receivables - related parties.

~47~

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

6. Endorsements/Guarantees

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

ws:
Subsidiary	December 31, 2023 $ 41,533	December 31, 2022
		40,446

7. Leases

The Company leases some office floors to its subsidiaries and rent is charged monthly. Rental income for both 2023 and 2022 was NT$1,080 thousand. As of December 31, 2023 and 2022, all relevant funds had been recovered.

(III) Key management personnel transactions

Compensation of key management personnel includes:

Short-term employee benefits	2023	2022 31,676
	$ 21,625

2. Guarantees provided

The total amounts of the Company's short-term loan contracts for December 31, 2023 and 2022, were NT$1,049,763 thousand and NT$1,141,775 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

VIII. Pledged assets

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

Asset name	Purpose of pledge	December 31, 2023 $ 140,142 36,295 34,800 28,240 $ 239,477	December 31, 2022 140,142 38,115 34,800 24,752 237,809
Property, plant, and equipment - land Property, plant, and equipment - buildings 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 Bank loans and performance guarantees, etc. Performance guarantees and bid deposits

IX. Significant commitments and contingencies: None `.`

X. Losses due to major disasters: None.

~48~

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

XI. Significant subsequent events: None.

XII. Other

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

Function Nature	2023	2023	2023	2022	2022	2022	2022	2022
	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 Director's remuneration Other employee benefit expense Depreciation expense Amortization expense	26,625 3,186 1,608 - 1,796 758 -	73,228 9,521 4,820 4,335 5,645 6,570 2,148	99,853 12,707 6,428 4,335 7,441 7,328 2,148	8,318 916 431 - 462 1,458 -		116,057 11,470 5,704 6,735 6,330 6,527 1,898		124,375 12,386 6,135 6,735 6,792 7,985 1,898
Additional information on the number of employees and employee benefit expenses of the Company in 2023 and 2022 is as follows: 2023 2022 Number of employees 171 177 Number of directors who do not concurrently serve as employees 7 7 Average employee benefit expense $ 771 881 Average employee salary expense $ 609 732 Adjustments in average employee salary expense (17)% Supervisor's remuneration $ - -
					171		177
					7		7
					$ 771		881
					$ 609		732
					(17)%		-
					$ -

The Company's salary and remuneration policy information is as follows (including directors, supervisors, managers, and employees):

1. Employees:

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

~49~

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

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

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

2. Managers:

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

Directors and supervisors:

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

XIII. Other disclosures

(I) Information on significant transactions

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Company in 2023:

~50~

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

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 twoparties	Reasons for short term financing	Allowance for bad debt	Collateral	Collateral	Loan limit for individual counterpartie s	Total loan limit
													Name	Value
1 1 1 2 2 3 4 4	Jiun Tai Jiun Tai Jiun Tai Jet Success Jet Success Shanghai Zhansheng Celeraise Hong Kong Celeraise Hong Kong	THAILAND Celeraise Hong Kong Yield Profit International Yield Profit International CELERAISE Huizhou Zhanmao THAILAND CELERAISE	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Y Y Y Y Y Y Y Y	61,608 15,018 24,481 21,625 15,018 49,562 49,200 16,213	30,705 - 23,182 - - 26,611 49,128 15,353	30,705 - 23,182 - - 26,611 49,128 15,353	2%-4% 1.5% 1.5% 1.5% 2.0% 1.5% 2%-4% 2.0%	Short-term financing Short-term financing 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 Operating turnover Operating turnover	- - - - - - - -	None None None None None None None None	- - - - - - - -	97,249 243,122 243,122 300,588 120,235 101,599 440,843 440,843	243,122 243,122 243,122 300,588 300,588 101,599 1,102,106 1,102,106

Note 1: In accordance with Jiun Tai’s Operational “Procedures for Loaning Funds to Others”, the total amount of funds loaned may not exceed 100% of Jiun Tai's net value. If there is a need for short-term financing with Jiun Tai, the loan amount may not exceed 100% of Jiun Tai's net value. Further, the total amount of foreign intercompany loans where Jiun Tai does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

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

2. Guarantees and endorsements for other parties:

Number	Name of endorsement/gua rantee 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/guara ntee 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	Endorsement s/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	1,534,661 1,534,661 328,737	81,063 142,220 42,946	76,763 50,000 41,533	- - 41,533	- - -	5.00% 3.26% 63.17%	1,534,661 1,534,661 328,737	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$76,763 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.
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.

~51~

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

7. Related party transactions for purchases and sales with amounts exceeding NT$100 million or 20% of the paid-in capital:

million or 20% of the paid-in	million or 20% of the paid-in	million or 20% of the paid-in	capital:	capital:	capital:	capital:	capital:	capital:	capital:	capital:	capital:
			Unit: NT$ thousand
Company buying (selling) goods	Transaction counterparty	Relationship	Transaction status				Circumstances and reasons why trading conditions are different from ordinary transactions		Notes and accounts receivable (payable)		Notes
			Buying (selling) goods	Amount (Note 1)	Ratio of total purchas es (sales)	Credit period	Unit price	Credit period	Balance	Ratio of total notes and accounts receivable (payable)
Huizhou Zhanmao Celeraise Hong Kong Celeraise Hong Kong Huizhou Zhanmao	Celeraise Hong Kong Huizhou Zhanmao Huizhou Zhanmao Celeraise Hong Kong	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	(350,694) 350,694 (113,550) 113,550	(55) % 71 % (20) % 22 %	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	189,643 (189,977) 73,599 (73,564)	44% (86)% 30% (56)%	Note 1 Note 1 Note 1 Note 1

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

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

paid-in capital:

					Unit: NT$ thousand	Unit: NT$ thousand	Unit: NT$ thousand	Unit: NT$ thousand
Company with accounts receivable	Transaction counterparty	Relationship	Balance of receivables from related parties	Turnover rate	Receivables overdue from relatedparties		Receivables amount from related parties recovered after theperiod	Amount of allowance for doubtful accounts
					Amount	Action taken
Celeraise Hong Kong Huizhou Zhanmao	Huizhou Zhanmao Celeraise Hong Kong	Ultimate parent company is the same Ultimate parent company is the same	73,599 189,643	0.91 2.28	- -		- 29,332	- -

Note 1: Information up to February 28, 2023.

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

9. Trading in derivative instruments: None.

~52~

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

(II) Information on investees

The Company's reinvestment business information is as follows (excluding investment in mainland China companies):

				Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares	Unit: Foreign currencythousands / thousand shares
Investing company name	Investee company name	Region	Main business items	Original investment amount		Held at end of 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)
The Company The Company The Company The Company The Company The Company The Company Jiun Tai Celeraise Hong Kong `〃`	A Team Jiun Tai Celeraise Technology Leadpak Industrial Celeraise Hong Kong CELERAISE THAILAND Celeraise Hong Kong Yield Profit International Jet Success	British Virgin Islands Hong Kong Taiwan Taiwan Hong Kong Philippine s Thailand Hong Kong Hong Kong Hong Kong	Investment, trading, and holding company Holding company Information service industry 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 Investment, trading, and holding company Investment, trading, and holdingcompany	16,538 241,922 30,000 29,810 191,996 25,532 182,136 1 (HKD0.16) 61,292 (HKD15,600) 30,646 (HKD7,800)	16,538 241,922 30,000 29,810 191,996 25,532 182,136 1 (HKD0.16) 61,292 (HKD15,600) 30,646 (HKD7,800)	500 59,920 3,000 2,981 50,300 400 18,275 - 15,600 7,800	100% 100% 100% 99.36% 99.99% 100% 100% 0.01% 100% 100%	956 248,714 65,751 31,339 1,128,399 242,875 169,634 1 (HKD0.16) 377,577 (HKD96,100) 300,588 (HKD76,505)	- 16,943 31,817 13,649 118,293 (18,117) 3,732 - 71,210 (HKD17,883) 8,756 (HKD2,199)	- 16,943 31,817 13,561 118,293 (18,117) 3,732 Recognized by Jiun Tai Recognized by Celeraise Hong Kong `〃`	Subsidiary `〃` `〃` `〃` `〃` `〃` `〃` `〃` Sub-subsi diary `〃`

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

(III) Information on investment in mainland China

Relevant information such as the name and main business items of the investee company
in mainland China:

in mainland China:	in mainland China:	in mainland China:	in mainland China:	in mainland China:
					Unit: Foreign currency thousands / thousand shares
Mainland China investee company name	Main business items	Paid-in capital amount (Note 3)	Investment method	Accumulated investment amount remitted from Taiwan at the beginning of the current period (Note 3)	Investment amount remitted or recovered in the current period		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	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
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.	15,352 (US$500) 51,431 (US$1,675) 45,799 (US$515 RMB$6,930) (Note 6) - 30,705 (US$1,000) 51,584 (US$1,680) (Note 7)	Note 1 Note 2 Note 2 Note 2 Note 2 Note 2	15,352 (US$500) 224,147 (US$7,300) - 30,705 (US$1,000) 30,705 (US$1,000) -	- - - - - -	- - - - - -	15,352 (US$500) 224,147 (US$7,300) - 30,705 (US$1,000) 30,705 (US$1,000) -	- 10,754 (RMB2,448) 7,002 (RMB1,594) (Note 8) 9,008 (RMB2,051) 71,799 (RMB16,344)	100% 100% 100% -% 100% 100%	- 10,249 (RMB2,333) 7,002 (HKD1,758) - 9,008 (HKD2,262) 71,787 (HKD18,028)	- 107,898 (RMB24,936) 39,227 (HKD9,984) (Note 8) 294,149 (HKD74,866) 401,394 (HKD102,162)	- 31,080 (RMB 7,000) - - 68,595 (RMB 15,818) -

Limitations on investment in mainland China:

Accumulated investment Investment amount approved Investment limit for the mainland Company amount remitted from by the Investment Commission China area in accordance with name Taiwan to mainland China of the Ministry of Economic the regulations of the Investment at the end of the current Affairs (Note 3) Commission of the Ministry of period (Note 3) Economic Affairs The Company 300,909 (USD9,800) 371,223 (USD12,090) 920,797

~53~

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

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

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

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

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

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

Note 10: Shanghai Zhansheng passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings on September, 2023.Distribute cash dividend of RMB$ 7,000 thousand.

Note 11: Kunshan Yiguan passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings on September, 2023.Distribute cash dividend of RMB$ 15,818 thousand.

Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Company and mainland China investee companies in 2023 (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”.

~54~

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

(IV) Information on principal shareholders:

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%

XIV. Segment information

Please refer to the 2023 consolidated financial statements for details.

~55~

Welltend Technology Corporation Schedule of cash and cash equivalents December 31, 2023

Unit: NT$ thousand

Item Summary Cash on hand Demand deposits Foreign currency deposits USD 1,655.43 thousand @30.705 Time deposits USD 1,951.61 thousand @30.705 Schedule of notes and accounts receivable - non-related parties	Amount $ 120 17,912 50,830 59,924
	$ 128,786

Customer name Notes receivable: Others (Note) Accounts receivable: Company V Company AA Company AC Others (Note) Less: Loss allowance Total	Summary Operating revenue from non-related parties Operating revenue from non-related parties `〃` `〃`	Amount $ 4,450
		10,694 12,403 20,355 123,261
		166,713 (8,403)
		$ 162,760

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

~56~

Welltend Technology Corporation

Schedule of inventories

December 31, 2023

Unit: NT$ thousand

Item Goods held for sale Less: Allowance for depreciation and inactive inventory	Amount Cost Net realizable value	Amount Cost Net realizable value
	Cost
	$ 55,706 (1,254)	54,802
	$ 54,452

~57~

Welltend Technology Corporation

Schedule of changes in investments using the equity method

January 1 to December 31, 2023

Units: NT$ thousand / Original currency thousand

Number of shares: Thousand shares

Name	Opening balance at start of period	Opening balance at start of period	Additions this period	Additions this period	Reductions this period	Reductions this period	Investment gains (losses) recognized under the equity method	Exchange differences on translation of foreign financial statements	Balance at end of period	Balance at end of period	Balance at end of period	Total market price or net value	Provision of guarantee or pledge Notes
	Number of shares Amount		Number of shares	Amount - - - - - - -	Number of shares	Amount - (31,080) - (35,381) (68,595) - - (135,056)			Number of shares	Shareholdin g percentage	Amount 956 248,714 31,339 65,751 1,128,399 242,875 169,634
A-Team Tech Jiun Tai Leadpak Industrial Celeraise Technology Celeraise Hong Kong CELERAISE THAILAND	500 $ 974 59,920 267,120 2,981 17,778 3,000 69,315 50,300 1,093,730 400 255,661 18,275 164,422 $ 1,869,000		- - - - - - -		- - - - - - -		- 16,943 13,561 31,817 118,293 (18,117) 3,732 166,229	(18) (4,269) - - (15,029) 5,331 1,480 (12,505)	500 59,920 2,981 3,000 50,300 400 18,275	100% 100% 99.36% 100% 99.99% 100% 100%		956 243,122 31,355 65,747 1,102,106 242,875 169,634	None `〃` `〃` `〃` `〃` `〃` `〃`
		$ 1,869,000		-							1,887,668

~58~

Welltend Technology Corporation

Schedule of changes in property, plant, and

equipment

December 31, 2023

Please see Note VI (V)

Schedule of short-term loans

Creditor bank First Commercial Bank Shin Kong Bank CTBC Mega Bank Citibank Taiwan Cooperative Bank DBS Bank SCSB Bank Cathay United Bank	Summary Contract period Operating turnover amount 112.07~113.07 `〃` 112.05~113.05 `〃` 112.03~113.03 `〃` 112.11~113.11 `〃` 112.03~113.03 `〃` 113.01~114.01 `〃` 112.01~113.01 `〃` 112.04~113.04 `〃` 112.03~113.03	Interest rate 1.71% - 0.5%~1.8% - 1.78% 2.078% 1.77% - 1.75%	Financing amount Collateral or guarantee $ 208,000 Land and buildings 75,000 Certificates of deposit 300,000 None 100,000 Land and buildings 76,763 Reimbursement account 40,000 Reimbursement account 100,000 Reimbursement account 80,000 Land and buildings 70,000 None $1,049,763	Amount 200,000 - 265,000 - 60,000 1,000 100,000 - 70,000 696,000

~59~

Welltend Technology Corporation Schedule of notes and accounts payable December 31, 2023

D Customer name Accounts payable: Company J Company H Company I Company X Company Y Others (Note) Accounts payable - related parties Total Note: The balance of each item does listed separately.	ecember 31, 2023 Unit: NT$ thousand Summary Amount Operating expenses from non-related parties $ 20,845 `〃` 26,091 `〃` 7,786 `〃` 5,883 `〃` 18,238 `〃` 32,304 111,147 Operating expenses of related persons 7,472 $ 118,619 not exceed 5% of the amount of this account and is not	Unit: NT$ thousand Amount
		$ 20,845 26,091 7,786 5,883 18,238 32,304
		111,147 7,472
		$ 118,619

Schedule of other payables

Item Salaries and bonuses payable Employee compensation payable Health insurance premiums payable Remuneration payable to directors Others (Note)	Summary Salary in December 2023 and estimated year-end bonus in 2023 Labor fees and withholdings, etc., payable		Amount
			$ 28,939 3,400 3,262 3,400 8,187
			$ 47,188

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

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Welltend Technology Corporation

Schedule of operating revenue

January 1 to December 31, 2023

Unit: NT$ thousand

Item Sales revenue: Information products Wire and connectors Less: Returns and discounts Others Net operating revenue	Quantity	Amount $ 603,726 19,249
		622,975 (87)
		622,888 132,974
		$ 755,862

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Welltend Technology Corporation

Schedule of operating costs

January 1 to December 31, 2023

Unit: NT$ thousand

Item Starting inventory Add: Incoming material for this period Less: Ending inventory Cost of goods sold Other operating costs Losses from inventory depreciation and inactive inventory(reversed) Total	Amount $ 123,665 478,979 (55,706) 546,938 49,888 (496) $ 596,330

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Welltend Technology Corporation

Schedule of operating expenses

January 1 to December 31, 2023

Unit: NT$ thousand

Item Salary expenses Depreciation Insurance expenses Remuneration of directors Labor fee Others (Note) Total	Marketing Expenses $ 42,667 1,256 6,487 - 2,388 15,213 $ 68,011	Management Expenses 30,561 5,314 3,738 3,400 4,255 19,489 66,757

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

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AI assistant

WELLTEND — Audit Report / Information 2023

52254_rns_2023-11-13_e4688cca-0876-4bfa-80a3-0853b78fc245.pdf

Welltend Technology Corporation

Parent Company Only Financial Statements and Independent Auditors’ Report

Table of Contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

I. Revenue recognition

II. Revenue recognition – Equity method investments – Subsidiaries

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

Financial Statements

KPMG

Notes to Readers

Welltend Technology Corporation

Balance Sheet

December 31, 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation Statement of Comprehensive Income

For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation Statement of Changes in Equity For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

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

Welltend Technology Corporation

Statement of Cash Flows

For the years ended December 31, 2023 and 2022

Unit: NT$ thousand

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

Welltend Technology Corporation Notes to the Parent Company Only Financial Statements 2023 and 2022

I. Company history

II. Approval date and procedures for adoption of financial statements

III. New standards, amendments and interpretations adopted

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

IV. Summary of significant accounting policies

1. Measurement basis

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

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

1. Financial assets

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

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

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

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

(3) Treasury shares

(6) Mutual offsetting of financial assets and liabilities

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

(VII) Inventories

1. Identification and measurement

2. Subsequent costs

3. Depreciation

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

(X) Leases

1. Lessee

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

2. Lessor

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

(XI) Intangible assets

1. Identification and measurement

2. Subsequent expenditures

3. Amortization

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

(XII) Impairment on non-financial assets

1. Revenue from customer contracts

(1) Sale of goods

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

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

(3) Financial components

(XIV) Employee benefits

1. Defined contribution plans

2. Short-term employee benefits

(XV) Income taxes

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

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

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

VI. Explanation of significant accounts

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

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

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

WELLTEND Audit Report / Information 2023