Stock code: 3021

Welltend Technology Corporation and Subsidiaries Consolidated Financial Statements With Independent Auditors' Report

For the Years Ended December 31, 2025 and 2024

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

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Item	Page
I.Cover Page	1
II.Table of Contents	2
III.Representation Letter	3
IV.Independent Auditors' Report	4
V.Consolidated Balance Sheet	5
VI.Consolidated Statement of Comprehensive Income	6
VII.Consolidated Statement of Changes in Equity	7
VIII.Consolidated Statement of Cash Flows	8
IX.Notes to the Consolidated Financial Statements	9
(I) Company history	9
(II) Approval date and procedures of the consolidated financial statements	9
(III) New standards, amendments, and interpretations adopted	9~10
(IV) Summary of significant accounting policies	11~29
(V) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	29~30
(VI) Explanation of significant accounts	30~57
(VII) Related-party transactions	58~59
(VIII) Pledged assets	60
(IX) Significant commitments and contingencies	60
(X) Losses due to major disasters	60
(XI) Significant subsequent events	60
(XII) Other	61
(XIII) Other disclosures	62
1. Information on significant transactions	62~65
2. Information on investees	66
3. Information on investment in mainland China	67~68
(XIV) Segment information	68~70

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Representation Letter

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

Company name: Welltend Technology Corporation
Chairman: Yun-Teng Chang
Date: March 11, 2026

Independent Auditors' Report

To the Board of Directors of Welltend Technology Corporation:

Opinion

We have completed our review of the balance sheet of Welltend Technology Corporation and its Subsidiaries (Welltend Group) Consolidated for the years ended December 31, 2025 and 2024, and the consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the years ended December 31, 2025 and 2024, as well as the notes to the consolidated financial statements (including a summary of significant accounting policies).

In our opinion, the aforementioned consolidated financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission. They are sufficient to adequately express the consolidated financial status of Welltend Group as of December 31, 2025 and 2024, and its consolidated financial performance and consolidated cash flows for the years ended December 31, 2025 and 2024.

Basis for Opinion

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

Key Audit Matters

Key audit matters refer to the most important matters for the audit of Welltend Technology Group's 2025 consolidated financial statements based on our professional judgment. These matters have been addressed in the process of reviewing the consolidated financial statements as a whole and in forming an audit opinion, and we do not express a separate opinion on these matters. Key audit matters that we judge should be communicated in the audit report are as follows:

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Revenue recognition

For accounting policies on revenue recognition, please refer to Revenue Recognition in Note 4 (13) of the Notes to the Consolidated Financial Statements. For descriptions of revenue, please refer to Revenue from Customer Contracts in Note 6 (14) of the Notes to the Consolidated Financial Statements.

Explanation of key audit matters:

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

Corresponding audit procedures:

(1) Wires and connectors division

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

I. Obtain an understanding of the design and implementation of controls over the revenue and cash receipts cycle
II. Implementing revenue audit procedures and detailed tests
III. Performing correspondence audit procedures for accounts receivable
IV. Evaluate whether revenue is recognized at an appropriate point in time and whether the amounts recognized comply with the applicable accounting standards.

(2) Information services division

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

I. Obtain an understanding of the design and implementation of controls over the revenue and cash receipts cycle
II. Implement income verification procedures, check relevant vouchers and send letters to confirm customer transaction amounts, and expand the sample of random
III. Evaluate the reasons for overdue accounts receivable to confirm the authenticity of the transaction
IV. Evaluate whether revenue is recognized at an appropriate point in time and whether the amounts recognized comply with the applicable accounting standards.

Other Matters

Welltend Technology Corporation has prepared parent company only financial statements for 2025 and 2024, and the audit report with unqualified opinion that we have issued is on file for reference.

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

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

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and evaluate the risk of material misrepresentation in the consolidated financial statements resulting from fraud or error; design and implement appropriate countermeasures for the evaluated risks; and obtain sufficient and appropriate evidence to serve as the basis for the audit opinion. Because fraud may involve complicity, forgery, deliberate omission, misrepresentation, or circumvention of internal controls, the risk of not detecting a material misrepresentation caused by fraud is higher than that arising from error.
Obtain an understanding of internal control relevant to the audit in order to design audit

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procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Welltend Technology Group.

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

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

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 2025 consolidated financial statements of Welltend Technology Group and are therefore the key audit matters. We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse impact of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

KPMG
Taipei, Taiwan (Republic of China)
March 11, 2026

Notes to Readers

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

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

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Welltend Technology Corporation and Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and 2024
Unit: NT$ thousand

Assets	December 31, 2025		December 31, 2024			December 31, 2025		December 31, 2024
	Amount	%	Amount	%	Liabilities and equity	Amount	%	Amount	%
Current assets:					Current liabilities:
1100 Cash and cash equivalents (Note 6 (1))	$ 1,006,189	31	946,019	30	2100 Short-term borrowings (Notes 6 (8), 7 and 8)	$ 720,000	22	698,000	22
1170 Net notes and accounts receivable (Notes 6 (2) and 6 (15))	762,112	24	829,391	26	2130 Current contract liabilities (Note 6 (15))	17,999	1	39,666	1
1300 Net inventories (Note 6 (3))	533,900	16	608,764	19	2170 Notes and accounts payable	456,202	14	457,762	14
1470 Other current assets (Note 6 (4) and 6 (15))	134,657	4	78,140	3	2200 Other payables (Note 6 (9) and 7)	167,167	5	145,314	5
1476 Other financial assets - current (Note 6 (6), 6 (4) and 8)	51,762	2	98,273	3	2230 Current Tax Liabilities	32,129	1	34,172	1
	2,488,620	77	2,560,587	81	2280 Current lease liabilities (Notes 6 (10) and 7)	25,012	1	13,387	-
Non-current assets:					2300 Other current liabilities	30,673	1	28,620	1
1600 Property, plant, and equipment (Notes 6 (6) and 8)	469,525	15	416,867	13		1,449,182	45	1,416,921	44
1755 Right-of-use assets (Notes 6 (7) and 7)	103,656	3	37,297	1	Non-current liabilities:
1780 Intangible assets	45,261	1	41,884	1	2570 Deferred tax liabilities (Note 6 (12))	57,364	2	55,747	2
1840 Deferred tax assets (Note 6 (12))	6,623	-	8,804	-	2580 Non-current lease liabilities (Notes 6 (10) and 7)	80,017	2	24,661	1
1900 Other non-current assets (Note 6 (4), 6 (6), 7 and 8)	127,423	4	106,988	4	2600 Other non-current liabilities	358	-	358	-
	752,488	23	611,840	19		137,739	4	80,766	3
					Total liabilities	1,586,921	49	1,497,687	47
					Equity attributable to owners of parent (Note 6 (13)):
					3100 Capital stock	948,900	29	958,900	30
					3200 Additional paid-in capital	7,661	-	7,525	-
					3300 Retained earnings	713,191	22	718,389	23
					3400 Other equity	(75,025)	(2)	(52,336)	(1)
						1,594,727	49	1,632,478	52
					36XX Non-controlling interests	59,460	2	42,262	1
					Total equity	1,654,187	51	1,674,740	53
Total assets	$ 3,241,108	100	3,172,427	100	Total liabilities and equity	$ 3,241,108	100	3,172,427	100

(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

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

		2025		2024
		Amount	%	Amount	%
4110	Operating revenue (Note 6 (15))	$3,335,946	100	3,470,396	100
5110	Operating costs (Notes 6 (3), 6 (X), 6 (11), 7, and 12(1))	2,816,976	84	2,889,484	83
5910	Operating margin	518,970	16	580,912	17
	Operating expenses (Notes 6 (10), 6 (11), 6 (16), 7, and 12(1)):
6100	Marketing expenses	159,191	5	144,915	4
6200	Management expenses	254,254	8	235,850	7
6450	Expected credit loss (Note 6 (2))	(4,547)	-	3,171	-
		408,898	13	383,936	11
6900	Operating profit	110,072	3	196,976	6
	Non-operating income and expenses:
7010	Other revenue	8,764	-	7,343	-
7100	Interest income	12,148	1	15,716	-
7230	Net foreign currency exchange gain (losses) (Note 6 (17))	(3,547)	-	26,219	1
7510	Interest expense (Notes 6 (10) and 7)	(16,601)	(1)	(14,248)	-
7590	Sundry expenses (Notes 12 (2))	(9,929)	-	(81,078)	(2)
		(9,165)	-	(46,948)	(1)
7900	Net profit before tax	100,907	3	150,928	5
7950	Less: Income tax expense (Note 6 (12))	73,331	2	95,757	3
8200	Net profit for the period	27,576	1	55,171	2
8300	Other comprehensive income:
8360	Components of other comprehensive income subsequently reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	(23,084)	(1)	80,197	2
8399	Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-	-	-	-
	Total Components of other comprehensive income subsequently reclassified to profit or loss	(23,084)	(1)	80,197	2
8300	Other comprehensive income for the period	(23,084)	(1)	80,197	2
	Total comprehensive income for the period	$4,492	-	135,368	4
	Net profit for the period attributable to:
8610	Owners of parent	$31,241	1	55,485	2
8620	Non-controlling interests	(3,665)	-	(314)	-
		$27,576	1	55,171	2
	Comprehensive income attributable to:
8710	Owners of parent	$8,552	-	135,682	4
8720	Non-controlling interests	(4,060)	-	(314)	-
		$4,492	-	135,368	4
	Earnings per share (Note 6 (14))
9750	Basic earnings per share (Unit: NT$)	$0.33			0.58
9850	Diluted earnings per share (Unit: NT$)	$0.33			0.58

(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

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

Equity Attributable to the Parent Company

	Share capital from common stock	Additional paid-in capital	Retained earnings				Other equity		Total equity attributable to owners of the parent company	Non-controlling interests	Total equity
			Legal reserve	Special reserve	Undistributed surplus earnings	Total	Exchange differences on translation of foreign financial statements	Treasury shares
Balance on January 1, 2024	$ 958,900	7,525	112,009	120,028	459,634	691,671	(132,533)	-	1,525,563	202	1,525,765
Earnings allocation and distribution:
Legal reserve appropriated	-	-	12,606	-	(12,606)	-	-	-	-	-	-
Special reserve appropriated	-	-	-	12,505	(12,505)	-	-	-	-	-	-
Common stock cash dividend	-	-	-	-	(28,767)	(28,767)	-	-	(28,767)	-	(28,767)
	-	-	12,606	12,505	(53,878)	(28,767)	-	-	(28,767)	-	(28,767)
Net profit for the period	-	-	-	-	55,485	55,485	-	-	55,485	(314)	55,171
Other comprehensive income for the period	-	-	-	-	-	-	80,197	-	80,197	-	80,197
Total comprehensive income for the period	-	-	-	-	55,485	55,485	80,197	-	135,682	(314)	135,368
Change in non-controlling interests	-	-	-	-	-	-	-	-	-	42,383	42,383
Common stock cash dividend of non-controlling interests	-	-	-	-	-	-	-	-	-	(9)	(9)
Balance on December 31, 2024	958,900	7,525	124,615	132,533	461,241	718,389	(52,336)	-	1,632,478	42,262	1,674,740
Earnings allocation and distribution:
Legal reserve appropriated	-	-	4,638	-	(4,638)	-	-	-	-	-	-
Reversal of special reserve	-	-	-	(80,197)	80,197	-	-	-	-	-	-
Common stock cash dividend	-	-	-	-	(28,767)	(28,767)	-	-	(28,767)	-	(28,767)
	-	-	4,638	(80,197)	46,792	(28,767)	-	-	(28,767)	-	(28,767)
Net profit for the period	-	-	-	-	31,241	31,241	-	-	31,241	(3,665)	27,576
Other comprehensive income for the period	-	-	-	-	-	-	(22,689)	-	(22,689)	(395)	(23,084)
Total comprehensive income for the period	-	-	-	-	31,241	31,241	(22,689)	-	8,552	(4,060)	4,492
Treasury Stock Acquired	-	-	-	-	-	-	-	(17,686)	(17,686)	-	(17,686)
Retirement of Treasury Shares	(10,000)	(14)	-	-	(7,672)	(7,672)	-	17,686	-	-	-
The difference between the actual price of equity acquired or disposed of by the subsidiary and the book value	-	150	-	-	-	-	-	-	150	(150)	-
Change in non-controlling interests	-	-	-	-	-	-	-	-	-	21,408	21,408
Balance on December 31, 2025	$ 948,900	7,661	129,253	52,336	531,602	713,191	(75,025)	-	1,594,727	59,460	1,654,187

(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

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	2025	2024
Cash flows from operating activities:
Net profit before tax for the period	$ 100,907	150,928
Adjustments:
Adjustments to reconcile profit (loss)
Depreciation expense	75,709	78,649
Amortization expense	2,642	3,019
Expected credit losses (gains)	(4,547)	3,171
Interest expense	16,601	14,248
Interest income	(12,148)	(15,716)
Other item	2,893	209
Total adjustments to reconcile profit (loss)	81,150	83,580
Changes in assets and liabilities related to operating activities:
Net changes in assets related to operating activities, net:
Notes and accounts receivable	72,702	(9,182)
Inventories	74,864	(6,352)
Other current assets	(58,780)	(13,728)
Other financial assets	167	(39)
Total net changes in assets related to operating activities	88,953	(29,301)
Changes in liabilities related to operating activities, net:
Contract liabilities	(21,667)	13,292
Notes and accounts payable	(1,560)	85,158
Other payables	22,111	9,678
Other current liabilities	2,053	7,443
Other liabilities related to operating activities	937	115,571
Net changes in assets and liabilities related to operating activities	89,890	86,270
Total adjustments	171,040	169,850
Cash inflow generated from operations	271,947	320,778
Interest received	12,141	15,530
Interest paid	(16,859)	(14,160)
Income tax paid	(69,465)	(114,901)
Net cash inflow from operating activities	197,764	207,247
Cash flows from investing activities:
Acquisition of property, plant, and equipment	(93,316)	(27,080)
Disposal of property, plant, and equipment	218	61
Increase in refundable deposits	(4,451)	(8,177)
Acquisition of intangible assets	(5,953)	(995)
Decrease (Increase) in other financial assets	44,761	(53,937)
Decrease (Increase) in other non-current assets	(14,394)	(45,567)
Net cash outflows from investing activities	(73,135)	(135,695)
Cash flows from financing activities:
Increase in short-term borrowings	22,000	2,000
Increase in deposits received	-	56
Repayment of lease liability principal	(31,218)	(33,044)
Issuance of cash dividend	(28,767)	(28,767)
Treasury Stock Acquired	(17,686)	-
Change in non-controlling interests	21,408	42,383
Net cash outflows from financing activities	(34,263)	(17,372)
Effect of exchange rate changes on cash and cash equivalents	(30,196)	64,479
Net increase in cash and cash equivalents for the period	60,170	118,659
Cash and cash equivalents at start of period	946,019	827,360
Cash and cash equivalents at end of period	$ 1,006,189	946,019

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

Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin Accounting Supervisor: Wen-Pin Chen

Welltend Technology Corporation and Subsidiaries
Notes to the Consolidated Financial Statements
2025 and 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

I. Company history

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

II. Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on March 11, 2026.

III. New standards, amendments and interpretations adopted

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

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

Amendments to IAS21 “Lack of Exchangeability”

(II) The impact of IFRS endorsed by the FSC but not yet effective

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

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”.

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

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

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Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18
“Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

The amendment clarifies how an enterprise should classify liabilities that are paid off by issuing its own equity instruments (such as convertible bonds).

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

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

Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2024
note : On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

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

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

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

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IV. Summary of significant accounting policies

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

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter the "Regulations") and with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission (hereinafter the "FSC-approved IFRSs").

(II) Basis of compilation

Measurement basis

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

Functional currency and presentation currency

Each entity in the Group uses the currency of the main economic environment in which it operates as its functional currency. These consolidated financial statements are presented in the Company's functional currency, the New Taiwan dollar. All financial information presented in New Taiwan dollars is in thousands of New Taiwan dollars.

(III) Basis of consolidation

Principles for the preparation of the consolidated financial statements

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

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

The financial statements of subsidiaries have been adjusted appropriately so

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that their accounting policies are consistent with those used by the Group.

When changes in the Group's ownership interests in a subsidiary do not result in a loss of control of the subsidiary, they are treated as an equity transaction with the owner. The difference between the adjustment for non-controlling interests and the fair value of the consideration paid or received is directly recognized in equity and attributed to the owners of the Company.

2. List of subsidiaries in the consolidated financial statements

Subsidiaries included in these consolidated financial statements include:

Investing company name	Subsidiary name	Nature of business	Shareholding ratio		Note
			December 31, 2025	December 31, 2024
The Company	A-Team Tech Inc. (A-Team)	Investment, trading, and holding company	100.00%	100.00%
The Company	JIUN TAI CORPORATION LIMITED (JIUN TAI)	Holding company	100.00%	100.00%
The Company	CELERAISSELECTRONIC CORPORATION (CELERAIS)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%	Note 1
The Company	CELERAIS (THAILAND) Co., Ltd. (THAILAND)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%	Note 2
The Company	KING HONG Co., Ltd. (KING HONG)	International trade and other wholesale and retail trade	51.00%	51.00%	Note 3
The Company	HONG YI CABLE CO., LTD. (HONG YI)	International trade and other wholesale and retail trade	52.00%	52.00%	Note 5
The Company and JIUN TAI	Celeraise Investments Limited (Celeraise Hong Kong)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%
The Company	Leadpak Industrial Co., Ltd. (Leadpak Industrial)	International trade and other wholesale and retail trade	100.00%	99.36%	Note 6
The Company	Celeraise Technology Corporation (Celeraise Technology)	Automatic control equipment engineering industry, computer equipment installation industry, etc.	100.00%	100.00%
A-Team	Minshi Computer Technology (Shanghai) Co., Ltd. (Shanghai Minshi)	R&D and production of industrial automation control, product quality control, communication, and electronic network computer software	100.00%	100.00%

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

Investing company name	Subsidiary name	Nature of business	Shareholding ratio
			December 31, 2025	December 31, 2024	Note
JIUN TAI	Shanghai Zhansheng Electronics Co., Ltd. (Shanghai Zhansheng)	Production of electronics, wire connectors, telephone spare parts and small household appliances; sale of the company's own products	100.00%	100.00%
JIUN TAI	Welltrend Technology Co., Ltd. (Welltrend)	Manufacture and sale of wire and cable connectors and connectors	80.00%	80.00%	Note 4
Celeraise Hong Kong	Yield Profit International Enterprise Limited (Yield Profit International)	Investment, trading, and holding company	100.00%	100.00%
Celeraise Hong Kong	Jet Success Technology Development Limited (Jet Success)	Investment, trading, and holding company	100.00%	100.00%
Celeraise Hong Kong	Shenzhen Zhansheng Electric Power Co., Ltd. (Shenzhen Zhansheng)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%
Yield Profit International	Zhan Mao Electronics Enterprise (Huizhou) Co., Ltd. (Huizhou Zhan Mao)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%
Jet Success	Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan Yiguan)	Manufacture and sale of wire and cable connectors and connectors	100.00%	100.00%
HONG YI	CELERAIS ELECTRONICS INDA PRIVATE LIMITED (Celeraise India)	Manufacture and sale of wire and cable connectors and connectors	70.00%	-%	Note 7

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

Note1: CELRAISE was established in March 2015, 0.01% of the equity acquired in CELERAISE is held in the name of third party considering the relevant regulations of Philippines.

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

Note3: KING HONG was established in April 2024.

Note4: Welltrend was established in July 2024

Note5: HONG YI was established in November 2024.

Note6: The Company acquired all the shares of Leadpak Industrial from non-controlling interests in February 2025, increasing its ownership interest to 100%.

Note7: HONG YI participated in the cash capital increase of Celeraise India on July 1, 2025, paying a total consideration of NT$ 26,345 thousand to acquire a 70% equity interest, thereby obtaining control over the investee.

(IV) Foreign currency

1. Foreign currency transactions

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

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

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

(2) Designated as financial liabilities of foreign operations' net investment in hedging that are within the effective scope of hedging; or

(3) Qualified cash flow hedging that is within the effective scope of hedging.

2. Foreign operations

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

When disposal of foreign operations results in a loss of control, joint control, or

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

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

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

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

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

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

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

The liability is expected to be settled during the normal operating cycle;
The liability is held primarily for trading purposes;
The liability is expected to be settled when it comes due within twelve months of the reporting period; or
It does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

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

(VI) Cash and cash equivalents

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

(VII) Financial instruments

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

1. Financial assets

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

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

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

(1) Financial assets measured at amortized cost

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

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

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

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

(2) Impairment of financial assets

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

The following financial assets are measured against loss allowance based on the 12-month expected credit loss amount, with the remainder measured by the amount of expected lifetime credit losses:

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

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

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

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

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

If the credit risk rating of a financial instrument is equivalent to the globally defined "investment grade" (which is an investment grade of BBB- from Standard & Poor's, an investment grade of Baa3 from Moody's, or an investment grade of

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

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

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

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

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

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

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

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

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

The loss allowance for financial assets measured at amortized cost is

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

deducted from the carrying amount of the assets.

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

(3) Derecognition of financial assets

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

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

Financial liabilities and equity instruments

(1) Classification of liabilities or equity

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

(2) Equity transactions

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

(3) Financial liabilities

Financial liabilities are classified as measured at amortized cost or at fair value through profit or loss. Financial liabilities that are held for trading, derivative instruments or specified at the time of original recognition are

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

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

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and exchange gains and losses are recognized in income. Upon derecognition, any profit or loss shall also be recognized in income.

(4) Derecognition of financial liabilities

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

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

(5) Mutual offsetting of financial assets and liabilities

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

(VIII) Inventories

Inventories are measured at the lowest of cost and net realizable value. Costs include acquisition, production or processing costs, and other costs incurred in bringing them to the location and condition available for use, calculated using a weighted average. The cost of finished goods and work-in-progress inventories includes an appropriate proportion of manufacturing overhead allocated to normal production capacity. Net realizable value refers to the estimated selling price under normal business less the estimated cost of estimated completion and the estimated cost of completing the sale.

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

(IX) Property, plant and equipment

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 Group.

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:

Buildings and factories: 2 to 50 years.
Machinery and equipment: 2 to 10 years.
Office equipment and other equipment: 2 to 10 years.

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

(X) Leases

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

1. Lessee

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

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

paid on or before the lease commencement date, plus the original direct costs incurred and the estimated costs for dismantling, removing and restoring the location or the underlying asset and is also net of any rental incentives received.

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

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

Lease payments included in the measurement of lease liabilities include:

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

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

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

When the lease liability is remeasured as a result of the aforementioned changes in the index or rate used to determine lease payments and the assessment of options to extend or terminate the lease, this constitutes a

~23~

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

corresponding adjustment to the carrying amount of the right-of-use asset; and when the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasured amount is recognized in income.

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

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

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

2. Lessor

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

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

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

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

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

lease payments received as rental income over the lease term on a straight-line basis.

(XI) Intangible assets

Identification and measurement

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

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

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

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

Subsequent expenditures

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

Amortization

Except for goodwill, amortization is calculated based on the cost of the asset less the estimated residual value. When an intangible asset is ready for use, the cost of computer software is recognized under income using the straight-line method based on its estimated useful life of 1 to 10 years.

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

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

(XII) Impairment on non-financial assets

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

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

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

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

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

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

(XIII) Income recognition

Revenue from customer contracts

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

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

(1) Sale of goods

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

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

(2) Information systems and consulting services

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

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

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

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

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

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

(3) Financial components

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

(XIV) Employee benefits

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.

Short-term employee benefits

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

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

(XV) Income taxes

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

The Group has determined that the interest or penalty related to income tax does not meet the definition of income tax (including uncertain tax treatment), so the

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

accounting treatment of IAS 37 is applied.

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

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

Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nor taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;
Temporary differences arising from investments in subsidiaries, affiliates and joint venture interests where the Group can control the timing of the reversal of the temporary difference and it is probable that it will be not reversed in the foreseeable future; and
Taxable temporary differences arising from the original recognition of goodwill.

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

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

There is a statutory enforcement right to offset the current income tax assets and the current income tax liabilities against each other; and
Deferred tax assets and deferred tax liabilities are related to one of the following taxpayers subject to income tax by the same tax authority;

(1) The same taxpayer; or

~29~

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

(2) Different taxpayers, but each entity intends to pay off the current income tax liabilities and assets on a net basis, or realize the assets and liquidation liabilities at the same time, during each future period in which the deferred tax assets are expected to be recovered and the deferred tax liabilities are expected to be repaid.

(XVI) Earnings per share

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

(XVII) Segment information

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

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

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

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

~30~

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

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

VI. Explanation of significant accounts

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 1,073	1,447
Demand and foreign currency deposits	760,574	653,886
Time deposits	244,542	290,686
	$ 1,006,189	946,019

As of December 31, 2025 and 2024, time deposits with original maturity more than 3 months amounting to NT$ 22,472 thousand and NT$ 44,788 thousand, respectively, were recognized as other financial assets – current.

Please refer to Note 6 (17) for the fair value sensitivity analysis and interest and exchange rate risk of the Group's financial assets and liabilities.

(2) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 3,007	1,028
Accounts receivable	770,461	848,113
	773,468	849,141
Less: Loss allowance	(11,356)	(19,750)
	$ 762,112	829,391

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

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

Credit rating	December 31, 2025
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses
Level A	$ 762,112	-%	-
Level B	11,356	100.00%	11,356
	$ 773,468		11,356
Credit rating	December 31, 2024
---	---	---	---
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses
Level A	$ 823,199	0.14%	1,162
Level B	25,942	71.65%	18,588
	$ 849,141		19,750

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

	December 31, 2025	December 31, 2024
Not yet past due	$ 724,322	758,839
0 to 90 days past due	37,524	60,870
90 to 180 days past due	266	9,176
More than 180 days past due	11,356	20,256
	$ 773,468	849,141

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

	2025	2024
Opening balance at start of period	$ 19,750	29,549
Impairment losses (reversed) recognized	(4,547)	3,171
Amount written off due to non-recoverability during the current year	(2,971)	(13,448)
Foreign exchange gains	(876)	478
Balance at end of period	$ 11,356	19,750

~32~

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

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

As of December 31, 2025 and 2024, none of the Group's notes and accounts receivable were pledged as collateral.

Please see note 6 (17) for the risk and sensitivity analysis of exchange rates for the Group's notes and accounts receivable for 2025 and 2024.

(III) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 316,615	343,857
Works in process	71,726	75,968
Finished goods	80,449	75,116
Goods held for sale	65,110	113,823
	$ 533,900	608,764

The cost of inventories recognized as cost of goods sold and as expenses by the Group in 2025 and 2024 were NT$ 2,803,564 thousand and NT$ 2,865,882 thousand respectively.
Details of inventories recognized as cost of goods sold and as expenses by the Group in 2025 and 2024 were as follows:

	For the years ended December 31,
	2025	2024
Inventory write-down and obsolescence loss	$ 13,412	23,602

As of December 31, 2025 and 2024, none of the Group's inventories were pledged as collateral.

~33~

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

(IV) Other Current and Non-current Assets

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

Other current assets

	December 31, 2025	December 31, 2024
Tax credits	$ 52,849	42,251
Prepaid expense	14,619	17,025
Contract assets	39,952	-
Others	27,237	18,864
	$ 134,657	78,140

Other financial assets

	December 31, 2025	December 31, 2024
Restricted bank deposits	$ 21,504	43,949
Time deposits over three months	22,472	44,788
Others	7,786	9,536
	$ 51,762	98,273

Other non-current Assets

	December 31, 2025	December 31, 2024
Deposits made	$ 64,091	58,050
Prepaid equipment	60,815	46,122
Others	2,517	2,816
	$ 127,423	106,988

For information on the credit risk of other financial assets of the Group as of 2025 and 2024, please refer to note 6 (17).

(V) Acquisition of subsidiary

Acquisition of subsidiary

To expand its business in wire and cable connectors and terminals and to broaden its market presence in India, Celeraise Electronics India Private Limited ("Celeraise India") was established in January 2025 through a cash investment of NT$ 3 thousand (INR 10 thousand) made by a local individual. On July 1, 2025, the Group further participated in Celeraise India's cash capital increase with an

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

additional investment of NT$ 26,345 thousand (INR 67,550 thousand), thereby acquiring a 70% equity interest and obtaining control over the company.

(VI) Property, plant, and equipment

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

	Land	Buildings	Machinery and equipment	Office equipment and others	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 208,518	158,124	344,695	162,649	873,986
Add	-	-	60,943	32,373	93,316
Disposal	-	-	(6,939)	(28,215)	(35,154)
Transfers	-	-	(1,836)	(1,045)	(2,881)
Effect of movements in exchange rates	2,843	2,944	(192)	(952)	4,643
Balance on December 31, 2025	$ 211,361	161,068	396,671	164,810	933,910
Balance on January 1, 2024	$ 204,252	153,332	325,715	161,276	844,575
Add	-	-	15,866	11,214	27,080
Disposal	-	-	(10,615)	(14,960)	(25,575)
Transfers	-	-	-	(189)	(189)
Effect of movements in exchange rates	4,266	4,792	13,729	5,308	28,095
Balance on December 31, 2024	$ 208,518	158,124	344,695	162,649	873,986
Depreciation and impairment loss:
Balance on January 1, 2025	$ -	62,094	269,397	125,628	457,119
Depreciation in the current year	-	5,600	23,226	15,020	43,846
Disposal	-	-	(6,938)	(27,986)	(34,924)
Effect of movements in exchange rates	-	808	(1,658)	(806)	(1,656)
Balance on December 31, 2025	$ -	68,502	284,027	111,856	464,385
Balance on January 1, 2024	$ -	55,707	250,916	116,824	423,447
Depreciation in the current year	-	5,552	20,182	20,174	45,908
Disposal	-	-	(10,543)	(14,951)	(25,494)
Effect of movements in exchange rates	-	835	8,842	3,581	13,258
Balance on December 31, 2024	$ -	62,094	269,397	125,628	457,119
Carrying amounts:
December 31, 2025	$ 211,361	92,566	112,644	52,954	469,525
January 1, 2024	$ 204,252	97,625	74,799	44,452	421,128
December 31, 2024	$ 208,518	96,030	75,298	37,021	416,867

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

The Group signed a contract with a non-related party in August 2024 to purchase assets such as real estate and equipment. The total contract price is THB$ 121,553 thousand. As of December 31, 2025 and 2024, advance payments amounted to NT$ 40,057 thousand and NT$ 38,511 thousand, respectively (both representing THB$ 40,000 thousand), and were presented under other non-current assets.

Please see Note 8 for details of circumstances in which property, plant and equipment of the Group were used to provide loans and financing and guarantees for customs duties as of December 31, 2025 and 2024.

(VII) Right-of-use assets

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

	Buildings	Transportation equipment and others	Total
Right-of-use asset costs:
Balance on January 1, 2025	$ 108,316	6,858	115,174
Add	94,937	1,721	96,658
Less	(58,570)	(2,161)	(60,731)
Effect of movements in exchange rates	39	189	228
Balance on December 31, 2025	$ 144,722	6,607	151,329
Balance on January 1, 2024	$ 111,053	3,759	114,812
Add	20,981	3,893	24,874
Less	(27,264)	(1,078)	(28,342)
Effect of movements in exchange rates	3,546	284	3,830
Balance on December 31, 2024	$ 108,316	6,858	115,174
Right-of-use asset depreciation:
Balance on January 1, 2025	$ 75,589	2,288	77,877
Depreciation in the current year	30,278	1,585	31,863
Less	(58,570)	(2,161)	(60,731)
Effect of movements in exchange rates	(1,382)	46	(1,336)
Balance on December 31, 2025	$ 45,915	1,758	47,673
Balance on January 1, 2024	$ 68,901	2,073	70,974
Depreciation in the current year	31,579	1,162	32,741

~36~

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

	Buildings	Transportation equipment and others	Total
Less	(27,264)	(1,078)	(28,342)
Effect of movements in exchange rates	2,373	131	2,504
Balance on December 31, 2024	$ 75,589	2,288	77,877
Carrying amounts:
December 31, 2025	$ 98,807	4,849	103,656
January 1, 2024	$ 42,152	1,686	43,838
December 31, 2024	$ 32,727	4,570	37,297

In January 2025, the consolidated company entered into a one-year lease agreement for the Kunshan factory with another related party. The expected renewal period is four years, and the total contract value amounts to NT$ 88,104 thousand (RMB$ 21,540 thousand). For details, please refer to Note 7

The Group leased factories and offices from other related parties as of December 31, 2025 and 2024, please refer to Note 7 for details.

(VIII) Short-term loans

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

	December 31, 2025	December 31, 2024
Non-Secured bank loans	$ 207,000	198,000
Secured bank loans	513,000	500,000
Total	$ 720,000	698,000
Unused credit line	$ 670,000	516,963
Interest rate	1.835%–2.25%	1.87%–2.487%

For information about the Group's exchange and interest rate and liquidity risks, and sensitivity analysis, please refer to Note 6 (17) for details.
The Group's short-term borrowings and loan amounts are jointly and severally guaranteed by key management personnel; please refer to Note 7 for details.
Please refer to Note 8 for the details of the related assets of the Group pledged as collateral.

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

(IX) Other payables

Details of Other payables of the Group are as follows:

	December 31, 2025	December 31, 2024
Salaries and annual bonuses payable	$ 105,510	88,017
Payable for remuneration due to directors and employees	5,081	7,290
Other expenses payable	56,576	50,007
	$ 167,167	145,314

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

(X) Lease liabilities

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

	December 31, 2025	December 31, 2024
Current	$ 25,012	13,387
Non-current	$ 80,017	24,661

For the maturity analysis, please refer to Note 6 (17).

Amounts recognized as profit or loss are as follows:

	2025	2024
Interest expense on lease liabilities	$ 2,016	627
Variable lease payments not included in the measurement of lease liabilities	$ 8	78
Gains from sublease of right-of-use assets	$ 764	746
Expenses related to short term leases	$ 599	1,043
Expenses related to leases of low value assets (excluding short term leases of low value assets)	$ 242	246

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

	2025	2024
Total cash flows from leases	$ 34,083	35,038

~38~

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

1. Leasing of buildings

The Group leases buildings for use as office premises and factories. The lease terms for office premises range from 2 to 5 years, while those for factories range from 3 to 20 years. Certain leases include options to extend for a period equivalent to the original lease term upon expiry.

2. Other leases

The lease period of parking space and transport equipment leased by the Group is 5 years.

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

In addition, the Group leases offices, office equipment, and transportation equipment with lease terms of 1 year or less. These leases qualify as short-term or low-value leases, and the Group has elected to apply the recognition exemption, therefore not recognizing the related right-of-use assets and lease liabilities.

(XI) Employee benefits

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

The pension expenses of the Company and its subsidiaries within the jurisdiction of the Republic of China under the 2025 and 2024 defined pension contributions were NT$ 13,872 thousand and NT$ 12,516 thousand respectively, and were transferred to the Bureau of Labor Insurance.

Other subsidiaries included in the preparation of the consolidated financial statements recognized defined pension contributions and endowment insurance premiums of NT$ 13,428 thousand and NT$ 13,109 thousand in 2025 and 2024, respectively.

~39~

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

(XII) Income taxes

1. Income tax expense

(1) Details of income tax expenses of the Group in 2025 and 2024 is as follows:

	2025	2024
Income tax expense for the current period:
Current period	$ 69,386	86,947
Undistributed surplus earnings	4,659	3,723
Adjustment for prior periods	(4,512)	4,920
	69,533	95,590
Deferred tax expense	3,798	167
Income tax expense	$ 73,331	95,757

(2) Reconciliation of income tax expense to profit before tax for the years ended 2025 and 2024 is as follow:

	2025	2024
Net profit before tax	$ 100,907	150,928
Income tax using local tax rate of each entity	$ 45,395	56,871
Changes in unrecognized temporary differences	27,649	18,046
Investment tax credit	(5,819)	(3,163)
(Over) under provision in prior periods	(4,512)	4,920
Undistributed surplus earnings	4,659	3,723
Non-deductible expenses and others	5,959	15,360
Income tax expense	$ 73,331	95,757

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

Temporary differences related to investment subsidiaries on December 31, 2025 and 2024, are due to the Group's control over the timing of the reversal of these temporary differences. Therefore, no deferred tax liabilities were recognized. Relevant amounts were as follows:

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

	December 31, 2025	December 31, 2024
Unrecognized deferred tax liabilities	$ 144,744	172,393

(2) Unrecognized deferred tax assets: None
(3) Recognized deferred tax liabilities and assets

Changes in deferred tax liabilities and assets for 2025 and 2024 are as follows:

	Investment income recognized under the equity method (foreign)	Others	Total
Deferred tax liabilities:
Balance on January 1, 2025	$ 55,485	262	55,747
Debit/(credit) income	1,705	(88)	1,617
Effect of movements in exchange rates	-	-	-
Balance on December 31, 2025	$ 57,190	174	57,364
Balance on January 1, 2024	$ 44,860	6,275	51,135
Debit/(credit) income	10,625	(6,199)	4,426
Effect of movements in exchange rates	-	186	186
Balance on December 31, 2024	$ 55,485	262	55,747
			Inventory impairment and bad debt losses and others
Deferred tax assets:
Balance on January 1, 2025			$ 8,804
(Debit)/credit income			(2,181)
Effect of movements in exchange rates			-
Balance on December 31, 2025			$ 6,623
Balance on January 1, 2024			$ 4,545
(Debit)/credit income			4,259
Balance on December 31, 2024			$ 8,804

~41~

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

3. Income tax approval status

Tax returns by the Company, by Celeraise Technology and by Leadpak Industrial for the years up to 2023 were examined and approved by the tax authority.

(XIII) Capital and other equity

For both December 31, 2025 and December 2024, 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$ 94,890 thousand shares and NT$ 95,890 thousand shares, respectively. All payments for issued shares have been received.

The reconciliation table of the number of outstanding shares of the Company in 2025 and 2024 is as follows:

	Unit: Thousand shares
	Common stock
	2025	2024
Starting balance on January 1	95,890	95,890
Cancellation of treasury shares	(1,000)	-
Ending balance on December 31	94,890	95,890

1. Additional paid-in capital

The Company's capital surplus are as follows:

	December 31, 2025	December 31, 2024
Capital Surplus – Share Premium	$ 1,261	1,275
Difference between the actual acquisition or disposal price of subsidiary shares and their carrying amount	150	-
Share of changes in net assets of subsidiaries and associates accounted for using the equity method	6,250	6,250
	$ 7,661	7,525

~42~

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

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 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

~43~

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

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.

(3) Earnings distribution

The Company respectively passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings for 2024 and 2023 on March 26, 2025 and March 12, 2024. Other earnings distribution for 2024 and 2023 were approved by the general meetings of shareholder held on June 16, 2025 and June 13, 2024, respectively. The dividend amounts to be distributed to owners were as follows:

	2024		2023
	Dividend rate (NT$)	Amount	Dividend rate (NT$)	Amount
Dividends distributed to owners of ordinary shares:
Cash dividend	$ 0.30	28,767	0.30	28,767

~44~

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

On March 11 2026, the Board of Directors of the Company proposed the earnings distribution for 2025 with the amount of dividends distributed to owners as follows:

	2025
	Dividend rate (NT$)	Amount
Dividends distributed to owners of ordinary shares:
Cash dividend	$ 0.60	56,934

3. Treasury shares

In accordance with Article 28-2 of the Securities and Exchange Act, the Company's Board of Directors resolved on May 21, 2025, to repurchase treasury shares as necessary to safeguard the Company's credit and shareholders' interests. A total of 1,000 thousand shares were repurchased. Subsequently, in August 2025, the Board of Directors further resolved to cancel 1,000 thousand treasury shares.

As the carrying amount of the treasury shares exceeded their par value and share premium, the excess amounting to NT$ 14 thousand and NT$ 7,672 thousand was offset against capital surplus and retained earnings, respectively. The base date for the treasury shares cancellation was August 13, 2025, and the relevant registration procedures have been duly completed.

Details of changes in treasury shares are as follows:

	2025		2024
	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount
Beginning balance of treasury shares	-	$ -	-	$ -
Additions during the period	1,000	17,686	-	-
Retirement during the period	(1,000)	(17,686)	-	-
Ending balance of treasury shares	-	$ -	-	$ -

Pursuant to the Securities and Exchange Act, the number of shares repurchased by the Company shall not exceed 10% of the total issued shares. The total repurchase amount shall not exceed the sum of retained earnings, share premium, and realized capital surplus. Shares repurchased for transfer to employees must be transferred within

~45~

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

three years from the repurchase date; otherwise, such shares shall be deemed as unissued and cancelled. Furthermore, treasury shares may not be pledged and do not carry shareholder rights before transfer.

(XIV) Earnings per share

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

	2025	2024
Basic earnings per share:
Net profit attributable to holders of ordinary shares of the Company	$ 31,241	55,485
Weighted average number of ordinary shares outstanding (thousand shares)	95,358	95,890
Basic earnings per share (NT$)	$ 0.33	0.58
Diluted earnings per share:
Net profit attributable to holders of ordinary shares of the Company (diluted)	$ 31,241	55,485
Weighted average number of ordinary shares outstanding (basic) (thousand shares)	95,358	95,890
Impact of employee stock remuneration	142	168
Weighted average number of ordinary shares outstanding (diluted) (thousand shares)	95,500	96,058
Diluted earnings per share (NT$)	$ 0.33	0.58

(XV) Revenue from customer contracts

Details of revenue

	2025
	Information Services Department	Wire & Connectors Department	Total
Primary regional markets:
Taiwan	$ 1,271,776	42,011	1,313,787
Mainland China	-	1,063,791	1,063,791
Philippines	-	577,064	577,064
Thailand	-	381,304	381,304
	$ 1,271,776	2,064,170	3,335,946

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

	2024
	Information Services Department	Wire & Connectors Department	Total
Primary regional markets:
Taiwan	$ 1,390,973	23,759	1,414,732
Mainland China	-	1,124,607	1,124,607
Philippines	-	563,541	563,541
Thailand	-	367,516	367,516
	$ 1,390,973	2,079,423	3,470,396
2. Contract balances
	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable	$ 3,007	1,028	4,739
Accounts receivable	770,461	848,113	848,668
Less: Loss allowance	(11,356)	(19,750)	(29,549)
	$ 762,112	829,391	823,858
Contract assets (accounted for as other current assets)	$ 39,952	-	-
Contract liabilities	$ 17,999	39,666	26,374

Please refer to Note 6 (2) for the details of notes and accounts receivable and their impairment.

The opening balances of contract liabilities for January 1, 2025 and 2024, and the amounts recognized as revenue in 2025 and 2024 were NT$ 33,783 thousand and NT$ 20,508 thousand, respectively.

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

(XVI) Remuneration of employees and of directors and supervisors

The Company amended its Articles of Incorporation upon resolution of the shareholders' meeting on June 16, 2025. According to the amended Articles, if the Company has profits for the year, it shall appropriate not less than 1% and not more than 10% of such profits as employee compensation. Of the employee

~47~

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

compensation, not less than 10% shall be allocated to frontline employees in the form of compensation distribution or salary adjustments. The distribution shall be resolved by the Board of Directors and may be made in cash or shares, and may include employees of subsidiaries meeting certain conditions. In addition, the Company may, by a resolution of the Board of Directors, appropriate not more than 3% of the aforementioned profits as remuneration to directors. The distribution of employee and directors' remuneration shall be reported to the shareholders' meeting. However, where the Company has accumulated losses, an amount shall first be reserved to cover such losses before appropriations are made in accordance with the aforementioned percentages.

Prior to the amendment, the Articles of Incorporation stipulated that, if the Company has profits for the year, not less than 1% and not more than 10% of such profits shall be appropriated as employee compensation, to be distributed in cash or shares as resolved by the Board of Directors, and may include employees of subsidiaries meeting certain conditions. The Company may also, by resolution of the Board of Directors, appropriate not more than 3% of such profits as directors' remuneration.

The estimated amounts of employee remuneration of the Company in 2025 and 2024 were NT$ 2,000 thousand (including frontline employee compensation) and NT$ 3,000 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$ 2,000 thousand and NT$ 3,000 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.

~48~

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

In respect to the remuneration of employees, directors, and supervisors allocated by the above-mentioned resolutions of the Board of Directors, there were no differences between these amounts and the estimated amounts in the Company's 2025 and 2024 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.

(XVII) Financial instruments

1. Credit risk

(1) Amount of maximum credit risk exposure

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

(2) Concentration of credit risk

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

(3) Credit risk of receivables

For details of credit risk exposure information and credit impairment of notes receivable and accounts receivable, please refer to Note 6 (2).

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 1 year	1 to 2 years	Over 2 years
December 31, 2025
Non-derivative financial liabilities
Short-term bank loans	$ 720,000	(722,518)	(722,518)	-	-
Notes and accounts payable	456,202	(456,202)	(456,202)	-	-
Other payables	167,167	(167,167)	(167,167)	-	-
Lease liabilities - current and non-current	105,029	(109,694)	(26,617)	(23,879)	(59,198)

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

	Carrying amount	Contractual cash flows	Within 1 year	1 to 2 years	Over 2 years
Deposits received (accounted for as other non-current liabilities)	358	(358)	-	-	(358)
	$ 1,448,756	(1,455,939)	(1,372,504)	(23,879)	(59,556)
	Carrying amount	Contractual cash flows	Within 1 year	1 to 2 years	Over 2 years
December 31, 2024
Non-derivative financial liabilities
Short-term bank loans	$ 698,000	(699,282)	(699,282)	-	-
Notes and accounts payable	457,762	(457,762)	(457,762)	-	-
Other payables	145,314	(145,314)	(145,314)	-	-
Lease liabilities - current and non-current	34,048	(40,249)	(13,877)	(6,215)	(20,157)
Deposits received (accounted for as other non-current liabilities)	358	(358)	-	-	(358)
	$ 1,339,482	(1,342,965)	(1,316,235)	(6,215)	(20,515)

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

~50~

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

3. Exchange rate risk

(1) Exposure to exchange rate risk

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

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial assets
Monetary items
USD	$ 8,764	USD/TWD =31.430	275,451	5,485	USD/TWD =32.785	179,831
USD	14,177	USD/RMB =6.991	445,589	18,406	USD/RMB =7.321	603,442
USD	23,032	USD/HKD =7.784	723,890	22,474	USD/HKD =7.765	736,823
USD	6,602	USD/PHP =58.858	207,510	5,456	USD/PHP =57.822	178,868
USD	2,044	USD/THB =31.367	64,230	2,288	USD/THB =34.080	75,006
Financial liabilities
Monetary items
USD	557	USD/TWD =31.430	17,508	509	USD/TWD =32.785	16,699
USD	1,852	USD/RMB =6.991	58,205	3,182	USD/RMB =7.321	104,310
USD	7,358	USD/HKD =7.784	231,277	10,141	USD/HKD =7.765	332,476
USD	3,057	USD/PHP =58.858	96,093	4,265	USD/PHP =57.822	139,833
USD	7,295	USD/THB =31.367	229,296	5,2676	USD/THB =34.080	172,661

(2) Sensitivity analysis

The exchange rate risk of the Group's monetary items mainly comes from cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If foreign currencies had depreciated or appreciated by 5% against the TWD, RMB, HKD, PHP, and THB as of December 31, 2025 and 2024, then with all other

~51~

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

factors remaining constant the impact on income in 2025 and 2024 would be as follows:

	December 31, 2025	December 31, 2024
USD (versus TWD)
Appreciate 5%	$ 12,897	8,157
Depreciate 5%	(12,897)	(8,157)
USD (versus RMB)
Appreciate 5%	19,369	24,957
Depreciate 5%	(19,369)	(24,957)
USD (versus HKD)
Appreciate 5%	24,631	20,217
Depreciate 5%	(24,631)	(20,217)
USD (versus PHP)
Appreciate 5%	5,571	1,952
Depreciate 5%	(5,571)	(1,952)
USD (versus THB)
Appreciate 5%	(8,253)	(4,883)
Depreciate 5%	8,253	4,883

(3) Exchange gains and losses on monetary items

Due to the wide variety of functional currencies of the Group, the exchange profit and loss information of monetary items is disclosed by means of consolidation. In 2025 and 2024, the net exchange gains (including realized and unrealized) amounted to (NT$ 3,547) thousand and NT$ 26,219 thousand, respectively.

4. Interest rate analysis

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

	December 31, 2025	December 31, 2024
Variable rate instruments (book amounts):
Financial assets	$ 804,479	724,549
Financial liabilities	720,000	680,000

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

~52~

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

variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Group's internal key management reports increase and decreases in interest rates, and changes in interest rates of 25 basis points are considered by management to be reasonably possible.

If interest rates had increased or decreased by 25 basis points, and with all other variables held constant, the Group's pre-tax profit and loss in 2025 and 2024 would be as follows, mainly due to the Group's variable interest rate demand deposits and borrowings:

	2025	2024
Interest rates increase by 25 bps	$ 211	156
Interest rates decrease by 25 bps	(211)	(156)

5. Fair value information

(1) Type and fair value of financial instruments

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

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 1,006,189	-	-	-	-
Net notes and accounts receivable	762,112	-	-	-	-
Other financial assets - current	51,762	-	-	-	-
Deposits made (accounted for as other non-current assets)	64,091	-	-	-	-
	$ 1,884,154
Financial liabilities measured at amortized cost
Bank loans	$ 720,000	-	-	-	-

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

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Notes and accounts payable	456,202	-	-	-	-
Other payables	167,167	-	-	-	-
Lease liabilities - current	25,012	-	-	-	-
Lease liabilities - non-current	80,017	-	-	-	-
Deposits received (accounted for as other non-current liabilities)	358	-	-	-	-
	$ 1,448,756
	December 31, 2024
---	---	---	---	---	---
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 946,019	-	-	-	-
Net notes and accounts receivable	829,391	-	-	-	-
Other financial assets - current	98,273	-	-	-	-
Deposits made (accounted for as other non-current assets)	58,050	-	-	-	-
	$ 1,931,733
Financial liabilities measured at amortized cost
Bank loans	$ 698,000	-	-	-	-
Notes and accounts payable	457,762	-	-	-	-
Other payables	145,314	-	-	-	-
Lease liabilities - current	13,387	-	-	-	-
Lease liabilities - non-current	24,661	-	-	-	-
Deposits received (accounted for as other non-current liabilities)	358	-	-	-	-
	$ 1,339,482

~54~

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

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

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

(XVIII) Financial risk management

Overview

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

(1) Credit risk
(2) Liquidity risk
(3) Market risk

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

Risk management structure

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

Credit risk

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

~55~

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

(1) Accounts receivable and other receivables

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

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

(2) Investments

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

(3) Guarantees

It is the Group's policy to provide financial guarantees only to wholly-owned subsidiaries. Please refer to Note 13 (1) for information on endorsements/guarantees by the Group for subsidiaries as of December 31, 2025.

Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group's operations and mitigate the impact of fluctuations in cash

~56~

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

flows. The Group's management monitors the use of bank financing lines and ensures compliance with the terms of loan contracts.

Bank borrowings are an important source of liquidity for the Group. Please refer to Note 6 (8) for unused bank facilities of the Group as of December 31, 2025 and 2024.

5. Market risk

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

(3) Exchange rate risk

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

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

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

(2) Interest rate risk

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

(XIX) Capital management

Based on the characteristics of the current operating industry and the future development of the Group, and considering factors such as changes in the external environment, the Group plans its capital management to ensure that it has the necessary financial resources and operating plans to meet the needs of future

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

working capital, capital expenditure, debt repayment, and dividend payments. Management uses appropriate total debt/equity ratios, ratios of interest-bearing debt to equity, or other financial ratios to determine the optimal capitalization of the Group. It enhances shareholder returns by optimizing debt and equity balances while maintaining a sound capital base. Debt-to-equity ratios as of the reporting dates were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 1,586,921	1,497,687
Total equity	1,654,187	1,674,740
Interest-bearing debt	720,000	698,000
Debt-to-equity ratio	96%	89%
Ratio of interest-bearing debt to equity	44%	42%

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

The Group's non-cash transaction investment and financing activities in 2025 and 2024 were undertaken to obtain right-of-use assets via leasing; please refer to Note 6 (7) for details.

Reconciliation of liabilities from financing activities is as follows:

	Non-cash changes
	January 1, 2025	Cash flows	Others	Exchange rate changes	December 31, 2025
Short-term loans	$ 698,000	22,000	-	-	720,000
Deposits received	358	-	-	-	358
Lease liabilities	38,048	(31,218)	96,658	1,541	105,029
Total liabilities from financing activities	$ 736,406	(9,218)	96,658	1,541	825,387
	Non-cash changes
---	---	---	---	---	---
	January 1, 2024	Cash flows	Others	Exchange rate changes	December 31, 2024
Short-term loans	$ 696,000	2,000	-	-	698,000
Deposits received	301	56	-	1	358
Lease liabilities	44,863	(33,044)	24,874	1,355	38,048
Total liabilities from financing activities	$ 741,164	(30,988)	24,874	1,356	736,406

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

VII. Related party transactions

(I) Names and relationship with related parties

Parties involved in transactions with the Group during the periods covered by these consolidated financial statements were as follows:

Name of related party	Relationship with the Group
Mr. Yun-Teng Chang	Chairman of the Company
Ms. Kui-Yu Chang	Director of the Company
Kunshan Mingmao Electronics Co., Ltd. (Kunshan Mingmao)	The responsible person is a relative within one degree of kinship of the chairman of the Company
Year Jan Industrial Co., Ltd.	The responsible person is a relative within one degree of kinship of the chairman of the Company
ILOFA REALTY INC. (ILOFA)	The responsible person is a director of the Company

(II) Significant transactions with related parties

Payables to related parties

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

Accounts	Related party category	December 31, 2025	December 31, 2024
Other payables	Senior management	$ 4,061	3,441
"	Other related parties	10,165	5,066
		$ 14,226	8,507

Leases

(1) In January and April 2022, the Group renewed leases with another related party, Year Jan, for factories, offices, and parking spaces. Rental rates were determined based on market prices, with one-year lease agreements signed in each case and an expected renewal term of three years. The total contract values were NT$ 5,825 thousand and NT$ 1,097 thousand, respectively. In January and April 2025, the Group again renewed leases for factories, parking spaces, and offices. All were one-year lease agreements with an expected renewal term of four years, and the total contract value amounted to NT$ 11,537 thousand.

~58~

~59~

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

(2) In January 2022, the Group leased a factory from another related party, Kunshan Ming Mao, with rental rates determined based on market prices. A one-year lease agreement was signed with an expected renewal term of three years, and the total contract value was NT$58,236 thousand. In January 2025, the Group renewed the factory lease under a one-year lease agreement with an expected renewal term of four years. The total contract value was NT$ 88,104 thousand (RMB$ 21,540 thousand).

(3) In January 2019, the Group renewed a factory lease with another related party, ILOFA, with rental rates determined based on market prices. A two-year lease agreement was signed with an expected renewal term of twenty years, and the total contract value was NT$ 27,701 thousand.

(4) In May of 2023, the lease of the office was renewed with Key management personnel of the Group and signing 3 years lease agreement. The expected lease term is 3 years, and the total contract value is NT$ 2,819 thousand. The total amounts of the deposits deposited on December 31, 2025 and December 31, 2024, were all HKD$ 18 thousand and were recorded under other non-current assets.

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

	Lease liability balance		Interest expense
	December 31, 2025	December 31, 2024	2025	2024
YEAR JAN	$ 9,190	5,498	156	18
Kunshan Mingmao	74,666	-	1,464	118
ILOFA	15,244	17,315	222	245
Senior management	322	1,338	12	26
	$ 99,422	24,151	1,854	407

(III) Key management personnel transactions

Compensation of key management personnel includes:

Short-term employee benefits

2025	2024
$ 31,723	30,171

Guarantees provided

The total amounts of the Group's loan contracts for December 31, 2025 and 2024 were NT$ 1,390,000 thousand and NT$ 1,214,963 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

~60~

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

VIII. Pledged assets

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

Asset name	Purpose of pledge	December 31, 2025	December 31, 2024
Property, plant, and equipment - land	short-term loans	$ 140,142	140,142
Property, plant, and equipment - buildings	short-term loans	32,957	34,594
Restricted bank deposits (accounted for as other financial assets - current)	short-term loans	21,504	42,500
Restricted bank deposits (accounted for as other financial assets - current)	Litigation security deposit	-	1,449
Deposits made (accounted for as other non-current assets)	Performance guarantees and bid deposits	5,024	6,614
Deposits made (accounted for as other non-current assets)	Performance guarantees and bid deposits	64,091	58,050
		$ 263,718	283,349

IX. Significant commitments and contingencies:

Significant commitments

	December 31, 2025	December 31, 2024
Contracted but unpaid amounts for property and equipment	$ 81,716
(THB$ 81,553 thousand)	78,454
(THB$ 81,553 thousand)

X. Losses due to major disasters: None.

XI. Significant subsequent events: None.

~61~

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

XII. Other

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

| Function
Nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Under operating costs | Under operating expenses | Total | Under operating costs | Under operating expenses | Total |
| Employee benefit expense | | | | | | |
| Salary expense | 440,767 | 216,979 | 657,746 | 388,081 | 189,391 | 577,472 |
| Health and labor insurance expense | 28,154 | 15,849 | 44,003 | 25,411 | 13,524 | 38,935 |
| Pension expense | 17,864 | 9,436 | 27,300 | 17,109 | 8,516 | 25,625 |
| Other employee benefit expense | 18,194 | 16,188 | 34,382 | 16,692 | 12,826 | 29,518 |
| Depreciation expense | 57,385 | 18,324 | 75,709 | 58,318 | 20,331 | 78,649 |
| Amortization expense | - | 2,642 | 2,642 | - | 3,019 | 3,019 |

(II) Other

In December 2024, the Group identified irregularities involving an employee of its Information Services Department, including suspected document forgery and misappropriation of inventory, which resulted in total losses of NT$ 82,187 thousand. Of this amount, NT$ 75,703 thousand was attributable to 2024 and was recognized under other losses.

As of December 31, 2025, the matter is under investigation by the relevant authorities.

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

XIII. Other disclosures

(I) Information on significant transactions

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Group in 2025:

Loans to other parties:

Number	The company lending funds	Name of borrower	Current account	Whether a related party	Highest amount during the period	Balance at end of period	Actual usage amount	Interest rate	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short term financing	Allowance for bad debt	Collateral		Loan limit for individual counterparties	Total loan limit
													Name	Value
1	Juin Tai	THAILAND	Other receivables	Y	23,344	22,001	22,001	4.0%	Short-term financing	-	Operating turnover	-	None	-	114,051	285,127
1	Jun Tai	Yield Profit International	Other receivables	Y	25,070	23,730	23,730	1.5%	Short-term financing	-	Operating turnover	-	None	-	114,051	285,127
2	Celeraise Hong Kong	THAILAND	Other receivables	Y	73,051	70,718	70,718	4.0%	Short-term financing	-	Operating turnover	-	None	-	422,729	1,056,822
2	Celeraise Hong Kong	Jun Tai	Other receivables	Y	19,923	18,858	18,858	4.0%	Short-term financing	-	Operating turnover	-	None	-	422,729	1,056,822
3	Shenzhen Zhan Sheng	Huizhou Zhanmao	Other receivables	Y	32,011	31,472	31,472	1.5%	Short-term financing	-	Operating turnover	-	None	-	171,761	171,761
4	Huizhou Zhanmao	THAILAND	Other receivables	Y	86,523	86,523	86,523	-%	Short-term financing	-	Operating turnover	-	None	-	162,478	406,196
4	Huizhou Zhanmao	CELERAISSE	Other receivables	Y	66,598	66,598	66,598	-%	Short-term financing	-	Operating turnover	-	None	-	162,478	406,196
5	Kunshan Yi Guan	THAILAND	Other receivables	Y	10,137	10,137	10,137	-%	Short-term financing	-	Operating turnover	-	None	-	69,993	174,983
6	Shanghai Zhan Sheng	Kunshan Yi Guan	Other receivables	Y	35,968	35,968	35,968	2.0%	Short-term financing	-	Operating turnover	-	None	-	40,479	101,197

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

Note 3: In accordance with Shenzhen Zhan Sheng's "Operational Procedures for Loaning Funds to Others", the total amount of funds loaned may not exceed 500% of Celeraise Hong Kong's net value. If there is a need for short-term financing with Shenzhen Zhan Sheng, the loan amount may not exceed 500% of Shenzhen Zhan Sheng's net value. Separately, the total amount of intercompany loans where Shenzhen Zhan Sheng does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 4: In accordance with Huizhou Zhan Mao's "Operational Procedures for Loaning Funds to Others", the total amount of funds loaned may not exceed 100% of Huizhou Zhan Mao's net value. If there is a need for short-term financing with Huizhou Zhan Mao, the loan amount may not exceed 100% of Huizhou Zhan Mao's net value. Separately, the total amount of intercompany loans where Huizhou Zhan Mao does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 5: In accordance with Kunshan Yi Guan's "Operational Procedures for Loaning Funds to Others", the total amount of funds loaned may not exceed 100% of Kunshan Yi Guan's net value. If there is a need for short-term financing with Kunshan Yi Guan, the loan amount may not exceed 100% of Kunshan Yi Guan's net value. Separately, the total amount of intercompany loans where Kunshan Yi Guan does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 6: In accordance with Shanghai Zhan Sheng's "Operational Procedures for Loaning Funds to Others", the total amount of funds loaned may not exceed 100% of Shanghai Zhan Sheng's net value. If there is a need for short-term financing with Shanghai Zhan Sheng, the loan amount may not exceed 100% of Shanghai Zhan Sheng's net value. Separately, the total amount of intercompany loans where Shanghai Zhan Sheng does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 7: The above transactions have been eliminated in the preparation of the consolidated financial statements.

~62~

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

Guarantees and endorsements for other parties:

Number	Name of endorsement/guarantee company	Counterparty of guarantee and endorsement		Endorsement/guarantee limit for single enterprise	Maximum endorsement/guarantee balance for the current period	Balance of endorsement/guarantee at end of period	Actual usage amount	Guarantee amount by endorsement of property guarantees	Ratio of cumulative endorsement/guarantee amount to net value of the most recent financial statements	Endorsement/guarantee maximum	Endorsement/guarantee of parent company for subsidiaries	Endorsement/guarantee of subsidiaries for parent company	Endorsement x/guarantees to the mainland China region
		Company name	Relationship
0	The Company	Celerase Hong Kong/Jiun Tai	Subsidiary of the Company	1,594,727	82,000	-	-	-	%	1,594,727	Y	N	N
0	"	Celerase Technology	Subsidiary of the Company	1,594,727	80,000	80,000	-	-	5.02%	1,594,727	Y	N	N
1	Celerase Technology	The Company	Parent company	344,464	86,384	86,384	59,867	-	125.39%	344,464	N	Y	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: Endorsements/guarantees made by Celerase Technology are made in accordance with that company's Management Measures for Loans and Endorsements/Guarantees. The total amount of external endorsements/guarantees may not exceed 500% of the company's net value, and the amount of endorsements/guarantees for a single enterprise may not exceed 500% of the company's net value.

Note 3: The counterparty of the above endorsement/guarantee is the entity preparing the consolidated financial statements.

Securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): None.
Related party transactions for purchases and sales with amounts exceeding NT$100 million or 20% of the paid-in capital:

Unit: NT$ thousand

Name of company	Related party	Nature of relationship	Transaction details				Transaction with terms different from others		Notes: Accounts receivable/payable;
			Purchase/ sale	Amount in millions	Percentage of total purchases sales	Payment terms	Unit Price	Payment terms	Ending balance	Percentage of total total/Accounts receivable/payable
Huizhou Zhan Mao	Celerase Hong Kong	Ultimate parent company is the same	(sale)	(420,743)	280 %	Monthly statement, 120 days after month end; payment/collection scheduled based on funding requirements	The settlement and payment terms do not differ significantly from those offered to the Company's other customers.	Monthly closing with payment due 60-80 days after the month end for regular customers.	(164,377)	10 %
Celerase Hong Kong	Huizhou Zhan Mao	Ultimate parent company is the same	purchase	420,743	89 %	Monthly statement, 120 days after month end; payment/collection scheduled based on funding requirements	The settlement and payment terms do not differ significantly from those offered to the Company's other customers.	Monthly closing with payment due 60-80 days after the month end for regular customers.	(164,377)	(84) %
Leadpak Industrial	CELERAISE	Ultimate parent company is the same	(sale)	(208,492)	(100) %	Monthly statement, 120 days after month end; payment/collection scheduled based on funding requirements	The settlement and payment terms do not differ significantly from those offered to the Company's other customers.	Monthly closing with payment due 60-80 days after the month end for regular customers.	12,631	100 %
CELERAISE	Leadpak Industrial	Ultimate parent company is the same	purchase	208,492	39 %	Monthly statement, 120 days after month end; payment/collection scheduled based on funding requirements	The settlement and payment terms do not differ significantly from those offered to the Company's other customers.	Monthly closing with payment due 60-80 days after the month end for regular customers.	(12,631)	(42) %

Note 1: The counterparty of the above endorsement/guarantee is the entity preparing the consolidated financial statements.

Receivables from related parties with amounts exceeding NT$100 million or 20% of the paid-in capital:

Unit: NT$ thousand

Company with accounts receivable	Transaction counterparty	Relationship	Balance of receivables from related parties	Turnover rate	Receivables overdue from related parties		Receivables amount from related parties recovered after the period	Amount of allowance for doubtful accounts
					Amount	Action taken
Huizhou Zhan Mao	Celerase Hong Kong	Ultimate parent company is the same	164,377	2.00			58,923

Note 1: Information as of February 28, 2026
Note 2: The counterparty of the above endorsement/guarantee is the entity preparing the consolidated financial statements.

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

Business relationships and significant intercompany transactions:

Number (Note 1)	Name of transaction person	Name of counterparty	Relationship with transaction person (Note 2)	Intercompany transactions
				Account name	Amount	Trading terms	Ratio to consolidated total revenue or total assets
1	Celeraise Hong Kong	Huizhou Zhanmao	3	Sales revenue	112,389	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	3.37%
1	Celeraise Hong Kong	Huizhou Zhanmao	3	Accounts receivable	46,328	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	1.43%
1	Celeraise Hong Kong	THAILAND	3	Sales revenue	18,476	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.55%
1	Celeraise Hong Kong	THAILAND	3	Other receivable (Note 3)	72,045	Interest rate 4.0%	2.22%
1	Celeraise Hong Kong	Jian Tai	3	Other receivable (Note 3)	19,537	Interest rate 4.0%	0.60%
2	Kunshan Yiguan	Shanghai Zhansheng	3	Sales revenue	30,790	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.92%
2	Kunshan Yiguan	Shanghai Zhansheng	3	Accounts receivable	10,451	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.32%
2	Kunshan Yiguan	Celeraise Hong Kong	3	Sales revenue	47,443	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	1.42%
2	Kunshan Yiguan	Celeraise Hong Kong	3	Accounts receivable	6,617	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.20%
2	Kunshan Yiguan	The Company	3	Sales revenue	24,139	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.72%
2	Kunshan Yiguan	The Company	3	Accounts receivable	5,141	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.16%
2	Kunshan Yiguan	THAILAND	3	Other receivable (Note 3)	10,189	Interest rate 0%	0.31%
3	Huizhou Zhanmao	Celeraise Hong Kong	3	Sales revenue	420,743	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	12.61%

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

Number (Note 1)	Name of transaction person	Name of counterparty	Relationship with transaction person (Note 2)	Intercompany transactions
				Account name	Amount	Trading terms	Ratio to consolidated total revenue or total assets
3	Huizhou Zhanmao	Celeraise Hong Kong	3	Accounts receivable	164,377	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	5.07%
3	Huizhou Zhanmao	CELERAISE	3	Sales revenue	39,915	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	1.20%
3	Huizhou Zhanmao	CELERAISE	3	Accounts receivable	5,783	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.18%
3	Huizhou Zhanmao	CELERAISE	3	Other receivable (Note 3)	66,936	Interest rate 0%	2.07%
3	Huizhou Zhanmao	THAILAND	3	Sales revenue	30,865	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.93%
3	Huizhou Zhanmao	THAILAND	3	Accounts receivable	14,550	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.45%
3	Huizhou Zhanmao	THAILAND	3	Other receivable (Note 3)	86,962	Interest rate 0%	2.68%
4	Leadpak Industrial	CELERAISE	3	Sales revenue	208,492	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	6.25%
4	Leadpak Industrial	CELERAISE	3	Accounts receivable	12,631	The selling price does not differ significantly from that offered to regular customers, with a 120-day monthly settlement, and payments are made or received based on funding needs	0.39%
6	Jiun Tai	THAILAND	3	Other receivable (Note 3)	22,542	Interest rate 4.0%	0.70%
6	Jiun Tai	Yield Profit International	3	Other receivable (Note 3)	24,761	Interest rate 1.5%	0.76%
7	Shenzhen Zhan Sheng	Huizhou Zhanmao	3	Other receivable (Note 3)	31,460	Interest rate 1.5%	0.97%
9	Shanghai Zhaosheng	Kunshan Yiguan	3	Other receivable (Note 3)	36,151	Interest rate 2.0%	1.12%

Note 1: Numbers are filled in according to the following:
1. The parent company is 0.
2. Subsidiaries are numbered in sequence starting from 1.
Note 2: Relationship is classified into three types:
1. Parent company to subsidiary.
2. Subsidiary to parent company.
3. Subsidiary to subsidiary.
Note 3: Lending funds (including interests).

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

(II) Information on investees

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

Unit: Foreign currency thousands / thousand shares

Investing company name	Investor company name	Region	Main business items	Original investment amount		Held at end of period			Highest level of holdings in the period		Profit or loss of the investee company for the current period (Note 2)	Investment gains and losses recognized in the current period (Note 2)	Notes
				End of current period (Note 1)	End of prior period (Note 1)	Number of shares	Ratio	Carrying amount (Note 1)	Number of shares	Shareholding ratio
The Company	A Team	British Virgin Islands	Investment, trading, and holding company	16,538	16,538	500	100%	994	500	100%	-	-	Subsidiary
The Company	Jun Tai	Hong Kong	Holding company	267,499	267,499	66,160	100%	290,718	66,160	100%	3,554	3,554	〃
The Company	Celeraise Technology	Taiwan	Information service industry	30,000	30,000	3,000	100%	68,931	3,000	100%	28,427	28,465	〃
The Company	Leadpak Industrial	Taiwan	International trade and other wholesale and retail trade	30,000	29,810	3,000	100%	48,134	3,000	100%	16,749	18,094	〃
The Company	KING HONG	Taiwan	International trade and other wholesale and retail trade	5,100	5,100	510	51%	5,186	510	51%	119	61	〃
The Company	HONG YI	Taiwan	International trade and other wholesale and retail trade	15,600	15,600	1,560	52%	11,413	1,560	52%	(6,201)	(3,225)	〃
The Company	Celeraise Hong Kong	Hong Kong	Manufacture and sale of wire and cable connectors and connectors	191,996	191,996	50,300	99.99%	1,083,114	50,300	99.99%	39,882	39,882	〃
The Company	CELERAISE	Philippines	Manufacture and sale of wire and cable connectors and connectors	25,532	25,532	400	100%	238,973	400	100%	18,013	18,013	〃
The Company	THAILAND	Thailand	Manufacture and sale of wire and cable connectors and connectors	182,136	182,136	18,275	100%	177,882	18,275	100%	(10,011)	(10,011)	〃
Jun Tai	Celeraise Hong Kong	Hong Kong	Manufacture and sale of wire and cable connectors and connectors	1 (HKD 0.16)	1 (HKD 0.16)	-	0.01%	1 (HKD 0.16)	-	0.01%	-	Recognized by Jun Tai	〃
Jun Tai	Welltrend	Thailand	Manufacture and sale of wire and cable connectors and connectors	124,443 (HKD 30,818)	79,674 (HKD 19,731)	1,440	80%	144,411 (HKD 35,763)	1,440	80%	2,707 (HKD 678)	〃	Sub-subsidiary
Celeraise Hong Kong	Yield Profit International	Hong Kong	Investment, trading, and holding company	62,993 (HKD 15,600)	62,993 (HKD 15,600)	15,600	100%	381,664 (HKD 94,518)	15,600	100%	22,858 (HKD 5,724)	Recognized by Celeraise Hong Kong	Sub-subsidiary
Celeraise Hong Kong	Jet Success	Hong Kong	Investment, trading, and holding company	31,496 (HKD 7,800)	31,496 (HKD 7,800)	7,800	100%	181,948 (HKD 45,059)	7,800	100%	(978) (HKD (245))	〃	〃
Celeraise Hong Kong	Celeraise India	India	Manufacture and sale of wire and cable connectors and connectors	23,170 (INR 67,5550)	-	6,755	70%	18,292	6,755	70%	(7,509) (INR 21,035)	Recognized by HONG YI	〃

Note 1: Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date.
Note 2: Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.
Note 3: The above transactions have been eliminated in the preparation of the consolidated financial statements.

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

(III) Information on investment in mainland China

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

Unit: Foreign currency thousands / thousand shares

Mainland China investee company name	Main business items	Paid-in capital amount (Note 2)	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 before		Accumulated investment amount remitted from Taiwan at the end of the current period (Note 3)	Profit or loss of the investee company for the current period (Note 4)	Shareholding ratio of the Company's direct or indirect investment	Highest level of holdings in the period		Investment gains and losses recognized in the current period (Notes 4 and 5)	Book value of investments at the end of the period (Note 3)	Investment income repatriated up to the current period
					Outflow	inflow				Thousands shares / thousand units	Shareholding ratio
Shanghai Minshi	R&D and production of industrial automation control, product quality control, communication, and electronic network computing software	15,715 (US 500)	Note 1	15,715 (US 500)	-	-	15,715 (US 500)		100%	-	100%	-
Shanghai Zhenzheng	Production of electronics, cable connectors, telephone spare parts and small household appliances; sales of the company's own products	52,649 (US 1,875)	Note 2	229,439 (US 7,300)	-	-	229,439 (US 7,300)	1,216 (RMB 281)	100%	-	100%	731 (HKD 183)	106,454 (HKD 26,363)	40,461 (RMB 9,172)
Shenzhen Zhenzheng	Manufacture and sale of wire and cable connectors and connectors	47,344 (US 516 RMB 6,930) (Note 6)	Note 2	-	-	-	-	1,508 (RMB 348)	100%	-	100%	1,508 (HKD 378)	34,352 (HKD 8,507)	-
Celerasiac Chenzhou	Production and sale of wire connectors, electronic wire products, etc.	-	Note 2	31,430 (US 1,000)	-	-	31,430 (US 1,000)	(Note 8)	-	-	-%	-	(Note 8)	-
Kunshan Yiguan	Manufacture and sale of wire and cable connectors and connectors, etc.	31,430 (US 1,000)	Note 2	31,430 (US 1,000)	-	-	31,430 (US 1,000)	(1,249) (RMB (289))	100%	-	100%	(1,249) (HKD (313))	174,983 (HKD 43,334)	205,262 (RMB 47,071)
Huizhou Zhenmao	Production and sale of wire connectors, electronic wire products and packaging materials, etc.	52,802 (US$ 1,680) (Note 7)	Note 2	-	-	-	-	23,288 (RMB 5,380)	100%	-	100%	23,288 (HKD 5,832)	406,196 (HKD 100,593)	115,731 (RMB 26,630)

Limitations on investment in mainland China:

Company name	Accumulated investment amount remitted from Taiwan to mainland China at the end of the current period (Note 3)	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (Note 3)	Investment limit for the mainland China area in accordance with the regulations of the Investment Commission of the Ministry of Economic Affairs
The Company	308,014 (USD 9,800)	379,989 (USD 12,090)	956,836

Note1: Reinvestment in mainland China through investment and establishment of companies in a third region.
Note2: Reinvestment in mainland China companies by reinvesting in existing companies in a third region.
Note3: Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date.
Note4: Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.
Note5: Except for the investment gains and losses related to Shanghai Min Shi, which are recognized based on the investee's unaudited financial statements prepared for the same period, the remaining investment gains and losses are recognized based on the financial statements of the investees reviewed by certified public accountants appointed by the Taiwan parent company
Note6: Celerasia Hong Kong made a reinvestment of US$515 thousand using its own funds and also made a reinvestment by contributing fixed assets.
Note7: The difference from the amount of investment remitted by the Company is due to Celerasia Hong Kong, Yield Profit International, and Jet Success making reinvestments using their own funds totaling US$1,680 thousand.
Note8: Celerasia Chen Zhou completed the liquidation process in June 2018 and the investment amount was written off in July 2018.
Note9: The above transactions have been eliminated in the preparation of the consolidated financial statements.
Note 10: In September 2025, Shanghai Zhan Sheng approved a profit distribution proposal through a resolution of its Board of Directors, declaring cash dividends totaling RMB 672 thousand. As of the reporting date, cash dividends amounting to RMB 9,172 thousand had been remitted.
Note 11: In September 2025, Kunshan Yi Guan approved a profit distribution proposal through a resolution of its Board of Directors, declaring cash dividends of RMB 17,000 thousand. As of the reporting date, cash dividends amounting to RMB 47,071 thousand had been remitted.
Note 12: In September 2025, Huizhou Zhan Mao approved a profit distribution proposal through a resolution of its Board of Directors, declaring cash dividends of RMB 16,000 thousand to. As of the reporting date, cash dividends amounting to RMB 26,630 thousand had been remitted.

~68~

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

Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Group and mainland China investee companies in 2025 (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".

XIV. Segment information

(I) General information

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

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

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

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

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

	2025
	Information services	Wire and connectors	Adjustments and eliminations	Total
Revenue:
Revenue from external customers	$ 1,271,776	2,064,170	-	3,335,946
Interdepartmental revenue	6,748	982,060	(988,808)	-
Total revenue	$ 1,278,524	3,046,230	(988,808)	3,335,946
Segment (loss) profit	$ 74,311	44,504	(8,743)	110,072
Segment total assets				$ 3,241,108
	2024
	Information services	Wire and connectors	Adjustments and eliminations	Total
Revenue:
Revenue from external customers	$ 1,390,973	2,079,423	-	3,470,396
Interdepartmental revenue	4,933	1,092,690	(1,097,623)	-
Total revenue	$ 1,395,906	3,172,113	(1,097,623)	3,470,396
Segment (loss) profit	$ 73,501	129,726	(6,251)	196,976
Segment total assets				$ 3,172,427

(III) Information on geographic differentiation

Information on geographic differentiation within the Group is as follows.

Revenue is classified based on the geographic locations of the customer, while non-current assets are classified according to the geographic locations of the assets.

(1) Revenue from external customers: Please refer to Note 6 (15) for details.

~70~

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

(2) Non-current assets:

Region	December 31, 2025	December 31, 2024
Non-current assets:
Taiwan	$ 224,059	204,150
Mainland China	172,011	102,374
Thailand	232,944	191,959
Philippines and Other	52,760	46,503
	$ 681,774	544,986

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

(IV) Information on major customers:

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

	2025	2024
The customer from the Wire & Connectors Department	$ 407,266	371,208

AI assistant

WELLTEND — Audit Report / Information 2025

52254_rns_2026-04-08_c478cdfb-4eb7-46a7-bb74-c6ced58623b6.pdf

Welltend Technology Corporation and Subsidiaries Consolidated Financial Statements With Independent Auditors' Report

Table of Contents

Representation Letter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

January 1 to December 31, 2025 and 2024

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

January 1 to December 31, 2025 and 2024

2. List of subsidiaries in the consolidated financial statements

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

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

(IV) Foreign currency

1. Foreign currency transactions

2. Foreign operations

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

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

(VI) Cash and cash equivalents

(VII) Financial instruments

1. Financial assets

(1) Financial assets measured at amortized cost

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

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

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

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

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

(IX) Property, plant and equipment

1. Identification and measurement

2. Subsequent costs

3. Depreciation

(X) Leases

1. Lessee

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

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

2. Lessor

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

(XI) Intangible assets

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

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

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

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

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

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

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

VI. Explanation of significant accounts

(I) Cash and cash equivalents

(2) Notes and accounts receivable

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

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

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

(IV) Other Current and Non-current Assets

(V) Acquisition of subsidiary

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

(VI) Property, plant, and equipment

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

(VII) Right-of-use assets

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

(VIII) Short-term loans

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

(IX) Other payables

(X) Lease liabilities

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

1. Leasing of buildings

2. Other leases

(XI) Employee benefits

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

(XII) Income taxes

1. Income tax expense

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

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

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

WELLTEND Audit Report / Information 2025