Stock code: 3021

Welltend Technology Corporation

Parent Company Only 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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Table of Contents

Items	Page
I.Cover Page	1
II.Table of Contents	2
III.Independent Auditors' Report	3
IV.Balance Sheet	4
V.Statement of Comprehensive Income	5
VI.Statement of Changes in Equity	6
VII.Statement of Cash Flows	7
VIII.Notes to the Parent Company Only Financial Statements
(I) Company history	8
(II) Approval date and procedures of the financial statements	8
(III) New standards, amendments, and interpretations adopted	8~9
(IV) Summary of significant accounting policies	9~24
(V) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	24
(VI) Explanation of significant accounts	24~46
(VII) Related-party transactions	46~49
(VIII) Pledged assets	49
(IX) Significant commitments and contingencies	49
(X) Losses due to major disasters	49
(XI) Significant subsequent events	49
(XII) Other	51~52
(XIII) Other disclosures
1. Information on significant transactions	53~54
2. Information on investees	55
3. Information on investment in mainland China	55~56
(XIV) Segment information	56
IX.Tables of the details of significant accounts	57~64

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Independent Auditors' Report

To the Board of Directors of Welltend Technology Corporation:

Opinion

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

In our opinion, the aforementioned parent company only financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. They are sufficient to adequately express the financial status of Welltend Technology Corporation as of December 31, 2025 and 2024, and its financial performance and cash flows for the years ended December 31, 2025 and 2024.

Basis for Opinion

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

Key Audit Matters

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

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I. Revenue recognition

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

Explanation of key audit matters:

The main business of Welltend Technology Corporation is information system and consulting services, so income is one of the important items in financial reports. The amount and changes of operating income may affect the users of financial reports' understanding of the overall financial statements. Therefore, the existence and accuracy of the department's operating income is an important evaluation item. Therefore, the revenue recognition test of the information department is one of the important assessment items for our accountant to perform the financial report audit of Welltend Technology Corporation.

Corresponding audit procedures:

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 checks on the information department's income to verify its authenticity
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.

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II. Revenue recognition – Equity method investments – Subsidiaries

For equity method investment accounting policies, please refer to Invested Subsidiaries under Note 4 (8) of the parent company-only financial statements. For explanation of equity method investments, please refer to Note 6 (5) of the parent-company only financial statements.

Explanation of key audit matters:

The carrying amount of the significant subsidiaries accounted for using the equity method by Welltend Technology Corporation. constitutes a material portion of the total assets. From the perspective of the consolidated financial statements, the amount and fluctuations of their sales revenue may affect users' understanding of the overall financial statements. Accordingly, we have identified this matter as one of the key assessment areas in our audit of the separate financial statements of Welltend Technology Corporation.

Corresponding audit procedures:

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 of certain subsidiaries accounted for under the equity method
II. Implementing revenue audit analytical procedures and detailed tests
III. Performing correspondence audit procedures for accounts receivable
IV. Evaluate whether the timing of revenue recognition is handled in accordance with the relevant standards.

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

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

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

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

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

The purpose of our audit of the parent company only financial statements is to obtain reasonable assurance as to whether there is a material misrepresentation of the parent company only financial statements as a whole that could result from fraud or error, and to issue an audit report. Reasonable

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assurance means a high degree of assurance. However, there is no guarantee that an audit carried out in accordance with the auditing standards will detect material misrepresentations in the parent company only financial statements. Misrepresentation may result from fraud or error.

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

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

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant

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deficiencies in internal control that we identify during our audit.

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

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

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

KPMG

Taipei, Taiwan (Republic of China)

March 11, 2026

Notes to Readers

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

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

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Welltend Technology Corporation
Balance Sheet
December 31, 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))	$ 193,826	8	128,327	5	2100	Short-term borrowings (Notes 6 (8), 7 and 8)	$ 710,000	27	698,000	26
1170	Net notes and accounts receivable (Notes 6 (2) and 6 (14))	109,247	4	114,676	4	2130	Current contract liabilities (Note 6 (14))	9,802	-	29,879	1
1180	Net accounts receivable - related parties (Notes 6 (2), 6 (14) and 7)	14,607	1	8,804	-	2170	Notes and accounts payable (including related parties) (Note 7)	97,643	4	176,297	7
1210	Other receivables - related parties (Note 7)	105	-	203	-	2219	Other payables	47,848	2	46,553	2
1300	Net inventories (Note 6 (3))	48,437	2	87,372	4	2230	Current tax liabilities	16,652	1	19,103	1
1470	Other current assets(Note 6 (14))	9,911	-	5,312	-	2280	Current lease liabilities (Note 6 (9))	2,163	-	1,307	-
1476	Other financial assets - current (Note 6 (4) and 8)	23,015	1	45,086	2	2300	Other current liabilities	16,011	1	12,187	-
	Total current assets	399,148	16	389,780	15		Total current liabilities	900,119	35	983,326	37
Non-current assets:						Non-current liabilities:
1550	Investments accounted for using the equity method (Note 6 (5))	1,925,345	75	2,052,311	77	2570	Deferred tax liabilities (Note 6 (11))	57,190	3	55,639	2
						2580	Non-current lease liabilities (Note 6 (9))	7,027	-	4,191	-
1600	Property, plant, and equipment (Notes 6 (6) and 8)	181,091	7	182,298	7	2600	Other non-current liabilities	404	-	404	-
1755	Right-of-use assets (Note 6 (7))	9,121	-	5,493	-		Total non-current liabilities	64,621	3	60,234	2
1780	Intangible assets		1	10,001	-		Total liabilities	964,740	38	1,043,560	39
		12,076				Equity (Note 6 (12)):
1840	Deferred tax assets (Note 6 (11))	5,320	-	7,600	-	3100	Capital stock	948,900	37	958,900	36
1900	Other non-current assets (Note 6 (4) and 8)	27,366	1	28,555	1	3200	Additional paid-in capital	7,661	-	7,525	-
	Total non-current assets	2,160,319	84	2,286,258	85	3300	Retained earnings	713,191	28	718,389	27
						3400	Other equity	(75,025)	(3)	(52,336)	(2)
							Total equity	1,594,727	62	1,632,478	61
							Total liabilities and equity	$ 2,559,467	100	2,676,038	100
Total assets		$ 2,559,467	100	2,676,038	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

Statement of Comprehensive Income

For the years ended December 31, 2025 and 2024

Unit: NT$ thousand

		2025		2024
		Amount	%	Amount	%
4110	Operating revenue (Notes 6 (14) and 7):	$ 821,566	100	895,183	100
5110	Operating costs (Notes 6 (3), 7, and 12(1)):	655,532	80	741,657	83
5910	Operating margin	166,034	20	153,526	17
	Operating expenses (Notes 6 (9), 6 (10), 6 (15), 7, and 12(1)):
6100	Marketing expenses	81,762	10	76,317	9
6200	Management expenses	96,979	11	74,959	8
6201	Expected credit losses (gains) (Note 6 (2))	(357)	-	4,497	1
		178,384	21	155,773	18
6900	Operating profit	(12,350)	(1)	(2,247)	(1)
	Non-operating income and expenses:
7100	Interest income	3,834	-	3,033	-
7010	Other income (Note 7)	2,752	-	3,002	-
7230	Net foreign currency exchange gains (losses) (Note 6 (16))	(6,125)	(1)	12,600	1
7375	Share of interest in subsidiaries recognized using the equity method	94,833	12	181,248	21
7510	Interest expense (Note 6 (9))	(14,647)	(2)	(13,206)	(1)
7590	Sundry expenses (Note 12 (2))	(5,078)	-	(76,150)	(9)
		75,569	9	110,527	12
7900	Net profit before tax	63,219	8	108,280	11
7950	Less: Income tax expense (Note 6 (11))	31,978	4	52,795	6
	Net profit for the period	31,241	4	55,485	5
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	(22,689)	(3)	80,197	9
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	(22,689)	(3)	80,197	9
8300	Other comprehensive income for the period (net after tax)	(22,689)	(3)	80,197	9
8500	Total comprehensive income for the period	$ 8,552	1	135,682	14
	Earnings per share (NT$) (Note 6 (13))
9750	Basic earnings per share (NT$)	$	0.33		0.58
9850	Diluted earnings per share (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

Statement of Changes in Equity

For the years ended December 31, 2025 and 2024

Unit: NT$ thousand

	Share capital from common stock	Additional paid-in capital	Retained earnings				Other equity Exchange differences on translation of foreign financial statements	Treasury shares	Total equity
			Legal reserve	Special reserve	Undistributed surplus earnings	Total
Balance on January 1, 2024	$ 958,000	7,525	112,009	120,028	459,634	691,671	(132,533)	-	1,485,535
Earnings allocation and distribution:
Legal reserve appropriated	-	-	12,606	-	(12,606)	-	-	-	-
Special reserve appropriated	-	-	-	12,505	(12,505)	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(28,767)	(28,767)	-	-	(28,767)
	-	-	12,606	12,505	(53,877)	(28,767)	-	-	(28,767)
Net profit for the period	-	-	-	-	55,485	55,485	-	-	55,485
Other comprehensive income for the period	-	-	-	-	-	-	80,197	-	80,197
Total comprehensive income for the period	-	-	-	-	55,485	55,485	80,197	-	135,682
Balance on December 31, 2024	958,900	7,525	124,615	132,533	461,241	718,389	(52,336)	-	1,632,478
Earnings allocation and distribution:
Legal reserve appropriated	-	-	4,638	-	(4,638)	-	-	-	-
Reversal of special reserve	-	-	-	(80,197)	80,197	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(28,767)	(28,767)	-	-	(28,767)
	-	-	4,638	(80,197)	46,792	(28,767)	-	-	(28,767)
Net profit for the period	-	-	-	-	31,241	31,241	-	-	31,241
Other comprehensive income for the period	-	-	-	-	-	-	(22,689)	-	(22,689)
Total comprehensive income for the period	-	-	-	-	55,485	31,241	(22,689)	-	8,552
Treasury Stock Acquired	-	-	-	-	-	-	-	(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
Balance on December 31, 2025	$ 948,900	7,661	129,253	52,336	531,602	713,191	(75,025)	-	1,594,727

Chairman: Yun-Teng Chang

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

Manager: Jia-Xiang Lin

Accounting Supervisor: Wen-Pin Chen

Welltend Technology Corporation

Statement of Cash Flows

For the years ended December 31, 2025 and 2024

Unit: NT$ thousand

	2025	2024
Cash flows from operating activities:
Net profit before tax for the period	$ 63,219	108,280
Adjustments:
Adjustments to reconcile profit
Depreciation expense	7,275	6,958
Amortization expense	2,395	3,019
Expected credit (gains) losses	(357)	4,497
Interest expense	14,647	13,206
Interest income	(3,834)	(3,033)
Share of interest in subsidiaries recognized using the equity method	(94,833)	(181,248)
Gain on disposal of property, plant, and equipment	(5)	(39)
Total adjustments to reconcile profit (loss)	(74,712)	(156,640)
Changes in assets and liabilities related to operating activities:
Net changes in assets related to operating activities, net:
Notes and accounts receivable	5,786	26,328
Accounts receivable - related parties	(5,803)	1,332
Inventories	38,935	(24,759)
Other current assets	(4,599)	(3,618)
Total net changes in assets related to operating activities	34,319	(780)
Changes in liabilities related to operating activities, net:
Contract liabilities	(20,077)	9,484
Notes and accounts payable (including related parties)	(78,654)	57,678
Other payables	1,553	(723)
Other current liabilities	3,824	394
Total net changes in liabilities related to operating activities	(93,354)	66,833
Net changes in assets and liabilities related to operating activities	(59,035)	66,053
Total adjustments	(133,747)	(90,587)
Cash inflow generated from operations	(70,528)	17,693
Interest received	3,834	3,033
Dividend received	199,449	143,078
Interest paid	(14,905)	(13,118)
Income tax paid	(30,598)	(60,744)
Net cash inflow from operating activities	87,252	89,942
Cash flows from investing activities:
Acquisition of investments accounted for using equity method	(189)	(46,276)
Acquisition of property, plant, and equipment	(3,853)	(3,655)
Disposal of property, plant, and equipment	5	39
Decrease (Increase) in refundable deposits	1,426	(2,063)
Decrease in other receivables-related parties	98	82
Acquisition of intangible assets	(4,470)	(995)
Decrease (Increase) in other financial assets	20,996	(7,694)
Decrease (Increase) in other non-current assets	838	(838)
Net cash inflow (outflows) from investing activities	14,851	(61,400)
Cash flows from financing activities:
Increase in short-term borrowings	12,000	2,000
Increase in deposits received	-	56
Repayment of lease liability principal	(2,151)	(2,290)
Issuance of cash dividend	(28,767)	(28,767)
Treasury Stock Acquired	(17,686)	-
Net cash outflows from financing activities	(36,604)	(29,001)
Net (decrease) increase in cash and cash equivalents for the period	65,499	(459)
Cash and cash equivalents at the start of period	128,327	128,786
Cash and cash equivalents at the end of period	$ 193,826	128,327

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

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

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Welltend Technology Corporation

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

II. Approval date and procedures for adoption of financial statements

The parent company only financial statements were authorized for issuance by the Board of Directors on March 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 Company has been applying the following newly amended IFRSs since January 1, 2025, and this has not materially affected the parent company only financial statements.

Amendments to IAS21 “Lack of Exchangeability”

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

The Company has evaluated that the application of the following newly amended IFRSs effective from January 1, 2026, will not materially affect the parent company only 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 Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be

endorsed by the FSC:

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, 2027
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 Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

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

(I) Statement of compliance

The parent company only financial statements reports are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of compilation

Measurement basis

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

Functional currency and presentation currency

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

(III) Foreign currencies

Foreign currency transactions

Foreign currency transactions are translated into the functional currency based on the exchange rate on the transaction date. At the end of each subsequent reporting period (hereinafter referred to as the reporting date), the foreign currency monetary items are 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.

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Foreign operations

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

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

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

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

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

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

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

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

~11~

affect its classification.

(V) Cash and cash equivalents

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

(VI) Financial instruments

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

1. Financial assets

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

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

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

(1) Financial assets measured at amortized cost

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

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

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

~12~

impairment losses are recognized in income. Upon derecognition, profits or losses shall be included in income.

(2) Impairment of financial assets

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

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

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

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

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

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

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

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

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

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

Twelve-month expected credit loss indicates expected credit losses arising from

~13~

possible defaults of financial instruments within twelve months after the reporting date (or a shorter period, if the expected term of the financial instrument is less than twelve months).

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

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

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

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

The loss allowance for financial assets measured at amortized cost is deducted from the carrying amount of the assets.

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

(3) Derecognition of financial assets

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

~14~

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

2. Financial liabilities and equity instruments

(1) Classification of liabilities or equity

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

(2) Equity instruments

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

(3) Treasury shares

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

(4) Financial liabilities

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

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

(5) Derecognition of financial liabilities

Financial liabilities are derecognized when the Company's contractual obligations have been fulfilled or cancelled or have expired. When the terms of financial liabilities are modified and there is a material difference in the cash flows of the modified liabilities, the original financial liabilities are derecognized and the new financial liabilities are

~15~

recognized at fair value on the basis of the revised terms.

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

(6) Mutual offsetting of financial assets and liabilities

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

(VII) Inventories

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

(VIII) Invested subsidiaries

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

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

(IX) Property, plant, and equipment

Identification and measurement

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

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

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

Subsequent costs

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

~16~

~17~

Depreciation

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

Land is not depreciated.

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

(1) Buildings and factories: 20 to 50 years.
(2) Machinery and equipment: 3 to 5 years.
(3) Office equipment and other equipment: 2 to 7 years.

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

(X) Leases

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

Lessee

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

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

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

Lease payments included in the measurement of lease liabilities include:

(1) Fixed payments, including substantial fixed payments;

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

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

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

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

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

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

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

2. Lessor

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

If the Company is a sublease lessor, the main lease and sublease transactions are

~18~

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

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

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

(XI) Intangible assets

Identification and measurement

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

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

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

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

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

~19~

useful life of 1 to 10 years.

(XII) Impairment on non-financial assets

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

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

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

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

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

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

(XIII) Income recognition

Revenue from customer contracts

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

(1) Sale of goods

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

~20~

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

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

(2) Information systems and consulting services

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

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

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

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

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

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(3) Financial components

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

(XIV) Employee benefits

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 Company has a current statutory or presumptive payment obligation, and the obligation can be reliably estimated, the amount shall be recognized as a liability.

(XV) Income taxes

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

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

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

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

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

~22~

deductible temporary differences;

Temporary differences arising from investments in subsidiaries, affiliates and joint venture interests where the Group can control the timing of the reversal of the temporary difference and it is probable that it will be not reversed in the foreseeable future; and
Taxable temporary differences arising from the original recognition of goodwill.

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

Deferred income tax is measured at the rate at which temporary differences are expected to be reversed, based on the statutory or substantial legislative rates at the date of reporting, and reflects the uncertainty (if any) associated with income tax.

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

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

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

(XVI) Earnings per share

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

(XVII) Segment information

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

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

In preparing these 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 Company's risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

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

VI. Explanation of significant accounts

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 120	120
Demand and foreign currency deposits	193,706	128,207
	$ 193,826	128,327

Please refer to Note 6 (16) for the fair value sensitivity analysis and interest rate risk of the Company's financial assets and liabilities.

(2) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 1,507	868
Accounts receivable	122,547	126,140
	124,054	127,008
Less: Loss allowance	(200)	(3,528)
	$ 123,854	123,480
Net notes and accounts receivable	$ 109,247	114,676
Net accounts receivable - related parties	$ 14,607	8,804

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

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	$ 123,854	-	-
Level B	200	100%	200
	$ 124,054		200
Credit rating	December 31, 2024
---	---	---	---
	Carrying amount of notes and accounts receivable	Credit rating	Carrying amount of notes and accounts receivable
Level A	$ 124,183	0.94%	1,162
Level B	2,825	83.75%	2,366
	$ 127,008		3,528

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

	December 31, 2025	December 31, 2024
Not yet past due	$ 115,918	117,304
0 to 90 days past due	7,936	6,631
90 to 180 days past due	-	391
More than 180 days past due	200	2,682
	$ 124,054	127,008

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

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	2025	2024
Opening balance at start of period	$ 3,528	6,927
Impairment losses (reversed) recognized	(357)	4,479
Amounts written off	(2,971)	(7,896)
Balance at end of period	$ 200	3,528

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

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

Please see note 6 (16) for the sensitivity analysis of exchange rates for the Company's notes and accounts receivable for 2025 and 2024.

(III) Inventories

	December 31, 2025	December 31, 2024
Goods held for sale	$ 45,507	83,868
Others	2,930	3,504
	$ 48,437	87,372

The cost of inventories recognized as cost of goods sold and as expenses by the Company in 2025 and 2024 were NT$ 655,089 thousand and NT$ 728,029 thousand, respectively.
Details of expenses and losses related to inventory recognition of the Company in 2025 and 2024 are as follows:

	2025	2024
Write-down and losses from inactive inventory	$ 443	13,628

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

(IV) Other Current and Non-current Assets

Other financial assets

	December 31, 2025	December 31, 2024
Restricted bank deposits	$ 21,504	42,500
Others	1,511	2,586
	$ 23,015	45,086

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Other non-current Assets

	December 31, 2025	December 31, 2024
Deposits made	$ 27,366	27,717
Others	-	838
	$ 27,366	28,555

For information on the credit risk of other financial assets of the Company as of 2025 and 2024, please refer to note VI (XVI).

(V) Investments accounted for using the equity method

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

	December 31, 2025	December 31, 2024
Subsidiary	$ 1,925,345	2,052,311

Please refer to the 2025 consolidated financial statements.
As of December 31, 2025 and 2024, none of the Company's investments under the equity method were pledged as collateral.

(VI) Property, plant, and equipment

Details of changes in cost and depreciation of property, plant, and equipment of the Company in 2025 and 2024 are as follows:

	Land	Buildings	Machinery and equipment	Office equipment and others	Total
Cost:
Balance on January 1, 2025	$ 140,142	75,172	2,309	27,480	245,103
Add	-	-	35	3,818	3,853
Disposal	-	-	-	(771)	(771)
Balance on December 31, 2025	$ 140,142	75,172	2,344	30,527	248,185
Balance on January 1, 2024	$ 140,142	75,172	884	29,825	246,023
Add	-	-	1,425	2,230	3,655
Disposal	-	-	-	(4,575)	(4,575)
Balance on December 31, 2024	$ 140,142	75,172	2,309	27,480	245,103
Depreciation:
Balance on January 1, 2025	$ -	40,578	597	21,630	62,805
Depreciation	-	1,637	735	2,688	5,060
Disposal	-	-	-	(771)	(771)
Balance on December 31, 2025	$ -	42,215	1,332	23,547	67,094
Balance on January 1, 2024	$ -	38,877	57	23,755	62,689
Depreciation	-	1,701	540	2,450	4,691
Disposal	-	-	-	(4,575)	(4,575)

~28~

	Land	Buildings	Machinery and equipment	Office equipment and others	Total
Balance on December 31, 2024	$ -	40,578	597	21,630	62,805
Carrying amounts:
December 31, 2025	$ 140,142	32,957	1,012	6,980	181,091
January 1, 2024	$ 140,142	36,295	827	6,070	183,334
December 31, 2024	$ 140,142	34,594	1,712	5,850	182,298

Please see Note 8 for details of long-term borrowings and financing lines guaranteed by a portion of property, plant, and equipment as of December 31, 2025 and 2024.

(VII) Right-of-use assets

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

	Building	Transportation equipment and others	Total
Right-of-use asset costs:
Balance on January 1, 2025	$ 5,723	1,749	8,749
Add	5,843	-	5,843
Disposal	(3,601)	-	(3,601)
Balance on December 31, 2025	$ 9,287	1,749	11,036
Balance on January 1, 2024	$ 5,723	1,078	6,801
Add	3,444	1,749	5,193
Disposal	(2,122)	(1,078)	(3,200)
Balance on December 31, 2024	$ 5,723	1,749	8,749
Right-of-use asset depreciation:
Balance on January 1, 2025	$ 3,301	-	3,301
Depreciation	1,865	350	2,215
Disposal	(3,601)	-	(3,601)
Balance on December 31, 2025	$ 1,565	350	1,915
Balance on January 1, 2024	$ 3,516	718	4,234
Depreciation	1,907	360	2,267
Disposal	(2,122)	(1,078)	(3,200)
Balance on December 31, 2024	$ 3,301	-	3,301
Carrying amounts:
December 31, 2025	$ 7,722	1,399	9,121
January 1, 2024	$ 2,207	360	2,567
December 31, 2024	$ 3,744	1,749	5,493

~29~

(VIII) Short-term loans

	December 31, 2025	December 31, 2024
Secured bank loans	$ 503,000	500,000
Unsecured bank loans	207,000	198,000
Total	$ 710,000	698,000
Unused credit line	$ 600,000	436,963
Interest rate	1.835%~2.15%	1.87%~2.487%

For information about the Company's interest rate and liquidity risks, please refer to Note 6 (16) for details.
The Company's short-term 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 Company pledged as collateral.

(IX) Lease liabilities

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

	December 31, 2025	December 31, 2024
Current	$ 2,163	1,307
Non-current	$ 7,027	4,191

For the maturity analysis of financial instruments, please refer to Note 6 (16).

Amounts recognized as profit or loss are as follows:

	2025	2024
Interest expense on lease liabilities	$ 156	18
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	$ 13	17
Expenses related to leases of low value assets (excluding short term leases of low value assets)	$ 24	52

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

	2025	2024
Total cash flows from leases	$ 2,352	2,455

Leasing of buildings

The Company leased buildings as office premises. The lease term of the office

premises was 5 years, and the lease included the option to extend the lease term for the same period as the original contract.

2. Other leases

The lease period of parking space leased by the Company is 5 years.

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

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

(X) Employee benefits

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

The pension expenses under the Company's 2025 and 2024 defined pension contributions were NT$ 7,635 thousand and NT$ 6,855 thousand, respectively, and were transferred to the Bureau of Labor Insurance.

(XI) Income taxes

1. Income tax expense

(1) The Company's expenses for 2025 and 2024 were as follows:

	2025	2024
Income tax expense for the current period:
Generated in the current period	$ 27,949	43,156
Undistributed surplus earnings	4,659	3,723
Undervaluation (overvaluation) for the prior period	(4,461)	(408)
	28,147	46,471
Deferred tax expense	3,831	6,324
Income tax expense	$ 31,978	52,795

(2) The Company's 2025, and 2024, income tax expenses and pre-tax net profits were adjusted as follows:

	2025	2024
Net profit before tax	$ 63,219	108,280
Income tax calculated at the domestic tax rate of the Company's location	$ 12,644	21,656
Net amount of domestic investment gains and losses	(8,679)	(10,768)

	2025	2024
Changes in unrecognized temporary differences	27,649	18,046
Undistributed surplus earnings	4,659	3,723
(Overvaluation) Undervaluation for the prior period	(4,461)	(408)
Non-deductible expenses and others	166	20,546
Income tax expense	$ 31,978	52,795

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 Company's control over the timing of the reversal of these temporary differences. Therefore, no deferred tax liabilities were recognized. Relevant amounts were as follows:

	December 31, 2025	December 31, 2024
Amounts not recognized as deferred tax liabilities	$ 144,744	172,393

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

(3) Recognized deferred tax assets and liabilities

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

	Investment income recognized under the equity method (foreign)	Other	Total
Deferred tax liabilities:
Balance on January 1, 2054	$ 55,485	154	55,639
Debit/(credit) income	1,625	(154)	1,551
Balance on December 31, 2025	$ 57,190	-	57,190
Balance on January 1, 2024	$ 44,860	-	44,860
Debit/(credit) income	10,625	154	10,779
Balance on December 31, 2024	$ 55,485	154	55,639

~32~

	Inventory impairment and bad debt losses and others
Deferred tax assets:
Balance on January 1, 2025	$ 7,600
(Debit)/credit income	(2,280)
Balance on December 31, 2025	$ 5,320
Balance on January 1, 2024	$ 3,145
(Debit)/credit income	4,455
Balance on December 31, 2024	$ 7,600

The Company's tax returns for the years up to 2023 were examined and approved by the tax authority.

(XII) 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

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

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 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

~33~

~34~

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

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

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

~35~

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

3. Treasury shares

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

(XIII) Earnings per share

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

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

	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

(XIV) Revenue from customer contracts

Details of revenue

	2025
	Information Services Department	Wire & Connectors Department	Total
Primary regional markets:
Taiwan	$ 744,072	42,011	786,083
Mainland China and Other	25,988	9,495	35,483
	$ 770,060	51,506	821,566
	2024
---	---	---	---
	Information Services Department	Wire & Connectors Department	Total
Primary regional markets:
Taiwan	$ 842,939	-	842,939
Mainland China and Other	25,863	26,381	52,244
	$ 868,802	26,381	895,183

~37~

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

2. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable	$ 1,507	868	4,450
Accounts receivable	122,547	126,140	158,114
Less: Loss allowance	(200)	(3,528)	(6,927)
	$ 123,854	123,480	155,637
Contract assets (accounted for as other current assets)	$ 6,751	-	-
Contract liabilities	$ 9,802	29,879	20,395

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$ 28,027 thousand and NT$ 15,971 thousand, respectively.

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

(XV) 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 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.

~38~

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

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.

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.

(XVI) Financial instruments

1. Credit risk

1) Amount of maximum credit risk exposure

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

(2) Concentration of credit risk

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

~39~

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

(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).

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	$ 710,000	(712,502)	(712,502)	-	-
Lease liabilities	9,190	(9,534)	(2,307)	(2,307)	(4,920)
Notes and accounts payable	97,643	(97,643)	(97,643)	-	-
Other payables	47,848	(47,848)	(47,848)	-	-
Deposits received (accounted for as other non-current liabilities)	404	(404)	-	-	(404)
	$ 865,085	(867,931)	(860,300)	(2,307)	(5,324)
December 31, 2024
Non-derivative financial liabilities
Short-term bank loans	$ 698,000	(699,282)	(699,282)	-	-
Lease liabilities	5,498	(5,734)	(1,391)	(1,086)	(3,257)
Notes and accounts payable	176,297	(176,297)	(176,297)	-	-
Other payables	46,553	(46,553)	(46,553)	-	-
Deposits received (accounted for as other non-current liabilities)	404	(404)	-	-	(404)
	$ 926,752	(928,270)	(923,523)	(1,086)	(3,661)

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

~40~

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

3. Exchange rate risk

(1) Exposure to exchange rate risk

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

	December 31, 2025			Foreign currency unit: $ thousand December 31, 2024
	Foreign currency	Exchange Rate	TWD	Foreign currency	Exchange Rate	TWD
Financial assets
Monetary items
USD	$ 6,846 USD/TWD =31.43		215,170	4,062 USD/TWD =32.785		133,170
Financial liabilities
Monetary items
USD	199 USD/TWD =31.43		6,255	176 USD/TWD =32.785		5,766

(2) Sensitivity analysis

The exchange rate risk of the Company's monetary items mainly comes from cash and cash equivalents, accounts receivable, other receivables and accounts payable denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If the TWD had depreciated or appreciated by 5% against the USD as of December 31, 2025 and 2024, then with all other factors remaining constant the impact on net profit before tax in 2025 and 2024 would be as follows:

	December 31, 2025	December 31, 2024
USD (versus TWD)
Appreciate 5%	$ 10,446	6,370
Depreciate 5%	(10,446)	(6,370)

(3) Exchange gains and losses on monetary items

For information on exchange gains and losses on monetary items of the Company, foreign currency exchange gains (losses) in 2025 and 2024 (both realized and unrealized) amounted to (NT$ 6,125) thousand and NT$ 12,600 thousand.

~41~

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

4. Interest rate analysis

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

	December 31, 2025	December 31, 2024
Variable rate instruments (book amounts):
Financial assets	$ 215,210	170,707
Financial liabilities	710,000	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 variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Company's internal key management reported the increases and decreases in interest rates, and changes in interest rates of 25 basis points are considered by management to be reasonably possible.

If interest rates had increased or decreased by 25 basis points, and with all other variables held constant, the Company's net profit before tax in 2025 and 2024 would have decreased or increased by NT$ 1,237 thousand and NT$ 1,273 thousand, respectively. This would mainly be due to variable interest rate demand deposits and borrowings of the Company.

5. Fair value information

(1) Fair value hierarchy

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

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 193,826	-	-	-	-
Net notes receivable and accounts receivable (including related parties)	123,854	-	-	-	-

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

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Other receivables - related parties	105	-	-	-	-
Other financial assets - current	23,015	-	-	-	-
Deposits made (accounted for as other non-current assets)	27,366	-	-	-	-
	$ 368,166
Financial liabilities measured at amortized cost
Bank loans	$ 710,000	-	-	-	-
Notes payable and accounts payable	97,643	-	-	-	-
Other payables	47,848	-	-	-	-
Lease liabilities - current	2,163	-	-	-	-
Lease liabilities - non-current	7,027	-	-	-	-
Deposits received (accounted for as other non-current liabilities)	404	-	-	-	-
	$ 865,085
	December 31, 2024
---	---	---	---	---	---
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at amortized cost
Cash and cash equivalents	$ 128,327	-	-	-	-
Net notes receivable and accounts receivable (including related parties)	123,480	-	-	-	-
Other receivables - related parties	203	-	-	-	-
Other financial assets - current	45,086	-	-	-	-
Deposits made (accounted for as other non-current assets)	27,717	-	-	-	-
	$ 324,813

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

	December 31, 2024
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial liabilities measured at amortized cost
Bank loans	$ 698,000	-	-	-	-
Notes payable and accounts payable	176,297	-	-	-	-
Other payables	46,553	-	-	-	-
Lease liabilities - current	1,307	-	-	-	-
Lease liabilities - non-current	4,191	-	-	-	-
Deposits received (accounted for as other non-current liabilities)	404	-	-	-	-
	$ 926,752

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

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

(XVII) Financial risk management

Overview

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

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

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

Risk management structure

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

~44~

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

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

3. Credit risk

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

(1) Accounts receivable and other receivables

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

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

(2) Investments

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

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

(3) Guarantees

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

Liquidity risk

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

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

Market risk

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

(1) Exchange rate risk

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

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

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

(2) Interest rate risk

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

~45~

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

(XVIII) Capital management

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

	December 31, 2025	December 31, 2024
Total liabilities	$ 964,740	1,043,560
Total equity	1,594,727	1,632,478
Interest-bearing debt	710,000	698,000
Debt-to-equity ratio	60%	64%
Ratio of interest-bearing debt to equity	45%	43%

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

The Company'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:

| | January 1, 2024 | Cash flows | Non-cash changes
Others | December 31, 2025 |
| --- | --- | --- | --- | --- |
| Short-term loans | $ 698,000 | 12,000 | - | 710,000 |
| Deposits received | 404 | - | - | 404 |
| Lease liabilities | 5,498 | (2,151) | 5,843 | 9,190 |
| Total liabilities from financing activities | $ 703,902 | 9,849 | 5,843 | 719,594 |
| | January 1, 2024 | Cash flows | Others | December 31, 2024 |
| --- | --- | --- | --- | --- |
| Short-term loans | $ 696,000 | 2,000 | - | 698,000 |
| Deposits received | 348 | 56 | - | 404 |
| Lease liabilities | 2,595 | (2,290) | 5,193 | 5,498 |
| Total liabilities from financing activities | $ 698,943 | (234) | 5,193 | 703,902 |

~47~

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

VII. Related party transactions

(I) Names and relationship with related parties

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

Name of related party	Relationship with the Company
A Team Tech Inc. (A Team)	Subsidiary of the Company
JIUN TAI CORPORATION LIMITED (JIUN TAI)	Subsidiary of the Company
CHLERAISE ELECTRONIC CORPORATION (CELERAISE)	Subsidiary of the Company
CELERAISE (THAILAND) CO., LTD (THAILAND)	Subsidiary of the Company
Welltrend Technology Co., Ltd. (Welltrend)	Subsidiary of the Company
CHLERAISE ELECTRONIC INDIA PRIVATE LIMITED (Celeraise India)	Subsidiary of the Company
Celeraise Investments Limited (Celeraise Hong Kong)	Subsidiary of the Company
Leadpak Industrial Co., Ltd. (Leadpak Industrial)	Subsidiary of the Company
Celeraise Technology Corporation (Celeraise Technology)	Subsidiary of the Company
KING HONG Co., Ltd. (KING HONG)	Subsidiary of the Company
HONG YI CABLE CO., LTD. (HONG YI)	Subsidiary of the Company
Shanghai Zhansheng Electronics Co., Ltd. (Shanghai Zhansheng)	Subsidiary of the Company
Yield Profit International Enterprise Limited (Yield Profit International)	Subsidiary of the Company
Jet Success Technology Development Limited (Jet Success)	Subsidiary of the Company
Shenzhen Zhansheng Electric Power Co., Ltd. (Shenzhen Zhansheng)	Subsidiary of the Company
Zhan Mao Electronics Enterprise (Huizhou) Co., Ltd. (Huizhou Zhan Mao)	Subsidiary of the Company
Kunshan Yiguan Electronic Technology Co., Ltd. (Kunshan Yiguan)	Subsidiary of the Company
Mr. Yun-Teng Chang	Chairman of the Company

~48~

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

(II) Significant transactions with related parties

1. Operating revenue

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

	2025	2024
Subsidiary	$ 35,057	33,389

The Company has no sales prices for subsidiary to compare with those for general customers. The sales prices for Celeraise Technology are not significantly different from that of ordinary customers. The Company's credit conditions for Celeraise Technology are determined according to the credit conditions of the final purchaser of each project. The credit conditions for subsidiary are 120 days. Payments are made according to financial needs. There is no significant difference from general customers, and the credit period for general customers is 30 to 60 days.

2. Purchases

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

	2025	2024
Subsidiary
Celeraise Hong Kong	$ 6,403	7,862
Kunshan Yiguan	23,481	8,781
Others	3,736	5,971
	$ 33,620	22,614

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

3. Receivables from related parties

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

Accounts	Related party category	December 31, 2024	December 31, 2023
Accounts receivable	Subsidiary:
	Shanghai Zhansheng	$ 754	1,110
	THAILAND	13,574	7,113
	Others	279	581
		$ 14,607	8,804

~49~

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

4. Payables to related parties

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

Accounts	Related party category	December 31, 2025	December 31, 2024
Accounts payable	Subsidiary:	$ 5,905	7,049

5. Loans to related parties

Interest receivable arising from the company's previous loans to related parties; as of December 31, 2025 and 2024, outstanding interest receivables amounted to NT$ 0 thousand and NT$ 203 thousand, respectively, accounted for as other receivables - related parties.

6. Endorsements/Guarantees

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

Subsidiary-CeleraiseTechnology	December 31, 2025	December 31, 2024
	$ 59,867	80,088

(2) The Company is the endorsement guarantee of the subsidiary. Please refer to Note 13 (1) 2. Note that there is no actual expenditure on December 31, 2025 and 2024.

7. Leases

The Company leases some office floors to its subsidiaries and rent is charged monthly. Rental income for 2025 and 2024 was NT$ 1,150 thousand and NT$ 640 thousand, respectively. As of December 31, 2025 and 2024, outstanding rental receivables amounted to NT$ 105 thousand and NT$ 0 thousand, accounted for as other receivables - related parties.

(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 Company's short-term loan contracts for December 31, 2025 and 2024, were NT$ 1,310,000 thousand and NT$ 1,134,963 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

~50~

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

VIII. Pledged assets

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

Asset name	Purpose of pledge	December 31, 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)	Bank loans and performance guarantees, etc.	21,504	42,500
Deposits made (accounted for as other financial assets - current)	Performance guarantees and bid deposits	1,511	2,586
Deposits made (accounted for as other non-current assets)	Performance guarantees and bid deposits	27,366	27,717
		$ 223,480	247,539

IX. Significant commitments and contingencies: None.

X. Losses due to major disasters: None.

XI. Significant subsequent events: None.

~51~

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

XII. Other

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 | 26,380 | 102,158 | 128,538 | 28,036 | 86,054 | 114,090 |
| Health and labor insurance expense | 3,189 | 11,848 | 15,037 | 3,347 | 10,364 | 13,711 |
| Pension expense | 1,489 | 6,146 | 7,635 | 1,607 | 5,248 | 6,855 |
| Director's remuneration | - | 3,110 | 3,110 | - | 4,020 | 4,020 |
| Other employee benefit expense | 1,657 | 7,570 | 9,227 | 1,944 | 5,955 | 7,899 |
| Depreciation expense | 743 | 6,532 | 7,275 | 547 | 6,411 | 6,958 |
| Amortization expense | - | 2,395 | 2,395 | - | 3,019 | 3,019 |

Additional information on the number of employees and employee benefit expenses of the Company in 2025 and 2024 is as follows:

	2025	2024
Number of employees	198	183
Number of directors who do not concurrently serve as employees	7	7
Average employee benefit expense	$ 840	810
Average employee salary expense	$ 673	648
Adjustments in average employee salary expense	4%	-
Supervisor's remuneration	$ -	-

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

Employees:

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

~52~

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

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

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

Managers:

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

Directors and supervisors:

Compensation of directors and supervisors includes travel expenses, remuneration, and the remuneration of directors and supervisors via earnings distributions. In accordance with the Company's Articles of Incorporation, the remuneration of directors and supervisors shall account for no more than 3% of distributed earnings after a resolution by the Board of Directors, and it shall be reported to the shareholders' meeting. Please see Note 6 (15) for the relevant provisions of the Articles of Incorporation of the Company.

(II) Other:

In December 2024, the Company 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 Parent Company Only Financial Statements of Welltend Technology Corporation (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 Company 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	Jun Tai	THAILAND	Other receivables	Y	23,244	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	CELERAISE	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 Jiun Tai's Operational "Procedures for Loaning Funds to Others", the total amount of funds loaned may not exceed 100% of Jiun Tai's net value. If there is a need for short-term financing with Jiun Tai, the loan amount may not exceed 100% of Jiun Tai's net value. Further, the total amount of foreign intercompany loans where Jiun Tai does not directly or indirectly hold 100% of the voting shares may not exceed 40% of the net value.

Note 2: In accordance with 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.

~53~

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (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 s/guarantees to the mainland China region
		Company name	Relationship
0	The Company	Celeralse Hong Kong/Jiun Tai	Subsidiary of the Company	1,594,727	82,000	-	-	-	%	1,594,727	Y	N	N
0	"	Celeralse Technology	Subsidiary of the Company	1,594,727	80,000	80,000	-	-	5.02%	1,594,727	Y	N	N
1	Celeralse 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 Celeralse Technology are made in accordance with that company's Management Measures for Loans and Endorsements/Guarantees. The total amount of external endorsements/guarantees may not exceed 500% of the company's net value, and the amount of endorsements/guarantees for a single enterprise may not exceed 500% of the company's net value.

Securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): None.
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 (Note 1)	Percentage of total purchases/ sales	Payment terms	Unit Price	Payment terms	Ending balance	Percentage of total Notes/Accounts receivable(payable)
Huizhou Zhan Mao	Celeralse Hong Kong	Ultimate parent company is the same	(sole)	(400,743)	382 %	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.	(64,377)	70 %
Celeralse Hong Kong	Huizhou Zhan Mao	Ultimate parent company is the same	purchase	420,743	69 %	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)	290 %
Unalipak Industrial	CELERASE	Ultimate parent company is the same	(sole)	(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	150 %
CELERASE	Unalipak 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)	492 %

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	Celeralse Hong Kong	Ultimate parent company is the same	164,377	2.00			56,923

Note : Information as of February 28, 2026.

Notes to the Parent Company Only Financial Statements of Welltend Technology Corporation (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			Profit or loss of the investee company for the current period (Note 2)	Investment gains and losses recognized in the current period (Note 2)	Notes
				End of current period (Note 1)	End of prior period (Note 1)	Number of shares	Ratio	Carrying amount (Note 1)
The Company	A Team	British Virgin Islands	Investment, trading, and holding company	16,538	16,538	500	100%	994	-	-	Subsidiary
The Company	Jun Tai	Hong Kong	Holding company	267,499	267,499	66,160	100%	290,718	3,554	3,554	✓
The Company	Caleraise Technology	Taiwan	Information service industry	30,000	30,000	3,000	100%	68,931	28,427	28,465	✓
The Company	Laadpak Industrial	Taiwan	International trade and other wholesale and retail trade	30,000	29,810	3,000	100%	48,134	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	119	61	✓
The Company	HONG YI	Taiwan	International trade and other wholesale and retail trade	15,600	15,600	1,560	52%	11,413	(6,201)	(3,225)	✓
The Company	Caleraise Hong Kong	Hong Kong	Manufacture and sale of wine and cable connectors and connectors	191,996	191,996	50,300	99.99%	1,083,114	39,882	39,882	✓
The Company	CELERAISE	Philippines	Manufacture and sale of wine and cable connectors and connectors	25,532	25,532	400	100%	238,973	18,013	18,013	✓
The Company	THAILAND	Thailand	Manufacture and sale of wine and cable connectors and connectors	182,136	182,136	18,275	100%	177,882	(10,011)	(10,011)	✓
Jun Tai	Caleraise Hong Kong	Hong Kong	Manufacture and sale of wine and cable connectors and connectors	0 (HKD 0.16)	0 (HKD 0.16)	-	0.01%	0 (HKD 0.16)	-	Recognized by Jun Tai	✓
Jun Tai	Welltrend	Thailand	Manufacture and sale of wine and cable connectors and connectors	124,443 (HKD 30,818)	79,674 (HKD 19,731)	1,440	80%	144,411 (HKD 94,518)	2,707 (HKD 678)	Recognized by Jun Tai	Sub-subsidiary
Caleraise 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)	22,856 (HKD 5,724)	Recognized by Caleraise Hong Kong	Sub-subsidiary
Caleraise Hong Kong	Jet Success	Hong Kong	Investment, trading, and holding company	31,498 (HKD 7,800)	31,498 (HKD 7,800)	7,800	100%	181,948 (HKD 45,059)	(978) (HKD (245))	✓	✓
HONG YI	Caleraise India	India	Manufacture and sale of wine and cable connectors and connectors	23,170 (INR 67,550)	-	6,755	70%	18,292	(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.

(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		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
					Inillium	Influe				Inclus	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 Zhansheng	Production of electronics, cable connectors, telephone space parts and small household appliances; sales of the company's own products	52,645 (US 1,675)	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 Zhansheng	Manufacture and sale of wine and cable connectors and connectors	47,344 (US 515 RMB 6,930) (Note 6)	Note 2	-	-	-	-	1,508 (RMB 348)	100%	-	100%	1,508 (HKD 378)	34,352 (HKD 8,507)	-
Caleraise Chenzhou	Production and sale of wine connectors, electronic wire products, etc.	-	Note 2	31,430 (US 1,000)	-	-	31,430 (US 1,000)	(Note 8)	-	-	-%	-	(Note 8)	-

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

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 (Gallton) follow		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
					Gallton	Follow				Thousand shares / thousand units	Shareholding ratio
Kunshan Yiquan	Manufacture and sale of wire and cable connectors and connectors, etc.	31,430 (US 1,090)	Note 2	31,430 (US 1,090)	-	-	31,430 (US 1,090)	(1,249) (RMB (289))	100%	-	100%	(1,249) (HKD (313))	174,983 (HKD 43,334)	205,262 (RMB 47,071)
Huizhou Zhanmao	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

Note 1: Reinvestment in mainland China through investment and establishment of companies in a third region.
Note 2: Reinvestment in mainland China companies by reinvesting in existing companies in a third region.
Note 3: Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date.
Note 4: Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.
Note 5: The recognition of investment gains and losses of Shanghai Zhansheng and Shenzhen Zhansheng in the current period is based on the self-reported financial statements of the investee companies. Other investee companies' investment gains and losses for the current period are recognized based on the financial statements of the invested company that have been verified and certified by the CPAs of the Taiwan parent company.
Note 6: Constitutes reinvestment undertaken by Celeraise Hong Kong through investment of US$515 thousand of its own funds and use of fixed assets.
Note 7: The difference between the remitted investment amount and the Company's remittance is the reinvestment of US$1,680 thousand made by Celeraise Hong Kong, Yield Profit International, and Jet Success using their own funds.
Note 8: Celeraise Chenzhou Industry completed the liquidation process in June 2018 and the investment amount was reimbursed in July 2018.
Note 9: 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 10: 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 11: 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.

Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Company and mainland China investee companies in 2025, please see the description detailed under the "Information on Material Transactions" as well as "Business relationships and significant intercompany transactions".

XIV. Segment information

Please refer to the 2025 consolidated financial statements for details.

~57~

Welltend Technology Corporation

Schedule of cash and cash equivalents

December 31, 2025
Unit: NT$ thousand

Item	Summary	Amount
Cash on hand		$ 120
Demand deposits		6,706
Foreign currency deposits	USD 5,949.75 thousand @31.430	187,000
		$ 193,826

Schedule of notes and accounts receivable - non-related parties

Customer name	Summary	Amount
Notes receivable:
Others (Note)	Operating revenue from non-related parties	$ 1,507
Accounts receivable:
Company AC	Operating revenue from non-related parties	17,361
Company AF	"	8,047
Company AG	"	11,767
Company AH	"	9,659
Others (Note)		61,106
		107,940
Less: Loss allowance		(200)
Total		$ 109,247

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

~58~

Welltend Technology Corporation

Schedule of inventories

December 31, 2025

Unit: NT$ thousand

Item	Amount
	Cost	Net realizable value
Goods held for sale	$ 60,679
Others	3,083
Less: Allowance for depreciation and inactive inventory	(15,325)
	$ 48,437	48,917

~59~

Weltend Technology Corporation

Schedule of changes in investments using the equity method

January 1 to December 31, 2025

Units: NT$ thousand / Original currency thousand

Number of shares: Thousand shares

Name	Opening balance at start of period		Additions this period		Reductions this period		Investment gains (losses) recognized under the equity method	Exchange differences on translation of foreign financial statements	Balance at end of period			Total market price or net value	Provision of guarantee or pledge
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount			Number of shares	Shareholding percentage	Amount
A-Team Tech	500$	990	-	-	-	-	-	4	500	100%	994	994	None
Jiun Tai	66,160	286,535	-	-	-	(2,852)	3,554	3,481	66,160	100%	290,718	285,127	〃
Leadpak Industrial	2,981	50,255	19	339	-	(20,554)	18,094	-	3,000	100%	48,134	49,188	〃
Celeraise Technology	3,000	70,635	-	-	-	(30,169)	28,465	-	3,000	100%	68,931	68,893	〃
KING HONG	510	5,125	-	-	-	-	61	-	510	51%	5,186	5,186	〃
HONG YI	1,560	15,590	-	-	-	-	(3,225)	(952)	1,560	52%	11,413	11,413	〃
Celeraise Hong Kong	50,300	1,207,387	-	-	-	(145,874)	39,882	(18,281)	50,300	99.99%	1,083,114	1,056,822	〃
CELERAISE	400	234,897	-	-	-	-	18,013	(13,937)	400	100%	238,937	238,973	〃
THAILAND	18,275	180,897	-	-	-	-	(10,011)	6,996	18,275	100%	177,882	177,882	〃
	$ 2,052,311		339		(199,449)		94,833	(22,689)			1,925,345

~60~

Welltend Technology Corporation

Schedule of changes in property, plant, and equipment

December 31, 2025

Please see Note VI (V)

Schedule of short-term loans

Creditor bank	Summary	Contract period	Interest rate	Financing amount	Collateral or guarantee	Amount
First Commercial Bank	Operating turnover amount	114.06~115.06	1.835%	$ 208,000	Land and buildings	208,000
〃	〃	114.06~115.06	1.935%	212,000	None	147,000
Shin Kong Bank	〃	114.09~115.09	2.00%	75,000	Certificates of deposit	30,000
CTBC	〃	114.03~115.03	2.15%	350,000	None	-
Mega Bank	〃	114.04~115.04	2.075%	100,000	Land and buildings	80,000
Fubon Bank	〃	114.12~115.12	2.15%	50,000	Reimbursement account	50,000
Taiwan Cooperative Bank	〃	114.02~115.02	2.025%	35,000	Reimbursement account	35,000
DBS Bank	〃	114.04~115.04	1.935%	100,000	Reimbursement account	100,000
SCSB Bank	〃	114.04~115.04	2.25%	80,000	Land and buildings	-
Cathay United Bank	〃	114.04~115.04	1.93%	100,000	None	60,000
				$1,310,000		710,000

~61~

Welltend Technology Corporation

Schedule of notes and accounts payable

December 31, 2025

Unit: NT$ thousand

Customer name	Summary	Amount
Accounts payable:
Company J	Operating expenses from non-related parties	$ 14,496
Company H	“	16,734
Company X	“	22,063
Company AF	“	8,830
Others (Note)	“	29,615
		91,738
Accounts payable - related parties	Operating expenses of related persons	5,905
Total		$ 97,643

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

Schedule of other payables

Item	Summary	Amount
Salaries and bonuses payable	Salary in December 2025 and estimated year-end bonus in 2025	$ 33,162
Employee compensation payable		2,000
Health insurance premiums payable		4,147
Remuneration payable to directors		2,000
Others (Note)	Labor fees and withholdings, etc., payable	6,539
		$ 47,848

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

~62~

Welltend Technology Corporation

Schedule of operating revenue

January 1 to December 31, 2025

Unit: NT$ thousand

Item	Quantity	Amount
Sales revenue:
Information products		$ 646,389
Wire and connectors		51,506
		697,895
Less: Returns and discounts		(4)
		697,891
Others		123,675
Net operating revenue		$ 821,566

~63~

Welltend Technology Corporation

Schedule of operating costs

January 1 to December 31, 2025

Unit: NT$ thousand

Item	Amount
Manufacturing:
Raw materials, beginning of year	$ 448
Add: Raw material purchased	7,039
Less: Raw materials, ending of year	(2,167)
Subtotal	5,320
Direct labor	395
Manufacturing overhead	4,779
Manufacturing costs	10,494
Work in process, beginning of year	1
Loss: Work in process, ending of year	(301)
Cost of goods manufactured	10,194
Finished goods, beginning of year	4,202
Add: Finished goods purchased	27,360
Loss: Finished goods, ending of year	(614)
Manufacturing cost of goods sold	41,142
Trading industry
Goods held for sale, beginning of year (After Restatement)	97,603
Add: Purchases for this period	558,577
Less: Goods held for sale, ending of year	(60,679)
Transfer to other operating costs	(23,590)
Trading industry cost of goods sold	571,911
Total cost of goods sold	613,053
Other operating costs	42,036
Inventory write-down and obsolescence loss	443
Total	$ 655,532

~64~

Welltend Technology Corporation

Schedule of operating expenses

January 1 to December 31, 2025

Unit: NT$ thousand

Item	Marketing Expenses	Management Expenses
Salary expenses	$ 52,734	49,424
Depreciation	1,099	5,433
Insurance expenses	7,604	5,085
Others (Note)	20,325	36,680
Total	$ 81,762	96,622

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

AI assistant

WELLTEND — Audit Report / Information 2025

52254_rns_2026-04-08_dc632cb8-e3ed-4b25-815e-518943d768cd.pdf

Welltend Technology Corporation

Parent Company Only Financial Statements with Independent Auditors' Report

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

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

Notes to Readers

Welltend Technology Corporation

Statement of Comprehensive Income

Welltend Technology Corporation

Statement of Changes in Equity

Welltend Technology Corporation

Statement of Cash Flows

Welltend Technology Corporation

Notes to the Parent Company Only Financial Statements

I. Company history

II. Approval date and procedures for adoption of financial statements

III. New standards, amendments and interpretations adopted

(V) Cash and cash equivalents

(VI) Financial instruments

1. Financial assets

(1) Financial assets measured at amortized cost

(2) Impairment of financial assets

2. Financial liabilities and equity instruments

(1) Classification of liabilities or equity

(2) Equity instruments

(3) Treasury shares

(4) Financial liabilities

(5) Derecognition of financial liabilities

2. Lessor

(VII) Right-of-use assets

(VIII) Short-term loans

(IX) Lease liabilities

2. Other leases

(X) Employee benefits

(XI) Income taxes

1. Income tax expense

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax liabilities

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

(3) Recognized deferred tax assets and liabilities

2. Retained earnings

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

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

3. Treasury shares

(XIII) Earnings per share

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

2. Contract balances

(XV) Remuneration of employees and of directors and supervisors

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

(XVI) Financial instruments

1. Credit risk

1) Amount of maximum credit risk exposure

(2) Concentration of credit risk

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

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

3. Exchange rate risk

(1) Exposure to exchange rate risk

(2) Sensitivity analysis

(3) Exchange gains and losses on monetary items

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

4. Interest rate analysis

5. Fair value information

(1) Fair value hierarchy

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

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

3. Credit risk

(1) Accounts receivable and other receivables

(2) Investments

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

(XVIII) Capital management

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

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

VII. Related party transactions

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

(II) Significant transactions with related parties

1. Operating revenue

2. Purchases

3. Receivables from related parties

WELLTEND Audit Report / Information 2025