WELLTEND - Interim / Quarterly Report 2023

Stock code ： 3021

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

For the Six Months Ended June 30, 2023 and 2022

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

～ 1 ～

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

1
2
3
4
5
6
7
8
8
8
8～9
10～12
13
13～34
35～36
37
37
37
37
37～38
38～41
42
42～44
44
45～46

Item I. Cover Page II. Table of Contents III. Independent Auditors’ Review Report IV. Consolidated Balance Sheet V. Consolidated Statement of Comprehensive Income VI. Consolidated Statement of Changes in Equity VII. Consolidated Statement of Cash Flows VIII. Notes to the Consolidated Financial Statements (I) Company history (II) Approval date and procedures of the consolidated financial statements (III) New standards, amendments, and interpretations adopted (IV) Summary of significant accounting policies (V) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (VI) Explanation of significant accounts (VII) Related-party transactions (VIII) Pledged assets (IX) Significant commitments and contingencies (X) Losses due to major disasters (XI) Significant subsequent events (XII) Other (XIII) Other disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investment in mainland China 4. Information on principal shareholders (XIV) Segment information	Page
	1 2 3 4 5 6 7 8 8 8 8`～`9 10`～`12 13 13`～`34 35`～`36 37 37 37 37 37～38 38`～`41 42 42`～`44 44 45`～`46

～ 2 ～

Independent Auditors’ Review Report

To the Board of Directors of Welltend Technology Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Welltend Technology Corporation and its Subsidiaries (Welltend Group) as of June 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three-month and six-month periods ended June 30, 2023 and 2022, as well as the consolidated statements of changes in equity and of cash flows for the six months ended June 30, 2023 and 2022, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Equity” of the Republic of China. A review of consolidated financial statements consists of making inquires, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As explained in Note 4(2), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to NT$166,200 thousand and NT$133,916 thousand, constituting 7% and 4% of the consolidated total assets, respectively, total liabilities amounting to NT$94,766 thousand and NT$71,300 thousand, constituting 7% and 4% of the consolidated total liabilities as of June 2023 and 2022, respectively; and total comprehensive income of NT$11,638 thousand , NT$7,978 thousand, NT$19,393 thousand and NT$15,049 thousand, constituting 49%, 31%, 32% and 11% of the consolidated total comprehensive income for the three-months and the six-months ended 30 June 2023 and 2022, respectively.

～ 3 ～

Qualified Conclusion

Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain joint ventures accounted for using equity method been reviewed by independent accountants, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as at June 30, 2023 and 2022, and of its consolidated financial performance for three-months and the six-months ended 30 June 2023 and 2022, as well as its consolidated cash flows for six-months ended 30 June 2023 and 2022, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Independent Accountants

KPMG Taipei, Taiwan (Republic of China) August 8, 2023

Notes to Readers

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

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

～ 3-1 ～

Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

30 June 2023, 31 December 2022 and 30 June 2022

112.6.30	111.12.31		111.6.30 Amount	112.6.30	% 23 2 11 5 2 1 1 1	111.12.31 Amount % 691,000 23 55,892 2 443,594 14 185,172 6 - - 64,069 2 31,592 1 30,471 1 1,501,790 49 49,319 2 42,709 1 434 - 92,462 3 1,594,252 52 958,900 31 - - 7,525 - 639,311 21 (120,028) (4) 1,485,708 48 114 - 1,485,822 48 3,080,074 100	111.6.30	% 26 1 16 4 1 2 1 1
Amount $ 696,913 873,785 650,701 69,141 39,360	Amount 530,360 997,775 779,205 132,237 36,547	％
		17 33 25 4 1	503,530 920,177 831,984 124,480 37,906 2,418,077 413,732 88,737 44,677 2,748 61,138 611,032 3,029,109				Amount 774,859 35,699 469,034 136,726 27,900 50,011 31,480 28,726
2,329,900	2,476,124	80
420,841 59,544 44,327 3,307 57,667	426,974 72,958 44,414 3,440 56,164	14 2 2 - 2
				1,349,841	46	49	1,554,435	52
				54,098 31,136 301	2 1 -	2 1 -	43,361 58,297 302	1 2 -
585,686	603,950	20
$ 2,915,586	3,080,074	100
				85,535	3	3	101,960	3
				1,435,376	49	52	1,656,395	55
					33 - - 23 (5)	31 - - 21 (4)	930,000 27,900 6,250 547,401 (138,951)	31 1 - 18 (5)
				1,480,062	51	48	1,372,600	45
				148	-	-	114	-
				1,480,210	51	48	1,372,714	45
				$ 2,915,586	100	100	3,029,109	100

Chairman: Yun-Teng Chang

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

Accounting Supervisor: Wen-Pin Chen

～ 4 ～

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

For the three-months and the six-months ended 30 June 2023 and 2022

Unit: NT$ thousand

For the six-month periods ended 30 June	For the six-month periods ended 30 June	For the six-month periods ended 30 June
2023	`％` 92 8	2022 Amount 1,765,449 131,686
Amount 1,327,204 109,376			`％`
			93 7
1,436,580	100	1,897,135	100
1,133,220 37,597	79 3	1,501,062 28,669	79 2
1,170,817	82	1,529,731	81
265,763	18	367,404	19
96,136 92,678 610	7 6 -	125,057 101,614 302	7 5 -
189,424	13	226,973	12
76,339	5	140,431	7
11,621 2,786 11,902 (6,651) (1,306)	1 - 1 (1) -	8,784 399 14,121 (5,011) (6,182)	- - 1 - -
18,352	1	12,111	1
94,691 14,192	6 1	152,542 60,262	8 3
80,499	5	92,280	5
(18,988)	(1)	39,145	2
(18,988)	(1)	39,145	2
61,511	4	131,425	7
80,465 34	5 -	92,278 2	5 -
80,499	5	92,280	5
61,477 34	4 -	131,423 2	7 -
61,511	4	131,425	7
	0.84 0.84		0.96
			0.96

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

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

Manager: Hsiang-Yu Wang

～ 5 ～

Welltend Technology Corporation and Subsidiaries Consolidated Statement of Changes in Equity

For the six-month periods ended 30 June, 2023 and 2022

Equity Attributable to the Parent Company

Share capital	Share capital	Additional paid-in capital 7,991		Retained earnings	Retained earnings		Other equity	Treasury shares	Total equity attributable to owners of the parent company	Non-con trolling interests Total equity 11 1,269,189 - - - - - (27,900) - - - (27,900) 92,280 - 39,145 131,425 - - 11 1,372,714 11 1,485,822 - - - - - (67,123) - (67,123) 3 80,499 - (18,988) 3 61,511 14 1,480,210
							Exchange differences on translation of foreign financial statements
Share capital from common stock	Cash dividends of ordinary share		Legal reserve 80,516	Special reserve 126,636	Undistrib uted surplus earnings 306,292	Total
$ 940,000	-					513,444	(178,096)	(14,262)	1,269,077 - - (27,900) - (27,900) 92,278 39,145 131,423 - 1,372,600 1,485,708 - - (67,123) (67,123) 80,465 (18,988) 61,477 1,480,062
- - - -	- - - 27,900	- - - -	13,074 - - -	- 51,460 - -	(13,074) (51,460) (27,900) (27,900)	- - (27,900) (27,900)	- - - -	- - - -
-	27,900	-	13,074	51,460	(120,334)	(55,800)	-	-
- -	- -	- -	- -	- -	92,278 -	92,278 -	- 39,145	- -
-	-	-	-	-	92,278	92,278	39,145	-
(10,000)	-	(1,741)	-	-	(2,521)	(2,521)	-	14,262
$ 930,000	27,900	6,250	93,590	178,096	275,715	547,401	(138,951)	-
$ 958,900	-	7,525	93,590	178,096	367,625	639,311	(120,028)	-
- - -	- - -	- - -	18,419 - -	- (58,068) -	(18,419) 58,068 (67,123)	- - (67,123)	- - -	- - -
-		-	18,419	(58,068)	(27,474)	(67,123)	-	-
- -	- -	- -	- -	- -	80,465 -	80,465 -	- (18,988)	- -
-	-	-	-	-	80,465	80,465	(18,988)	-
$ 958,900	-	7,525	112,009	120,028	420,616	652,653	(139,016)	-		1,480,210

Chairman: Yun-Teng Chang

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

Accounting Supervisor: Wen-Pin Chen

～ 6 ～

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

For the six-month periods ended 30 June, 2023 and 2022

Unit: NT$ thousand

Cash flows from operating activities: Net profit before tax for the period Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Loss on disposal of property, plant, and equipment Lease modification benefits Total adjustments to reconcile profit (loss) Changes in assets and liabilities related to operating activities: Net changes in assets related to operating activities, net: Notes and accounts receivable Inventories Other current assets Other financial assets Total net changes in assets related to operating activities Changes in liabilities related to operating activities, net: Contract liabilities Notes and accounts payable Other payables Other current liabilities Other liabilities related to operating activities Net changes in assets and liabilities related to operating activities Total adjustments Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash inflow from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment (Increase) Decrease in refundable deposits (Increase) Decrease in other non-current assets Acquisition ofintangible assets (Increase) Decrease in financial assets Net cash outflows from investing activities Cash flows from financing activities: `(`Decrease`)`Increase in Short-term borrowings Repayment of lease liability principal Decrease in other non-current liabilities Net cash inflows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents for the period Cash and cash equivalents at start of period Cash and cash equivalents at end of period	For the six-month periods ended 30 June 2023 2022 $ 94,691 152,542 40,860 38,302 1,039 939 610 302 6,651 5,011 (2,786) (399) - 939 - (3) 46,374 45,091 123,380 (130,704) 128,504 44,609 63,148 (38,421) 187 (1,649) 315,219 (126,165) (323) (167,907) (106,260) 116,075 (52,120) (6,804) (9,871) (262) (168,574) (58,898) 146,645 (185,063) 193,019 (139,972) 287,710 12,570 2,795 360 (6,647) (4,913) (35,933) (17,898) 247,925 (9,881) (18,767) (19,530) (2,120) 1,637 (1,470) 5,855 (952) (155) (3,000) 7,000 (26,309) (5,193) (20,000) 84,903 (15,930) (15,255) (133) (133) (36,063) 69,515 (19,000) 36,278 166,553 90,719 530,360 412,811 $ 696,913 503,530	For the six-month periods ended 30 June 2023 2022 $ 94,691 152,542 40,860 38,302 1,039 939 610 302 6,651 5,011 (2,786) (399) - 939 - (3) 46,374 45,091 123,380 (130,704) 128,504 44,609 63,148 (38,421) 187 (1,649) 315,219 (126,165) (323) (167,907) (106,260) 116,075 (52,120) (6,804) (9,871) (262) (168,574) (58,898) 146,645 (185,063) 193,019 (139,972) 287,710 12,570 2,795 360 (6,647) (4,913) (35,933) (17,898) 247,925 (9,881) (18,767) (19,530) (2,120) 1,637 (1,470) 5,855 (952) (155) (3,000) 7,000 (26,309) (5,193) (20,000) 84,903 (15,930) (15,255) (133) (133) (36,063) 69,515 (19,000) 36,278 166,553 90,719 530,360 412,811 $ 696,913 503,530
	40,860 1,039 610 6,651 (2,786) - -	38,302 939 302 5,011 (399) 939 (3)
	46,374	45,091
	123,380 128,504 63,148 187	(130,704) 44,609 (38,421) (1,649)
	315,219	(126,165)
	(323) (106,260) (52,120) (9,871)	(167,907) 116,075 (6,804) (262)
	(168,574)	(58,898)
	146,645	(185,063)
	193,019	(139,972)
	287,710 2,795 (6,647) (35,933)	12,570 360 (4,913) (17,898)
	247,925	(9,881)
	(18,767) (2,120) (1,470) (952) (3,000)	(19,530) 1,637 5,855 (155) 7,000
	(26,309)	(5,193)
	(20,000) (15,930) (133)	84,903 (15,255) (133)
	(36,063)	69,515
	(19,000)	36,278
	166,553 530,360	90,719 412,811
	$ 696,913	503,530

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

～ 7 ～

AS OF JUNE 30, 2023 AND 2022

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

June 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollar Except for Earnings Per Share Information and Unless Otherwise Specified)

I. Company history

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

II. Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on August 8, 2023.

III. New standards, amendments and interpretations adopted

(I) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2022 ：

 Amendments to IAS 1 “Disclosure of Accounting Policies”
 Amendments to IAS 8 “Definition of Accounting Estimates”
 Amendments to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”
(II) The impact of IFRS issued by IASB but not yet endorsed by the FSC

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

～ 8 ～

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

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

Content of amendment
Effective date
per IASB
Under existing IAS 1 requirements, companies
classify a liability as current when they do not have an
unconditional right to defer settlement for at least 12
months after the reporting date. The amendments
has removed the requirement for a right to be
unconditional and instead now requires that a right to
defer settlement must exist at the reporting date and
have substance.
The amendments clarify how a company classifies a
liability that can be settled in its own shares – e.g.
convertible debt.
January 1,
2024
After reconsidering certain aspects of the 2020
amendments1, new IAS 1 amendments clarify that only
covenants with which a company must comply on or
before the reporting date affect the classification of a
liability as current or non-current.
Covenants with which the company must comply after
the reporting date (i.e. future covenants) do not affect a
liability’s classification at that date. However, when
non-current liabilities are subject to future covenants,
companies will now need to disclose information to help
users understand the risk that those liabilities could
become repayable within 12 months after the reporting
date.
January 1,
2024

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

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

‧ Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
‧ IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
‧ Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information “
‧ IFRS 16 “Requirements for Sale and Leaseback Transactions”
‧ Amendments to IAS 7 and IFRS 7“Supplier Finance Arrangements”
‧ Amendments to IAS12 ” International Tax Reform—Pillar Two Model Rules”

～9～

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

IV. Summary of significant accounting policies

(I) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2022. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2022.

(II) Basis of consolidation

The basis for preparation of these consolidated financial statements is consistent with these for the preparation of these consolidated financial statements for the year ended December 31, 2022, the related information refers to the Note IV (III).

Subsidiaries included in these consolidated financial statements include:

==> picture [400 x 45] intentionally omitted <==

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

Shareholding ratio
Investing
company Nature of June 30, December June 30,
name Subsidiary name business 2023 31, 2022 2022 Note
The A-Team Tech Inc. Investment, 100.00% 100.00% 100.00% Note 1
----- End of picture text -----

Investing company name The	Subsidiary name A-Team Tech Inc.	Nature of business Investment,	June 30, 2023 100.00%	December 31, 2022 100.00%	June 30, 2022 100.00%	Note Note 1
Company	(A-Team)	trading, and
		holding company
The	JIUN TAI	Holding company	100.00%	100.00%	100.00%
Company	CORPORATION
	LIMITED (JIUN
	TAI)
The	CELERAISE	Manufacture and	100.00%	100.00%	100.00%	Note 2
Company	ELECTRONIC	sale of wire and
	CORPORATION	cable connectors
	(CELERAISE)	and connectors
The	CELERAISE	Manufacture and	100.00%	100.00%	100.00%	Note 3
Company	(THAILAND) CO.,	sale of wire and
	LTD (THAILAND)	cable connectors
		and connectors
The	Celeraise	Manufacture and	100.00%	100.00%	100.00%
Company	Investments Limited	sale of wire and
and JIUN	(Celeraise Hong	cable connectors and
TAI	Kong)	connectors

～10～

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

Investing			Shareholding ratio	Shareholding ratio	Shareholding ratio
company		Nature of	June 30,	December	June 30,
name	Subsidiary name	business	2023	31, 2022	2022	Note
The	Leadpak Industrial	International trade	99.36%	99.36%	99.36%	Note 1
Company	Co., Ltd. (Leadpak	and other wholesale
	Industrial, formerly	and retail trade
	Bor Sheng Industrial
	Co., Ltd.)
The	Celeraise	Automatic control	100.00%	100.00%	100.00%	Note 1
Company	Technology	equipment
	Corporation	engineering industry,
	(Celeraise	computer equipment
	Technology)	installation industry,
		etc.
A-Team	Minshi Computer	R&D and production	100.00%	100.00%	100.00%	Note 1
	Technology	of industrial
	(Shanghai) Co., Ltd.	automation control,
	(Shanghai Minshi)	product quality
		control,
		communication, and
		electronic network
		computer software
JIUN TAI	Shanghai Zhansheng	Production of	100.00%	100.00%	100.00%
	Electronics Co., Ltd.	electronics, wire
	(Shanghai	connectors,
	Zhansheng)	telephone spare
		parts and small
		household
		appliances; sale of
		the company's own
		products
Celeraise	Yield Profit	Investment, trading,	100.00%	100.00%	100.00%
Hong Kong	International	and holding
	Enterprise Limited	company
	(Yield Profit
	International)
Celeraise	Jet Success	Investment, trading,	100.00%	100.00%	100.00%
Hong Kong	Technology	and holding
	Development Limited	company
	(Jet Success)
Celeraise	Shenzhen	Manufacture and	100.00%	100.00%	100.00%
Hong Kong	Zhansheng Electric	sale of wire and
	Power Co., Ltd.	cable connectors
	(Shenzhen	and connectors
	Zhansheng)
Yield Profit	Zhan Mao	Manufacture and	100.00%	100.00%	100.00%
International	Electronics	sale of wire and
	Enterprise (Huizhou)	cable connectors
	Co., Ltd. (Huizhou	and connectors
	Zhan Mao)
Jet Success	Kunshan Yiguan	Manufacture and	100.00%	100.00%	100.00%
	Electronic	sale of wire and
	Technology Co., Ltd.	cable connectors
	(Kunshan Yiguan)	and connectors

～ 11 ～

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

Note1: The financial statements of certain non-significant subsidiaries were not reviewed by independent auditors.

Note2: CELRAISE was established in March 2015, 0.01% of the equity acquired in CELERAISE is held in the name of third party considering the relevant regulations of Philippines,.

Note3: THAILAND was established in June 2017, 0.01% of the equity acquired in THAILAND is held in the name of third party considering the relevant regulations of Thailand.

(III) Employee benefits

1. Defined contribution plans

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

2. Short-term employee benefits

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

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

(IV) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period (and allocated to current and deferred taxes based on its proportionate size).

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

～ 12 ～

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

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2022. For related information, please refer to note V of the consolidated financial statements for the year ended December 31, 2022.

VI. Explanation of significant accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the 2022 consolidated financial statements. Please refer to note VI to the 2022 annual consolidated financial statements.

(I) Cash and cash equivalents

and cash equivalents
Cash on hand Demand and foreign currency deposits Time deposits	June 31, 2023 $ 1,749 658,881 36,283	December 31, 2022 1,469 483,359 45,532	June 31, 2022 2,193 440,523 60,814
	$ 696,913	530,360	503,530

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

(II) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance	June 31, 2023 $1,300 896,610 897,910 (24,125) $873,785		December 31, 2022 2,459 1,019,188 1,021,647 (23,872) 997,775	June 31, 2022 617 940,678

				941,295 (21,118)
				920,177

～ 13 ～

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

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

Credit rating		June 30, 2023
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses 1,430 22,695
Level A Level B Credit rating	$ 803,155 94,755
	$ 897,910		24,125
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses 1,471 22,401
Level A Level B Credit rating	$ 940,080 81,567	0.16% 27.46% June 30, 2022
	$ 1,021,647		23,872

	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses 1,482 19,636
Level A Level B	$ 895,696 45,599	0.17% 43.06%
	$ 941,295		21,118

～ 14 ～

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

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

Not yet past due 0 to 90 days past due 90 to 180 days past due More than 180 days past due	June 30, 2023	December 31, 2022 781,527 140,863 44,844 54,413 1,021,647	June 30, 2022 756,286 126,980 34,171 23,858 941,295
	$ 682,891 107,069 28,013 79,937
	$ 897,910

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

Opening balance at start of period Impairment losses recognized Amounts written off Foreign exchange (losses)/ gains Balance at end of period	For the six-month periods ended 30 June 2023 2022 $ 23,872 20,856 610 302 - (636) (357) 596 $ 24,125 21,118	For the six-month periods ended 30 June 2023 2022 $ 23,872 20,856 610 302 - (636) (357) 596 $ 24,125 21,118
	2023 $ 23,872 610 - (357) $ 24,125
		21,118

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

As of June 30, 2023, December 31, 2022 and June 30, 2022, none of the Group's notes and accounts receivable were pledged as collateral.

Please see note VI (XVI) for the risk and sensitivity analysis of exchange rates for the Group's notes and accounts receivable for the three-month periods ended 31 June 2023 and 2022.

～ 15 ～

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

(III) Inventories

Raw materials Works in process Finished goods Goods held for sale	June 30, 2023	December 31, 2022 473,707 88,772 86,440 130,286 779,205	June 30, 2022 522,173 133,681 61,938 114,192 831,984
	$ 417,420 77,852 62,126 93,303
	$ 650,701

The cost of inventories and other operating cost recognized as cost of goods sold and as expenses by the Group for the three-months and the six-months ended 30 June 2023 and 2022 were NT$545,788 thousand, NT$704,583 thousand, NT$1,153,558 thousand and NT$1,517,373 thousand respectively.
For the three-months and the six-months ended 30 June 2023 and 2022, the Group recognized inventory depreciation and inactive inventory of NT$10,686 thousand, NT$9,270 thousand, NT$17,259 thousand and NT$12,358 thousand, respectively, due to the write-down of inventories to the net realizable value, and this has been reported as the operating cost.
As of June 30, 2023, December 31, 2022 and June 30, 2022, none of the Group's inventories were pledged as collateral.
(IV) Other current assets

The other current assets of the Group were as follows:

Tax Overpaid retained for Offsetting the Future Tax Payable Prepaid expense Others	June 30, 2023 $ 38,532 18,584 12,025 $ 69,141		December 31, 2022 103,430 15,647 13,160		June 30, 2022 81,614 28,762 14,104
			132,237		124,480

～ 16 ～

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

(V) Property, plant, and equipment

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

Land $ 203,683 - - - (853)	Buildings 152,993 - - - (1,243)	Machinery and equipment 317,698 6,592 (3,007) 2,087 (1,465)	Office equipment and others 141,201 12,175 (1,031) - (1,125)	Total 815,575 18,767 (4,038) 2,087 (4,686)
$ 202,830	151,750	321,905	151,220	827,705
$ 199,490 - - 853	148,453 78 - 1,151	295,715 1,766 (5,219) 10,414	132,149 17,686 (20,226) 2,020	775,807 19,530 (25,445) 14,438
$ 200,343	149,682	302,676	131,629	784,330
$ - - - -	50,191 2,787 - (313)	238,700 10,603 (3,007) (1,094)	99,710 11,554 (1,031) (1,236)	388,601 24,944 (4,038) (2,643)
$ -	52,665	245,202	108,997	406,864
$ - - - -	44,064 2,912 - 158	212,193 10,218 (4,280) 9,101	105,095 9,560 (20,226) 1,803	361,352 22,690 (24,506) 11,062
$ -	47,134	227,232	96,232	370,598
$ 203,683	102,802	78,998	41,491	426,974
$ 202,830	99,085	76,703	42,223	420,841
$ 199,490	104,389	83,522	27,054	414,455
$ 200,343	102,548	75,444	35,397	413,732

Please see Note VIII for details of circumstances in which property, plant and equipment of the Group were used to provide loans and financing and guarantees for customs duties as of June 30, 2023, December 31, 2022 and June 30, 2022.

～ 17 ～

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

(VI) Right-of-use assets

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

Buildings $ 111,749 2,747 (2,475) (1,256)	Transportatio n equipment and others 3,735 - - (35)	Total 115,484 2,747 (2,475) (1,291)
$ 110,765	3,700	114,465
$ 107,620 59,809 (57,774) 2,029	3,312 1,206 (951) 29	110,932 61,015 (58,725) 2,058
$ 111,684	3,596	115,280
$ 41,489 15,403 (2,475) (1,031)	1,037 513 - (15)	42,526 15,916 (2,475) (1,046)
$ 53,386	1,535	54,921
$ 67,194 15,084 (57,621) 1,378	911 528 (951) 20	68,105 15,612 (58,572) 1,398
$ 26,035	508	26,543
$ 70,260	2,698	72,958
$ 57,379	2,165	59,544
$ 40,426	2,401	42,827
$ 85,649	3,088	88,737

The Group leased factories and offices from other related parties for the three-months and the six-months ended 30 June 2023 and 2022, please refer to Note VII for details.

～ 18 ～

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

(VII) Short-term loans

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

June 30, 2023 $ 255,000 416,000	June 30, 2023 $ 255,000 416,000	December 31, 2022 160,000 531,000	June 30, 2022 239,859 535,000
$ 671,000		691,000	774,859
$ 641,850		500,775	414,441
	1.68%~1.89%	1.25%~1.85%	0.95%~2.43%

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

(VIII) Other payables

Details of Other payables of the Group are as follows:

Bonuses payable Salaries payable Remuneration payable to directors and supervisors and remuneration payable to employees Other expenses payable	June 30, 2023		December 31, 2022		June 30, 2022 27,309 44,330 11,334 53,753
	$ 31,112 37,866 12,667 51,411		60,474 40,727 16,800 67,171
	$ 133,056		185,172		136,726

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

(IX) Lease liabilities

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

Current Non-current	June 30, 2023 $ 29,751	December 31, 2022 31,592	June 30, 2022 31,480
	$ 31,136	42,709	58,297

For the maturity analysis, please refer to Note VI (XVI).

～ 19 ～

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

Amounts recognized as profit or loss are as follows:

For the three-months ended 30 June 2023 2022 $ 200 286	For the three-months ended 30 June 2023 2022 $ 200 286	For the six-months ended 30 June 2023 2022 419 580 9 24 373 373 1,454 2,377 67 60
$ 9	14	24
$ 186	186	373
$ 729	601	2,377
$ 33	28	60

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

Total cash flows from leases	For the six-months ended 30 June 2023 2022 $ 17,879 18,296	For the six-months ended 30 June 2023 2022 $ 17,879 18,296
		2022 18,296

1. Leasing of buildings

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

2. Other leases

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

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

The Group leases office spaces, office equipment and transportation equipment which are short-term leases or low-value item leases. The group applied the recognition exemptions and elected not to recognize its right-of-use assets and lease lizbilities for these leases.

～ 20 ～

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

(X) Employee benefits

The pension expenses of the Company and its subsidiaries within the jurisdiction of the Republic of China as for the three-months and the six-months ended 30 June 2023 and 2022 defined pension contributions were NT$2,713 thousand, NT$2,589 thousand, NT$5,403 thousand and NT$5,187 thousand respectively, and were transferred to the Bureau of Labor Insurance.

Other subsidiaries included in the preparation of the consolidated financial statements recognized defined pension contributions and endowment insurance premiums of NT$3,020 thousand, NT$3,036 thousand, NT$5,978 thousand and NT$6,011 thousand as for the three-months and the six-months ended 30 June 2023 and 2022, respectively.

(XI) Income taxes

Details of income tax expenses (profit) of the Group are as follows:

For the three-months ended 30 June 2023 2022 $ 11,754 23,557 - -	For the three-months ended 30 June 2023 2022 $ 11,754 23,557 - -	For the six-months ended 30 June 2023 2022 18,857 41,843 (9,885) -	For the six-months ended 30 June 2023 2022 18,857 41,843 (9,885) -
			2022 41,843 -
11,754	23,557	8,972	41,843
3,683	3,960	5,220	18,419
$ 15,437	27,517	14,192	60,262

The Profit-seeking Enterprise Annual Income Tax settlement declaration of the Company and Celeraise Technology of the Republic of China have been approved by the taxation agency until 2020. The Profit-seeking Enterprise Annual Income Tax settlement declaration of Leadpak Industrial of the Republic of China have been approved by the taxation agency until 2021.

～ 21 ～

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

(XII) Capital and other equity

Except stated as below, the capital and other equity for the three-month periods ended 30 June 2023 and 2022 of the Group has no major changes, the related information please refer to the Note VI (XI) of the consolidated financial statements.

Unit: Thousand shares

	Unit: Thousand shares	Unit: Thousand shares
Starting balance on January 1 Cancellation of treasury shares Ending balance on June 30	Common stock 112.6.30 111.6.30 95,890 94,000 - (1,000)
		111.6.30
		94,000 (1,000)
	95,890	93,000

1. Retained earnings and Surplus distribution

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.

According to Article 240, paragraph 5 of Company Act, the distributable dividends and bonus in whole or in part or the legal reserve and capital reserved in whole or in part which are brought in Article 241, paragraph 1 of Company Act may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto a report of such distribution shall be submitted 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,

~22~

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

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

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

2022	2022	2021 Dividend rate (NT$) Amount 0.30 27,900 0.30 27,900 $ 55,800	2021 Dividend rate (NT$) Amount 0.30 27,900 0.30 27,900 $ 55,800
Dividend rate (NT$)		Dividend rate (NT$)
$ 0.70 -		0.30 0.30
	$ 67,123		$ 55,800

2. Treasury shares

In accordance with Article 28-2 of the Securities and Exchange Act, the Company buys back treasury shares for the purpose of transferring shares to employees. Details of changes in treasury shares as of the three-month periods ended 30 June 2023 and 2022 are as follows:

For the three-month periods ended 30 June

Treasury shares at start of period Cancellations this period Treasury shares at end of period	2023	2023	2022	2022
	Number of shares (thousand shares) - -	Amount $ - -	Number of shares (thousand shares) 1,000 (1,000)	Amount 14,262 (14,262)
	-	$ -	-	-

～ 23 ～

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

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

(XIII) Earnings per share

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

	For the three-months ended 30 June	For the three-months ended 30 June	For the six-months ended 30 June 2023 2022 80,465 92,278 95,890 95,845 0.84 0.96 80,465 92,278 95,890 95,845 201 258 96,091 96,103 0.84 0.96	For the six-months ended 30 June 2023 2022 80,465 92,278 95,890 95,845 0.84 0.96 80,465 92,278 95,890 95,845 201 258 96,091 96,103 0.84 0.96
	2023 51,090	2022		2022 92,278
$		39,944
	95,890	95,890	95,890	95,845
$	0.53	0.42	0.84	0.96
	$ 51,090	39,944	80,465	92,278
	95,890 44	95,890 163	95,890 201	95,845 258
	95,934	96,053	96,091	96,103
$	0.53	0.42	0.84	0.96

～ 24 ～

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

(XIV) Revenue from customer contracts
Details of revenue

Primary regional markets: Taiwan Mainland China Philippines Thailand

For the	For the	three-months ended 30 June 2023 Wire & Connectors Department Total - 223,827 261,538 261,538 106,736 106,736 98,493 98,493	three-months ended 30 June 2023 Wire & Connectors Department Total - 223,827 261,538 261,538 106,736 106,736 98,493 98,493	three-months ended 30 June 2023 Wire & Connectors Department Total - 223,827 261,538 261,538 106,736 106,736 98,493 98,493
Information Services Department $ 223,827 - - -		Wire & Connectors Department - 261,538 106,736 98,493
$ 223,827		466,767		690,594

Primary regional markets: Taiwan Mainland China Philippines Thailand

For the	For the	three-months ended 30 June 2022 Wire & Connectors Department Total - 324,226 284,557 284,557 201,278 201,278 80,280 80,280	three-months ended 30 June 2022 Wire & Connectors Department Total - 324,226 284,557 284,557 201,278 201,278 80,280 80,280	three-months ended 30 June 2022 Wire & Connectors Department Total - 324,226 284,557 284,557 201,278 201,278 80,280 80,280
Information Services Department $ 324,226 - - -		Wire & Connectors Department - 284,557 201,278 80,280
$ 324,226		566,115		890,341

Primary regional markets: Taiwan Mainland China Philippines Thailand	For the six-months ended 30 June 2023 Information Services Department Wire & Connectors Department Total $ 499,090 - 499,090 - 490,380 490,380 - 223,780 223,780 - 223,330 223,330	For the six-months ended 30 June 2023 Information Services Department Wire & Connectors Department Total $ 499,090 - 499,090 - 490,380 490,380 - 223,780 223,780 - 223,330 223,330	For the six-months ended 30 June 2023 Information Services Department Wire & Connectors Department Total $ 499,090 - 499,090 - 490,380 490,380 - 223,780 223,780 - 223,330 223,330	For the six-months ended 30 June 2023 Information Services Department Wire & Connectors Department Total $ 499,090 - 499,090 - 490,380 490,380 - 223,780 223,780 - 223,330 223,330	For the six-months ended 30 June 2023 Information Services Department Wire & Connectors Department Total $ 499,090 - 499,090 - 490,380 490,380 - 223,780 223,780 - 223,330 223,330
	Information Services Department $ 499,090 - - -		Wire & Connectors Department - 490,380 223,780 223,330
	$ 499,090		937,490		1,436,580

～ 25 ～

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

For the six-months ended 30 June 2022 Information Services Department Wire & Connectors Department Total $ 823,393 - 823,393 - 583,239 583,239 - 325,877 325,877 - 164,626 164,626	For the six-months ended 30 June 2022 Information Services Department Wire & Connectors Department Total $ 823,393 - 823,393 - 583,239 583,239 - 325,877 325,877 - 164,626 164,626	For the six-months ended 30 June 2022 Information Services Department Wire & Connectors Department Total $ 823,393 - 823,393 - 583,239 583,239 - 325,877 325,877 - 164,626 164,626
Information Services Department $ 823,393 - - -	Wire & Connectors Department - 583,239 325,877 164,626
$ 823,393	1,073,742	1,897,135
June 30, 2023 $ 1,300 896,610 (24,125)	December 31, 2022 2,459 1,019,188 (23,872)	June 30, 2022 617 940,678 (21,118) 920,177 35,699
$ 873,785	997,775
$ 55,569	55,892

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

The opening balances of contract liabilities for January 1, 2023 and 2022, and the amounts recognized as revenue as for the three-month periods ended 30 June 2023 and 2022 were NT$19,735 thousand and NT$175,948 thousand, respectively.

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

(XV) Remuneration of employees and of directors and supervisors

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

～ 26 ～

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

The estimated amounts of employee remuneration of the Company as For the three-months and the six-months ended 30 June 2023 and 2022 were NT$643 thousand, NT$2,037 thousand, NT$983 thousand and NT$3,247 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$643 thousand, NT$2,122 thousand, NT$983 thousand and NT$3,247 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 xremuneration 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.

The amounts of employee remuneration of the Company in 2022 and 2021 were NT$7,700 thousand and NT$4,840 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$6,400 thousand and NT$4,500 thousand. There is no differences between the amount approved in the Board of Directors’ meeting and those recognized in the financial statement, the relevant information can be inquired through the Market Observation Post System.

(XV) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For related information, please refer to note VI(XV) to the consolidated financial statements for the year ended December 31, 2022.

1. Credit risk

(1) Amount of maximum credit risk exposure

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

(2) Concentration of credit risk

Since the Group has a large customer base, there is no significant concentration of transactions with a single customer and the sales area is dispersed. Therefore, there is no risk of significant concentration of credit risk in

～ 27 ～

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

accounts receivable. In order to reduce credit risk, the Group also regularly and continuously evaluates the financial status of customers. However, customers are usually not required to provide collateral.

(3) Credit risk of receivables

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

2. Liquidity risk

The table below shows the contractual maturity dates of financial liabilities,

including estimated interest and impact of netting agreements.

Carrying amount	Contractual cash flows (672,180) (337,334) (133,056) (67,123) (63,385) (301)	Within 1year (672,180) (337,334) (133,056) (67,123) (30,332) -	1 to 2years - - - - (13,665) -	Over 2years - - - - (19,388) (301)
$ 671,000 337,334 133,056 67,123 60,887 301
$ 1,269,701	(1,273,379)	(1,240,025)	(13,665)	(19,689)
$ 691,000 443,594 185,172 74,301 434	(692,430) (443,594) (185,172) (77,089) (434)	(692,430) (443,594) (185,172) (32,321) -	- - - (25,520) -	- - - (19,248) (434)
$ 1,394,501	(1,398,719)	(1,353,517)	(25,520)	(19,682)

～ 28 ～

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

June 30, 2022 Non-derivative financial liabilities Short-term bank loans Notes and accounts payable Other payables Dividends payables Lease liabilities - current and non-current Deposits received (accounted for as other non-current liabilities)	Carrying amount $ 774,859 469,034 136,726 27,900 89,777 302	Contractual cash flows (784,092) (469,034) (136,726) (27,900) (93,026) (302)	Within 1year (784,092) (469,034) (136,726) (27,900) (32,389) -	1 to 2years - - - - (30,081) -	Over 2years - - - - (30,556) (302)
	$ 1,498,598	(1,511,080)	(1,450,141)	(30,081)	(30,858)

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

3. Exchange rate risk

(1) Exposure to exchange rate risk

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

Financial assets Monetary items `USD` `USD` `USD` `USD` `USD` Financial liabilities Monetary items `USD` `USD` `USD` `USD` `USD`	June 30, 2023	June 30, 2023	June 30, 2023	December 31, 2022	December 31, 2022	December 31, 2022	Foreign currency unit: $ thousand June 30, 2022 Foreign currency Exchange rate TWD 1,863`USD/TWD`=29.7 20 55,356 27,146`USD/RMB` =6.695 806,784 30,795`USD/HKD` =7.846 915,239 7,895`USD/PHP` =55.655 234,649 70`USD/THB` =35.089 2,078 8`USD/TWD` =29.720 228 14,235`USD/RMB` =6.695 423,070 25,000`USD/HKD` =7.846 742,996 8,805`USD/PHP` =55.655 261,683 4,641`USD/THB` =35.089 137,943	Foreign currency unit: $ thousand June 30, 2022 Foreign currency Exchange rate TWD 1,863`USD/TWD`=29.7 20 55,356 27,146`USD/RMB` =6.695 806,784 30,795`USD/HKD` =7.846 915,239 7,895`USD/PHP` =55.655 234,649 70`USD/THB` =35.089 2,078 8`USD/TWD` =29.720 228 14,235`USD/RMB` =6.695 423,070 25,000`USD/HKD` =7.846 742,996 8,805`USD/PHP` =55.655 261,683 4,641`USD/THB` =35.089 137,943
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD 44,942 662,910 714,359 267,023 24,845 6,728 203,060 402,347 246,237 144,511	Foreign currency	Exchange rate
	$ 3,032 22,194 20,459 7,098 1,869 927 5,474 10,270 5,585 6,197	`USD/TWD` =31.140 `USD/RMB` =7.272 `USD/HKD` =7.836 `USD/PHP` =55.213 `USD/THB` =35.306 `USD/TWD` =31.140 `USD/RMB` =7.272 `USD/HKD` =7.836 `USD/PHP` =55.213 `USD/THB` =35.306	94,427 691,128 637,096 221,046 58,201 28,879 170,455 319,801 173,918 192,970	1,463 21,586 23,261 8,695 809 219 6,612 13,101 8,018 4,706	`USD/TWD`=30.7 10 `USD/RMB` =6.967 `USD/HKD` =7.798 `USD/PHP` =56.452 `USD/THB`=34.3 51 `USD/TWD` =30.710 `USD/RMB` =6.967 `USD/HKD` =7.798 `USD/PHP` =56.452 `USD/THB` =34.351		1,863 27,146 30,795 7,895 70 8 14,235 25,000 8,805 4,641	`USD/TWD`=29.7 20 `USD/RMB` =6.695 `USD/HKD` =7.846 `USD/PHP` =55.655 `USD/THB` =35.089 `USD/TWD` =29.720 `USD/RMB` =6.695 `USD/HKD` =7.846 `USD/PHP` =55.655 `USD/THB` =35.089

～ 29 ～

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

(2) Sensitivity analysis

The exchange rate risk of the Group's monetary items mainly comes from cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables denominated in foreign currencies which generate foreign currency exchange gains and losses at the time of translation. If foreign currencies had depreciated or appreciated by 5% against the TWD, RMB, HKD, PHP, and THB as of June 30, 2023 and 2022, then with all other factors remaining constant the impact on income as for the six-month periods ended 30 June 2023 and 2022 would be as follows:

USD (versus TWD) Appreciate 5% Depreciate 5% USD (versus RMB) Appreciate 5% Depreciate 5% USD (versus HKD) Appreciate 5% Depreciate 5% USD (versus PHP) Appreciate 5% Depreciate 5% USD (versus THB) Appreciate 5% Depreciate 5%	June 30, 2023 $ 3,277 (3,277) 26,034 (26,034) 15,865 (15,865) 2,356 (2,356) (6,738) 6,738	June 30, 2022
		2,756 (2,756) 19,186 (19,186) 8,612 (8,612) (1,352) 1,352 (6,793) 6,793

(3) Exchange gains and losses on monetary items

Due to the wide variety of functional currencies of the Group, the exchange profit and loss information of monetary items is disclosed by means of consolidation. As for the three-months and six-months ended 31 June 2023 and 2022, the net exchange gains (including realized and unrealized) amounted to NT$22,435 thousand, NT$13,957 thousand, NT$11,902 thousand and NT$14,121 thousand, respectively.

～ 30 ～

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

4. Interest rate analysis

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

Variable rate instruments (book amounts): Financial assets Financial liabilities	June 30, 2023 $ 658,871 486,000	December 31, 2022 483,349 531,000	June 30, 2022
			440,523 774,859

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Group’s internal key management reports 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 Group’s pre-tax profit and loss as for the six-month periods ended 30 June 2023 and 2022 would be as follows, mainly due to the Group’s variable interest rate demand deposits and borrowings:

Interest rates increase by 25 bps Interest rates decrease by 25 bps	For the six-months ended 30 June 2023 2022 $ 216 (418) (216) 418	For the six-months ended 30 June 2023 2022 $ 216 (418) (216) 418
		2022
		(418) 418

～ 31 ～

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

5. Fair value information

(1) Type and fair value of financial instruments

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

June 30, 2023

Carrying amount Financial assets measured at amortized cost Cash and cash equivalents $ 696,913 Net notes and accounts receivable 873,785 Other financial assets - current 39,360 Deposits made (accounted for as other non-current assets) 53,732 $ 1,663,790 Financial liabilities measured at amortized cost Bank loans $ 671,000 Notes and accounts payable 337,334 Other payables 133,056 Dividends payable 67,123 Lease liabilities - current 29,751 Lease liabilities - non-current 31,136 Deposits received (accounted for as other non-current liabilities) 301 $ 1,269,701 Carrying amount Financial assets measured at amortized cost Cash and cash equivalents $ 530,360 Net notes and accounts receivable 997,775 Other financial assets - current 36,547 Deposits made (accounted for as other non-current assets) 51,612 $ 1,616,294		Fair value	Fair value	Total - - - - - - - - - - -
	Level 1 Level 2 Level 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2022

Carrying amount	Level 1 - - - -	Fair value
		Carrying amount - - - -	Level 1	Carrying amount
$ 530,360 997,775 36,547 51,612			- - - -	- - - -
$ 1,616,294

～ 32 ～

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

	December 31, 2022	December 31, 2022	December 31, 2022
Carrying amount $ 691,000 443,594 185,172 31,592 42,709 434		Fair value
	Level 1		Level 1	Carrying amount
				- - - - - -
$ 1,394,501

Carrying amount $ 503,530 920,177 37,906 54,985		Fair value
	Level 1	Carrying amount - - - - - - - - - - -	Level 1	Carrying amount
	- - - - - - - - - - -		- - - - - - - - - - -	- - - - - - - - - - -
$ 1,516,598
$ 774,859 469,034 136,726 27,900 31,480 58,297 302
$ 1,498,598

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

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

～ 33 ～

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

(XVII) Financial risk management

The Group’s objectives, policies and processes of capital management are the same as those disclosed in the note VI (XVI) of the consolidated financial statements for the year ended December 31, 2022.

(XVIII) Capital management

The Group’s objectives, policies and processes of capital management are the same as those disclosed in the consolidated financial statements for the year ended December 31, 2022. There were no significant changes of quantitative data of capital management compared to the consolidated financial statements for the year ended December 31, 2022. Please refer to note VI (XVII) of the consolidated financial statements for the year ended December 31, 2022.

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

The Group's non-cash transaction investment and financing activities as for the six-month periods ended 30 June 2023 and 2022 were undertaken to obtain right-of-use assets via leasing; please refer to Note VI (VI) for details.

Reconciliation of liabilities from financing activities is as follows:

Non-cash changes

January 1, 2023 $ 691,000 434 74,301	Cash flows (20,000) (133) (15,930)	Others - - 2,747	Exchange rate changes - - (231)	June 30, 2023 671,000 301 60,887
$ 765,735	(36,063)	2,747	(231)	732,188
January 1, 2023 $ 689,956 432 43,494	Cash flows 84,903 (133) (15,255)	Non-cash	changes Exchange rate changes - 3 679	June 30, 2022 774,859 302 89,777
		Others - - 60,859
$ 733,882	69,515	60,859	682	864,938

～ 34 ～

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

VII. Related party transactions

(I) Names and relationship with related parties

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

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

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

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

Accounts	Related party category Key management personnel of the Group Other related parties	June 30, 2023 $ 2,759 4,845		December 31, 2022 2,724 4,983		June 30, 2022 1,841 5,020
Other payables `〃`
		$ 7,604		7,707		6,861

2.Leases

(1) In January and April of 2022, the Group leased offices and parking spaces from other related parties, Year Jan Industrial Co., Ltd. with the rent determined by market conditions and signing a one-year lease agreement. The expected renewal period is three years. The total contract values were NT$5,828 thousand and NT$1,097 thousand, respectively.
(2) The Group leased a plant from another related party, Kunshan Mingmao, with the rent determined by market conditions and signing a one-year lease agreement. The expected lease term is three years, and the total contract value is NT$58,236 thousand.

～ 35 ～

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

(3) In January of 2019, the lease of the plant was renewed with other related parties, ILOFA The rent determined by market conditions and signing a one-year lease agreement. The expected lease term is twenty years, and the total contract value is NT$27,701 thousand.
(4) In May of 2020, the Group leased offices from Key management personnel of the Group, and the rent was determined according to market conditions. The expected lease term is three-year and the total contract value is NT$2,417 thousand. In May of 2023, the lease of the office was renewed with Key management personnel of the Group and signing a three-year lease agreement. The expected lease term is three years, and the total contract value is NT$2,819 thousand.

Details of its lease liabilities and interest expenses are as follows`：` Leaseliability balance Interestexpense June 30, 2023 December 31, 2022 June 30, 2022 For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 `裕展` $ 3,729 4,858 5,980 12 18 25 27 Kunshan Mingmao 27,435 37,520 47,117 89 143 192 298 ILOFA 18,879 18,734 18,902 65 68 130 135 Senior management 2,648 283 678 6 3 7 6 $ 52,691 61,395 72,677 172 232 354 466 I) Key management personnel compensation 1. Key management personnel compensation comprised: For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 Other long-term benefits $ 8,897 10,249 14,720 18,767	Details of its lease liabilities and interest expenses are as follows`：` Leaseliability balance Interestexpense June 30, 2023 December 31, 2022 June 30, 2022 For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 `裕展` $ 3,729 4,858 5,980 12 18 25 27 Kunshan Mingmao 27,435 37,520 47,117 89 143 192 298 ILOFA 18,879 18,734 18,902 65 68 130 135 Senior management 2,648 283 678 6 3 7 6 $ 52,691 61,395 72,677 172 232 354 466 I) Key management personnel compensation 1. Key management personnel compensation comprised: For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 Other long-term benefits $ 8,897 10,249 14,720 18,767	Details of its lease liabilities and interest expenses are as follows`：` Leaseliability balance Interestexpense June 30, 2023 December 31, 2022 June 30, 2022 For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 `裕展` $ 3,729 4,858 5,980 12 18 25 27 Kunshan Mingmao 27,435 37,520 47,117 89 143 192 298 ILOFA 18,879 18,734 18,902 65 68 130 135 Senior management 2,648 283 678 6 3 7 6 $ 52,691 61,395 72,677 172 232 354 466 I) Key management personnel compensation 1. Key management personnel compensation comprised: For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 Other long-term benefits $ 8,897 10,249 14,720 18,767	expenses are as follows`：` Interestexpense For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 12 18 25 27 89 143 192 298 65 68 130 135 6 3 7 6	expenses are as follows`：` Interestexpense For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 12 18 25 27 89 143 192 298 65 68 130 135 6 3 7 6	expenses are as follows`：` Interestexpense For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 12 18 25 27 89 143 192 298 65 68 130 135 6 3 7 6	expenses are as follows`：` Interestexpense For the three-months ended 30 June For the six-months ended 30 June 2023 2022 2023 2022 12 18 25 27 89 143 192 298 65 68 130 135 6 3 7 6
	December 31, 2022 4,858 37,520 18,734 283	June 30, 2022 5,980 47,117 18,902 678
			2023
			12 89 65 6
$ 52,691	61,395	72,677	172	232	354	466

(III) Key management personnel compensation

2. Guarantees provided

The total amounts of the Group's loan contracts for June 30, 2023, December 31 and June 30, 2022 were NT$1,311,125 thousand, NT$1,191,775 thousand and NT$1,021,563 thousand, respectively, with Mr. Yun-Teng Chang serving as joint guarantor.

～ 36 ～

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

VIII. Pledged assets

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

s follows:
	Purpose of		June	December	June
Asset name	pledge		30, 2023	31, 2022	30, 2022
Property, plant, and equipment -	short-term loans
land		$	140,142	140,142	123,514
Property, plant, and equipment -	short-term loans
buildings	and customs
	duty guarantees		43,206	44,544	45,820
Restricted bank deposits	Bank loans and
(accounted for as other financial	customs duty
assets - current)	guarantees		37,800	34,800	34,800
Deposits made (accounted for as	Performance
other non-current assets)	guarantees and
	bid deposits		53,732	51,612	54,985
		$	274,880	271,098	259,119

IX. Significant commitments and contingencies: None

X. Losses due to major disasters: None.

XI. Significant subsequent events: None.

XII. Other

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

==> picture [418 x 189] intentionally omitted <==

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

Function For the three-months For the three-months
ended 30 June, 2023 ended 30 June, 2022
Under Under Under Under
Nature operating operating operating operating
Total Total
costs expenses costs expenses
Employee benefit expense
Salary expense 72,444 49,590 122,034 75,492 71,027 146,519
Health and labor 4,058 4,489 8,547 2,279 5,582 7,861
insurance expense
Pension expense 3,159 2,574 5,733 2,582 3,043 5,625
Other employee benefit 3,099 4,030 7,129 2,748 4,336 7,084
expense
Depreciation expense 14,682 5,769 20,451 13,758 5,878 19,636
Amortization expense - 540 540 - 474 474
----- End of picture text -----

～ 37 ～

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

==> picture [419 x 183] intentionally omitted <==

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

Function For the six-months For the six-months
ended 30 June, 2023 ended 30 June, 2022
Under Under Under Under
Nature operating operating operating operating
Total Total
costs expenses costs expenses
Employee benefit expense
Salary expense 149,634 106,750 256,384 145,535 139,552 285,087
Health and labor 8,239 9,532 17,771 3,958 11,871 15,829
insurance expense
Pension expense 6,218 5,163 11,381 5,091 6,107 11,198
Other employee benefit 6,183 7,720 13,903 5,746 8,516 14,262
expense
Depreciation expense 29,256 11,604 40,860 27,407 10,895 38,302
Amortization expense - 1,039 1,039 - 939 939
----- End of picture text -----

(II) The Group’s operations were not affected by seasonality or cyclicality factors.

XIII. Other disclosures

(I) Information on significant transactions

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Group for the three-month periods ended 30 June 2023:

1. Loans to other parties:

==> picture [486 x 168] intentionally omitted <==

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

No. lending fundsThe company Name of borrower account Current a related Whether party during the Highest amount period Balance at period end of amountActual usage Interest rate Purposes of financing borrowerfor the fund between two Transaction amount for business parties Reasons for short term financing Allowance for bad debt NameCollateral Value counterpartieLoan limit for individual s Total loan limit
1 JIUN TAI COPORATION LIMITED Celeraise (Thailand) Co., Ltd. receivablesOther Y 59,166 59,166 59,166 2%-4% Short-term financing - Operating turnover - None - 105,662 264,155
1 JIUN TAI COPORATION Celeraise Hong Kong receivablesOther Y 15,018 - - 1.5% Short-term financing - Operating turnover - None - 264,155 264,155
LIMITED
1 JIUN TAI COPORATION Yield Profit International receivablesOther Y 23,511 23,511 23,511 1.5% Short-term financing - Operating turnover - None - 264,155 264,155
LIMITED
2 Jet Success Yield Profit International receivablesOther Y 21,625 - - 1.5% Short-term financing - Operating turnover - None - 357,425 357,425
2 Jet Success CELERAISE ELECTRONIC receivablesOther Y 15,018 - - 2.0% Short-term financing - Operating turnover - None - 142,970 357,425
CORPORATION
3 Shanghai Zhansheng Huizhou Zhanmao receivablesOther Y 49,562 47,744 47,744 1.5% Short-term financing - Operating turnover - None - 122,936 122,936
4 Celeraise Hong Kong Celeraise (Thailand) Co., Ltd. receivablesOther Y 49,200 21,798 21,798 2%-4% Short-term financing - Operating turnover - None - 436,240 1,090,601
4 Celeraise Hong Kong CELERAISE ELECTRONIC receivablesOther Y 15,570 15,570 15,570 2.0% Short-term financing - Operating turnover - None - 436,240 1,090,601
CORPORATION
----- End of picture text -----

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

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

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

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

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

～ 38 ～

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

2 Guarantees and endorsements for other parties:

==> picture [438 x 97] intentionally omitted <==

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

mbeNur endorsement/guarantee companyName of Counterparty of guarantee Company name and endorsement Relationship Endorsement/guarantee limit enterprise for single endorsement/balance for the current guarantee Maximum period endorsement/guarantee Balance of at end of period amountActual usage endorsement guaranteesof property amount by Guarantee endorsement/guarantRatio of cumulative value of the most ee amount to net recent financial statements Endorsement/gmaximum uarantee nt/guarantee company for subsidiariesEndorsemeof parent Endorsement/guarantee of subsidiaries for parent company Endorsements/guarantees to the mainland reChina gion
0 [The Company] Celeraise HongSubsidiary of 1,480,062 77,850 77,850 - - 5.26% 1,480,062 Y N N
Kong/Jiun Tai the Company
0 〃 Celeraise HongSubsidiary of 1,480,062 143,420 50,000 - - 3.38% 1,480,062 Y N N
Kong/Yield the Company
Profit
International/C
eleraise
Technology
1 [Celeraise ] The Company Parent company 228,703 42,946 39,193 39,193 - 85.68% 228,703 N Y N
Technology
----- End of picture text -----

Note 1: The total amount of the Company's external endorsements/guarantees may not exceed 100% of the Company's net value. The amount of endorsements/guarantees for a single enterprise may not exceed 100% of the Company's net value.
Note 2: A shared quota guarantee is provided for Celeraise Hong Kong and Jiun Tai of NT$76,775 thousand (US$2,500 thousand). Note 3: A joint guarantee is provided for Celeraise Hong Kong, Yield Profit International, and Celeraise Technology of NT$142,130 thousand (US$3,000 thousand and NT$50,000).
Note 4: Endorsements/guarantees made by Celeraise Technology are made in accordance with that company’s Management Measures for Loans and Endorsements/Guarantees. The total amount of external endorsements/guarantees may not exceed 500% of the company's net value, and the amount of endorsements/guarantees for a single enterprise may not exceed 500% of the company's net value.
Note 5: The counterparty of the above endorsement/guarantee is the entity preparing the consolidated financial statements.
Securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): None.
Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20% of the paid-in capital: None.
Acquisition of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Disposal of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Related party transactions for purchases and sales with amounts exceeding NT$100 million or 20% of the paid-in capital: None.

Unit: NT$ thousand

==> picture [421 x 76] intentionally omitted <==

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

Transaction with terms different
Transaction details from others Notes/Accounts receivable(payable)
Name of Related Nature of Note
company party relationship Purchase/sale Amount (Note 1) pPercentage of urchases/salestotal Payment terms Unit Price Payment terms balance Ending receivablePercentage of total Notes/Accounts (payable)
Huizhou Celeraise Ultimate (sale) (151,592) (52) % Monthly settlement is Prices are not General 155,222 42 % Note1
Zhanmao Hong parent 270 days, and significantly customer
Kong company is payments are different from monthly
the same received according those of settlement 60
to funding needs ordinary to 90 days
customers
----- End of picture text -----

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

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

Unit: NT$ thousand

==> picture [418 x 79] intentionally omitted <==

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

Receivables overdue Receivables
Balance of Amount of
Company with receivables Turnover from related parties amount from allowance
accounts Transaction counterparty Relationship from related rate Action related parties for doubtful
receivable Amount recovered after
parties taken the period accounts
Celeraise Hong Huizhou Zhanmao Ultimate parent 122,555 0.65 - 47,450 -
Kong company is the
same
Huizhou Celeraise Hong Kong Ultimate parent 155,222 2.21 - 61,211 -
Zhanmao company is the
same
----- End of picture text -----

Note 1: Information up to July 31, 2023.

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

～ 39 ～

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

9. Trading in derivative instruments: None.

10. Business relationships and significant intercompany transactions:

==> picture [417 x 552] intentionally omitted <==

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

Relationshi Intercompany transactions
Number Name of Name of p with Ratio to
(Note 1) transaction person counterparty transaction person Account name Amount Trading terms consolidated total revenue or total
(Note 2) assets
1 Celeraise Hong CELERAISE 3 Sales revenue 29,968 [Prices are not significantly ] 2.09%
Kong ELECTRONIC different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong CELERAISE 3 Accounts 36,961 [Prices are not significantly ] 1.27%
Kong ELECTRONIC receivable different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong Huizhou Zhanmao 3 Sales revenue 48,872 Prices are not significantly 3.40%
Kong different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong Huizhou Zhanmao 3 Accounts 122,555 [Prices are not significantly ] 4.20%
Kong receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong THAILAND 3 Sales revenue 6,950 Prices are not significantly 0.48%
Kong different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong THAILAND 3 Accounts 12,455 [Prices are not significantly ] 0.43%
Kong receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
1 Celeraise Hong THAILAND 3 Other 21,904 Interest rate 2.0%-4.0% 0.75%
Kong receivables
(Note 3.)
1 Celeraise Hong CELERAISE 3 Other 15,690 Interest rate 2.0% 0.54%
Kong ELECTRONIC receivables
CORPORATION (Note 3.)
2 Huizhou Shanghai 3 Sales revenue 23,871 Prices are not significantly 1.66%
Zhanmao Zhansheng different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
2 Huizhou Shanghai 3 Accounts 25,792 [Prices are not significantly ] 0.88%
Zhanmao Zhansheng receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
2 Huizhou THAILAND 3 Sales revenue 6,417 Prices are not significantly 0.45%
Zhanmao different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
2 Huizhou THAILAND 3 Accounts 18,395 [Prices are not significantly ] 0.63%
Zhanmao receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
----- End of picture text -----

～ 40 ～

Notes to the Consolidated Financial Statements of Welltend Technology Corporation

and Subsidiaries (continued)

==> picture [417 x 569] intentionally omitted <==

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

Relationshi Intercompany transactions
Number Name of Name of p with
(Note 1) transaction counterparty transaction Account Account Account name Account name
person person name name
(Note 2)
3 Huizhou Celeraise Hong 3 Sales revenue 151,592 [Prices are not significantly ] 10.55%
Zhanmao Kong different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou Celeraise Hong 3 Accounts 155,222 Prices are not significantly 5.32%
Zhanmao Kong receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou Kunshan Yiguan 3 Sales revenue 18,371 [Prices are not significantly ] 1.28%
Zhanmao different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou Kunshan Yiguan 3 Accounts 10,798 [Prices are not significantly ] 0.37%
Zhanmao receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou CELERAISE 3 Sales revenue 12,150 [Prices are not significantly ] 0.85%
Zhanmao ELECTRONIC different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou CELERAISE 3 Accounts 59,710 [Prices are not significantly ] 2.05%
Zhanmao ELECTRONIC receivable different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou THAILAND 3 Sales revenue 31,316 Prices are not significantly 2.18%
Zhanmao different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou THAILAND 3 Accounts 73,108 [Prices are not significantly ] 2.51%
Zhanmao receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
4 Leadpak CELERAISE 3 Sales revenue 48,000 Prices are not significantly 3.34%
Industrial ELECTRONIC different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
4 Leadpak CELERAISE 3 Accounts 25,769 [Prices are not significantly ] 0.88%
Industrial ELECTRONIC receivable different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
5 Shanghai Huizhou Zhanmao 3 Other 47,744 Interest rate 1.5% 1.64%
Zhansheng receivables
(Note 3.)
6 Jiun Tai THAILAND 3 Other 59,679 Interest rate 2%-4% 2.05%
receivables
(Note 3.)
6 Jiun Tai Yield Profit 3 Other 23,646 Interest rate 1.5% 0.81%
International receivables
(Note 3.)
----- End of picture text -----

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

～ 41 ～

Notes to the Consolidated Financial Statements of Welltend Technology Corporation

and Subsidiaries (continued)

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

==> picture [421 x 276] intentionally omitted <==

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

Unit: Foreign currency thousands / thousand shares
Investing company name Investee company name Region Main business items End of current Original investment amount(Note 1) period End of prior (Note 1) period of sharesNumber Held at end of periodRatio Carrying (Note 1) amount Profit or loss of company for the investee the current (Note 2) period recognized in Investment the current gains and (losses period Note 2) Notes
The A Team British Investment, trading, and 16,538 16,538 500 100% 946 - - Sub-subsi
Company Virgin holding company diary
Islands
The Jiun Tai Hong Holding company 241,922 241,922 59,920 100% 269,747 10,390 10,390 〃
Company Kong
The Celeraise Taiwan Information service 30,000 30,000 3,000 100% 45,745 11,809 11,811 〃
Company Technology industry
The Leadpak Taiwan International trade and 29,810 29,810 2,981 99.36% 23,013 5,268 5,235 〃
Company Industrial other wholesale and retail
trade
The Celeraise Hong Hong Manufacture and sale of 191,996 191,996 50,300 99.99% 1,116,893 41,416 41,416 〃
Company Kong Kong wire and cable connectors
and connectors
The CELERAISE Philippine Manufacture and sale of 25,532 25,532 400 100% 268,288 3,165 3,165 〃
Company ELECTRONIC s wire and cable connectors
CORPORATION and connectors
The THAILAND Thailand Manufacture and sale of 182,136 182,136 18,275 100% 173,196 11,180 11,180 〃
Company wire and cable connectors
and connectors
Jiun Tai Celeraise Hong Hong Manufacture and sale of 1 1 - 0.01% 1 - Recognized 〃
Kong Kong wire and cable connectors (HKD0.16) (HKD0.16) by Jiun Tai
and connectors (HKD0.16)
Celeraise Yield Profit Hong Investment, trading, and 61,994 61,994 15,600 100% 343,266 40,413 Recognized Sub-subsi
Hong Kong International Kong holding company (HKD15,600) (HKD86,378) (HKD10,368) by Celeraise diary
(HKD15,600) Hong Kong
Celeraise Jet Success Hong Investment, trading, and 30,997 30,997 7,800 100% 357,425 1,102 〃〃
Hong Kong Kong holding company (HKD7,800) (HKD7,800) (HKD89,941) (HKD283)
----- End of picture text -----

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

company in mainland China:

==> picture [423 x 178] intentionally omitted <==

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

Unit: Foreign currency thousands / thousand shares
Mainland Main business items Paid-in Invest Accumulated Investment Accumulated Profit or loss of Shareholding Investment Book value of Investment
China capital amount ment investment amount remitted investment the investee ratio of the gains and investments at income
investee (Note 3) metho amount or recovered in the amount company for the Company's losses the end of the repatriated
company d remitted from current period remitted from current period direct or recognized in period up to the
name Taiwan at the Outflow Inflow Taiwan at the (Note 4) indirect the current (Note 3) current
beginning of end of the investment period (Notes 4 period
the current current period and 5)
period (Note 3)
(Note 3)
Shanghai R&D and production of 15,570 Note 1 15,570 - - 15,570 - 100% - - -
Minshi industrial automation (USD500) (USD500) (USD500)
control, product quality
control,
communication, and
electronic network
computing software
Shanghai Production of 52,160 Note 2 227,322 - - 227,322 2,982 100% 2,732 129,414 -
Zhansheng electronics, cable connectors, telephone (USD1,675) (USD7,300) (USD7,300) (RMB677) (RMB 620) (RMB 30,223)
spare parts and small
household appliances;
sales of the company's
own products
Shenzhen Manufacture and sale 45,711 Note 2 - - - - (2,857) 100% (2,857) 29,240 -
Zhansheng of wire and cable connectors and connectors (RMB6,930)(USD515) - - (RMB(649)) (HKD(734)) (HKD 7,358)
(Note 6 )
----- End of picture text -----

～ 42 ～

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

==> picture [423 x 143] intentionally omitted <==

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

Mainland Main business items Paid-in Invest Accumulated Investment Accumulated Profit or loss of Shareholding Investment Book value of Investment
China capital amount ment investment amount remitted investment the investee ratio of the gains and investments at income
investee (Note 3) metho amount or recovered in the amount company for the Company's losses the end of the repatriated
company d remitted from current period remitted from current period direct or recognized in period up to the
name Taiwan at the beginning of Outflow Inflow Taiwan at the end of the (Note 4) investmentindirect period (Notes 4 the current (Note 3) current period
the current current period and 5)
period (Note 3)
(Note 3)
Celeraise Production and sale of - Note 2 31,140 - - 31,140 (Note 8) -% - (Note 8) -
Chenzhou wire connectors, electronic wire (USD1,000) (USD1,000) -
products, etc.
Kunshan Manufacture and sale 31,140 Note 2 31,140 - - 31,140 963 100% 963 351,217 -
Yiguan of wire and cable connectors and (USD1,000) (USD1,000) (USD1,000) (RMB219) (HKD247) (HKD88,379)
connectors, etc.
Huizhou Production and sale of 52,315 Note 2 - - - - 40,742 100% 40,742 367,120 -
Zhanmao wire connectors, electronic wire (USD1,680) - - (RMB9,250) (HKD10,452) (HKD92,380)
products and (Note 7)
packaging materials,
etc.
----- End of picture text -----

2. Limitations on investment in mainland China:

==> picture [425 x 115] intentionally omitted <==

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

Accumulated investment Investment amount Investment limit for
Company
amount remitted from approved by the the mainland China
name Taiwan to mainland China Investment area in accordance
at the end of the current Commission of the with the regulations
period Ministry of Economic of the Investment
(Note 3) Affairs Commission of the
(Note 3) Ministry of Economic
Affairs
The Company 305,172 (USD9,800) 376,483 (USD12,090) 888,037
----- End of picture text -----

Note1 ： Reinvestment in mainland China through investment and establishment of companies in a third region.
Note2 ： Reinvestment in mainland China companies by reinvesting in existing companies in a third region.
Note3 ： Converted to New Taiwan dollar at the period-end exchange rate on the financial reporting end date.
Note4 ： Converted to New Taiwan dollar at the average exchange rate during the financial reporting period.
Note5 ： 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.
Note6 ： Constitutes reinvestment undertaken by Celeraise Hong Kong through investment of US$515 thousand of its own funds and use of fixed assets.
Note7 ： 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.
Note8 ： Celeraise Chenzhou Industry completed the liquidation process in June 2018 and the investment amount was reimbursed in July 2018.
Note9 ： The above transactions have been eliminated in the preparation of the consolidated financial statements.

～ 43 ～

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

3. Material transactions with mainland China investee companies:

For direct or indirect material transactions between the Group and mainland China investee companies as for the three-month periods ended 30 June, 2023 (eliminated in the preparation of the consolidated statements), please see the description detailed under the "Information on Material Transactions” as well as “Business relationships and significant intercompany transactions”.

(IV) Information on principal shareholders:

==> picture [403 x 133] intentionally omitted <==

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

Unit: Shares
Shares Number of Shareholding
Principal shareholder name shares held percentage
Year Jan Industrial Co., Ltd. 11,152,634 11.63%
Jiayu Investment Co., Ltd. 9,485,167 9.89%
Jusheng Investment Co., Ltd. 8,842,241 9.22%
Wei Yi Investment Co., Ltd. 7,792,774 8.12%
Shih Chieh Wei Co., Ltd. 7,768,421 8.10%
----- End of picture text -----

Note: (1) The information of major shareholders in this table is published by the depository and clearing company on the last business day at the end of each quarter, calculating shareholder ownership of the company with information on the delivery of more than 5% of ordinary shares that have been completed without physical registration (including treasury shares). As for the share capital recorded in the company's financial statements and the actual number of shares that the company has completed without physical registration, there may be discrepancies or differences due to the different basis for preparation and calculation.
(2) If the above-mentioned information is of shares delivered to a trust by a shareholder, it is disclosed by the individual account of the trustor whose trust account is opened by the trustee. As for insider equity declarations of shareholders holding more than 10% of shares made in accordance with the Securities and Exchange Act, such shareholdings include own-held shares plus shares that are delivered to a trust and that have the right to exercise decision-making power over the trust property. Please refer to the Market Observation Post System for insider equity declaration information.

～ 44 ～

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

XIV. Segment information

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

	For the three-months ended 30 June, 2023	For the three-months ended 30 June, 2023	For the three-months ended 30 June, 2023	Total 690,594 -
Informatio nservices	Wire and connectors 466,767 200,957	Other segments	Adjustment s and eliminations
$ 223,827 4,289		- -	- (205,246) (205,246) (234)
$ 228,116	667,724	-		690,594
$ 20,838	21,000	-		41,604

	For the three-months ended 30 June, 2022	For the three-months ended 30 June, 2022	For the three-months ended 30 June, 2022	Total
Informatio nservices	Wire and connectors 566,115 317,534	Other segments	Adjustment s and eliminations
$ 324,226 4,084		- - - (59)	- (321,618) (321,618) (2,600)	890,341 -
$ 328,310	883,649			890,341
$ 29,593	33,353			60,287

～ 45 ～

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

	For the six-months ended 30 June, 2023	For the six-months ended 30 June, 2023	For the six-months ended 30 June, 2023	Total
Informatio nservices $ 499,090 8,499	Wire and connectors 937,490 382,942 1,320,432 34,274	Other segments	Adjustment s and eliminations
		- - - -	- (391,441) (391,441) (2,326)	1,436,580 -
$ 507,589				1,436,580
$ 44,391				76,339
				$ 2,915,586

	For the six-months ended 30 June, 2022	For the six-months ended 30 June, 2022	For the six-months ended 30 June, 2022	Total
Informatio nservices $ 823,393 8,002	Wire and connectors 1,073,742 573,744 1,647,486 80,612	Other segments	Adjustment s and eliminations
		- -	- (581,746) (581,746) (4,798)	1,897,135 -
$ 831,395		- (108)		1,897,135
$ 64,725				140,431
				$ 3,029,109

～ 46 ～

AI assistant

WELLTEND — Interim / Quarterly Report 2023

52254_rns_2023-11-13_8ec0056f-14f8-4e4e-963a-c93ebd7c4cac.pdf

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

Table of Contents

Independent Auditors’ Review Report

To the Board of Directors of Welltend Technology Corporation:

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Independent Accountants

Notes to Readers

Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

30 June 2023, 31 December 2022 and 30 June 2022

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

For the three-months and the six-months ended 30 June 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries Consolidated Statement of Changes in Equity

For the six-month periods ended 30 June, 2023 and 2022

Equity Attributable to the Parent Company

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

For the six-month periods ended 30 June, 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

June 30, 2023 and 2022

I. Company history

II. Approval date and procedures of the consolidated financial statements

III. New standards, amendments and interpretations adopted

IV. Summary of significant accounting policies

(I) Statement of compliance

(II) Basis of consolidation

Subsidiaries included in these consolidated financial statements include:

(III) Employee benefits

1. Defined contribution plans

2. Short-term employee benefits

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

VI. Explanation of significant accounts

(III) Inventories

(V) Property, plant, and equipment

(VI) Right-of-use assets

(VII) Short-term loans

(VIII) Other payables

(IX) Lease liabilities

1. Leasing of buildings

2. Other leases

(X) Employee benefits

(XI) Income taxes

(XII) Capital and other equity

1. Retained earnings and Surplus distribution

2. Treasury shares

(XIII) Earnings per share

(XV) Financial instruments

1. Credit risk

(2) Concentration of credit risk

(3) Credit risk of receivables

2. Liquidity risk

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

3. Exchange rate risk

(1) Exposure to exchange rate risk

(2) Sensitivity analysis

(3) Exchange gains and losses on monetary items

4. Interest rate analysis

5. Fair value information

(1) Type and fair value of financial instruments

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

(XVII) Financial risk management

(XVIII) Capital management

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

Non-cash changes

VII. Related party transactions

2.Leases

(III) Key management personnel compensation

2. Guarantees provided

VIII. Pledged assets

IX. Significant commitments and contingencies: None

X. Losses due to major disasters: None.

WELLTEND Interim / Quarterly Report 2023