WELLTEND - Interim / Quarterly Report 2023

Stock code ： 3021

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

For the Nine Months Ended September 30, 2023 and 2022

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

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Item
I. Cover Page
II. Table of Contents
III. 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

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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 9`～`12 12 13`～`34 35`～`36 37 37 37 37 37～38 38`～`42 42 43`～`44 45 46`～`47

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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 September 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023 and 2022, as well as the consolidated statements of changes in equity and of cash flows for the nine months ended September 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$234,383 thousand and NT$149,956 thousand, constituting 8% and 5% of the consolidated total assets, respectively, total liabilities amounting to NT$149,900 thousand and NT$80,674 thousand, constituting 10% and 5% of the consolidated total liabilities as of September 2023 and 2022, respectively; and total comprehensive income of NT$16,767 thousand , NT$6,154 thousand, NT$36,160 thousand and NT$21,203 thousand, constituting 30%, 7%, 31% and 10% of the consolidated total comprehensive income for the three-months and the nine-months ended 30 September 2023 and 2022, respectively.

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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 September 30, 2023 and 2022, and of its consolidated financial performance for three-months and the nine-months ended 30 September 2023 and 2022, as well as its consolidated cash flows for nine -months ended 30 September 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) November 9, 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.

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Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

30 September 2023, 31 December 2022 and 30 September 2022

2023.9.30	2023.9.30	2022.12.31	2022.12.31	2022.9.30 Amount ％ 506,690 16 1,111,282 35 786,860 25 126,271 4 36,515 1 2,567,618 81 418,396 13 81,335 3 44,789 1 2,811 - 59,639 2 606,970 19 3174588 100 2023.9.30 Liabilities and equity Amount Current liabilities: 2100 Short-term borrowings (Notes VI (VII) ,VII and VIII) $ 726,000 2130 Current contract liabilities (Note VI (XIV)) 42,961 2170 Notes and accounts payable 406,337 2200 Other payables (Notes VI (VIII) and VII) 151,257 2230 Current Tax Liabilities 39,879 2280 Current lease liabilities (Notes VI (IX) and VII) 28,382 2300 Other current liabilities 19,614 1,414,430 Non-current liabilities`：` 2570 Deferred tax liabilities 56,044 2580 Non-current lease liabilities (Notes VI (IX) and VII) 25,586 2600 Other non-current liabilities 302 81,932 Total liabilities 1,496,362 Equity attributable to owners of parent (Note VI (XII)): 3100 Capital stock 958,900 3200 Additional paid-in capital 7,525 3300 Retained earnings 662,728 3400 Other equity (92,694) 1,536,459 36XX Non-controlling interests 180 Total equity 1,536,639 Total liabilities and equity $ 3,033,001	2023.9.30	2023.9.30	2022.12.31 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	2022.12.31 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	2022.9.30 Amount % 751,000 24 69,452 2 510,098 16 165,884 5 53,538 2 31,881 1 30,052 1	2022.9.30 Amount % 751,000 24 69,452 2 510,098 16 165,884 5 53,538 2 31,881 1 30,052 1
Amount $ 796,420 902,111 638,119 74,047 40,099		Amount 530,360 997,775 779,205 132,237 36,547	％				Amount 691,000 55,892 443,594 185,172 64,069 31,592 30,471 1,501,790 49,319 42,709 434 92,462 1,594,252 958,900 7,525 639,311 (120,028) 1,485,708 114 1,485,822 3,080,074		Amount 751,000 69,452 510,098 165,884 53,538 31,881 30,052
			17 33 25 4 1	506,690 1,111,282 786,860 126,271 36,515 2,567,618 418,396 81,335 44,789 2,811 59,639 606,970 3174588
	2,450,796	2,476,124	80
	422,875 52,746 43,790 3,391 59,403	426,974 72,958 44,414 3,440 56,164	14 2 2 - 2
						1,414,430		49	1,611,905	51
						56,044 25,586 302		2 1 -	49,627 50,676 303	1 2 -
						81,932		3	100,606	3
	582,205	603,950	20
						1,496,362		52	1,712,511	54
	3033001	3080074	100
						958,900 7,525 662,728 (92,694)		31 - 21 (4)	958,900 7,525 604,437 (108,900)	30 - 19 (3)
						1,536,459		48	1,461,962	46
						180		-	115	-
						1,536,639		48	1,462,077	46
					$	3,033,001		100	3,174,588	100

`（` Please refer to Notes to the Consolidated Financial Statements)

Manager: Jia-Xiang Lin

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

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Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

For the three-months and the nine-months ended 30 September 2023 and 2022

Unit: NT$ thousand

For the nine-month periods ended 30 September	For the nine-month periods ended 30 September	For the nine-month periods ended 30 September	For the nine-month periods ended 30 September
2023	`％` 92 8	2022 Amount 2,805,993 197,019
Amount 2,042,072 168,984			`％` 93 7
2,211,056	100	3,003,012	100
1,739,868 56,501	79 2	2,390,493 44,522	80 1
1,796,369	81	2,435,015	81
414,687	19	567,997	19
144,551 144,698 2,006	6 7 -	192,918 155,243 1,066	7 5 - 12
291,255	13	349,227
123,432	6	218,770	7
13,052 3,557 7,811 (9,872) (1,858)	- - - - -	9,936 1,371 29,523 (8,066) (7,307)	- - 1 - -
12,690	-	25,457	1
136,122 45,516	6 2	244,227 94,910	8 3
90,606	4	149,317	5
27,334	1	69,196	2
27,334	1	69,196	2
117,940	5	218,513	7
90,540 66	4 -	149,314 3	5 -
90,606	4	149,317	5
117,874 66	5 -	218,510 3	7 -
117,940	5	218,513	7
	0.94 0.94		1.55
			1.55

（ Please refer to Notes to the Consolidated Financial Statements )

Chairman: Yun-Teng Chang

Accounting Supervisor: Wen-Pin Chen

Manager: Jia-Xiang Lin

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Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

For the nine-month periods ended 30 September, 2023 and 2022

Equity Attributable to the Parent Company

Balance on January 1, 2022

Earnings allocation and distribution: Legal reserve approproated Special reserve approproated Cash dividends of ordinary share Common Stock Dividend Distributable Capitalisation of employee compensation

Net profit for the period

Other comprehensive income for the period Total comprehensive income for the period Cancellation of treasury shares

Balance on September 30 2022

Balance on January 1, 2023

Earnings allocation and distribution: Legal reserve approproated Special reverse approproated Cash dividends of ordinary share

Net profit for the period

Other comprehensive income for the period Total comprehensive income for the period Balance on September 30 2023

	Retained earnings	Retained earnings		Other equity	Treasury shares	Total equity attributable to owners of the parent company	Non-con trolling interests 112	Total equity 1,269,189
				Exchange differences on translation of foreign financial statements
Legal reserve 80,516 13,074 - - - - 13,074 - - - - 93,590 93,590 18,419 - - 18,419 - - - 112,009	Special reserve 126,636 - 51,460 - - - 51,460 - - - - 178,096 178,096 - (58,068) - (58,068) - - - 120,028	Undistribut ed surplus earnings 306,292 (13,074) (51,460) (27,900) (27,900) - (120,334) 149,314 - 149,314 (2,521) 332,751 367,625 (18,419) 58,068 (67,123) (27,474) 90,540 - 90,540 430,691	Total
			513,444	(178,096) - - - - - - - 69,196 69,196 - (108,900) (120,028) - - - - - 27,334 27,334 (92,694)	(14,262)	1,269,077 - - (27,900) - 2,275 (25,625) 149,314 69,196 218,510 - 1,461,962 1,485,708 - - (67,123) (67,123) 90,540 27,334 117,874 1,536,459
			- - (27,900) (27,900) -		- - - - -		- - - - -	- - (27,900) - 2,275
			(55,800)		-		-	(25,625)
			149,314 -		- -		3 -	149,317 69,196
			149,314		-		3	218,513
			(2,521)		14,262		-	-
			604,437		-		115	1,462,077
			639,311		-		114	1,485,822
			- - (67,123)		- - -		- - -	- - (67,123)
			(67,123)		-		-	(67,123)
			90,540 -		- -		66 -	90,606 27,334
			90,540		-		66	117,940
			662,728		-		180	1,536,639

(Please refer to Notes to the Consolidated Financial Statements) Manager: Jia-Xiang Lin Accounting Supervisor: Wen-Pin Chen

Chairman: Yun-Teng Chang

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Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

For the nine-month periods ended 30 September, 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 Disposal 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: Increase in Short-term borrowings Repayment of lease liability principal Decrease in other non-current liabilities Cash dividends paid Net cash (outflows) 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 nine-month periods ended 30 September 2023 2022 $ 136,122 244,227 61,205 58,038 1,576 1,427 2,006 1,066 9,872 8,066 (3,557) (1,371) - 843 - (3) 71,102 68,066 93,658 (322,573) 141,086 89,733 58,189 (45,696) (552) (258) 292,381 (278,794) (12,931) (134,154) (37,257) 157,139 (33,861) (3,405) (10,857) 1,064 (94,906) 20,644 197,475 (258,150) 268,577 (190,084) 404,699 54,143 3,556 3,130 (9,926) (7,834) (60,493) (36,469) 337,836 12,970 (31,424) (35,670) - 97 (3,469) 4,758 (1,864) 4,233 (952) (755) (3,000) 7,000 (40,709) (20,337) 35,000 61,044 (24,009) (23,070) (132) (133) (67,123) - (56,264) 37,841 25,197 63,405 266,060 93,879 530,360 412,811 $ 796,420 506,690	For the nine-month periods ended 30 September 2023 2022 $ 136,122 244,227 61,205 58,038 1,576 1,427 2,006 1,066 9,872 8,066 (3,557) (1,371) - 843 - (3) 71,102 68,066 93,658 (322,573) 141,086 89,733 58,189 (45,696) (552) (258) 292,381 (278,794) (12,931) (134,154) (37,257) 157,139 (33,861) (3,405) (10,857) 1,064 (94,906) 20,644 197,475 (258,150) 268,577 (190,084) 404,699 54,143 3,556 3,130 (9,926) (7,834) (60,493) (36,469) 337,836 12,970 (31,424) (35,670) - 97 (3,469) 4,758 (1,864) 4,233 (952) (755) (3,000) 7,000 (40,709) (20,337) 35,000 61,044 (24,009) (23,070) (132) (133) (67,123) - (56,264) 37,841 25,197 63,405 266,060 93,879 530,360 412,811 $ 796,420 506,690
	61,205 1,576 2,006 9,872 (3,557) - -	58,038 1,427 1,066 8,066 (1,371) 843 (3)
	71,102	68,066
	93,658 141,086 58,189 (552)	(322,573) 89,733 (45,696) (258)
	292,381	(278,794)
	(12,931) (37,257) (33,861) (10,857)	(134,154) 157,139 (3,405) 1,064
	(94,906)	20,644
	197,475	(258,150)
	268,577	(190,084)
	404,699 3,556 (9,926) (60,493)	54,143 3,130 (7,834) (36,469)
	337,836	12,970
	(31,424) - (3,469) (1,864) (952) (3,000)	(35,670) 97 4,758 4,233 (755) 7,000
	(40,709)	(20,337)
	35,000 (24,009) (132) (67,123)	61,044 (23,070) (133) -
	(56,264)	37,841
	25,197	63,405
	266,060 530,360	93,879 412,811
	$ 796,420	506,690

(Please refer to Notes to the Consolidated Financial Statements) Chairman: Yun-Teng Chang Manager: Jia-Xiang Lin

Accounting Supervisor: Wen-Pin Chen

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

Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

For the Nine Months Ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollar, 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 November 9, 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”

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

 Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules”
(II) The impact of IFRS endorsed by the FSC but not yet effective
The Group assesses that the adoption of the (following) new amendments,
effective for annual period beginning on January 1, 2024, would not have a significant impact on its consolidated financial statements.
 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
 Amendments to IAS 1 “Non-current Liabilities with Covenants”
 Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
 Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

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

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

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

 Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
 IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
 Amendments to IAS21“Lack of Exchangeability”

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 IV 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.

Subsidiaries included in these consolidated financial statements include:

==> picture [401 x 45] intentionally omitted <==

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

Shareholding ratio
Investing
company Nature of September December September
name Subsidiary name business 30, 2023 31, 2022 30, 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,	September 30, 2023 100.00%	December 31, 2022 100.00%	September 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

～9～

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

==> picture [400 x 44] intentionally omitted <==

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

Shareholding ratio
Investing
company Nature of September December September
name Subsidiary name business 30, 2023 31, 2022 30, 2022 Note
The CELERAISE Manufacture and 100.00% 100.00% 100.00% Note 3
----- End of picture text -----

name The	Subsidiary name CELERAISE	business Manufacture and	30, 2023 100.00%	31, 2022 100.00%	30, 2022 100.00%	Note 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	sale of wire and
and JIUN	Limited (Celeraise	cable connectors
TAI	Hong Kong)	and connectors
The	Leadpak Industrial	International trade	99.36%	99.36%	99.36%	Note 1
Company	Co., Ltd. (Leadpak	and other
	Industrial, formerly	wholesale and
	Bor Sheng	retail trade
	Industrial Co., Ltd.)
The	Celeraise	Automatic control	100.00%	100.00%	100.00%	Note 1
Company	Technology	equipment
	Corporation	engineering
	(Celeraise	industry, computer
	Technology)	equipment
		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	Production of	100.00%	100.00%	100.00%
	Zhansheng	electronics, wire
	Electronics Co., Ltd.	connectors,
	(Shanghai	telephone spare
	Zhansheng)	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	company
	Limited (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)

～10～

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

Investing			Shareholding ratio	Shareholding ratio	Shareholding ratio
company		Nature of	September	December	September
name	Subsidiary name	business	30, 2023	31, 2022	30, 2022	Note
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

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.

～ 11 ～

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

(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.

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.

～ 12 ～

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

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	September 30, 2022 $ 793 771,732 23,895		December 31, 2022 1,469 483,359 45,532	September 30, 2022 2,150 483,214 21,326
	$ 796,420		530,360	506,690

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	September 30, 2023 $2,419 911,143 913,562 (11,451) $902,111	December 31, 2022 2,459 1,019,188 1,021,647 (23,872) 997,775	September 30, 2022 1,153 1,132,386
			1,133,539 (22,257)
			1,111,282

～ 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	September 30, 2023	September 30, 2023	September 30, 2023
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses 898 10,553
Level A Level B Credit rating	$ 824,870 88,692
	$ 913,562		11,451
	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
	$ 1,021,647		23,872
	Carrying amount of notes and accounts receivable	Weighted average expected credit loss ratio	Allowance for lifetime expected credit losses 1,496 20,764
Level A Level B	$ 1,068,994 64,545	0.14% 32.17%
	$ 1,133,539		22,257

～ 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	September 30,2023	December 31, 2022 781,527 140,863 44,844 54,413 1,021,647	September 30,2022 904,020 136,056 50,494 42,969 1,133,539
	$ 747,753 71,679 21,549 72,581
	$ 913,562

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 gains Balance at end of period	For the nine-month periods ended 30 September 2023 2022 $ 23,872 20,856 2,006 1,066 (14,628) (637) 201 972 $ 11,451 22,257	For the nine-month periods ended 30 September 2023 2022 $ 23,872 20,856 2,006 1,066 (14,628) (637) 201 972 $ 11,451 22,257
	2023 $ 23,872 2,006 (14,628) 201 $ 11,451
		22,257

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 September 30, 2023, December 31, 2022 and September 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 nine-month periods ended 31 September 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	September 30,2023	December 31 , 2022 473,707 88,772 86,440 130,286 779,205	September 30,2022 506,685 119,980 55,980 104,215 786,860
	$ 388,399 94,168 65,849 89,703
	$ 638,119

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 nine-months ended 30 September 2023 and 2022 were NT$620,669 thousand, NT$898,709 thousand, NT$1,774,227 thousand and NT$2,416,082 thousand respectively.
For the three-months and the nine-months ended 30 September 2023 and 2022, the Group recognized inventory depreciation and inactive inventory of NT$4,883 thousand, NT$6,575 thousand, NT$22,142 thousand and NT$18,933 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 September 30, 2023, December 31, 2022 and September 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	September 31, 2022 $ 40,433 20,059 13,555 $ 74,047		December 31, 2022 103,430 15,647 13,160		September 31, 2022 67,166 18,880 40,225
			132,237		126,271

～ 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 - - - (848)	Machinery and equipment 317,698 10,162 (2,998) 2,094 7,053	Office equipment and others 141,201 21,262 (4,323) - 1,025	Total 815,575 31,424 (7,321) 2,094 6,377
$ 202,830	151,145	334,009	159,165	848,149
$ 199,490 - - 711	148,453 78 - 1,107	295,715 10,556 (5,358) 14,898	132,149 25,036 (23,681) 2,939	775,807 35,670 (29,039) 19,655
$ 200,201	149,638	315,811	136,443	802,093
$ - - - -	50,191 4,188 - (126)	238,700 15,433 (2,998) 6,127	99,710 17,733 (4,323) 639	388,601 37,354 (7,321) 6,640
$ -	54,253	257,262	113,759	425,274
$ - - - -	44,064 4,320 - 203	212,193 15,116 (4,419) 13,139	105,095 15,023 (23,680) 2,643	361,352 34,459 (28,099) 15,985
$ -	48,587	236,029	99,081	383,697
$ 203,683	102,802	78,998	41,491	426,974
$ 202,830	97,892	76,747	45,406	422,875
$ 199,490	104,389	83,522	27,054	414,455
$ 200,201	101,051	79,782	37,362	418,396

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 September 30, 2023, December 31, 2022 and September 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 2,784 (2,508) 1,412	Transportation equipment and others	Total 115,484 2,784 (2,508) 1,376
	3,735 - - (36) 3,699 3,312 1,197 (945) 25 3,589 1,037 772 - (20) 1,789 911 774 (945) 14 754 2,698 1,910 2,401 2,835
$ 113,437		117,136
$ 107,620 59,834 (57,791) 3,027		110,932 61,031 (58,736) 3,052
$ 112,690		116,279
$ 41,489 23,079 (2,508) 521		42,526 23,851 (2,508) 521
$ 62,601		64,390
$ 67,194 22,805 (57,639) 1,830		68,105 23,579 (58,584) 1,844
$ 34,190		34,944
$ 70,260		72,958
$ 50,836		52,746
$ 40,426		42,827
$ 78,500		81,335

The Group leased factories and offices from other related parties as of

September 30, 2023, December 31, 2022 and September 30, 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:

September 30, 2023 $ 345,000 381,000	September 30, 2023 $ 345,000 381,000	December 31, 2022 160,000 531,000	September 31, 2022
			110,000 641,000
$ 726,000		691,000	751,000
$ 377,675		500,775	443,375
	0.50%~1.87%	1.25%~1.85%	1.15%~1.65%

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.
For the details of the related assets of the Group pledged as collateral, please refer to Note VIII for the details.

(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	September 30, 2023		December 31, 2022		September 30, 2022 40,181 42,958 13,132 69,613
	$ 38,822 39,729 13,405 59,301		60,474 40,727 16,800 67,171
	$ 151,257		185,172		165,884

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	September 30, 2023 $ 28,382	December 31, 2022 31,592	September 30, 2022 31,881
	$ 25,586	42,709	50,676

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 September 2023 2022 $ 177 261	For the three-months ended 30 September 2023 2022 $ 177 261	For the nine-months ended 30 September 2023 2022 596 841 9 33 559 559 2,232 3,131 114 102
$ -	9	33
$ 186	186	559
$ 778	754	3,131
$ 47	42	102

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

Total cash flows from leases	For the nine-months ended 30 September 2023 2022 $ 26,960 27,177	For the nine-months ended 30 September 2023 2022 $ 26,960 27,177
		2022 27,177

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 liabilities 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 nine-months ended 30 September 2023 and 2022 defined pension contributions were NT$2,759 thousand, NT$2,583 thousand, NT$8,162 thousand and NT$7,770 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$3,086 thousand, NT$3,203 thousand, NT$9,064 thousand and NT$9,214 thousand as for the three-months and the nine-months ended 30 September 2023 and 2022, respectively.

(XI) Income taxes

Details of income tax expenses of the Group are as follows:

For the three-months ended 30 September 2023 2022 $ 29,793 28,523 - -	For the three-months ended 30 September 2023 2022 $ 29,793 28,523 - -	For the nine-months ended 30 September 2023 2022 48,650 70,366 (9,885) -	For the nine-months ended 30 September 2023 2022 48,650 70,366 (9,885) -
			2022 70,366 -
29,793	28,523	38,765	70,366
1,531	6,125	6,751	24,544
$ 31,324	34,648	45,516	94,910

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 nine-month periods ended 30 September 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.

Starting balance on January 1 Issuance of stock dividend Issuance of employee stock remuneration Cancellation of treasury shares Ending balance on September 30	Unit: Thousand shares Common stock 2023.9.30 2022.9.30 95,890 94,000 - 2,790 - 100 - (1,000)	Unit: Thousand shares Common stock 2023.9.30 2022.9.30 95,890 94,000 - 2,790 - 100 - (1,000)	Unit: Thousand shares Common stock 2023.9.30 2022.9.30 95,890 94,000 - 2,790 - 100 - (1,000)
			2022.9.30
			94,000 2,790 100 (1,000)
	95,890		95,890

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 nine-month periods ended 30 September 2023 and 2022 are as follows:

For the nine-month periods ended 30 September

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 September 2023 2022 $ 10,075 57,036 95,890 95,890 $ 0.10 0.59 $ 10,075 57,036 95,890 95,890 54 244 95,944 96,134 $ 0.10 0.59	For the three-months ended 30 September 2023 2022 $ 10,075 57,036 95,890 95,890 $ 0.10 0.59 $ 10,075 57,036 95,890 95,890 54 244 95,944 96,134 $ 0.10 0.59	For the nine-months ended 30 September 2023 2022 90,540 149,314 95,890 95,860 0.94 1.55 90,540 149,314 95,890 95,860 158 307 96,048 96,167 0.94 1.55	For the nine-months ended 30 September 2023 2022 90,540 149,314 95,890 95,860 0.94 1.55 90,540 149,314 95,890 95,860 158 307 96,048 96,167 0.94 1.55
	2022		2022 149,314
	57,036
95,890	95,890	95,890	95,860
$ 0.10	0.59	0.94	1.55
$ 10,075	57,036	90,540	149,314
95,890 54	95,890 244	95,890 158	95,860 307
95,944	96,134	96,048	96,167
$ 0.10	0.59	0.94	1.55

～ 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 30	For the 30	three-months ended September 2023 Wire & Connectors Department Total - 311,549 251,538 251,998 140,262 140,262 70,667 70,667	three-months ended September 2023 Wire & Connectors Department Total - 311,549 251,538 251,998 140,262 140,262 70,667 70,667	three-months ended September 2023 Wire & Connectors Department Total - 311,549 251,538 251,998 140,262 140,262 70,667 70,667
Information Services Department $ 311,549 - - -		Wire & Connectors Department - 251,538 140,262 70,667
$ 311,549		462,927		774,476

Primary regional markets: Taiwan Mainland China Philippines Thailand

For the 30	For the 30	three-months ended September 2022 Wire & Connectors Department Total - 453,780 362,859 362,859 217,327 217,327 71,911 71,911	three-months ended September 2022 Wire & Connectors Department Total - 453,780 362,859 362,859 217,327 217,327 71,911 71,911	three-months ended September 2022 Wire & Connectors Department Total - 453,780 362,859 362,859 217,327 217,327 71,911 71,911
Information Services Department $ 453,780 - - -		Wire & Connectors Department - 362,859 217,327 71,911
$ 453,780		652,097		1,105,877

Primary regional markets: Taiwan Mainland China Philippines Thailand	For the nine-months ended 30 September 2023 Information Services Department Wire & Connectors Department Total $ 810,639 - 810,639 - 742,378 742,378 - 364,042 364,042 - 293,997 293,997	For the nine-months ended 30 September 2023 Information Services Department Wire & Connectors Department Total $ 810,639 - 810,639 - 742,378 742,378 - 364,042 364,042 - 293,997 293,997	For the nine-months ended 30 September 2023 Information Services Department Wire & Connectors Department Total $ 810,639 - 810,639 - 742,378 742,378 - 364,042 364,042 - 293,997 293,997	For the nine-months ended 30 September 2023 Information Services Department Wire & Connectors Department Total $ 810,639 - 810,639 - 742,378 742,378 - 364,042 364,042 - 293,997 293,997	For the nine-months ended 30 September 2023 Information Services Department Wire & Connectors Department Total $ 810,639 - 810,639 - 742,378 742,378 - 364,042 364,042 - 293,997 293,997
	Information Services Department $ 810,639 - - -		Wire & Connectors Department - 742,378 364,042 293,997
	$ 810,639		1,400,417		2,211,056

～ 25 ～

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

For the nine-months ended 30 September 2022 Information Services Department Wire & Connectors Department Total $ 1,277,173 - 1,277,173 - 946,098 946,098 - 543,204 543,204 - 236,537 236,537	For the nine-months ended 30 September 2022 Information Services Department Wire & Connectors Department Total $ 1,277,173 - 1,277,173 - 946,098 946,098 - 543,204 543,204 - 236,537 236,537	For the nine-months ended 30 September 2022 Information Services Department Wire & Connectors Department Total $ 1,277,173 - 1,277,173 - 946,098 946,098 - 543,204 543,204 - 236,537 236,537
Information Services Department $ 1,277,173 - - -	Wire & Connectors Department - 946,098 543,204 236,537
$ 1,277,173	1,725,839	3,003,012
September 31, 2023 $ 2,419 911,143 (11,451)	December 31, 2022 2,459 1,019,188 (23,872)	September 31, 2022 1,153 1,132,386 (22,257) 1,111,282 69,452
$ 902,111	997,775
$ 42,961	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 nine-months periods ended 30 September 2023 and 2022 were NT$25,336 thousand and NT$190,439 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 nine-months ended 30 September 2023 and 2022 were NT$234 thousand, NT$2,053 thousand, NT$1,217 thousand and NT$5,300 thousand. Estimated amounts of the remuneration for directors and supervisors were NT$234 thousand, NT$2,053 thousand, NT$1,217 thousand and NT$5,300 thousand. These refer to the amounts before deducting the remuneration of employees and the remuneration of directors and supervisors from the net profit before tax of the Company for each period. After deducting the accumulated losses, the balance is multiplied by the remuneration of employees and directors and supervisors stipulated in the Company’s Articles of Incorporation The remuneration distribution percentage is an estimate basis and is presented as an operating expense for each period. (In all of the above instances, after the establishment of the Audit Committee, supervisor remuneration constitutes director remuneration.) If the Board of Directors decides to pay employee compensation in stock, the numbers of shares to be distributed are calculated based on the closing price of the Company one day before the date of the meeting of the Board of Directors.

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 (727,317) (406,337) (151,257) (56,306) (302)	Within 1year (727,317) (406,337) (151,257) (28,886) -	1 to 2years - - - (8,660) -	Over 2years - - - (18,760) (302)
$ 726,000 406,337 151,257 53,968 302
$ 1,337,864	(1,341,519)	(1,313,797)	(8,660)	(19,062)
$ 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)

September 30, 2022 Non-derivative financial liabilities Short-term bank loans Notes and accounts payable Other payables Lease liabilities - current and non-current Deposits received (accounted for as other non-current liabilities)	Carrying amount $ 751,000 510,098 165,884 82,557 303	Contractual cash flows (756,975) (510,098) (165,884) (85,555) (303)	Within 1year (756,975) (510,098) (165,884) (32,704) -	1 to 2years - - - (28,067) -	Over 2years - - - (24,784) (303)
	$ 1,509,842	(1,518,815)	(1,465,661)	(28,067)	(35,087)

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`	September 30, 2023	September 30, 2023	September 30, 2023	December 31, 2022	December 31, 2022	December 31, 2022	Foreign currency unit: $ thousand September 30, 2022 Foreign currency Exchange rate TWD 2,208`USD/TWD` =31.750 70,103 18,541`USD/RMB` =7.098 588,686 28,410`USD/HKD` =7.851 902,009 9,796`USD/PHP` =59.346 311,022 73`USD/THB` =37.574 2,328 119`USD/TWD` =31.750 3,778 6,926`USD/RMB` =7.098 219,916 9,284`USD/HKD` =7.851 294,756 10,005`USD/PHP` =59.346 317,668 4,144`USD/THB` =37.574 131,578	Foreign currency unit: $ thousand September 30, 2022 Foreign currency Exchange rate TWD 2,208`USD/TWD` =31.750 70,103 18,541`USD/RMB` =7.098 588,686 28,410`USD/HKD` =7.851 902,009 9,796`USD/PHP` =59.346 311,022 73`USD/THB` =37.574 2,328 119`USD/TWD` =31.750 3,778 6,926`USD/RMB` =7.098 219,916 9,284`USD/HKD` =7.851 294,756 10,005`USD/PHP` =59.346 317,668 4,144`USD/THB` =37.574 131,578
	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
	$ 2,242 21,163 20,460 7,418 1,490 1,060 4,196 8,097 4,590 5,811	`USD/TWD` =32.270 `USD/RMB` =7.309 `USD/HKD` =7.827 `USD/PHP` =56.914 `USD/THB` =36.587 `USD/TWD` =32.270 `USD/RMB` =7.309 `USD/HKD` =7.827 `USD/PHP` =56.914 `USD/THB` =36.587	72,340 682,920 660,252 239,363 48,080 34,219 135,390 261,303 148,111 187,518	1,463 21,586 23,261 8,695 809 219 6,612 13,101 8,018 4,706	`USD/TWD` =30.710 `USD/RMB` =6.967 `USD/HKD` =7.798 `USD/PHP` =56.452 `USD/THB` =34.351 `USD/TWD` =30.710 `USD/RMB` =6.967 `USD/HKD` =7.798 `USD/PHP` =56.452 `USD/THB` =34.351		2,208 18,541 28,410 9,796 73 119 6,926 9,284 10,005 4,144	`USD/TWD` =31.750 `USD/RMB` =7.098 `USD/HKD` =7.851 `USD/PHP` =59.346 `USD/THB` =37.574 `USD/TWD` =31.750 `USD/RMB` =7.098 `USD/HKD` =7.851 `USD/PHP` =59.346 `USD/THB` =37.574

～ 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 September 30, 2023 and 2022, then with all other factors remaining constant the impact on income as for the nine-month periods ended 30 September 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%	September 30, 2023 $ 1,906 (1,906) 27,377 (27,377) 19,947 (19,947) 4,563 (4,563) (6,972) 6,972	September 30, 2022
		3,316 (3,316) 18,439 (18,439) 30,363 (30,363) (332) 332 (6,463) 6,463

(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 nine-months ended 30 September 2023 and 2022, the net exchange gains (loss) (including realized and unrealized) amounted to NT$(4,091) thousand, NT$15,402 thousand, NT$7,811 thousand and NT$29,523 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	September 30, 2023 $ 809,522 451,000	December 31, 2022 518,149 531,000	September 30, 2022
			518,014 641,000

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Group’s internal key management reports 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 nine-month periods ended 30 September 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 nine-months ended 30 September 2023 2022 $ 672 (231) (672) 231	For the nine-months ended 30 September 2023 2022 $ 672 (231) (672) 231
		2022
		(231) 231

～ 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):

September 30, 2023

Carrying amount $ 796,420 902,111 40,099 55,081	Carrying amount $ 796,420 902,111 40,099 55,081		Fair value	Fair value	Total - - - - - - - - - -
		Level 1 Level 2 Level 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2022

$ 1,793,711
$ 1,337,864

	Carrying amount		Fair value
		Level 1	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

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

	September 30, 2023	September 30, 2023	September 30, 2023
Carrying amount $ 506,690 1,111,282 36,515 51,864		Fair value
	Level 1	Carrying amount - - - - - - - - - -	Level 1	Carrying amount
	- - - - - - - - - -		- - - - - - - - - -	- - - - - - - - - -
$ 1,706,351
$ 751,000 510,098 165,884 31,881 50,676 303
$ 1,509,842

(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 nine-month periods ended 30 September 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 35,000 (132) (24,009)	Others - - 2,784	Exchange rate changes - - 892	September 30, 2023 726,000 302 53,968
$ 765,735	10,859	2,784	892	780,270
January 1, 2022 $ 689,956 432 43,494	Cash flows 61,044 (133) (23,070)	Non-cash	changes Exchange rate changes - 4 1,257	September 30, 2022 751,000 303 82,557
		Others - - 60,876
$ 733,882	37,841	60,876	1,261	833,860

～ 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	September 30, 2023 $ 3,374 4,994		December 31, 2022 2,724 4,983		September 30, 2022 2,292 10,116
Other payables `〃`
		$ 8,368		7,707		12,408

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$5,825 thousand and NT$1,097 thousand, respectively.
(2) The Group leased a plant from another related party, Kunshan Mingmao, with the rent determined by market conditions and signing 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 ：

	liability balance	liability balance	Interest For the three-months ended 30 September 2023 2022 10 17 75 130 65 65 9 2	Interest For the three-months ended 30 September 2023 2022 10 17 75 130 65 65 9 2	expense For the nine-months ended 30 September 2023 2022 35 44 267 428 195 200 16 8	expense For the nine-months ended 30 September 2023 2022 35 44 267 428 195 200 16 8
	December 31, 2022 4,858 37,520 18,734 283	September 30, 2022 5,420 42,782 18,682 507
			2023
			10 75 65 9
$ 47,975	61,395	67,391	159	214	513	680

(III) Key management personnel compensation

2. Guarantees provided

The total amounts of the Group's loan contracts for September 30, 2023, December 31 and September 30, 2022 were NT$1,103,675 thousand, NT$1,191,775 thousand and NT$1,194,375 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	September		December	September
Asset name	pledge		30, 2023	31, 2022	30, 2022
Property, plant, and equipment -	short-term loans
land		$	140,142	140,142	140,142
Property, plant, and equipment -	short-term loans
buildings	and customs
	duty guarantees		42,811	44,544	45,222
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		55,081	51,612	51,864
		$	275,834	271,098	272,028

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 September, 2023 ended 30 September, 2022
Under Under Under Under
Nature operating operating operating operating
Total Total
costs expenses costs expenses
Employee benefit expense
Salary expense 73,554 56,255 129,809 81,669 69,975 151,644
Health and labor 4,521 4,561 9,082 3,531 5,607 9,138
insurance expense
Pension expense 3,183 2,664 5,845 2,702 3,084 5,786
Other employee benefit 4,177 3,716 7,893 3,482 4,166 7,648
expense
Depreciation expense 14,403 5,943 20,345 13,856 5,880 19,736
Amortization expense - 537 537 - 488 488
----- 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 nine-months For the nine -months
ended 30 September, 2023 ended 30 September, 2022
Under Under Under Under
Nature operating operating operating operating
Total Total
costs expenses costs expenses
Employee benefit expense
Salary expense 223,188 163,005 386,193 227,204 209,527 436,731
Health and labor 12,760 14,093 26,853 7,489 17,478 24,967
insurance expense
Pension expense 9,401 7,825 17,226 7,793 9,191 16,984
Other employee benefit 10,360 11,436 21,796 9,228 12,682 21,910
expense
Depreciation expense 43,659 17,546 61,205 41,263 16,775 58,038
- -
Amortization expense 1,576 1,576 1,427 1,427
----- 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 nine-month periods ended 30 September 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 61,313 63,313 61,313 2%-4% Short-term financing - Operating turnover - None - 108,267 270,668
1 JIUN TAI COPORATION Celeraise Hong Kong receivablesOther Y 15,018 - - 1.5% Short-term financing - Operating turnover - None - 270,668 270,668
LIMITED
1 JIUN TAI COPORATION Yield Profit International receivablesOther Y 24,364 24,364 24,364 1.5% Short-term financing - Operating turnover - None - 270,668 270,668
LIMITED
2 Jet Success Yield Profit International receivablesOther Y 21,625 - - 1.5% Short-term financing - Operating turnover - None - 359,600 359,600
2 Jet Success CELERAISE ELECTRONIC receivablesOther Y 15,018 - - 2.0% Short-term financing - Operating turnover - None - 143,840 359,600
CORPORATION
3 Shanghai Zhansheng Huizhou Zhanmao receivablesOther Y 49,562 27,152 27,152 1.5% Short-term financing - Operating turnover - None - 95,902 95,902
4 Celeraise Hong Kong Celeraise (Thailand) Co., Ltd. receivablesOther Y 49,200 22,589 22,589 2%-4% Short-term financing - Operating turnover - None - 456,966 1,142,414
4 Celeraise Hong Kong CELERAISE ELECTRONIC receivablesOther Y 16,135 16,135 16,135 2.0% Short-term financing - Operating turnover - None - 456,966 1,142,414
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 1,536,459 80,675 80,675 - - 5.25% 1,536,459 Y N N
Kong/Jiun Tai the Company
0 〃 Celeraise HongSubsidiary of 1,536,459 146,810 50,000 - - 3.25% 1,536,459 Y N N
Kong/Yield the Company
Profit
International/C
eleraise
Technology
1 [Celeraise ] The Company Parent company 281,555 42,946 37,383 37,383 - 66.39% 281,555 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$80,675 thousand (US$2,500 thousand). Note 3: Endorsements/guarantees made by Celeraise Technology are made in accordance with that company’s Management Measures for Loans and Endorsements/Guarantees. The total amount of external endorsements/guarantees may not exceed 500% of the company's net value, and the amount of endorsements/guarantees for a single enterprise may not exceed 500% of the company's net value.

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

Securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): None.
Individual securities acquired or disposed of with accumulated amount exceeding NT$300 million or 20% of the paid-in capital: None.
Acquisition of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Disposal of individual real property with amount exceeding NT$300 million or 20% of the paid-in capital: None.
Related party transactions for purchases and sales with amounts exceeding NT$100 million or 20% of the paid-in capital: None.

Unit: NT$ thousand

==> picture [421 x 114] 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) (245,427) (54) % Monthly settlement is Prices are not General 213,075 29 % 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
Celeraise Huizhou Ultimate purchase 245,427 68 % Monthly settlement is Prices are not General (216,844) (85) % Note1
Hong Zhanmao 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.

～ 39 ～

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

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 82,924 0.76 - - -
Kong company is the
same
Huizhou Celeraise Hong Kong Ultimate parent 213,075 1.97 - - -
Zhanmao company is the
same
----- End of picture text -----

Note 1: Information up to October 31, 2023.

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

9. Trading in derivative instruments: None.

10. Business relationships and significant intercompany transactions:

==> picture [417 x 414] 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 30,441 Prices are not significantly 1.38%
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 8,572 [Prices are not significantly ] 0.28%
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 73,996 Prices are not significantly 3.35%
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 82,924 [Prices are not significantly ] 2.73%
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 10,949 [Prices are not significantly ] 0.50%
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 4,865 Prices are not significantly 0.16%
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 22,931 Interest rate 2.0%-4.0% 0.76%
Kong receivables
(Note 3.)
1 Celeraise Hong CELERAISE 3 Other 16,341 Interest rate 2.0% 0.54%
Kong ELECTRONIC receivables
CORPORATION (Note 3.)
1 Celeraise Hong THE COMPANY 2 Sales revenue 13,413 Prices are not significantly 0.61%
Kong different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
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～ 40 ～

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

==> picture [416 x 592] intentionally omitted <==

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

Relations Intercompany transactions
Number Name of Name of hip with Ratio to
transaction transactio consolidated total
(Note 1) person counterparty n person Account name Amount Trading terms revenue or total
(Note 2) assets
1 Celeraise Hong THE COMPANY 2 Accounts 1,868 [Prices are not significantly ] 0.06%
Kong receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
2 Kunshan Shanghai 3 Sales revenue 32,183 Prices are not significantly 1.46%
Yiguan Zhansheng different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
2 Kunshan Shanghai 3 Accounts 13,198 [Prices are not significantly ] 0.44%
Yiguan Zhansheng receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Huizhou Celeraise Hong 3 Sales revenue 245,427 [Prices are not significantly ] 11.10%
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 213,075 [Prices are not significantly ] 7.03%
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 28,393 [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 11,350 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 21,983 [Prices are not significantly ] 0.99%
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 71,069 Prices are not significantly 2.34%
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 40,494 [Prices are not significantly ] 1.83%
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 84,200 [Prices are not significantly ] 2.78%
Zhanmao receivable different from those of ordinary
customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
3 Leadpak Industrial CELERAISE 3 Sales revenue 90,319 [Prices are not significantly ] 4.08%
ELECTRONIC different from those of ordinary
CORPORATION customers, monthly settlement
is 270 days, and payments are
received according to funding
needs
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～ 41 ～

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

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----- 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 Leadpak CELERAISE 3 Accounts 34,487 [Prices are not significantly ] 1.14%
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 27,152 Interest rate 1.5% 0.90%
Zhansheng receivables
(Note 3.)
6 Jiun Tai THAILAND 3 Other 62,324 Interest rate 2.0%-4.0% 2.05%
receivables
(Note 3.)
6 Jiun Tai Yield Profit 3 Other 24,598 Interest rate 1.5% 0.81%
International receivables
(Note 3.)
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Note 1: Numbers are filled in according to the following:

The parent company is 0.
Subsidiaries are numbered in sequence starting from 1.
Note 2: Relationship is classified into three types: 1. Parent company to subsidiary.
Subsidiary to parent company.
Subsidiary to subsidiary.

Note 3: Lending funds (including interests).

(II) Information on investees
The Group's reinvestment business information is as follows (excluding

investment in mainland China companies):

==> picture [421 x 304] 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 Virgin Investment, trading, and 16,538 16,538 500 100% 976 - - Sub-
Company Islands holding company subsidiary
The Jiun Tai Hong Kong Holding company 241,922 241,922 59,920 100% 276,260 8,677 8,677 〃
Company
The Celeraise Taiwan Information service 30,000 30,000 3,000 100% 56,316 22,380 22,382 〃
Company Technology industry
The Leadpak Taiwan International trade and 29,810 29,810 2,981 99.36% 27,976 10,264 10,198 〃
Company Industrial other wholesale and
retail trade
The Celeraise Hong Hong Kong Manufacture and sale of 191,996 191,996 50,300 99.99% 1,168,705 56,786 56,786 〃
Company Kong wire and cable
connectors and
connectors
The CELERAISE Philippines Manufacture and sale of 25,532 25,532 400 100% 273,851 7,251 7,251 〃
Company ELECTRONIC wire and cable
CORPORATION connectors and
connectors
The THAILAND Thailand Manufacture and sale of 182,136 182,136 18,275 100% 164,655 2,493 2,493 〃
Company wire and cable
connectors and
connectors
Jiun Tai Celeraise Hong Hong Kong Manufacture and sale of 1 1 - 0.01% 1 - Recognized 〃
Kong wire and cable (HKD0.16) (HKD0.16) (HKD0.16) by Jiun Tai
connectors and
connectors
Celeraise Yield Profit Hong Kong Investment, trading, and 64,319 64,319 15,600 100% 374,245 60,735 Recognized Sub-
Hong Kong International holding company (HKD15,600) (HKD15,600) (HKD90,770) (HKD15,372) by Celeraise subsidiary
Hong Kong
Celeraise Jet Success Hong Kong Investment, trading, and 32,159 32,159 7,800 100% 359,600 (7,985) 〃〃
Hong Kong holding company (HKD7,800) (HKD7,800) (HKD87,218) (HKD(2,021))
----- 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

～ 42 ～

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

(III) Information on investment in mainland China

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

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----- 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 16,135 Note 1 16,135 - - 16,135 - 100% - - -
Minshi industrial automation (USD500) (USD500) (USD500)
control, product quality
control,
communication, and
electronic network
computing software
Shanghai Production of 54,052 Note 2 235,571 - - 235,571 3,025 100% 2,652 102,454 Note 10
Zhansheng electronics, cable (USD1,675) (USD7,300) (USD7,300) (RMB689) (RMB 604) (RMB 23,206)
connectors, telephone
spare parts and small
household appliances;
sales of the company's
own products
Shenzhen Manufacture and sale 45,711 Note 2 - - - - (2,033) 100% (2,033) 30,960 -
Zhansheng of wire and cable connectors and connectors (RMB6,930)(USD515) - - (RMB(463)) (HKD(515)) (HKD 7,509)
(Note 6 )
Celeraise Production and sale of - Note 2 32,270 - - 32,270 (Note 8) -% - (Note 8) -
Chenzhou wire connectors, electronic wire (USD1,000) (USD1,000) -
products, etc.
Kunshan Manufacture and sale 32,270 Note 2 32,270 - - 32,270 (845) 100% (845) 290,358 Note 11
Yiguan of wire and cable connectors and (USD1,000) (USD1,000) (USD1,000) (RMB(463)) (HKD(214)) (HKD70,424)
connectors, etc.
Huizhou Production and sale of 54,214 Note 2 - - - - 61,276 100% 61,256 399,189 -
Zhanmao wire connectors, electronic wire (USD1,680) - - (RMB13,955) (HKD15,504) (HKD96,820)
products and (Note 7)
packaging materials,
etc.
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2. Limitations on investment in mainland China:

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----- 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 316,246 (USD9,800) 390,144 (USD12,090) 921,875
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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.

～ 43 ～

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

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$1,680 thousand made by Celeraise Hong Kong, Yield Profit International, and Jet Success using their own funds.
Note8 ： Celeraise Chenzhou Industry completed the liquidation process in September 2018 and the investment amount was reimbursed in July 2018.
Note9 ： The above transactions have been eliminated in the preparation of the consolidated financial statements.
Note10 ： Shanghai Zhansheng passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings on September, 2023.Distribute cash dividend of RMB$ 7,000 thousand to Jiun Tai. As of the balance sheet date, it has not been remit to Taiwan.
Note11 ： Kunshan Yiguan passed resolutions of the Board of Directors on the amount of cash dividends under appropriation of earnings on September, 2023.Distribute cash dividend of RMB$ 15,818 thousand to Jet Success. As of the balance sheet date, it has not been remit to Taiwan.
Material transactions with mainland China investee companies:
For direct or indirect material transactions between the Group and mainland
China investee companies as for the nine-month periods ended 30 September, 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”.

～ 44 ～

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

(IV) Information on principal shareholders:

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----- 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.

～ 45 ～

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 September, 2023	For the three-months ended 30 September, 2023	For the three-months ended 30 September, 2023	Total
Informatio nservices	Wire and connectors 462,927 213,475	Other segments	Adjustments and eliminations
$ 311,549 4,428		- -	- (217,903) (217,903) (2,047)	774,476 -
$ 315,977	676,402	-		774,476
$ 20,284	28,856	-		47,093

	Fo ende	r the three-months d 30 September, 2022	r the three-months d 30 September, 2022	Total
Informatio nservices	Wire and connectors 652,097 330,719	Other segments - - - (56)	Adjustments and eliminations
$ 453,780 4,263			- (334,982) (334,982) (2,876)	1,105,877 -
$ 458,043	982,816			1,105,877
$ 31,295	49,976			78,339

～ 46 ～

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

	For the nine-months ended 30 September, 2023	For the nine-months ended 30 September, 2023	For the nine-months ended 30 September, 2023	Total
Informatio nservices $ 810,639 12,927	Wire and connectors 1,400,417 596,417 1,996,834 63,130	Other segments - - - -	Adjustments and eliminations
			- (609,344) (609,344) (4,373)	2,211,056 -
$ 823,566				2,211,056
$ 64,675				123,432
				$ 3,033,001

	For the nine-months ended 30 September, 2022	For the nine-months ended 30 September, 2022	For the nine-months ended 30 September, 2022	Total
Informatio nservices $ 1,277,173 12,265	Wire and connectors 1,725,839 904,463 2,630,302 130,588	Other segments	Adjustments and eliminations - (916,728) (916,728) (7,674)
		- - - (164)		3,003,012 - 3,003,012 218,770 $ 3,174,588
$ 1,289,438
$ 96,020

～ 47 ～

AI assistant

WELLTEND — Interim / Quarterly Report 2023

52254_rns_2023-11-13_1ab8dff0-36f0-408b-b03b-abedece988d8.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

Notes to Readers

Welltend Technology Corporation and Subsidiaries

Consolidated Balance Sheet

30 September 2023, 31 December 2022 and 30 September 2022

（ Please refer to Notes to the Consolidated Financial Statements)

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

For the three-months and the nine-months ended 30 September 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

Equity Attributable to the Parent Company

Welltend Technology Corporation and Subsidiaries

Consolidated Statement of Cash Flows

For the nine-month periods ended 30 September, 2023 and 2022

Unit: NT$ thousand

Welltend Technology Corporation and Subsidiaries Notes to the Consolidated Financial Statements

For the Nine Months Ended September 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

(III) Employee benefits

1. Defined contribution plans

2. Short-term employee benefits

(IV) Income taxes

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

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)

(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

and Subsidiaries (continued)

December 31, 2022

(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

`（` Please refer to Notes to the Consolidated Financial Statements)