WELLTEND — Interim / Quarterly Report 2021

Nov 24, 2021

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TWSE Code: 3 0 2 1

2021Q3

2 0 2 1 / 1 1 / 2 4

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Disclaimer

The information on this document is intended to be for reference and general information purposes only. It does not purport to be comprehensive nor to provide any investment or other professional advice. Welltend Technology Corporation does not warrant or represent that such information is complete, accurate or up to date. Users should base on the public information or announcement in Market Observation Post System(MOPS), to find the financial and business information.

If there is any inconsistency or ambiguity between the English version and the Chinese version, the Chinese version shall prevail.

A enda g

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About Wire Harness System Performance Q & A
Wellend Business Group Integration and Prospects
Business Group
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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

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Business Introduction
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Wire harness business group：

System integration business group： Provides system integration and IT services, with a complete product line and total solution. Welltend takes the leading position in enterprises and government.

With more than decades of experience, Welltend has insight in the industry needs. Products need to be tested by strict testing procedures. Provides customers with stable and reliable products, with the real-time support .

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WELLTEND has a strong management team and excellent RD capabilities, with vision and execution, towards future advanced investment.

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Histroy
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Established 1993	．Company was established ．IT products agents, sales and service
2000	．Share listed in OTC market (Taipei Exchange)
Development 2002	．Share listed in main board (TWSE)
Restructure 2009	．Wire harness group joined
2010	．Invested in Shenzhen area
Transition 2011	．Invested in Hunan, Kunshan
2013	．Invested in Huizhou
2014	．Invested in Philippines
2016	．Assigned new GM for two business groups
Expanding 2017	．Invested in Thailand
2019	．Revenue over USD 80 million

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Organization
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Board
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GM
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Remuneration
Management
Committee
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Management System Center Integration BU

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Wire Harness BU
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• Group information, business  IT system equipment sales, planning and setup

• strategy, investors message

• Human resources, legal  MIS outsourcing, on site engineer service

• Human resources, legal affairs, information,

• System/software engineering project

procurement, accounting etc.

 For local and international market, wire harness and connectors business R&D, manufacturing, promotion, and sales

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

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Wire Harness Group
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• Professional cable, harness manufacturing partners

• Reliable and stable quality, affirmed by Japanese customers

• Applications

-Home appliances, office automation machines, information technology, automotives, industrial use

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Appliances
Automotives
IT
MFP
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家 電 事務機
資訊科技 車 用
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Production Base
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• East China

Kunshan Site

• South China

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Huizhou Site
家 電 智慧家電
車 用 車影音
事務機
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Production Base
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• South East Asia

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– Philippines

Celeraise Electronic – Thailand Celeraise (Thailand)

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智慧家電
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車 用

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消費電子

2020 Q1

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Development Strategy
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Quality and Service First

We believe the best competence is quality first, and execution in our daily production.

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Japanese Clients

We value our customers as a longterm partnership. For years, we have some Japanese brand clients.

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Welltend Core competence

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Focus on long-term development and product applications, including home appliances, cars, industry.

Diversity of products application

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There are two production sites in Southeast Asia, which can diversify single country risks

Diversity of production sites

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Taipei AMPA 2020 (Oct 2020) / Taipei AMPA 2021 (Apr 2021) We never stopped, even during the pandemic.

Targeting potential clients

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Online exhibition

Media exposure

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2021Q3 Company Info

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

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Products and Service
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IT System Planning

Cloud IT environment planning Worldwide brand network equipment Software and hardware upgrades Handheld devices and mobile office planning

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System maintenance MIS team management Information equipment management

IT solutions

Business Process Management(BPMFlow) Geographic information services(GIS) Data leakage protection(DLP) Virtualization、Network architecture、 Information Security Planning

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Core Business and Strength
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IT consultancy. Application development and sales.

Skilled engineer support team with ISO27001 certificate.

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Engineers and non-stop service everywhere in Taiwan, which meet the customers business need.

Offering worldwide known equipments. Installs and upgrades.

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Sales category
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• In recent 3 years, revenue from services and general sales are both growing.

• Through close service with our clients, brings more potential business in the future.

• Long term margin is stable.

Revenue Composition

Gross Margin Composition

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Major Clients
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Banking

Banks, securites, insurance companies

Governments Central and local governments

Enterprises

Listed companies, foreign business in Taiwan Public services Hospitals, unversities

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

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Operation highlight
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• In 2021Q3, accumulative revenue growth: + 26.6 %

• wire harness group: +24.8 %

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• system integration group: +29.9 %

• Stable gross margin brings reasonable profits

• Sector contribution:

• Wire harness: 63%

• System integration: 37%

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Seasons Operation Results
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• Revenues in Q3 are 932 million, YoY: + 21.7%, gross margin: 21.9%

• First three quarters EPS in 2021: 0.36, 0.26, 0.68. (TWD)

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Income Statement Summary
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TWD, thousand

	2021Q3 2020Q3		2021前三季 2020前三季
	金 額 ％ 金 額 ％		金 額 ％ 金 額 ％
營 收	932,055 765,694		2,506,523 1,979,313
營業毛利	203,806 22 180,463 24		523,434 21 430,878 22
營業費用	110,688 12 112,643 14		330,260 13 294,264 14
營業利益	93,118 10 67,820 10		193,174 8 136,614 8
業外收入	(9,428) (1) (17,604) (3)		(28,595) (1) (15,795) (1)
稅前淨利	83,690 9 50,216 7		164,579 7 120,819 7
所得稅	20,117 2 18,055 2		43,395 2 38.585 2
淨利	63,573 7 32,161 5		121,184 5 82,234 5
EPS			1.30 0.88

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Dividends Policy
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• In the past five years, shareholders have received cash dividends more than 3.3 dollars

per share.

• Long term cash dividend yield is more than 5%.

• Company policy: share profits to long-term shareholders.

股利所屬年度	2016	2017	2018	2019	2020
當年度 EPS	1.05	1.15	1.30	1.44	1.03
當年度現金股利	0.7	0.75	0.75	0.408	0.7
年平均股價	12.35	14.39	14.8	15.05	14.3
平均現金殖利率	5.7%	5.2%	5.1%	2.7%	4.9%
平均本益比	11.8	12.5	11.4	10.5	13.9

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Business insight
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WELLTEND strategy

• Customer first, quality first, consistent growth with a reasonable profit –

Wire Harness Group

• OA machines/MPF products grow

• Automotives electronics bring the better profit

• Japanese corporations trend

• SEA manufacturing and business environments

System Integration Group

• Software/application development capability

• Improving service income, consultancy capability

• Focus on Information security issue

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About Wire Harness System Performance Q & A Wellend Business Group Integration and Prospects Business Group

Spokesman 林冠宇 Eric Lin Headquarter 黃小菁 Emmy Huang

Email ir@welltend.com.tw

TEL (02) 8768-2688 ext 8843

Website http://www.welltend.com.tw