WPG Holdings Limited - Interim / Quarterly Report 2025

Stock Code:3033

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2025 and 2024

Address: 11F., No.308, Sec.1, Neihu Rd., Neihu Dist., Taipei City Telephone: (02)2659-0202

The independent auditors’ review 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’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statement of Comprehensive Income
6. Consolidated Statement of Changes in Equity
7. Consolidated Statement of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of material accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Assets Pledged as security
(9)
Significant commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures items
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in Mainland China
(14) Segment information Page

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statement of Comprehensive Income 6. Consolidated Statement of Changes in Equity 7. Consolidated Statement of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Assets Pledged as security (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures items (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (14) Segment information	Page
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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web kpmg.com/tw

Independent Auditors’ Review Report

To the Board of Directors of Weikeng Industrial Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Weikeng Industrial Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and six ended June 30,2025 and 2024, as well as changes in equity and cash flows for the six months ended June 30, 2025 and 2024, 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

We conducted our reviews in accordance with the Standard on Review Engagements 2410, “ Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, 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.

Conclusion

Based on our reviews, 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 Weikeng Industrial Co., Ltd. and its subsidiaries as of June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 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.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

The engagement partners on the reviews resulting in this independent auditors’ review report are Au, Yiu-Kwan and Hsin, Yu-Ting.

KPMG

Taipei, Taiwan (Republic of China) August 8, 2025

Notes to Readers

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

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31, and June 30, 2024

(expressed in thousands of New Taiwan Dollars)

June 30, 2025	December 31, 2024	December 31, 2024	June 30, 2024
Amount % $ 15,622,383 40 224 - 346,379 1 7,400,155 19 762,854 2 1,000,000 3 120,395 - 113,793 - 486,702 1 436,090 1 26,288,975 67 25,000 - 2,252,587 6 973,239 3 109,286 - 38,105 - 193 - 3,398,410 9 29,687,385 76 4,797,641 12 2,635,591 6 1,499,348 4 - - 920,879 2 2,420,227 6 (225,506) - (91,902) - (317,408) - 9,536,051 24 $ 39,223,436 100	Amount	%	Amount % 17,961,534 46 2,583 - 1,003,307 3 5,714,419 15 841,955 2 870,000 2 158,839 1 118,654 - 483,525 1 1,177,190 3 28,332,006 73 - - - - 857,291 2 116,601 1 66,233 - 193 - 1,040,318 3 29,372,324 76 4,507,764 12 1,906,155 5 1,383,563 3 12,355 - 1,235,756 3 2,631,674 6 417,019 1 (91,844) - 325,175 1 9,370,768 24 38,743,092 100
	17,340,753 1,014 510,424 8,276,821 951,059 - 194,693 135,948 507,673 575,289
	28,493,674
	29,000 2,224,804 973,239 153,589 41,797 193
	3,422,622
	31,916,296
	4,742,934
	2,539,836
	1,383,563 12,354 1,863,670
	3,259,587

See accompanying notes to consolidated financial statements.

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars, except for earnings per share)

4100 Net sales revenue (note (6)(q)) 5000 Cost of sales (note (6)(e)) Gross profit Operating expenses (notes (6)(j), (6)(l), (6)(r), (7) and (12)): 6100 Selling expenses 6200 Administrative expenses 6450 Expected credit losses (note (6)(d)) Net operating income (loss) Non-operating income and expenses: 7100 Interest income 7010 Other income (note (7)) 7230 Foreign currency exchange gains (losses), net (note (6)(s)) 7235 Gains (losses) on financial assets (liabilities) at fair value through profit or loss, net (note (6)(i)) 7050 Finance costs (notes (6)(i) and (6)(j)) 7590 Miscellaneous disbursements 7900 Profit (loss) before tax 7950 Less: Income tax expenses (note (6)(m)) 8200 Profit (loss) Other comprehensive income: 8310 Items that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Less: Income tax related to items that will not be reclassified to profit or loss 8360 Items that may be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Less: Income tax related to items that will be reclassified to profit or loss (note (6)(m)) Other comprehensive income 8500 Comprehensive income Earnings per ordinary share (expressed in New Taiwan dollars) (note (6)(p)) 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share	For the three months ended June 30 2025 2024 Amount % Amount % $ 28,459,654 100 22,536,800 100 27,999,647 98 21,108,138 94 460,007 2 1,428,662 6 524,474 2 499,199 2 109,535 - 137,171 1 2,411 - 20,743 - 636,420 2 657,113 3 (176,413) - 771,549 3 11,114 - 10,839 - 1,520 - 1,183 - 259,297 1 (60,158) - 1,689 - 3,136 - (271,529) (1) (261,253) (1) 2 - (166) - 2,093 - (306,419) (1) (174,320) - 465,130 2 (12,212) - 104,127 - (162,108) - 361,003 2 (28) - (14) - - - - - (28) - (14) - (954,185) (3) 108,266 - (190,837) - 21,654 - (763,348) (3) 86,612 - (763,376) (3) 86,598 - $ (925,484) (3) 447,601 2 $ (0.34) 0.84 $ (0.34) 0.73	For the six months ended June 30 2025 2024 Amount % Amount % 54,269,673 100 40,981,076 100 52,432,766 97 38,503,266 94 1,836,907 3 2,477,810 6 1,059,691 2 954,299 2 246,981 - 253,421 1 24,540 - 13,408 - 1,331,212 2 1,221,128 3 505,695 1 1,256,682 3 22,214 - 13,767 - 2,941 - 3,276 - 263,012 - (85,073) - 4,604 - 8,643 - (534,515) (1) (516,636) (1) 1 - (372) - (241,743) (1) (576,395) (1) 263,952 - 680,287 2 103,312 - 150,347 - 160,640 - 529,940 2 (52) - (37) - - - - - (52) - (37) - (862,259) (1) 421,958 1 (172,452) - 84,392 - (689,807) (1) 337,566 1 (689,859) (1) 337,529 1 (529,219) (1) 867,469 3 0.34 1.24 0.33 1.07
	2025 Amount % $ 28,459,654 100 27,999,647 98 460,007 2 524,474 2 109,535 - 2,411 - 636,420 2 (176,413) - 11,114 - 1,520 - 259,297 1 1,689 - (271,529) (1) 2 - 2,093 - (174,320) - (12,212) - (162,108) - (28) - - - (28) - (954,185) (3) (190,837) - (763,348) (3) (763,376) (3) $ (925,484) (3) $ (0.34) $ (0.34)	2025 Amount % 54,269,673 100 52,432,766 97 1,836,907 3 1,059,691 2 246,981 - 24,540 - 1,331,212 2 505,695 1 22,214 - 2,941 - 263,012 - 4,604 - (534,515) (1) 1 - (241,743) (1) 263,952 - 103,312 - 160,640 - (52) - - - (52) - (862,259) (1) (172,452) - (689,807) (1) (689,859) (1) (529,219) (1) 0.34 0.33

See accompanying notes to consolidated financial statements.

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the six months ended June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars)

Retained earnings Legal reserve Special reserve Unappropriated earnings 1,304,638 - 1,667,096 78,925 - (78,925) - 12,355 (12,355) - - (870,000) 78,925 12,355 (961,280) - - 529,940 - - - - - 529,940 - - - 1,383,563 12,355 1,235,756 1,383,563 12,354 1,863,670 115,785 - (115,785) - - (1,000,000) - (12,354) 12,354 115,785 (12,354) (1,103,431) - - 160,640 - - - - - 160,640 - - - - - - - - - 1,499,348 - 920,879	Retained earnings Legal reserve Special reserve Unappropriated earnings 1,304,638 - 1,667,096 78,925 - (78,925) - 12,355 (12,355) - - (870,000) 78,925 12,355 (961,280) - - 529,940 - - - - - 529,940 - - - 1,383,563 12,355 1,235,756 1,383,563 12,354 1,863,670 115,785 - (115,785) - - (1,000,000) - (12,354) 12,354 115,785 (12,354) (1,103,431) - - 160,640 - - - - - 160,640 - - - - - - - - - 1,499,348 - 920,879	Other equity interest Exchange differences on translation of Unrealized gains (losses) from financial assets measured at fair value through other foreign financial statements comprehensive income 79,453 (91,807) - - - - - - - - - - 337,566 (37) 337,566 (37) - - 417,019 (91,844) 464,301 (91,850) - - - - - - - - - - (689,807) (52) (689,807) (52) - - - - - - (225,506) (91,902)	Total equity
		Exchange differences on translation of foreign financial statements 79,453 - - - - - 337,566 337,566 - 417,019 464,301 - - - - - (689,807) (689,807) - - - (225,506)
Legal reserve 1,304,638 78,925 - - 78,925 - - - - 1,383,563 1,383,563 115,785 - - 115,785 - - - - - - 1,499,348	Special reserve - - 12,355 - 12,355 - - - - 12,355 12,354 - - (12,354) (12,354) - - - - - - -
			8,766,220
			- - (870,000)
			(870,000)
			529,940 337,529
			867,469
			607,079
			9,370,768
			10,914,808
			- (1,000,000) -
			(1,000,000)
			160,640 (689,859)
			(529,219)
			10,339 140,397 (274)
			9,536,051

See accompanying notes to consolidated financial statements.

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Cash Flows

For the six months ended June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expenses Amortization expenses Expected credit losses Net gains on financial assets and liabilities at fair value through profit or loss Interest expenses Interest income Share-based payments Others Changes in operating assets and liabilities: Decrease (increase) in notes and accounts receivable Increase in other receivables Decrease in inventories Increase in prepayments and other current assets Decrease in accounts payable Decrease in other payable Decrease in contract liabilities and other current liabilities Decrease in net defined benefit liabilities Total changes in operating assets and liabilities Total adjustments Cash flows from (used) in operations Interest received Interest paid Income taxes paid Net cash flows from (used in) operating activities Cash flows from (used in) investing activities: Acquisition of property, plant and equipment Disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Increase in other prepayments Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings Repurchase of bonds Payments of lease liabilities Net cash flows (used in) from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of period	For the six months ended June 30, 2025 2024 $ 263,952 680,287 85,581 86,498 4,360 4,017 24,540 13,408 (4,604) (8,643) 534,515 516,636 (22,214) (13,767) 10,339 - (144) (417) 632,373 597,732 1,537,555 (2,900,311) (57,495) (117,906) 2,839,289 2,117,346 (163,836) (135,553) 4,155,513 (1,036,424) (52,291) (3,878,429) (178,942) (28,041) (185,016) (48,637) (3,692) (3,634) (419,941) (3,958,741) 3,735,572 (4,995,165) 4,367,945 (4,397,433) 4,631,897 (3,717,146) 21,858 13,214 (512,202) (480,475) (170,971) (187,962) 3,970,582 (4,372,369) (5,222) (9,390) 165 - (75,758) (121,384) (6,944) (6,135) (746) (270) (88,505) (137,179) - 3,259,461 (2,542,745) - (3,045) - (75,286) (82,792) (2,621,076) 3,176,669 (865,254) 417,630 395,747 (915,249) 2,985,318 2,410,732 $ 3,381,065 1,495,483
	2025 $ 263,952 85,581 4,360 24,540 (4,604) 534,515 (22,214) 10,339 (144) 632,373 1,537,555 (57,495) 2,839,289 (163,836) 4,155,513 (52,291) (178,942) (185,016) (3,692) (419,941) 3,735,572 4,367,945 4,631,897 21,858 (512,202) (170,971) 3,970,582 (5,222) 165 (75,758) (6,944) (746) (88,505) - (2,542,745) (3,045) (75,286) (2,621,076) (865,254) 395,747 2,985,318 $ 3,381,065

Cash flows from (used in) operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expenses
Amortization expenses
Expected credit losses
Net gains on financial assets and liabilities at fair value through profit or loss
Interest expenses
Interest income
Share-based payments
Others
Changes in operating assets and liabilities:
Decrease (increase) in notes and accounts receivable
Increase in other receivables
Decrease in inventories
Increase in prepayments and other current assets
Decrease in accounts payable
Decrease in other payable
Decrease in contract liabilities and other current liabilities
Decrease in net defined benefit liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash flows from (used) in operations
Interest received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Acquisition of property, plant and equipment
Disposal of property, plant and equipment
Increase in refundable deposits
Acquisition of intangible assets
Increase in other prepayments
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
Increase in short-term borrowings
Decrease in short-term borrowings
Repurchase of bonds
Payments of lease liabilities
Net cash flows (used in) from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period

For the six months ended
June 30,
2025
2024
$ 263,952
680,287
85,581
86,498
4,360
4,017
24,540
13,408
(4,604)
(8,643)
534,515
516,636
(22,214)
(13,767)
10,339
-
(144)
(417)
632,373
597,732
1,537,555
(2,900,311)
(57,495)
(117,906)
2,839,289
2,117,346
(163,836)
(135,553)
4,155,513
(1,036,424)
(52,291)
(3,878,429)
(178,942)
(28,041)
(185,016)
(48,637)
(3,692)
(3,634)
(419,941)
(3,958,741)
3,735,572
(4,995,165)
4,367,945
(4,397,433)
4,631,897
(3,717,146)
21,858
13,214
(512,202)
(480,475)
(170,971)
(187,962)
3,970,582
(4,372,369)
(5,222)
(9,390)
165
-
(75,758)
(121,384)
(6,944)
(6,135)
(746)
(270)
(88,505)
(137,179)
-
3,259,461
(2,542,745)
-
(3,045)
-
(75,286)
(82,792)
(2,621,076)
3,176,669
(865,254)
417,630
395,747
(915,249)
2,985,318
2,410,732
$
3,381,065
1,495,483

2025
$ 263,952
85,581
4,360
24,540
(4,604)
534,515
(22,214)
10,339
(144)
632,373
1,537,555
(57,495)
2,839,289
(163,836)
4,155,513
(52,291)
(178,942)
(185,016)
(3,692)
(419,941)
3,735,572
4,367,945
4,631,897
21,858
(512,202)
(170,971)
3,970,582
(5,222)
165
(75,758)
(6,944)
(746)
(88,505)
-
(2,542,745)
(3,045)
(75,286)
(2,621,076)
(865,254)
395,747
2,985,318
$
3,381,065

See accompanying notes to consolidated financial statements.

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars, unless otherwise specified)

(1) Company history

Weikeng Industrial Co., Ltd. (the “Company”) was incorporated in Taiwan as a company limited by shares in January 1977 and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’ s registered office is 11F, No.308 Sec. 1, Neihu Rd., Neihu Dist., Taipei City. The major activities of the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) are the purchase and sale of electronic components and computer peripherals, technical service, and the import-export trade business. Please refer to note (4)(b) for related information. The Company’s common shares were listed on the Taiwan Stock Exchange (TSE).

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on August 8, 2025.

(3) New standards, amendments and interpretations adopted:

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

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

●Amendments to IAS21 “Lack of Exchangeability”
(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

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

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

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Standards or
Interpretations
IFRS 18 “Presentation and
Disclosure in Financial
Statements”

Content of amendment
Effective date per
IASB
The
new
standard
introduces
three
categories of income and expenses, two
income statement subtotals and one single
note
on
management
performance
measures.
The
three
amendments,
combined with enhanced guidance on how
to disaggregate information, set the stage
for better and more consistent information
for users, and will affect all the entities.
January 1, 2027

●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.
●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

(4) Summary of material accounting policies

(a) 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 the 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 Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the material accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note (4) of the consolidated financial statements for the year ended December 31, 2024.

(b) Basis of Consolidation
(i) List of subsidiaries in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Nature of operation	Shareholding	Shareholding
			June 30, 2025	December 31, 2024 June 30, 2024 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100
The Company `〃` `〃` WKI `〃`	Weikeng International Co., Ltd. (WKI) Weikeng Technology Co., Ltd. (WKZ) Weikeng Technology Pte. Ltd. (WTP) Weikeng International (Shanghai) Co., Ltd. (WKS) Weitech International Co., Ltd. (Weitech)	Electronic components computer peripherals products distribution and technical support Electronic components and technical support `〃` Electronic components computer peripherals products distribution and technical support Import and export trade of electronic components	% 100 % 100 % 100 % 100 % 100

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Nature of operation	Shareholding	Shareholding
			June 30, 2025	December 31, 2024 June 30, 2024 % 100 % 100
WKS	SiUltra Electronic Technology (Shanghai) Co., Ltd. (SiU)	Electronic technology development and technical advisory	% 100

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(d) 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 measured by multiplying together the pre-tax income for the interim reporting period and the management’s best estimate of effective annual tax rate. This should be recognized fully as tax expense for the current period.

For a change in tax rate that is substantively enacted in an interim period, the effect of the change should immediately be recognized in the interim period in which the change occurs.

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.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, 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 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, 2024. For related information, please refer to note (5) of the consolidated financial statements for the year ended December 31, 2024.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) 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 2024 consolidated financial statements. Please refer to note (6) of the 2024 annual consolidated financial statements.

(a) Cash and cash equivalents

June 30, 2025 Cash on hand $ 167 Checking accounts and demand deposits 3,351,743 Time deposits 29,155 $ 3,381,065	December 31, 2024 169 2,985,149 - 2,985,318	June 30, 2024 169 1,462,864 32,450
		1,495,483

As of June 30, 2025, December 31 and June 30, 2024, the Group’ s time deposits with original maturities of more than three months amounted to $0, $0 and $60,000, respectively, and were recognized under other current assets.

Please refer to note (6)(s) for the exchange rate, interest rate risk and sensitivity analysis of the financial assets of the Group.

(b) Financial assets and liabilities at fair value through profit or loss
(i) The details of the financial assets and liabilities at fair value through profit or loss were as follows:

June 30, 2025 Current financial assets at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic markets $ 799 Current financial liabilities at fair value through profit or loss: Convertible bonds – embedded derivatives $ 224 Non-current financial liabilities at fair value through profit or loss: Convertible bonds – embedded derivatives $ 25,000	December 31, 2024 799 1,014 29,000	June 30, 2024
		835
		2,583
		-

As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any financial assets at fair value through profit or loss as collateral for its loans.

Please refer to note (6)(s) for credit risk and currency risk of financial assets of the Group.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2025 Debt investments at fair value through other comprehensive income: Overseas unlisted convertible promissory note $ 9,056 Equity investments at fair value through other comprehensive income: Domestic emerging market stocks 142 Domestic unlisted stocks 72,125 Overseas unlisted stocks 7,458 $ 88,781	December 31, 2024 9,056 194 72,125 7,458 88,833	June 30, 2024
		9,056 200 60,534 7,458
		77,248

(i) Debt investments at fair value through other comprehensive income

The Group has made an assessment that the debt invesment were held within a business model whose objective was achieved by both collecting contractual cash flows and selling financial assets. Therefore, they have been classified as financial assets at fair value through other comprehensive income.

(ii) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategy and not for trading purposes.

There were no disposals of strategic investments, nor were there any transfers of any cumulative gain or loss within equity relating to these investments in the six months ended June 30, 2025 and 2024.

(iii) The investee company, Winsheng Material Technology Co., Ltd. (Winsheng Material), which was recognized as non-current financial assets at fair value through other comprehensive income, issued new shares for cash in the fourth quarter of 2024. The Group purchased newly issued shares of Winsheng Material amounting to $11,591, leading to an increase of the Group’ s shareholding in Winsheng Material from 1,400 thousand shares to 1,690 thousand shares.
(iv) For credit risk and market risk, please refer to note (6)(s).
(v) As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any financial assets at fair value through other comprehensive income as collateral for its loans.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Notes and accounts receivable

June 30, 2025 Notes receivable $ 240,314 Accounts receivable-measured as amortized cost 13,375,796 Accounts receivable-fair value through other comprehensive income 2,729,201 16,345,311 Less: Loss allowance (162,790) $ 16,182,521	December 31, 2024 277,541 15,743,150 1,874,167 17,894,858 (150,242) 17,744,616	June 30, 2024 234,158 14,092,518 2,309,793 16,636,469 (162,600) 16,473,869

The Group has assessed a portion of its accounts receivable that was held within a business model whose objective is achieved by selling financial assets; therefore, such accounts receivable was measured at fair value through other comprehensive income.

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics of the customer's ability to pay all due amounts in accordance with contract terms, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The Group's loss allowance of notes and accounts receivable were determined as follows:

(i) The Company

Credit rating Listed company (assessed by group) Level A Level B Unlisted company Credit rating Listed company (assessed by group) Level A Level B Unlisted company		June 30, 2025 Expected credit loss rate Loss allowance Credit impaired 0.60% 31,528 No 1.49% 17,150 No 1.25% 13,252 No 61,930 December 31, 2024 Expected credit loss rate Loss allowance Credit impaired 0.53% 34,698 No 1.08% 11,296 No 1.13% 11,872 No 57,866 (Continued)
	Carrying amount $ 5,290,567 1,147,841 1,061,556 $ 7,499,964	Expected credit loss rate 0.60% 1.49% 1.25% December
	Carrying amount $ 6,554,204 1,043,616 1,049,858 $ 8,647,678	Expected credit loss rate 0.53% 1.08% 1.13%

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024 Credit rating Carrying amount Expected credit loss rate Loss allowance Credit impaired Listed company (assessed by group) Level A $ 5,285,646 0.56% 29,368 No Level B 920,780 1.21% 11,161 No Unlisted company 2,325,136 1.11% 25,903 No $ 8,531,562 66,432 The aging analysis of the Company's notes and accounts receivable was determined as follows June 30, 2025 December 31, 2024 June 30, 2024 Not past due $ 7,467,981 8,623,763 8,531,562 Overdue 90 days or less 31,983 23,915 - $ 7,499,964 8,647,678 8,531,562		June 30, 2024	June 30, 2024
			8,531,562 -
			8,531,562

The aging analysis of the Company's notes and accounts receivable was determined as follows:

(ii) Subsidiaries

	June 30, 2025
Carrying amount Expected credit loss rate $ 8,130,333 0.05% 650,645 5.84% 6,996 16.50% 57,373 100% $ 8,845,347 December 31, 2024		Loss allowance
		4,304 38,029 1,154 57,373
		100,860

Carrying amount $ 8,587,059 593,844 7,395 58,882 $ 9,247,180	Expected credit loss rate 0.02% 4.51% 70.18% 100%	Loss allowance
		1,545 26,759 5,190 58,882
		92,376

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	June 30, 2024
Carrying amount $ 7,640,280 400,424 19,245 44,958 $ 8,104,907	Expected credit loss rate 0.06% 8.55% 65.22% 100%	Loss allowance
		4,430 34,228 12,552 44,958
		96,168

For the six months ended June 30, 2025 and 2024, the movements in the allowance for notes and accounts receivable of the Group were as follows:

Balance at January 1 Impairment losses recognized Effect of changes in foreign exchange rates Others Balance at June 30	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 150,242 24,540 (11,820) (172) $ 162,790	2024
		143,963 13,408 5,229 -
		162,600

The Group entered into accounts receivable factoring agreements with banks. According to the factoring agreement, the Group does not bear the loss if the account debtor does not have the ability to make payments upon the transfer of the accounts receivable factoring. The Group has not provided other guarantees except for the promissory notes, which have the same amount with the factoring, used as the guarantee for the sales return and discount. The Group received the proceeds from the discounted accounts receivable determined by agreements on the selling date. Interest is calculated and paid based on the duration and interest rate of the agreement, and the remaining amounts are received when the accounts receivable are paid by the customers. In addition, the Group has to pay a service charge based on a certain rate.

The Group derecognized the above accounts receivable because it has transferred substantially all of the risks and rewards of their ownership, and it does not have any continuing involvement by them. The amounts receivable from the financial institutions were recognized as “other receivables” upon the derecognition of those accounts receivable.

As of June 30, 2025, December 31 and June 30, 2024, the information of accounts receivable sold without recourse was as follows:

		June 30, 2025	June 30, 2025
Purchaser	Amount Derecognized $ 5,931,695	Amount Paid 5,356,774	Advanced Unpaid -	Amount Recognized in Other Receivables 574,921	Range of Interest Rate Significant Transferring Terms 2.70%~5.66% None
Financial institutions

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		December 31, 2024	December 31, 2024
Purchaser	Amount Derecognized $ 5,158,647	Amount Paid Advanced Unpaid 4,668,628 - June 30, 2024		Amount Recognized in Other Receivables 490,019	Range of Interest Rate Significant Transferring Terms 5.29%~6.68% None
Financial institutions
Purchaser	Amount Derecognized $ 4,348,051	Amount Paid 3,919,265	Advanced Unpaid -	Amount Recognized in Other Receivables 428,786	Range of Interest Rate Significant Transferring Terms 6.05%~6.68% None
Financial institutions

As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any receivables as collaterals for its loans.

Please refer to note (6)(s) for further credit risk information.

(e) Inventories

June 30, 2025 Merchandise inventories $ 16,722,623 Goods in transit 962,720 $ 17,685,343	December 31, 2024 18,231,684 2,292,948 20,524,632	June 30, 2024
		17,349,362 1,050,291
		18,399,653

The details of the cost of sales were as follows:

Inventory that has been sold Inventory valuation loss and obsolescence Loss on disposal of inventory Others	For the three months ended June 30, For the six months ended June 30, 2025 2024 2025 2024 $ 27,845,858 21,096,364 $ 52,272,002 38,442,101 153,779 2,857 160,751 51,780 - 8,917 3 9,385 10 - 10 - $ 27,999,647 21,108,138 $ 52,432,766 38,503,266	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 27,845,858 153,779 - 10 $ 27,999,647		2024
			38,442,101 51,780 9,385 -
			38,503,266

As of June 30, 2025, December 31 and June 30, 2024, the Group did not provide any inventories as collaterals for its loans.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Property, plant and equipment

Carrying amounts: Balance on January 1, 2025 Balance on June 30, 2025 Balance on January 1, 2024 Balance on June 30, 2024	Land $ 77,377 $ 77,377 $ 77,377 $ 77,377	Buildings and construction 26,612 26,181 27,476 27,045	Transportation equipment 14,431 12,311 7,555 10,214	Machinery equipment 21,461 17,966 20,109 20,539	Office and other facilities equipment 13,341 14,480 14,231 14,953	Total
						153,222
						148,315
						146,748
						150,128

The Group’s property, plant and equipment have no significant additions, disposals, impairments or reversals during the six months ended June 30, 2025 and 2024. Information on depreciation for the period is disclosed in note (12)(a). For other related information, please refer to note (6)(f) of the 2024 annual consolidated financial statements.

(g) Right-of-use assets

Carrying amount: Balance on January 1, 2025 Balance on June 30, 2025 Balance on January 1, 2024 Balance on June 30, 2024	Buildings $ 275,972 $ 213,273 $ 281,328 $ 221,827	Transportation equipment 6,216 5,087 4,892 6,950	Total
			282,188
			218,360
			286,220
			228,777

There were no significant additions, disposal, or recognition and reversal of impairment losses of buildings and transportation equipments that are held as right-of-use assets during the six months ended June 30, 2025 and 2024. Please refer to note (6)(g) of the 2024 annual consolidated financial statements for other related information.

(h) Short-term borrowings

June 30, 2025 Unsecured loans $ 14,454,214 Short-term notes and bills payable, net 1,168,169 $ 15,622,383 Unused short-term credit lines $ 7,717,869 Range of interest rates 1.88%~5.51%	December 31, 2024 16,152,771 1,187,982 17,340,753 5,332,270 1.88%~6.49%	June 30, 2024 16,853,244 1,108,290 17,961,534 3,569,632 1.78%~6.67%

(i) Issuance and repayment of borrowings

The Group’s incremental amounts in loans for the six months ended June 30, 2025 and 2024 were $17,926,936 and $18,728,815, respectively, with maturities from July to December, 2025 and from July to December, 2024, respectively; and the repayments were $19,645,306 and $15,469,354, respectively.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) For information on the Group’s interest risk, foreign currency risk and liquidity risk, please refer to note (6)(s).
(iii) Supplier finance arrangements

The Group participates in a supplier finance arrangement. Under the arrangement, the bank agrees to pay amounts due to participating suppliers in respect of invoices owed by the Group and the Group repays the bank at a later date. The principal purpose of this arrangement is to facilitate efficient payment process.

The Group has derecognized the original accounts payable related to the arrangement, as a legal release obtained pursuant to the non-recourse clause and the extension of payment terms. These liabilities were reclassified as unsecured loans under short-term borrowings. As of June 30, 2025 the aforementioned supplier financing arrangement was classified as a current liability under short-term borrowings.

Accounts payable of which suppliers have received payment from the bank Range of payment due dates Accounts payables Short-term borrowings—supplier financing arrangement	June 30, 2025
	$ 824,375 60days after invoice date within180 days from invoice date

Non-cash changes

There were no significant non-cash changes in the carrying amount of financial liabilities subject to supplier finance arrangements.

The payments to the bank are included within financing cash flows. For the six months ended June 30, 2025, the payments of $824,375, made by the bank to the Group’ s supplier were deemed as non-cash transactions.

There were no supplier financing arrangement for the six months ended June 30, 2024. For additional information about how these arrangements affect the Group’s exposure to liquidity risk, please refer to note (6)(t).

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Convertible bonds payable

(i) Non-guaranteed convertible bonds:

June 30, 2025 Aggregate principal amount $ 4,500,000 Bond discount (260,123) Cumulative repurchased amount (4,700) Cumulative converted amount (1,546,500) 2,688,677 Less: Convertible bonds payable – could be repaid with one year 436,090 Bonds payable at end of period $ 2,252,587 Embedded derivative – put and call options Included in current financial liabilities at fair value through profit or loss $ 224 Included in non-current financial assets at fair value through profit or loss $ 25,000 Equity component – conversion options (included in capital surplus – conversion options) $ 284,883	December 31, 2024 4,500,000 (296,407) (1,700) (1,401,800) 2,800,093 575,289 2,224,804 1,014 29,000 293,325	June 30, 2024 2,000,000 (52,610) (1,700) (768,500) 1,177,190 1,177,190 - 2,583 - 70,292

(ii) There were no issuances and repayments of bonds payable for the six months ended June 30, 2025 and 2024. Please refer to note (6)(i) to the 2024 annual consolidated financial statements for the related informatiom.
(iii) The effective interest rate of the sixth convertible bonds was 1.51%. The interest expenses on convertible bonds for the three months and six months ended June 30, 2025 and 2024, were $1,802, $6,631, $3,926 and $13,250, respectively.
(iv) As the sixth convertible bonds have issued for three years, the bondholders may request the Company to repurchase the bonds. Therefore, based on the conservative principles, the sixth convertible bonds were recognized as current liabilities since June 1, 2024. However, it dose not indicate that the Company would repay all the liabilities within a year.
(v) The effective interest rate of the seventh convertible bond was 2.52%. The interest expense on convertible bonds for the three months and six months ended June 30, 2025 were $13,891 and $27,783, respectively.
(vi) The net gain or loss on the recognition of financial assets and liabilities for the three months and six months ended June 30, 2025 and 2024, amounted to a gain of $1,731, $3,075, $4,604 and $8,658, respectively.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) The Company paid the amount of $3,045 to repurchase the convertible bonds, with a face value of $3,000 on June 2, 2025, resulting in a gain of $143 and a decrease in capital surplus of $274.
(j) Lease liabilities

The details of Group's lease liabilities were as follows:

June 30, 2025 Current $ 113,793 Non-current $ 109,286	December 31, 2024 135,948 153,589	June 30, 2024
		118,654
		116,601

For the maturity analysis, please refer to note (6)(s) of financial instruments.

The amounts recognized in profit or loss were as follows:

For the three months ended June 30, 2025 2024 $ 2,369 1,614 $ 1,058 1,395	For the six months ended June 30,	For the six months ended June 30,
2025 $ 2,369 $ 1,058	2025 5,153 2,243	2024
		3,499
		2,787

The amounts recognized in the consolidated statements of cash flows were as follows:

Total cash outflow for leases	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 82,682	2024
		89,078

(i) Real estate leases

The Group leases buildings for its office space, warehouses and dormitories. The leases of office space typically run for a period of 1 to 6 years, of warehouses for 1 to 3 years, and of dormitories for 1 to 3 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of office buildings contain extension or cancellation options exercisable by the Group before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. When the lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period will not be included within lease liabilities.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other leases

The Group leases transportation equipment typically run for a period of 2 to 5 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The Group leases office space, dormitories, transportation equipment and parking space with lease terms of one year. Since these leases are short term, the Group elected not to recognize its right-of-use assets and lease liabilities for these leases.

(k) Operating lease — as lessor

There were no significant leases contracts for the six months ended June 30, 2025 and 2024. Please refer to note (6)(k) of the 2024 annual consolidated financial statements for other related information.

(l) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material onetime events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023.

The Company makes defined benefit plan contributions to the pension fund account at the Bank of Taiwan that provides pensions for employees upon retirement. The plans entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to retirement.

The expenses recognized in profit or loss for the Group were as follows:

Operating expenses	For the three months ended June 30, 2025 2024 $ 187 265	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 187	2025 374	2024
			531

(ii) Defined contribution plans

The Company and WKZ allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of the Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company and WKZ allocates a fixed amount to the Bureau of the Labor Insurance without additional legal or constructive obligations.

The Company and WKZ expenses for the pension plan contributions to the Bureau of Labor Insurance amounted to $6,300, $6,081, $12,570 and $12,253 for the three months and six months ended June 30, 2025 and 2024, respectively.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Other subsidiaries recognized the pension expense, basic endowment insurance expense, and social welfare expenses amounting to $21,684, $20,860, $44,291 and $40,696 for the three months and six months ended June 30, 2025 and 2024, respectively.

(m) Income taxes

(i) Income tax expenses

The amounts of income tax for the three months and six months ended June 30, 2025 and 2024 were as follows:

Current tax expenses	For the three months ended June 30, 2025 2024 $ (12,212) 104,127	For the six months ended June 30,	For the six months ended June 30,
	2025 $ (12,212)	2025 103,312	2024
			150,347

The amounts of income tax recognized in other comprehensive income for the three months and six months ended June 30, 2025 and 2024 were as follows:

Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign financial statements	For the three months ended June 30, 2025 2024 $ (190,837) 21,654	For the six months ended June 30,	For the six months ended June 30,
	2025 $ (190,837)	2025 (172,452)	2024
			84,392

(ii) Income tax assessment

The Company’ s and WKZ's income tax returns have been examined and approved by the R.O.C. tax authorities until year 2022.

(iii) Global Minimum Tax

The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

The Group is subject to the global minimum top-up tax under Pillar Two tax legislation from January 1, 2025 and is liable for additional current taxes in relation to the Group's operations in Hong Kong and Singapore. This impact has been considered in determining the weightedaverage annual income tax rate for the full financial year. The Group recognised a current tax expense of $0 related to the top-up tax as of June 30, 2025.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Capital and other equities

As of June 30, 2025, December 31 and June 30, 2024, the total number of authorized ordinary shares were 600,000 thousand shares, with par value of TWD 10 per share. The total value of authorized ordinary shares amounted to $6,000,000. As of that date, 479,764 thousand shares, 474,293 thousand shares and 450,776 thousand shares of ordinary shares were issued, respectively. All issued shares were paid up upon issuance.

(i) Common stock

The Company issued 5,471 thousand and 22,705 thousand new ordinary shares, with a par value of NT$10 per share, amounting to $54,707 and $227,049, due to the conversion of convertible bonds in the six months ended June 30, 2025 and 2024, respectively. The relevant statutory registration procedures have been completed.

(ii) Capital surplus

Balances on capital surplus of the Company were as follows:

Balances on capital surplus of the Company were as follows:
June 30, 2025 Additional paid in capital $ 2,301,844 Treasury share transactions 37,560 Donation from shareholders 712 Convertible bonds – conversion options 284,883 Employee stock options 10,339 Others 253 $ 2,635,591	December 31, 2024 2,207,884 37,662 712 293,325 - 253 2,539,836	June 30, 2024
		1,797,236 37,662 712 70,292 - 253
		1,906,155

For the six months ended June 30, 2025 and 2024, the capital surplus deriving from those convertible bonds, which were converted to common stock, amounted to $85,690 and $380,030, respectively (including the capital surplus-conversion options transferred to the capital surplus additional paid-in capital of $8,270 and $36,077, respectively).

In accordance with the Company Act, realized capital surplus can be utilized for issuing new shares or be distributed as cash dividends only after offsetting losses. The aforementioned capital surplus includes share premiums and donation gains. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the amount of capital surplus to be utilized for issuing new shares shall not exceed 10 percent of paid-in capital every year. Capital surplus increased by transferring from paid-in capital in excess of par value shall not be capitalized until the next fiscal year after the competent authority for company registrations approves registration of the capital increase.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Retained earnings

The Company's Article of Incorporation stipulate that the Company's earnings should first be estimated and retained to cover taxable contributions, losses, legal reserve, special reserve, or reversal of special reserve, and the remaining balance should be the distributable earnings for the current year; the Board of Directors may prepare a proposal for the distribution of earnings by combining the unappropriated earnings of the previous year. In accordance with the Company Act, if the distribution of earnings or reserves is to be made through the issuance of new shares, the Board of Directors shall prepare a proposal and submit it to the shareholders' meeting for resolution; if the distribution is to be made through the issuance of cash, the Board of Directors is authorized to report to the shareholders' meeting with the attendance of at least two-thirds of the directors and the resolution of a majority of the directors present. The Board of Directors shall determine the proportion of stock dividends and cash dividends to be distributed among the stockholders' dividends with reference to the Company's corporate profitability, future capital expenditure plans, expansion plans, capital planning, cash flow requirements, laws and regulations, and the degree of dilution of earnings per share, and shall prepare a resolution on the appropriation of earnings for submission to the shareholders' meeting for resolution, and the amount to be distributed shall be no less than 50 % of the Company's distributable earnings for the current year, and with the amount proposed to be distributed in cash dividends to be no less than 20% of the total amount of the dividends to be distributed to the shareholders.

1) Earnings distribution

The amounts for cash dividends of the Company’s earnings distribution for 2024 and 2023 decided by the meetings of directors held on March 6, 2025 and April 18, 2024 were as follows:

Dividends distributed to ordinary shareholders: Cash dividends	2024 Amount per share (in dollars) Total amount $ 2.08421000 1,000,000	2023 Amount per share (in dollars) Total amount 1.89489000 870,000	2023 Amount per share (in dollars) Total amount 1.89489000 870,000
	Amount per share (in dollars) $ 2.08421000		Total amount
			870,000

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Share-based payment

Employee stock options

Based on the resolution made by the Board of Directors on May 6, 2024 and the issuance rules of employee stock options reported on the annual shareholders' meeting held on June 20, 2024, the Company will issue a total of 10,000 units employee stock options, with each unit having the right to subscribe 1,000 shares of the Company' s ordinary shares, and was reported to the Securities and Futures Bureau of the Financial Supervisory Commission on December 3, 2024. In light of the above matter, the Company proposes to either issue the options at once or several times, depending on the actual demand, within two years from the date of the effective notification obtained from the authorities, with the actual date of issuance to be determined by the Chairman of the Company. The Chairman of the Company has approved the issuance of 8,708 units of employee stock options on April 8, 2025.

Details of the employee stock options are as follows:

(i) Employee stock option plan

(in thousand) Outstanding at January 1 Granted during the year Outstanding at June 30 Exercisable at June 30	For the six months ended June 30, 2025	For the six months ended June 30, 2025
	Weighted average Exercise Price (Dollars) $ - 15 15 15	Number of Options
		- 8,708
		8,708
		-

(ii) Exercise Price: The exercise price was 15 dollars.

(iii) Rights Period:

1) The duration of the stock options is six years. The stock options and their rights may not be transferred, pledged, gifted, or otherwise disposed of, except in the case of inheritance. Upon expiration of the duration, any unexercised stock options will be deemed forfeited, and the option holders may no longer claim their rights.
2) Option holders may exercise their stock options according to the following schedule after two years from the grant date:

Vesting Period of Stock Options After 2 years After 3 years After 4 years After 5 years	Cumulative Exercisable Percentage
	40% 60% 80% 100%

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Fulfillment Method: The Company will issue new shares to fulfill the options.
(v) Exercise Procedure: The Company will handle the capital change registration with the competent authority after the Board of Directors sets the record date for the issuance of new shares at least quarterly, in accordance with the employee stock option issuance and exercise regulations.
(vi) The expense of the employee stock options amounted to $10,339 for six months ended June 30 , 2025.
(vii) The Company adopted the Black-Scholes model to compute the fair value of its stock options on the grant date as follow:

Initial exercise price (New Taiwan dollars) 15 Fair value per share of the Company's stock at 30 the measurement date (New Taiwan dollars) Time to maturity 6 years Expected dividend yield 0% Expected volatility 27.03%~27.92% Risk-free interest rate 1.41%~1.47% Expected life of the option 4~5.5 years Weighted average fair value(New Taiwan 16.3~16.9 New Taiwan dollars dollars/unit)

(p) Earnings per share

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

(i) Basic earnings (loss) per share
1) Profit (Loss) attributable to ordinary shareholders of the Company

Profit attributable to ordinary shareholders of the Company	For the three months ended June 30, 2025 2024 $ (162,108) 361,003	For the six months ended June 30,	For the six months ended June 30,
	2025 $ (162,108)	2025 160,640	2024
			529,940

2) Weighted-average number of ordinary shares (thousands)

Weighted-average number of ordinary shares	For the three months ended June 30, 2025 2024 478,035 428,284	For the three months ended June 30, 2025 2024 478,035 428,284	For the six months ended June 30,	For the six months ended June 30,
		2025 478,035	2025 476,329	2024
				428,178

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Basic earnings (loss) per share (TWD)	For the three months ended June 30, 2025 2024 $ (0.34) 0.84	For the six months ended June 30,	For the six months ended June 30,
	2025 $ (0.34)	2025 0.34	2024
			1.24

(ii) Diluted earnings (loss) per share
1) Profit (loss) attributable to ordinary shareholders of the Company (diluted)

For the three months ended June 30, 2025 2024 Profit attributable shareholders of the Company (basic) $ (162,108) 361,003 Convertible bonds payable - 3,514 Profit (loss) attributable to ordinary shareholders of the Company (diluted) $ (162,108) 364,517	For the six months ended June 30, 2025 2024 160,640 529,940 26,997 4,507 187,637 534,447	For the six months ended June 30, 2025 2024 160,640 529,940 26,997 4,507 187,637 534,447
		2024 529,940 4,507 534,447

2) Weighted-average number of ordinary shares (thousands, diluted)

Weighted-average number of ordinary shares (basic) Effect of convertible bonds Employee stock options Effect of employee stock remuneration Weighted-average number of ordinary shares (diluted) on June 30 3) Diluted earnings (loss) per share (TWD)	For the three months ended June 30, 2025 2024 478,035 428,284 - 66,730 - - - 1,607 478,035 496,621 For the three months ended June 30, 2025 2024 $ (0.34) 0.73	For the six months ended June 30, 2025 2024 476,329 428,178 88,673 66,836 407 - 1,845 2,722 567,254 497,736 For the six months ended June 30,	For the six months ended June 30, 2025 2024 476,329 428,178 88,673 66,836 407 - 1,845 2,722 567,254 497,736 For the six months ended June 30,
	2025 $ (0.34)	2025 0.33	2024
			1.07

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For three months ended June 30, 2025, due to net losses after tax, the potential ordinary shares didn't have dilutive effect.

(q) Revenue from contracts with customers
(i) Disaggregation of revenue

Primary geographical markets: Taiwan China Others Major products/services lines Chipset/memory components Mixed and other components Others	For the three months ended June 30, 2025 2024 $ 3,599,776 3,085,261 23,390,722 18,407,207 1,469,156 1,044,332 $ 28,459,654 22,536,800 $ 15,551,845 10,466,999 12,907,276 12,069,319 533 482 $ 28,459,654 22,536,800	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 3,599,776 23,390,722 1,469,156 $ 28,459,654 $ 15,551,845 12,907,276 533 $ 28,459,654	2025 7,173,121 44,128,589 2,967,963 54,269,673 29,521,232 24,747,794 647 54,269,673	2024
			5,848,047 33,028,015 2,105,014 40,981,076 19,586,691 21,393,391 994 40,981,076

(ii) Contract balance

Notes and accounts receivable (included related parties) Less: loss allowance Contract liabilities	June 30, 2025 $ 16,345,311 (162,790) $ 16,182,521 $ 346,379	December 31, 2024 17,894,858 (150,242) 17,744,616 510,424	June 30, 2024 16,636,469 (162,600) 16,473,869 1,003,307

For the details on accounts receivable and loss allowance, please refer to note (6)(d).

The amounts of revenue recognized for the six months ended June 30, 2025 and 2024 that were included in the contract liability balance at the beginning of the periods were $363,223 and $293,647, respectively.

The major change in the balance of contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Remuneration to employees and directors

The Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Company Article of Incorporation, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2.5% (in cash) of the remaining net profit shall be allocated as directors' remuneration, and 6% to 10% (in shares or in cash) as employee remuneration, including a minimum of 7% to those entrylevel employees. The distribution shall also include those employees of the Company's subsidiaries who meet certain requirements.

Prior to the amendment, the Articles of Incorporation stipulated that, if the Company incurs profit for the year, the profit shall first be used to offset against any accumulated deficits. Thereafter, a maximum of 2.5% (in cash) of the remaining net profit shall be allocated as directors' remuneration, and a minimum of 6% to 10% (in shares or in cash) as employee remuneration, including those employees of the Company's subsidiaries who meet certain requirements.

For the three months and six months ended June 30, 2025 and 2024, the accrued remuneration of the Company’s employees were $(17,306), $40,182, $18,938 and $59,074, as well as directors were $(4,327), $10,045, $4,734 and $14,768, respectively. These amounts were calculated by using the Company’ s profit before tax for the period before deducting the amount of the remuneration to employees and directors, multiplied by the distribution ratio of remuneration to employees and directors under the Company’s Articles of Incorporation, and expensed under operating expenses. If the Board of Directors resolved to distribute employees’ remuneration in the form of shares, the numbers of shares to be distributed were calculated based on the closing price of the Company’s ordinary shares one day before the date of the meeting of the Board of Directors.

The accrued remuneration of the Company’ s employees was $127,717 and $91,731, as well as remuneration of directors was $31,929 and $22,933 for the years ended December 31, 2024 and 2023, respectively. There were no differences between the distributed amounts and the accrued amounts in the consolidated financial statements. Related information would be available at the Market Observation Post System website.

(s) Financial Instruments

Except for those mentioned below, there were no significant changes in the fair value of the Group's financial instruments and degree of exposure to credit risk. Please refer to the note (6)(s) of the consolidated financial statements for the year ended December 31, 2024.

(i) Credit risk

For credit risk exposure of notes and accounts receivable, please refer to note (6)(d).

The amount of other financial assets at amortized cost includes other receivables which had been impaired.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments.

Carrying Amount June 30, 2025 Non-derivative financial liabilities Unsecured loans $ 14,454,214 Short-term bills payable 1,168,169 Lease liabilities 223,079 Accounts payable 7,400,155 Other payables 762,854 Dividends payable 1,000,000 Bonds payable (including current portion) 2,688,677 Derivative financial liabilities Convertible bonds payable – embedded derivatives 25,224 $ 27,722,372 December 31, 2024 Non-derivative financial liabilities Unsecured loans $ 16,152,771 Short-term bills payable 1,187,982 Lease liabilities 289,537 Accounts payable 8,276,821 Other payables 951,059 Bonds payable (including current portion) 2,800,093 Derivative financial liabilities Convertible bonds payable – embedded derivatives 30,014 $ 29,688,277 June 30, 2024 Non-derivative financial liabilities Unsecured loans $ 16,853,244 Short-term bills payable 1,108,290 Lease liabilities 235,255 Accounts payable 5,714,419 Other payables and dividends payable 1,711,955 Bonds payable (including current portion) 1,177,190 Derivative financial liabilities Convertible bonds payable – embedded derivatives 2,583 $ 26,802,936	Contractual cash flows (14,596,907) (1,170,000) (233,270) (7,400,155) (762,854) (1,000,000) (2,948,800) - (28,111,986) (16,338,603) (1,190,000) (305,040) (8,276,821) (951,059) (3,096,500) - (30,158,023) (17,067,747) (1,110,000) (241,826) (5,714,419) (1,711,955) (1,229,800) - (27,075,747)	Within a year (14,596,907) (1,170,000) (121,303) (7,400,155) (762,854) (1,000,000) (448,800) - (25,500,019) (16,338,603) (1,190,000) (143,930) (8,276,821) (951,059) (596,500) - (27,496,913) (17,067,747) (1,110,000) (122,813) (5,714,419) (1,711,955) (1,229,800) - (26,956,734)	Over 1 year - - (111,967) - - - (2,500,000) - (2,611,967) - - (161,110) - - (2,500,000) - (2,661,110) - - (119,013) - - - - (119,013)

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amount.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Market risk

1) Currency risk

The Group’s significant financial assets and liabilities exposure to foreign currency risk was as follows:

Financial assets Monetary items USD USD Financial liabilities Monetary items USD USD		June 30, 202	5			December 31,	2024	Foreign currency	June 30, 2024
	Foreign currency	Exchange rate	TWD		Foreign currency	Exchange rate	TWD		Exchange rate TWD
	$ 377,736 2,820 232,690 34,467	USD/TWD 29.1550 USD/CNY 7.1937 USD/TWD 29.155 USD/CNY 7.1937	11,012,893 82,217 6,784,077 1,004,885		368,072 6,302 283,556 11,885	USD/TWD 32.725 USD/CNY 7.1935 USD/TWD 32.725 USD/CNY 7.1935	12,045,156 206,233 9,279,370 388,937	305,578 4,135 256,448 22,312	USD/TWD 32.45 9,916,006 USD/CNY 7.1049 134,181 USD/TWD 32.45 8,321,738 USD/CNY 7.1049 724,024

2) Currency risk sensitivity analysis

The Group’s monetary items exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A change of 5% in the exchange rate of TWD against foreign currency for the six months ended June 30, 2025 and 2024 would have increased (decreased) the net profit before tax as follows. The analysis is performed on the same basis for both periods.

USD (against the TWD) Appreciating 5% Depreciating 5% USD (against the CNY) Appreciating 5% Depreciating 5%	For the six months ended June 30, 2025 2024 $ 211,441 79,713 (211,441) (79,713) (46,133) (29,492) 46,133 29,492

3) Exchange gains and losses of monetary items

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the three months and six months ended June 30, 2025 and 2024, the foreign exchange gain (loss), including both realized and unrealized, amounted to a gain of $259,297, a loss of $60,158, a gain of $263,012 and a loss of $85,073, respectively.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Interest rate analysis

The details of financial assets and liabilities exposed to interest rate risk were as follows:

Variable rate instruments: Financial assets Financial liabilities	Carrying amount June 30, 2025 June 30, 2024 $ 2,376,051 1,013,690 (14,454,214) (16,853,244)

The following sensitivity analysis is based on the risk exposure to interest rate on the derivative and non-derivative financial instruments on the reporting date. Regarding the assets and liabilities with variable interest rates, the analysis is based on the assumption that the amount of assets and liabilities outstanding at the reporting date were outstanding throughout the year. The rate of change is expressed as the interest rate increase or decrease by 0.25% when reporting to management internally, which also represents the Group’s management's assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 0.25%, the Group's net profit before tax would have decreased or increased by $15,098 and $19,799 for the six months ended June 30, 2025 and 2024, respectively, which would be mainly resulting from demand deposits, and unsecured loans with variable interest rates.

(iv) Fair value

1) Categories and the fair value of financial instruments

The fair value of financial assets and liabilities at fair value through profit or loss, and financial assets at fair value through other comprehensive income are measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Financial assets at fair value through other comprehensive income Notes and accounts receivable, net Emerging market stocks Domestic and overseas unlisted stocks Overseas unlisted convertible promissory note Subtotal Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable, net Other receivables Guarantee deposits(recognized under other current assets and other non-current assests) Subtotal Financial liabilities at fair value through profit or loss Convertible bonds – embedded derivatives Financial liabilities measured at amortized cost Short term borrowings Lease liabilities Accounts payable Other payables Dividends payable Bonds payable (including current portion) Subtotal		June 30, 2025	June 30, 2025	June 30, 2025
	Carrying amount $ 799 2,729,201 142 79,583 9,056 2,817,982 3,381,065 13,453,320 585,799 212,078 17,632,262 $ 20,451,043 $ 25,224 15,622,383 223,079 7,400,155 762,854 1,000,000 2,688,677 27,697,148 $ 27,722,372		Fair Value
		Level 1 799 - 142 - - - - - - - - - - - - -	Level 2 - - - - - - - - - 25,224 - - - - - 2,693,502	Level 3 Total - 799 - - - 142 79,583 79,583 9,056 9,056 - - - - - - - - - 25,224 - - - - - - - - - - - 2,693,502

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Financial assets at fair value through other comprehensive income Notes and accounts receivable, net Emerging market stocks Domestic and overseas unlisted stocks Overseas unlisted convertible promissory note Subtotal Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable, net Other receivables Guarantee deposits(recognized under other current assets and other non-current assests) Subtotal Financial liabilities at fair value through profit or loss Convertible bonds – embedded derivatives Financial liabilities measured at amortized cost Short term borrowings Lease liabilities Accounts payable Other payables Bonds payable (including current portion) Subtotal		December 31, 2024	December 31, 2024	December 31, 2024
	Carrying amount $ 799 1,874,167 194 79,583 9,056 1,963,000 2,985,318 15,870,449 527,514 136,320 19,519,601 $ 21,483,400 $ 30,014 17,340,753 289,537 8,276,821 951,059 2,800,093 29,658,263 $ 29,688,277		Fair Value
		Level 1 799 - 194 - - - - - - - - - - - -	Level 2 - - - - - - - - - 30,014 - - - - 2,777,522	Level 3 Total - 799 - - - 194 79,583 79,583 9,056 9,056 - - - - - - - - - 30,014 - - - - - - - - - 2,777,522

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Financial assets at fair value through other comprehensive income Notes and accounts receivable, net Emerging market stocks Domestic and overseas unlisted stocks Overseas unlisted convertible promissory note Subtotal Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable, net Other receivables Guarantee deposits(recognized under other current assets and other non-current assests) Subtotal Financial liabilities at fair value through profit or loss Convertible bonds – embedded derivatives Financial liabilities measured at amortized cost Short-term borrowings Lease liabilities Accounts payable Other payables and dividends payable Bonds payable (including current portion) Subtotal		June 30, 2024	June 30, 2024	June 30, 2024
	Carrying amount $ 835 2,309,793 200 67,992 9,056 2,387,041 1,495,483 14,164,076 442,478 240,151 16,342,188 $ 18,730,064 $ 2,583 17,961,534 235,255 5,714,419 1,711,955 1,177,190 26,800,353 $ 26,802,936		Fair Value
		Level 1 835 - 200 - - - - - - - - - - - -	Level 2 - - - - - - - - - 2,583 - - - - 1,135,720	Level 3 Total - 835 - - - 200 67,992 67,992 9,056 9,056 - - - - - - - - - 2,583 - - - - - - - - - 1,135,720

There were no transfers of financial instruments between any levels during the six months ended June 30, 2025 and 2024.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The Group’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

a) Financial assets measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Valuation technique of financial instruments measured at fair value
a) Non-derivative financial instruments

If the financial instrument has a public quoted price in an active market, the public quoted price will be determined as the fair value. The measurements on fair value of the financial instruments without an active market are determined using the valuation technique or the quoted market price of its counterparts. Fair value measured using the valuation technique can be extrapolated from similar financial instruments, discounted cash flow method, or other valuation techniques which include the model used in calculating the observable market data at the consolidated balance sheet date.

The Group holds the unquoted equity investments and debt instruments that do not have an active market. The fair value of unquoted equity instruments and debt instruments is estimated using the guideline company method. The main assumptions of the method are based on the guideline company's price to sales ratio, price to net worth ratio, and the discount for lack of market liquidity. The estimation has been adjusted by the effect resulting from the discount of the lack of market liquidity of the equity securities and debt investments.

b) Derivative financial instruments

Measurement of fair value of derivative instruments is based on the valuation techniques that are generally accepted by the market participants. For instance, discount method or option pricing models. Fair value of forward currency exchange is usually determined by using the forward currency rate.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Reconciliations of Level 3 fair values

Reconciliations of Level 3 fair values
		Fair value through other
		comprehensive income
		Unquoted	Unquoted
		equity	debt
		instruments	investments	Total
Ending balance, June 30, 2025 (the same as the
ending balance at January 1, 2025)	$	79,583	9,056	88,639
Ending balance, June 30, 2024 (the same as the
ending balance at January 1, 2024)	$	67,992	9,056	77,048

5) Quantified information of significant unobservable inputs (Level 3) used in fair value measurement

The Group’ s financial instruments that use Level 3 inputs to measure fair value are classified as financial assets at fair value through other comprehensive income (including investments in equity securities and debt instruments).

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	Valuation technique Guideline Company method Net Asset Value Method	Significant unobservable inputs Inter-relationships between significant unobservable inputs and fair value measurement ‧ Price-book ratio as of June 30, 2025, December 31 and June 30, 2024 were 1.43~1.54,1.54~1.91 and1.13~2.92, respectively. ‧ Market liquidity discount rate as of June 30, 2025, December 31 and June 30, 2024 were 15.60%, 15.60%and15.70%, respectively. ‧ The higher the price- book ratio, the higher the fair value ‧ The higher the market liquidity discount rate, the lower the fair value ‧ Net asset value ‧ Not applicable

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Financial risk management

There was no significant changes in the Group’s financial risk management and policies as disclosed in the note (6)(t) of the consolidated financial statements for the year ended December 31, 2024.

The Group participates in a supplier finance arrangement with the principal purpose of facilitating efficient payment processing of supplier invoices. The arrangement allows the Group to centralise payments of trade payables to the bank rather than paying each supplier individually.

(u) Capital management

The Group’ s objectives, policies and processes of capital management are consistent with those disclosed in the consolidated financial statements for the year ended December 31, 2024. In addition, there were no significant differences between the summary quantitative data of the items of capital management in the consolidated financial statements and those disclosed in the consolidated financial statements for the year ended December 31, 2024. Please refer to note (6)(u) of the consolidated financial statements for the year ended December 31, 2024 for further details.

(v) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow for the six months ended June 30, 2025 and 2024, were as follows:

(i) For the acquisition of right-of-use assets from leases, please refer to note (6)(g).
(ii) The reconciliations of liabilities arising from financing activities were as follows:

Short-term borrowings Deposits received Lease liabilities Bonds payable Total liabilities from financing activities Short-term borrowings Deposits received Lease liabilities Bonds payable Total liabilities from financing activities	January 1, 2025 $ 17,340,753 193 289,537 2,800,093 $ 20,430,576 January 1, 2024 $ 14,702,073 193 297,171 1,768,116 $ 16,767,553	Cash flows (2,542,745) - (75,286) (3,045) (2,621,076) Cash flows 3,259,461 - (82,792) - 3,176,669	Non-cash changes Acquisition Reduction Foreign exchange movement 824,375 - - - - - 28,219 - (19,391) - (108,371) - 852,594 (108,371) (19,391) Non-cash changes Acquisition Reduction Foreign exchange movement - - - - - - 22,693 (10,519) 8,702 - (590,926) - 22,693 (601,445) 8,702	June 30, 2025
				15,622,383 193 223,079 2,688,677
				18,534,332
				June 30, 2024
				17,961,534 193 235,255 1,177,190
				19,374,172

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(7) Related-party transactions

(a) Name of related parties and their relationships with related parties

The following are related parties that have had transactions with the Group during the periods covered in the consolidated financial statements:

Related-party	Relationship
Weiji Investment Co., Ltd.	The same chairman
Genlog Industrial Co., Ltd.(Note 1)	Substantial related-party

Note 1: Guangluo Industrial Co., Ltd. completed its liquidation process on September 27, 2024

(b) Significant transactions with related parties
(i) Consultancy fees from related Parties

Other related parties were commissioned to provide consulting services to the Group. The amounts were as follows:

Other related parties	For the three months ended June 30, 2025 2024 $ 50 50	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 50	2025 100	2024
			100

(ii) Lease

The Group leased a portion of its building to its subsidiaries and related parties for office use purpose. The rentals collected monthly. The details were as follows:

Other related parties	For the three months ended June 30, 2025 2024 $ 43 44	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 43	2025 86	2024
			90

Key management personnel compensation comprised:

For the three months ended June 30, 2025 2024 $ 20,640 51,679 190 171 $ 20,830 51,850	For the six months ended June 30,	For the six months ended June 30,
2025 $ 20,640 190 $ 20,830	2025 77,417 380 77,797	2024
		89,705 343
		90,048

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(8) Assets Pledged as security: None.

(9) Significant commitments and contingencies:

The balances of L/Cs for deferred payment of import value added tax and the purchase of merchandise were as follows:

June 30, 2025 365,705	December 31, 2024 404,975	June 30, 2024
		401,950

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(12) Other:

(a) A summary of employee benefits, depreciation and amortization by function, is as follows:

	For the three months ended June 30,	For the three months ended June 30,
By function By item	2025	2024
	Operating expenses	Operating expenses
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	315,343 29,182 28,171 (2,513) 18,218 42,532 2,162	335,771 27,869 27,206 10,771 20,013 43,496 2,052

	For the six months ended June 30,
By function By item	2025	2024
	Operating expenses	Operating expenses
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	674,795 61,663 57,235 13,008 35,284 85,581 4,360	648,149 57,975 53,480 15,494 37,720 86,498 4,017

(b) Seasonality of operations:

The Group’s operation were not affected by seasonality or cyclically factors.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures items:

(a) Information on significant transaction:

The following were the information on significant transactions required by the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2025:

(i) Lending to other parties:

(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:	(i) Lending to other parties:
													(In thousands of new Taiwan dollars)
No.	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period i	Range of nterest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing	Note
													Item	Value
0	The Company	WKI	Other receivable	Y	1,000,000	1,000,000	845,495	5.50%	Short-term financing	-	Operating demand	-		-	1,907,210	3,814,420	Note 3

Note 1 ： The total amount of funds loaned to others by the Company shall not exceed 40% of the net worth of the Company's latest financial statement.

Note 2 ： When a short-term financing facility with the Company is necessary, the total amount for lending to any company shall not exceed 20% of the net worth of the Company's latest financial statement.

Note 3 ： The transaction had been eliminated in the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

		(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)	(In thousands of new Taiwan dollars)
No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary (note 2)	Subsidiary endorsements/ guarantees to third parties on behalf of parent company (note 2)	Endorsements/ guarantees to third parties on behalf of companies in Mainland China (note 2)
		Name	Relationship with the Company
0 `〃` `〃`	The Company `〃` `〃`	WKI WTP WKS	100`％`owned subsidiary 100`％`owned subsidiary 100`％`owned subsidiary	14,304,077 14,304,077 14,304,077	9,939,130 1,274,350 2,576,988	8,618,667 1,122,467 2,516,776	7,225,259 173,760 1,835,630	- - -	% 90.38 % 11.77 % 26.39	28,608,153 28,608,153 28,608,153	Y Y Y	N N N	N N Y

Note 1 ： The total amount of the guarantee provided by the Company shall not exceed three hundred percent (300%) of the higher amount between the Company’s capital amount and net worth. However, for any individual entity whose voting shares are 50% or more owned, directly or indirectly, by the Company shall not exceed fifty percent (50%) of the maximum amount for guarantee on recent audited or reviewed financial statements.

Note 2 ： For those entities as the guarantor to the subsidiary, subsidiary as the guarantor to the company, or the guarantor that located in China, were filled in “Y”.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Securities held as of June 30, 2025 (excluding investment in subsidiaries, associates and joint ventures):

						(Shares/units (thousands))	(Shares/units (thousands))	(Shares/units (thousands))
Name of holder	Category and name of security	Relationship with company	Account title		Ending b	alance		Note
				Shares/Units (thousands)	Carrying amount	Percentage of ownership (%)	Fair value
The Company `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	EBM Technologies Inc. Clientron Corp. Paradigm I Venture Capital Company (Paradigm I) Paradigm Venture Capital Corporation (PVC Corp.) InnoBridge Venture Fund I, L.P. (InnoBridge) Shin Kong Global Venture Capital Corp. (SKGVC) Vision Wide Technology Co., Ltd. (VTEC) Winsheng Material Technology Co., Ltd. (Winsheng Material) SiTune Corporation Convertible Promissory Note (SiTune)	- - - - - - - - -	Current financial assets mandatorily measured at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income `〃` `〃` `〃` `〃` `〃` `〃` `〃`	34 15 750 230 - 720 800 1,690 -	799 142 7,458 2,301 - 7,200 9,033 53,591 9,056	% - % 0.02 % 6.79 % 10.49 % 9.90 % 12.00 % 1.57 % 5.08 % -	799 142 7,458 2,301 - 7,200 9,033 53,591 9,056

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of TWD100 million or 20% of the capital stock:

(In thousands)

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchases/ (Sales)	Amount	Percentage of total purchases/ (sales)	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company The Company WKI WKI WKI WKS	WKI WKI The Company The Company WKS WKI	100% owned subsidiary `〃` Parent company Parent company Subsidiary Parent company	(Sales) Purchases Purchases (Sales) (Sales) Purchases	(142,544) (USD(4,454)) 198,304 (USD6,158) 142,544 (USD4,454) (198,304) (USD(6,158)) (2,750,409) (USD(86,265)) 2,750,409 (USD86,265)	% (0.58) % 0.89 % 0.62 % (0.80) % (11.26) % 32.43	OA30 OA30 `〃` `〃` OA60 `〃`	No significant difference with other customers No significant difference with other suppliers No significant difference with other suppliers No significant difference with other customers No significant difference with other customers No significant difference with other suppliers	No significant difference with other customers No significant difference with other suppliers No significant difference with other suppliers No significant difference with other customers No significant difference with other customers No significant difference with other suppliers	108,337 (USD3,716) (1,766) (USD(61)) (108,337) (USD(3,716)) 1,766 (USD61) 1,003,088 (USD34,405) (1,003,088) (USD(34,405))	1.43 % (0.05) % (4.47) % 0.03 % 14.83 % (42.50) %

Note: The amounts of the transaction and the ending balance had been offset in the consolidated financial statements.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Receivables from related parties with amounts exceeding the lower of TWD100 million or 20% of the capital stock:

(In thousands)

									(In thousands)
Name of company	Counter- party	Nature of relationship	Ending balance	Turnover rate	Ove	rdue	Amounts received in subsequent period (Note)	Allowance for bad debts	Note
					Amount	Action taken
The Compan The Compan WKI	y WKI 1 s y WKI 1 s WKS S	00% owned ubsidiary 00% owned ubsidiary ubsidiary	Accounts receivable 108,337 (USD3,716 Other receivable 1,107,845 (USD37,998 Accounts receivable 1,003,088 (USD34,405	) 3.94 ) Note 2 ) 8.23	- - -	- - -	USD657 USD449 USD7,465	- t t - -	The amounts of the ransaction and the ending balance had been offset in he consolidated financial statements. `〃` `〃`

Note1: Information as of July 31, 2025.

Note 2: Other receivables arising from lending fund and credit and service management revenue received from subsidiaries.

(vi) Business relationships and significant intercompany transactions:

(In thousands)

				(In thousands)	(In thousands)	(In thousands)	(In thousands)
No. (Note 1)	Name of company	Name of counter-party	Nature of relationship (Note 2)	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 `〃` `〃` `〃` 1 `〃` `〃`	The Company `〃` `〃` `〃` WKI WKI `〃`	WKI `〃` `〃` `〃` The Company WKS `〃`	1 `〃` `〃` `〃` 2 3 `〃`	Sales Revenue Accounts Receivable Management and Credit Service Revenue Other Receivable Sales Revenue Sales Revenue Accounts Receivable	142,544 108,337 247,123 1,107,845 198,304 2,750,409 1,003,088	The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. `〃` The price is set by percentage o the contract, OA30. The price is set by percentage o the contract, OA30. The price is marked up based on operating cost, and the receivables depend on OA30 after offsetting the accounts payable. The price is market up based on operating cost, and the receivable depend on funding demand and OA60. `〃`	0.26% 0.28% f 0.46% f 2.82% 0.37% 5.07% 2.56%

Note 1: The numbers filled in as follows:

0 represents the Company.
Subsidiaries are sorted in a numerical order starting from 1.
Note 2: Relationship with the transactions labeled as follows:
1 represents the transactions from the parent company to its subsidiaries.
2 represents the transactions from the subsidiaries to the parent company.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3 represents the transactions between subsidiaries.

(b) Information on investments:

The following are the information on investees for the six months ended June 30, 2025 (excluding information on investments in Mainland China):

										(In t	housands)
Name of investor	Name of investee	Location	Main businesses and products	Original inves	tment amount		Highest		Net income (losses) of investee	Investment income (losses) of investor	Note
				June 30, 2025	December 31, 2024	Shares (In Thousands)	Percentage of Ownership	Carrying amount
The Company `〃` `〃` WKI	WKI WKZ WTP Total Weitech	Hong Kong Taiwan Singapore Hong Kong	Electronic components computer peripherals products distribution and technical support Electronic components and technical support `〃` Import and export trade of electronic components	$ 1,620,445 12,983 293,327 $ 1,926,755 0.41 (HKD0.1)	1,620,445 12,983 293,327 1,926,755 0.41 (HKD0.1)	552,450 1,589 12,413 -	100% 100% 100% 100%	$ 6,631,453 28,383 429,325	88,007 578 (1,988) 140 (USD4)	$ 88,007 578 (1,988)	Subsidiary `〃` `〃` `〃`
								$ 7,089,161		$ 86,597
								3,122 (USD107)		140 (USD4)

(c) Information on investment in Mainland China:
(i) The names of investees in Mainland China, the main businesses and products, and other information:

	information:
												(In thousands
Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Inves flo	tment ws	Accumulated outflow of investment from Taiwan as of June 30, 2025	Net income (losses) of the investee (Note 2)	Percentage of ownership	Investment income (losses) of investor (Note 2)	Book value (Note 3)	Accumulated remittance of earnings in current period
					Outflow (Note 3)	Inflow
WKS SiU	Electronic components computer peripherals products distribution and technical support Electronic technology development and technical advisory	786,647 (USD25,000) 5,067 (CNY1,000)	Note 1, 4 Note 1, 5	304,594 (USD9,800) -	- -	- -	304,594 (USD9,800) -	(108,645) (USD(3,408)) (3,600) (USD(113))	100% 100%	(108,645) (USD(3,408)) (3,600) (USD(113))	422,830 (USD14,503) 3,538 (USD121)	- -

(ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of June 30, 2025	Investment Amounts Authorized by Investment Commission, MOEA (note 3)	Upper Limit on Investment
304,594 (USD9,800)	728,875 (USD25,000)	5,721,631

Note 1: Investment in Mainland China was through a company in the third area.

Note 2: The investment gains and losses of the current period are recognized according to the financial statements, which have been reviewed by the Company’ s independent auditors, and were translated into New Taiwan Dollars at the average exchange rates.
Note 3: The currency was translated into New Taiwan Dollars at the exchange rate of USD 1 to TWD 29.155 at the end of reporting period.
Note 4: The difference was due to Weikeng International Co. Ltd.'s investment of USD15,200 thousand on Weikeng International (Shanghai) Co. Ltd. using its own funds.
Note 5: The difference was due to Weikeng International (Shanghai) Co. Ltd.'s investment of CNY1,000 thousand on SiUltra Electronic Technology (Shanghai) Co., Ltd. using its own funds.

(Continued)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Significant transactions:

Please refer to Information on significant transactions for the information on significant direct or indirect transactions, which were eliminated in the preparation of consolidated financial statements, between the Group and the investee companies in Mainland China for the six months ended June 30, 2025.

(14) Segment information:

The Group has only one operating segment, which is the electronic components segment, of which, the major activities are the purchase and sales of electronic components and computer peripherals, technical service, as well as the import/export trade business. The Group’s details and reconciliations of operating segment are consistent with the consolidated financial statements. Please refer to the consolidated statements of comprehensive income and the consolidated balance sheets for the segment profit and assets, respectively.

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WPG Holdings Limited — Interim / Quarterly Report 2025

52266_rns_2025-11-27_99d2baf9-e74a-4ba6-ab31-43c2c6b8cdc3.pdf

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Conclusion

KPMG

Notes to Readers

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31, and June 30, 2024

(expressed in thousands of New Taiwan Dollars)

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars, except for earnings per share)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

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

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Consolidated Statement of Cash Flows

For the six months ended June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars)

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2025 and 2024

(expressed in thousands of New Taiwan Dollars, unless otherwise specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements

(3) New standards, amendments and interpretations adopted:

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies

(a) Statement of compliance

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee benefits

(d) Income taxes

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Notes and accounts receivable

(i) The Company

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Subsidiaries

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Property, plant and equipment

(g) Right-of-use assets

(h) Short-term borrowings

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Non-cash changes

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Convertible bonds payable

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other leases

(k) Operating lease — as lessor

(l) Employee benefits

(i) Defined benefit plans

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Income taxes

(i) Income tax expenses

(ii) Income tax assessment

(iii) Global Minimum Tax

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Capital and other equities

(i) Common stock

(ii) Capital surplus

WEIKENG INDUSTRIAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Retained earnings

WPG Holdings Limited Interim / Quarterly Report 2025