Weikeng Industrial : 2023 Meeting Handbook

Stock Code:3033

Weikeng Industrial Co., Ltd.

2023 Annual General Meeting

Meeting Handbook

Notice to readers

This English-version meeting handbook is a summary translation of the Chinese version and is not an official document of the shareholders' meeting. If there is any discrepancy between the English and Chinese versions, the Chinese version shall prevail.

Date and Time of the Meeting：June 14, 2023 at 9:00 a.m.

Venue of the Meeting：Chin-Chin Garden Restaurant (No.32, Ln. 266, Sec. 2, Zhishan Rd., Shilin Dist., Taipei City 111, Taiwan)

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Weikeng Industrial Co., Ltd.

2023 Annual General Meeting

Meeting Procedures

1. Announcement of the Commencement of the Meeting (Report of the number of shares represented by shareholders present at the meeting)

1. Chairman's Remarks III. Reporting Matters IV. Acknowledged Matters

1. Discussion Matters VI. Ad Hoc Motions VII. Meeting Adjourned

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Weikeng Industrial Co., Ltd.

2023 Annual General Meeting

Meeting Agenda

Date and Time of the Meeting：June 14, 2023 at 9:00 a.m.

Venue of the Meeting：Chin-Chin Garden Restaurant (No.32, Ln. 266, Sec.2, Zhishan Rd., Shilin Dist., Taipei City 111, Taiwan)

1. Announcement of the Commencement of the Meeting (Report of the number of shares represented by shareholders present at the meeting)

1. Chairman's Remarks

III.Reporting Matters	5
(I)		2022 Business Report & Report to Shareholders	5
(II)		2022 Financial Results as Reviewed by the Audit Committee	11
(III)		Report on the financial and business matters between the Company and its related parties in 2022	12
(IV)		Report on the Company's the implementation of the 5th and 6th domestic unsecured convertible	13
		corporate bonds
(V)		Report on the remuneration distribution of employees and directors for 2022	13
(VI)		Report on the Cash Dividends of the 2022 Surplus Earnings Distribution Plan	13
(VII)	Report on the amendment of some articles to the Company's "Rules and Procedures of Board of	14
		Directors Meeting"
(VIII)	Report on the results of individual performance assessments of directors and executive officers, as
		well as the correlation and rationality between the contents and amounts of their individual	15
		remuneration and performance assessment results
IV.Acknowledged Matters	18
Agenda 1. Acknowledgement on the 2022 Business Report and the Financial Statements, including	18
		individual financial statements and consolidated financial statements
Agenda 2. Acknowledgement on the 2022 Surplus Earnings Distribution Plan	18
V. Discussion Matters	19
Agenda 1. Discussion on the amendment of some articles to the Company'sArticles of Incorporation	19
VI.	Ad Hoc Motions	23
VII.	Meeting Adjourned	23

Appendixes

1. 2022 financial statements (including individual financial statements and consolidated financial

statements) audited by independent auditors of KPMG Taiwan, Mr. Au, Yiu-Kwan and Ms. Kuo,	24
Kuan-Ying
II. Rules and Procedures of Shareholders Meeting	41
III. Articles of Incorporation	47

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IV. Shareholdings by the Board of Directors

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1. Reporting Matters
2. 1. 2022 Business Report & Report to Shareholders

2022 Business Performance

In 2022, the global political and economic situation changed dramatically, including the Russia- Ukraine War, price inflation of major economies, etc., which led to a sharp increase in interest rates by the US Federal Reserve Bank and tightening of monetary policies in European countries. In particular, because the global economic was in recession in the second half of the year, and many countries faced a risk of stagflation, in combination with the decline in demand for terminal electronic products in the post-pandemic era, semiconductor supply chains entered an inventory adjustment period due to the previous over-ordering of downstream manufacturers. However, the application scope of semiconductors has not decreased but is still increasing, so basic demand can be maintained and is supported by emerging application demands. The Group continued to make efforts to serve upstream and downstream manufacturers in the industry chain. Because the Group not only faced continuous pressure from supply chain destocking, but also faced pressure from inflation and financial cost rising after the dividend era of the previous stay-at-home economy and once chip shortage had passed, the Group's consolidated sales revenue and net profit before tax reached approximately NTD 70.2 billion and NTD 2.3 billion in 2022, respectively, representing a decrease of 2.93% and 4.94% year-on-year, respectively, and the gross margin of 7.81% and the operating income margin of 3.88% increased by 0.68% and 0.39% year-on-year, respectively.

Commitment to Sustainable Development

With the 45th anniversary of our establishment, facing the uncertainty of climate change, economic turbulence in 2022, and geopolitical and other factors, Weikeng Group will continue to actively study and improve its sustainable operation, hoping to maintain its business performance and take into account the needs of all stakeholders in this uncertain market. As a member of the semiconductor industry chain, Weikeng hopes to continue to contribute to the Group's resources, work with upstream and downstream partners to jointly build a green and sustainable supply chain for semiconductors, and strive to reduce environmental impacts and comply with social laws and regulations.

In 2022, through the risk management team under the Sustainable Development Committee, the Company began to promote the TCFD project plan. The Company referred to the structure disclosed in the TCFD to strengthen the governance structure of opportunities and risks associated with climate change, hoping to take a deep look at and grasp the opportunities and risks brought to the business by climate change. At the same time, with the trend of global net zero emissions, Weikeng introduced the ISO-14064 Greenhouse Gas Accounting and Verification Standards, and established an internal greenhouse gas accounting and verification team, and will successively establish a complete greenhouse gas accounting and verification management procedure and optimize the organization's internal processes and systems to facilitate the planning of sustainability-related investment and disclosure standards in the mid-long term.

In addition to strengthening the risk management and governance structure of climate change, the Company considers climate change as an important strategy to maintain its economic performance. Because energy conservation and carbon reduction have become the main demand for electronic and electrical products, the Company will continue to pay attention to the potential risks and opportunities of climate change for an enterprise at present and in the future, actively cooperate with the upstream vendors, and understand the demand of downstream manufacturers at the application end, continue

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