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Corporate Value Enhancement Plan

In accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and to continuously enhance corporate governance, promote communication with stakeholders, strengthen international competitiveness, and create long-term value, the Company has formulated the “Corporate Value Enhancement Plan,” which has been approved by the Board of Directors. The summary is as follows:

Key Summary of the 2025 Corporate Value Enhancement Plan:

  1. Current Situation Analysis
    • Market Value-based Financing Structure and Cost:Equity accounts for 36% and debt for 64%. The weighted average cost of capital (WACC) is 5.66%, slightly lower than the industry average (industry range: 3.93%–8.3%, average: 6.07%), and is at the industry median. The structure is relatively balanced, enabling the Company to withstand market fluctuations.
    • Profitability:ROIC is 5.83%, slightly below the industry average (industry range: 1.72%–9.76%), indicating room for improvement in capital utilization efficiency. However, the Company’s ROIC is higher than its WACC, meaning current capital deployment still creates positive value. ROE is 7.48% (higher than the industry average), reflecting effective use of capital.
    • Market Valuation:The price-to-book ratio (PBR) is 1.48 times, which is lower than the industry average. Profit growth has been constrained by international political and economic factors as well as exchange rate fluctuations.
    • Potential Growth Assessment:
      • Despite global uncertainties, the Company’s consolidated revenue in Q3 2025 grew by 24.16% year-over-year, and the annual revenue growth rate over the past four quarters reached 32.28%, demonstrating strong business expansion.
      • If inventory pressure gradually eases and the US Federal Reserve begins a rate-cutting cycle, financial costs are expected to decrease, further boosting profitability.
      • The Company will continue to strengthen channel integration, improve operational efficiency, and actively explore emerging application fields to respond to global market changes and industry restructuring, thereby creating future growth momentum.
      • Once exchange rates stabilize, the factors affecting profit volatility will be eliminated, further enhancing profitability.
  2. Corporate Governance Analysis
    • Board Structure:The board consists of 7 directors, with independent directors accounting for 42.9%. There is one female director. The board members have diverse professional backgrounds and no familial relationships, in compliance with regulations.
    • Operation and Performance:Annual self-evaluations and external evaluations every three years, and the next external evaluation is scheduled for November 21, 2025, to be conducted by the Taiwan Corporate Governance Association expert team. In 2024, the board’s achievement rate was 95.3%, and the functional committees’ average achievement rate ranged from 94% to 97%.
    • Information Transparency:Board resolutions are disclosed regularly, and major matters are announced promptly to ensure shareholders are fully informed about the Company’s operations and strategies.
    • Evaluation:In 2024, the Company received a corporate governance evaluation score of 88.94, ranking in the 21%–35% tier among listed companies. According to the Taiwan Index Plus (TIP) evaluation model, which covers Social (S), Economic (E), Environmental (E), and Disclosure (D) aspects, the Company’s sustainability management, governance, supply chain, environment, and workplace were assessed. The 2023 sustainability report/2025 evaluation resulted in a BBB rating. The Company has established diverse functional committees, and ESG performance is incorporated into senior management’s compensation assessment to promote sustainable operations.
    • Regulatory Compliance and Improvement:The Company continuously reviews the composition of the board, plans to increase the number of female directors, and strengthens gender equality and diversity management.
  3. Strengthening Risk Management
    • Governance Structure:Four-tier structure (Board of Directors, Sustainability Development Committee, Operations and Management Units, Audit Unit).
    • Risk Identification and Response:In 2024, 22 risks were identified (operational, financial, operational process, and environmental). Concrete countermeasures were developed for medium and high-level risks.
    • Key Measures:
      • Economic and Exchange Rate Risks: Adjust the ratio of TWD and foreign currency borrowings to reduce WACC volatility.
      • Industry and Market Risks: Flexibly adjust inventory and funding allocation.
      • Operational Risks: Strengthen inventory management to prevent inventory write-down losses.
      • Information Security Enhancement: Implement ISMS (Information Security Management System) and obtain ISO 27001 international certification.
      • Climate and Sustainability Risks: Promote carbon inventory and seize green supply chain opportunities, aligning with international standards.
    • Internal Control:Risk management policies are incorporated into the internal control system and annual audit plan.
    • Stakeholder Communication:Establish communication channels to regularly respond to stakeholder concerns, and disclose these in sustainability strategies and reports.
  4. Sustainable Governance and Compliance Follow-up
    • Compensation and Benefits for Frontline Employees:6%–10% of pre-tax net profit is allocated as employee remuneration, with at least 7% distributed to Rank-and-File employees. The scope is regularly reviewed and incorporated into internal controls and audits.
    • Proactive Planning for IFRS Sustainability Disclosure:Early planning to comply with IFRS S1 and S2 standards, with KPMG engaged for advisory support. The Company is proactively establishing an integrated ESG and financial information platform, processes, systems, and internal controls to ensure regulatory compliance.
  5. Policy and Enhancement Plans
    • Short-term Enhancement Plans:
      • Strict inventory control and prevention of inventory write-downs.
      • Strengthening cost structure and digital transformation; implementing zero-based budgeting.
      • Responding to market and new technology demands; investing in R&D.
      • Focusing on the green economy and sustainable development; promoting low-carbon operations.
      • Continuously strengthening operational risk management.
    • Medium- and Long-term Enhancement Plans:
      • Collaborating with suppliers to invest in emerging applications such as green energy and energy storage.
      • Emphasizing operational capital efficiency and risk management; strictly controlling exchange rates and inventory.
      • Appropriately increasing equity capital to optimize the financial structure.
      • Enhancing regulatory compliance and cross-regional technical services to address global localization.
  6. Communication and Tracking Mechanisms
    • Actively communicating with investors; regularly holding investor conferences to ensure information transparency.
    • Establishing diverse communication channels to address concerns of employees, shareholders, customers, vendor, suppliers, and other stakeholders.
  7. Conclusion
    • Weikeng will continue to adjust its strategies, strengthen supply chain resilience, promote green and sustainable development, and uphold the philosophy of “Connecting Technology, Creating Value” to generate greater value for stakeholders.

Corporate Value Enhancement Plan File

Year File
2025