ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2024 AND 2023

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Ares International Corp.

Introduction

We have reviewed the accompanying consolidated balance sheets of Ares International Corp. and subsidiaries (the “Group”) as at June 30, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the six months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these 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” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of 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 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

The financial statements of certain non-significant consolidated subsidiaries and investments accounted for using the equity method were not reviewed by independent auditors. Those statements reflect total assets (including investments accounted for using the equity method) amounting to NT$193,921 thousand and NT$204,339 thousand, constituting 12.93% and 13.75% of the consolidated total assets, and total liabilities amounting to NT$17,342 thousand and NT$13,953 thousand, constituting 2.52% and 2.13% of the consolidated total liabilities as of June 30, 2024 and 2023, respectively, and total comprehensive income (including share

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of profit of associates and joint ventures accounted for using equity method) amounting to NT$4,306 thousand, NT$10,359 thousand, NT$7,129 thousand, and NT$14,656 thousand, constituting 9.72%, 12.86%, 13.34% and 16.49% of consolidated total comprehensive income for the three months and six months then ended, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries been reviewed by independent auditors as described in the Basis for qualified conclusion above, 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 the Group as at June 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the six months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission.

CPA Lin, Yi-Fan CPA Liao, Fu-Ming

For and on behalf of PricewaterhouseCoopers, Taiwan

August 9, 2024

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	June 30, 2024 AMOUNT % `$` `468,316` `31` `480,250` `32` `139,750` `9` `4,584` `-` `107,047` `7` `410` `-` `3,578` `-` `42,436` `3` `-` `-` `49,915` `4` `1,296,286` `86` `141,966` `10` `5,627` `-` `14,886` `1` `671` `-` `30,845` `2` `9,509` `1` `203,504` `14` `$` `1,499,790` `100`	December 31, 2023 AMOUNT % `$` `553,759` `38` `396,707` `27` `139,382` `10` `237` `-` `76,592` `5` `1,284` `-` `3,842` `-` `41,588` `3` `-` `-` `49,906` `4` `1,263,297` `87` `136,185` `9` `4,299` `-` `16,382` `1` `768` `-` `30,910` `2` `7,635` `1` `196,179` `13` `$` `1,459,476` `100`	June 30, 2023	June 30, 2023
		AMOUNT `$` `468,316` `480,250` `139,750` `4,584` `107,047` `410` `3,578` `42,436` `-` `49,915` `1,296,286` `141,966` `5,627` `14,886` `671` `30,845` `9,509` `203,504` `$` `1,499,790`	AMOUNT `$` `553,759` `396,707` `139,382` `237` `76,592` `1,284` `3,842` `41,588` `-` `49,906` `1,263,297` `136,185` `4,299` `16,382` `768` `30,910` `7,635` `196,179` `$` `1,459,476`	AMOUNT `$` `501,316` `418,607` `154,136` `-` `86,635` `-` `17,378` `43,492` `3,283` `46,995` `1,271,842` `149,040` `3,989` `24,758` `965` `27,408` `7,698` `213,858` `$` `1,485,700`	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortised cost - current 1140 Contract assets - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties, net 1200 Other receivables 1410 Prepayments 1460 Non-current assets classified as held for sale, net 1470 Other current assets 11XX Total current assets Non-current assets 1550 Investments accounted for using the equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) and 8 6(16) 6(3) 6(3) 7 6(4) and 7 6(6) 8 6(6) 6(7) 6(8) 8				`34` `28` `11` `-` `6` `-` `1` `3` `-` `3`
					`86`
					`10` `-` `2` `-` `2` `-`
					`14`
					`100`

(Continued)

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

(Expressed in thousands of New Taiwan dollars)

					June 30, 2024				December 31, 2023	December 31, 2023			June 30, 2023
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2130	Contract liabilities - current	6(16)		`$`	`212,193`	`14`		`$`	`175,267`	`12`		`$`	`192,672`	`13`
2170	Accounts payable	6(9)			`56,034`		`4`		`69,487`		`5`		`53,504`	`4`
2180	Accounts payable - related parties	7			`93`		`-`		`314`		`-`		`663`	`-`
2200	Other payables	6(10)			`287,656`	`19`			`151,306`	`10`			`264,231`	`18`
2230	Current income tax liabilities				`7,230`		`-`		`16,678`		`1`		`2,166`	`-`
2250	Provisions for liabilities - current	6(12)			`2,027`		`-`		`2,740`		`-`		`5,365`	`-`
2280	Current lease liabilities				`10,718`		`1`		`14,939`		`1`		`16,377`	`1`
21XX	Total current liabilities				`575,951`	`38`			`430,731`	`29`			`534,978`	`36`
	Non-current liabilities
2580	Non-current lease liabilities				`4,648`		`1`		`1,716`		`-`		`8,669`	`1`
2640	Non-current accrued pension
	liabilities				`107,050`		`7`		`113,049`		`8`		`111,319`	`7`
25XX	Total non-current liabilities				`111,698`		`8`		`114,765`		`8`		`119,988`	`8`
2XXX	Total liabilities				`687,649`	`46`			`545,496`	`37`			`654,966`	`44`
	Equity attributable to owners of
	parent
	Share capital	6(13)
3110	Common stock				`472,539`	`32`			`472,539`	`33`			`472,539`	`32`
	Capital surplus	6(14)
3200	Capital surplus				`157,010`	`10`			`156,960`	`10`			`157,447`	`10`
	Retained earnings	6(15)
3310	Legal reserve				`112,199`		`8`		`94,962`		`7`		`94,962`	`7`
3320	Special reserve				`3,943`		`-`		`4,146`		`-`		`4,146`	`-`
3350	Unappropriated retained earnings				`65,872`		`4`		`185,624`	`13`			`104,508`	`7`
	Other equity interest
3400	Other equity interest		`(`		`3,207 )`		`- (`		`3,943 )`		`- (`		`6,480)`	`-`
31XX	Equity attributable to owners
	of the parent				`808,356`	`54`			`910,288`	`63`			`827,122`	`56`
36XX	Non-controlling interest				`3,785`		`-`		`3,692`		`-`		`3,612`	`-`
3XXX	Total equity				`812,141`	`54`			`913,980`	`63`			`830,734`	`56`
	Significant contingent liabilities and	9
	unrecognised contract commitents
3X2X	Total liabilities and equity			`$`	`1,499,790`	`100`		`$`	`1,459,476`	`100`		`$`	`1,485,700`	`100`

The accompanying notes are an integral part of these consolidated financial statements.

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

					Three months ended June 30	Three months ended June 30	Three months ended June 30	Three months ended June 30	Three months ended June 30				Six months ended	Six months ended	Six months ended	Six months ended	June 30
					2024				2023				2024				2023
	Items	Notes		AMOUNT		%		AMOUNT		%		AMOUNT		%		AMOUNT		%
4000	Operating revenue	6(16) and 7		`$`	`204,076`	`100`		`$`	`195,038`	`100`		`$`	`369,354`	`100`		`$`	`394,602`	`100`
5000	Operating costs	6(20)(21) and
		7	`(`		`116,013 ) (`	`57 ) (`			`116,287) (`	`60 ) (`			`240,887) (`	`65) (`			`249,755) (`	`63 )`
5950	Gross profit				`88,063`	`43`			`78,751`	`40`			`128,467`	`35`			`144,847`	`37`
	Operating expenses	6(20)(21) and
		7
6100	Selling expenses		`(`		`16,742 ) (`		`8 ) (`		`16,684) (`		`9 ) (`		`35,042) (`		`9) (`		`34,415) (`	`9 )`
6200	General and administrative
	expenses		`(`		`14,624 ) (`		`7 ) (`		`15,832) (`		`8 ) (`		`28,469) (`		`8) (`		`29,220) (`	`7 )`
6300	Research and development
	expenses		`(`		`24,986 ) (`	`12 ) (`			`23,935) (`	`12 ) (`			`58,203) (`	`16) (`			`53,614) (`	`14 )`
6450	Reversal of expected credit losses	12(2)			`704`		`-`		`4,926`		`3`		`3,547`		`1`		`3,729`	`1`
6000	Total operating expenses		`(`		`55,648 ) (`	`27 ) (`			`51,525) (`	`26 ) (`			`118,167) (`	`32) (`			`113,520) (`	`29 )`
6900	Operating profit				`32,415`	`16`			`27,226`	`14`			`10,300`		`3`		`31,327`	`8`
	Non-operating income and expenses
7100	Interest income	6(17)			`3,655`		`1`		`3,912`		`2`		`10,382`		`2`		`8,179`	`2`
7010	Other income	6(18)			`100`		`-`		`128`		`-`		`172`		`-`		`521`	`-`
7020	Other gains and losses	6(19)			`9,831`		`5`		`51,280`	`26`			`29,723`		`8`		`47,706`	`12`
7050	Finance costs	6(8)	`(`		`164 )`		`- (`		`202)`		`- (`		`286)`		`- (`		`376)`	`-`
7060	Share of profit of associates and	6(6)
	joint ventures accounted for using
	equity method				`4,220`		`2`		`7,445`		`4`		`10,679`		`3`		`13,428`	`3`
7000	Total non-operating income and
	expenses				`17,642`		`8`		`62,563`	`32`			`50,670`	`13`			`69,458`	`17`
7900	Profit before income tax				`50,057`	`24`			`89,789`	`46`			`60,970`	`16`			`100,785`	`25`
7950	Income tax expense	6(22)	`(`		`7,042 ) (`		`3 ) (`		`7,160) (`		`4 ) (`		`8,440) (`		`2) (`		`9,594) (`	`2 )`
8200	Profit for the period			`$`	`43,015`	`21`		`$`	`82,629`	`42`		`$`	`52,530`	`14`		`$`	`91,191`	`23`
	Other comprehensive income
	Other comprehensive income that
	will be reclassified to profit or loss
8361	Financial statements translation
	differences of foreign operations			`$`	`1,593`		`1 ($`		`2,620) (`		`1 )`	`$`	`1,097`		`- ($`		`2,921)`	`-`
8399	Income tax relating to	6(22)
	components of other
	comprehensive income (loss)		`(`		`310 )`		`-`		`526`		`- (`		`185)`		`-`		`584`	`-`
8360	Other comprehensive income
	(loss) that will be reclassified
	to profit or loss				`1,283`		`1 (`		`2,094) (`		`1 )`		`912`		`- (`		`2,337)`	`-`
8300	Other comprehensive income
	(loss) for the period			`$`	`1,283`		`1 ($`		`2,094) (`		`1 )`	`$`	`912`		`- ($`		`2,337)`	`-`
8500	Total comprehensive income for
	the period			`$`	`44,298`	`22`		`$`	`80,535`	`41`		`$`	`53,442`	`14`		`$`	`88,854`	`23`
	Profit (loss) attributable to:
8610	Owners of the parent			`$`	`42,918`	`21`		`$`	`82,605`	`42`		`$`	`52,613`	`14`		`$`	`91,249`	`23`
8620	Non-controlling interest				`97`		`-`		`24`		`- (`		`83)`		`- (`		`58)`	`-`
				`$`	`43,015`	`21`		`$`	`82,629`	`42`		`$`	`52,530`	`14`		`$`	`91,191`	`23`
	Total comprehensive income (loss)
	attributable to:
8710	Owners of the parent			`$`	`44,155`	`22`		`$`	`80,502`	`41`		`$`	`53,349`	`14`		`$`	`88,915`	`23`
8720	Non-controlling interest				`143`		`-`		`33`		`-`		`93`		`- (`		`61)`	`-`
				`$`	`44,298`	`22`		`$`	`80,535`	`41`		`$`	`53,442`	`14`		`$`	`88,854`	`23`
	Earnings per share (in dollars)	6(23)
9750	Basic			`$`		`0.91`		`$`		`1.75`		`$`		`1.11`		`$`		`1.93`
9850	Diluted			`$`		`0.90`		`$`		`1.74`		`$`		`1.10`		`$`		`1.92`

The accompanying notes are an integral part of these consolidated financial statements.

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Notes				Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent			Non-controlling interest
	Common stock		Capital surplus	Retained Earnings			Other Equity Interest			Total
				Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised losses from financial assets measured at fair value through other comprehensive income
6(15) 6(14) 6(14) 6(15) 6(14)		`$ 472,539` `-` `-` `-` `-` `-` `-` `-` `-` `$ 472,539` `$ 472,539` `-` `-` `-` `-` `-` `-` `-` `$ 472,539`	`$ 158,764` `-` `-` `-` `-` `-` `-` `(` `1,315` `)` `(` `2` `)` `$ 157,447` `$ 156,960` `-` `-` `-` `-` `-` `-` `50` `$ 157,010`	`$` `80,434` `-` `-` `-` `14,528` `-` `-` `-` `-` `$` `94,962` `$` `94,962` `-` `-` `-` `17,237` `-` `-` `-` `$ 112,199`	`$` `7,344` `-` `-` `-` `-` `(` `3,198 )` `-` `-` `-` `$` `4,146` `$` `4,146` `-` `-` `-` `-` `(` `203 )` `-` `-` `$` `3,943`	`$ 158,537` `91,249` `-` `91,249` `(` `14,528 )` `3,198` `(` `133,948 )` `-` `-` `$ 104,508` `$ 185,624` `52,613` `-` `52,613` `(` `17,237 )` `203` `(` `155,331 )` `-` `$` `65,872`	`($` `2,146 )` `-` `(` `2,334 )` `(` `2,334 )` `-` `-` `-` `-` `-` `($` `4,480 )` `($` `1,943 )` `-` `736` `736` `-` `-` `-` `-` `($` `1,207 )`	`($` `2,000` `)` `-` `-` `-` `-` `-` `-` `-` `-` `($` `2,000` `)` `($` `2,000` `)` `-` `-` `-` `-` `-` `-` `-` `($` `2,000` `)`	`$ 873,472` `91,249` `(` `2,334 )` `88,915` `-` `-` `(` `133,948 )` `(` `1,315 )` `(` `2 )` `$ 827,122` `$ 910,288` `52,613` `736` `53,349` `-` `-` `(` `155,331 )` `50` `$ 808,356`		`$` `3,673` `(` `58 )` `(` `3 )` `(` `61 )` `-` `-` `-` `-` `-` `$` `3,612` `$` `3,692` `(` `83 )` `176` `93` `-` `-` `-` `-` `$` `3,785`	`$ 877,145` `91,191` `(` `2,337` `)` `88,854` `-` `-` `(` `133,948` `)` `(` `1,315` `)` `(` `2` `)` `$ 830,734` `$ 913,980` `52,530` `912` `53,442` `-` `-` `(` `155,331` `)` `50` `$ 812,141`

The accompanying notes are an integral part of these consolidated financial statements.

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile(profit)loss
Reversal of expected credit loss impairment

Depreciation of property, plant and equipment

Depreciation of right-of-use asset

Amortisation

Interest income

Interest expense

Share of profit of associates and joint ventures accounted for
using equity method

Gain on disposal of property, plant and equipment

Gain on disposal of investments

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable
Accounts receivable
Accounts receivable - related parties
Other receivables
Prepayments
Other current assets
Changes in operating liabilities
Contract liabilities
Accounts payable
Accounts payable - related parties
Other payables
Provisions for liabilities - current
Non-current accrued pension liabilities
Cash inflow generated from operations
Interest received
Income tax paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in financial assets at amortised cost-current
Decrease in financial assets at amortised cost-current
Increase in investments using the equity method

Proceeds from disposal of investments using the equity method

Dividends received
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Increase in refundable deposits (shown in other non-current
assets)
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of lease liability

Other financing activities

Net cash flows used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2024
2023
$
60,970 $
100,785
6(20) and 12(2)
(
3,547 ) (
3,729 )
6(7)(20)
1,275
999
6(8)(20)
8,353
8,409
6(20)
217
196
6(17)
(
10,382 ) (
8,179 )
6(8)
286
376
6(6)
(
10,679 ) (
13,428 )
6(19)
(
1,257 )
-
6(19)
- (
45,434 )
(
4,347 )
26
(
27,276 ) (
15,207 )
874
1,108
(
1,309 ) (
14,082 )
(
848 ) (
1,109 )
(
9 )
15,883
36,926
35,975
(
13,453 )
3,049
(
221 )
663
(
16,775 ) (
15,781 )
(
713 ) (
2,266 )
(
5,999 ) (
17,523 )
12,086
30,731
10,522
7,043
(
17,640 ) (
33,914 )
4,968
3,860
(
427,878 ) (
362,672 )
344,335
260,175
6(6)
- (
3,000 )
6(6)
-
38,789
4,824
-
6(7)
(
2,593 ) (
285 )
1,257
-
(
120 ) (
960 )
(
1,874 ) (
55 )
(
82,049 ) (
68,008 )
6(25)
(
8,412 ) (
8,547 )
6(14)
50 (
2 )
(
8,362 ) (
8,549 )
(
85,443 ) (
72,697 )
553,759
574,013
$
468,316 $
501,316

The accompanying notes are an integral part of these consolidated financial statements.

~8~

ARES INTERNATIONAL CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Ares International Corp. (hereinafter referred to as the ‘Company’) was established on December 3, 1980. The Company and subsidiaries (hereinafter referred to as the ‘Group’) are engaged in the design, sales, lease, maintenance and technology consultation of computer equipment, internet and related software, and analysis, design, modification, installation and maintenance of application software. The Company’s stock was traded at the Taipei Exchange from March 1999, and was listed at the Taiwan Stock Exchange after the application of listing was approved since September 2001.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on August 9, 2024.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but

not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2025 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and January 1, 2026 measurement of financial Instruments’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by between an investor and its associate or joint venture’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2023 Amendments to IFRS 17, ‘Insurance contracts’ January 1, 2023 Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – January 1, 2023 comparative information’ IFRS 18, ‘Presentation and disclosure in financial statements’ January 1, 2027 IFRS 19, ‘Subsidiaries without public accountability: disclosures’ January 1, 2027 Annual Improvements to IFRS Accounting Standards—Volume 11 January 1, 2026

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to managementdefined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2023, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2023.
(2) Basis of preparation;
A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
- (a) Financial assets at fair value through other comprehensive income.
- (b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

The basis for preparation of consolidated financial statements is consistent with the basis for the year ended December 31, 2023.

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B. Subsidiaries included in the consolidated financial statements:

==> picture [503 x 41] intentionally omitted <==

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

Ownership (%)
Name of Name of Main Business June 30, December 31, June 30,
Investor Subsidiary Activities 2024 2023 2023 Note
----- End of picture text -----

Name of Investor	Name of Subsidiary	Main Business Activities	June 30, 2024	December 31, 2023 Ownership (%)	June 30, 2023	Note
ARES	ARES GROUP	Investment	100%	100%	100%	Note
INTERNATIONAL	CORP.	business
CORP.
"	WELJOIN	"	100%	100%	100%	"
	TECHNOLOGIES
	LIMITED (BVI)
ARES GROUP	SHARP KEEN	"	100%	100%	100%	"
CORP.	MANAGEMENT
	LIMITED
WELJOIN	APLUSOFT	Research,	95.88%	95.88%	95.88%	"
TECHNOLOGIES	(SUZHOU)	development and
LIMITED (BVI)	CORPORATION	sales of business
		managenment
		software

Note: The financial statements of the above subsidiaries were not reviewed by independent auditors

as the entity did not meet the definition of a significant subsidiary.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Non-current assets held for sale

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

(5) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

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(6) Income taxes

The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY

There have been no significant changes as of June 30, 2024. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2023.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	June30,2024 December 31, 2023 787 $ 464 $ 371,183 390,751 96,346 162,544 468,316 $ 553,759 $	June 30, 2023
		796 $ 352,125 148,395
		501,316 $

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Refer to Note 8 for the details of restricted cash and cash equivalents as of June 30, 2024, December 31, 2023 and June 30, 2023.

(2) Financial assets at amortised cost

Items Current items: Time deposits with maturity over three months Pledged time deposits Interest rate range of time deposits	June 30,2024 477,043 $ 3,207 480,250 $ 1.00%~5.15%	December31,2023 June 30, 2023 393,500 $ 414,953 $ 3,207 3,654 396,707 $ 418,607 $ 1.00%~5.45% 0.76%~5.07%

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

Interest income	Three months endedJune30	Three months endedJune30
	2024 2,463 $	2023
		3,084 $

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Interest income	2024 2023 5,375 $ 5,139 $ Six months endedJune30

B. As at June 30, 2024, December 31, 2023 and June 30, 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were $480,250, $396,707 and $418,607, respectively.
C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(3) Notes and accounts receivable

			June 30,2024	December	December	31,2023			June 30, 2023
Notes receivable		$	4,584		$	237		$	-
Less: Allowance for uncollectible
accounts			-			-			-
		$	4,584		$	237		$	-
Accounts receivable		$	112,511		$	83,144		$	95,247
Less: Allowance for uncollectible
accounts	(		5,464)	(		6,552)	(		8,612)
		$	107,047		$	76,592		$	86,635

A. The ageing analysis of notes and accounts receivable is as follows:

Not past due Up to 90 days 91 to 180 days 181 to 270 days Over 270 days Not past due Up to 90 days 91 to 180 days 181 to 270 days Over 270 days	June30,2024	June30,2024
	Accountsreceivable 94,238 $ 9,549 1,412 2,100 5,212 112,511 $ December	Notesreceivable
		4,584 $ - - - -
		4,584 $
		31,2023
	Accountsreceivable 69,819 $ 7,496 1,017 - 4,812 83,144 $	Notesreceivable
		237 $ - - - -
		237 $

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		June 30,2023	June 30,2023	June 30,2023
		Accounts receivable		Notes receivable
Not past due	$	75,507	$	-
Up to 90 days		10,473		-
91 to 180 days		2,574		-
181 to 270 days		139		-
Over 270 days		6,554		-
	$	95,247	$	-

The above ageing analysis was based on past due date.

B. As of June 30, 2024, December 31, 2023 and June 30, 2023, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2023, the balance of receivables from contracts with customers amounted to $122,567.
C. The Group has no notes and accounts receivable pledged to others.
D. The Group has no discounted notes receivable.
E. The Group does not hold any collateral as security.
F. As at June 30, 2024, December 31, 2023 and June 30, 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents notes and accounts receivable held by the Group were $111,631, $76,829 and $86,635, respectively.
G. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

(4) Prepayments

Prepayments
Prepaid project cost Other prepayments	June 30,2024 39,365 $ 3,071 42,436 $	December31,2023 40,031 $ 1,557 41,588 $	June 30,2023
			40,064 $ 3,428
			43,492 $

(5) Financial assets at fair value through other comprehensive income - non-current

Items			June30,2024	December	31,2023			June30,2023
Non-current items:
Equity instruments
Unlisted stocks		$	2,000	$	2,000		$	2,000
Valuation adjustment	(		2,000)	(	2,000)	(		2,000)
		$	-	$	-		$	-

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A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $0 as at June 30, 2024, December 31, 2023 and June 30, 2023.
B. For the three months and six months ended June 30, 2024 and 2023, no amount was recognised in profit or loss and other comprehensive income.
C. The Group has no financial assets at fair value through other comprehensive income pledged to others.

(6) Investments accounted for using the equity method

Associates: BLITZ IT CONSULTANTS PTE. LTD. ARES INTERNATIONAL (THAILAND) CO., LTD. ARGO INTERNATIONAL CORPORATION M-POWER INFORMATION CO., LTD. MYSHINE TECHNOLOGY CO., LTD.	June 30,2024 17,945 $ 1,617 26,754 94,841 809 141,966 $	December31,2023 19,217 $ 3,181 27,888 84,971 928 136,185 $	June 30,2023
			14,620 $ 3,583 34,376 93,461 3,000
			149,040 $

A. The basic information of the associates of the Group is as follows:

Companyname BLITZ IT CONSULTANTS PTE. LTD. ARES INTERNATIONAL (THAILAND) CO., LTD. ARGO INTERNATIONAL CORPORATION M-POWER INFORMATION CO., LTD. MYSHINE TECHNOLOGY CO., LTD.	Principal place of business Singapore Thailand Taiwan " "	Ownership (%)	June 30, 2023 25.00% 49.00% 33.88% 18.08% 40.00%	Nature of relationship Strategic investment " " " "	Method of measurement
		June 30, December 31, 2024 2023 25.00% 25.00% 49.00% 49.00% 33.88% 33.88% 17.47% 17.47% 40.00% 40.00%
					Equity method " " " "

Note 1: For the year ended December 31, 2023, the Group disposed 500,000 shares of M-POWER INFORMATION CO., LTD. with a disposal price of $71,942. As of June 30, 2023, the amount received totaled $38,789. The gain from disposal of investments was recognised at $61,776. The related carrying amount of $3,283 was reclassified as non-current assets

~16~

held for sale as of June 30, 2023, and adjusted capital surplus of ($1,802) in accordance with the ownership proportion.

Note 2: In June 2023, the Group invested $3,000 in cash and acquired 200,000 shares of MYSHINE TECHNOLOGY CO., LTD., representing a 40% ownership stake.
B. The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below:
As of June 30, 2024, December 31, 2023 and June 30, 2023, the carrying amounts of the Group’s individually immaterial associates amounted to $141,966, $136,185 and $152,323, respectively.

Profit for the period from continuing operations Other comprehensive income, net of tax Total comprehensive income Dividends received from associates Profit for the period from continuing operations Other comprehensive income, net of tax Total comprehensive income Dividends received from associates	Three months ended June 30	Three months ended June 30
	2024 2023 4,220 $ 7,445 $ - - 4,220 $ 7,445 $ 4,824 $ - $ Six months ended June 30	2023
		7,445 $ -
		7,445 $
		- $
	2024 2023 10,679 $ 13,428 $ - - 10,679 $ 13,428 $ 4,824 $ - $

C. For the three months and six months ended June 30, 2024 and 2023, the Group recognised share of profit of associates in the amounts of $4,220, $7,445, $10,679 and $13,428, respectively, which were based on the financial statements of the same period which were not reviewed by independent auditors.
D. The Group’s material associate, M-POWER INFORMATION CO., LTD., has quoted market prices. As of June 30, 2024, December 31, 2023 and June 30, 2023, the fair value was $403,517, $470,769 and $568,856, respectively.
E. The Group is the single largest shareholder of ARGO INTERNATIONAL CORPORATION and M-POWER INFORMATION with a 33.88% and 17.47% equity interest, respectively. As the Group has no ability to direct the relevant activities of ARGO INTERNATIONAL CORPORATION and M-POWER INFORMATION, the Group has no control, but only has significant influence, over the investee.

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(7) Property, plant and equipment

		Machinery and	Machinery and		Transportation	Transportation			Office			Leasehold			Other
			equipment			equipment			equipment		improvements				facilities			Total
At January 1, 2024
Cost		$	12,302		$	12,190		$	1,465		$	4,679		$	1,429		$	32,065
Accumulated depreciation	(		9,136)	(		12,040)	(		1,455)	(		4,299)	(		836)	(		27,766)
		$	3,166		$	150		$	10		$	380		$	593		$	4,299
2024
At January 1		$	3,166		$	150		$	10		$	380		$	593		$	4,299
Additions			467			1,000			-			1,126			-			2,593
Depreciation charges	(		918)	(		167)	(		3)	(		48)	(		139)	(		1,275)
Net exchange differences			10			-			-			-			-			10
At June 30		$	2,725		$	983		$	7		$	1,458		$	454		$	5,627
At June 30, 2024
Cost		$	12,807		$	7,753		$	1,465		$	5,805		$	1,429		$	29,259
Accumulated depreciation	(		10,082)	(		6,770)	(		1,458)	(		4,347)	(		975)	(		23,632)
		$	2,725		$	983		$	7		$	1,458		$	454		$	5,627

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

Machinery and Transportation Office Leasehold Other
equipment equipment equipment improvements facilities Total
At January 1, 2023
Cost $ 10,581 $ 12,190 $ 1,568 $ 4,679 $ 1,429 $ 30,447
Accumulated depreciation ( 7,669) ( 11,735) ( 1,535) ( 4,236) ( 558) ( 25,733)
$ 2,912 $ 455 $ 33 $ 443 $ 871 $ 4,714
2023
At January 1 $ 2,912 $ 455 $ 33 $ 443 $ 871 $ 4,714
Additions 285 - - - - 285
Depreciation charges ( 624) ( 190) ( 14) ( 32) ( 139) ( 999)
Net exchange differences ( 11) - - - - ( 11)
At June 30 $ 2,562 $ 265 $ 19 $ 411 $ 732 $ 3,989
At June 30, 2023
Cost $ 10,834 $ 12,190 $ 1,568 $ 4,679 $ 1,429 $ 30,700
Accumulated depreciation ( 8,272) ( 11,925) ( 1,549) ( 4,268) ( 697) ( 26,711)
$ 2,562 $ 265 $ 19 $ 411 $ 732 $ 3,989
----- End of picture text -----

A. No interest was capitalised as part of property, plant and equipment.

B. The Group has no property, plant and equipment pledged to others.

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`－` (8) Leasing arrangements lessee

A. The Group’s leased assets are buildings. Rental contracts are typically made for periods of 1 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Right-of-use assets are not recognised for short-term leases with a lease term of 12 months or less for part of leased buildings of the Group.
C. The carrying amounts of right-of-use assets and the depreciation charge are as follows:

June 30, 2024 December 31, 2023 14,886 $ 16,382 $ Carryingamount Depreciation charge	June 30, 2024 December 31, 2023 14,886 $ 16,382 $ Carryingamount Depreciation charge	June30,2023
		24,758 $

2024 4,378 $ $ Threemonths ended June Depreciation charge		2023 30
	$	4,198

2024 2023 8,353 $ 8,409 $ Six months ended June 30
	8,409 $

D. For the three months and six months ended June 30, 2024 and 2023, the additions to right-of-use assets were $2,892, $0, $7,036 and $26,444, respectively.
E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Threemonths ended June 30	Threemonths ended June 30
	2024 2023 164 $ 202 $ 336 325 500 $ 527 $ Six months ended June 30	2023
		202 $ 325
		527 $
	2024 286 $ 794 1,080 $	2023
		376 $ 635
		1,011 $

F. For the six months ended June 30, 2024 and 2023, the Group’s total cash outflow for leases were $9,206 and $9,182 respectively.

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(9) Accounts payable

Accounts payable
)Other payables Accounts payable Project costs payable Wages and bonus payable Labor and health insurance fees payable Employees’compensation and directors’ remuneration payable Cash dividends payable Other accrued expenses	June 30,2024 December31,2023 15,946 $ 26,807 $ 40,088 42,680 56,034 $ 69,487 $ June 30,2024 December31,2023 76,951 $ 102,546 $ 4,929 5,002 35,020 26,679 155,331 - 15,425 17,079 287,656 $ 151,306 $	June 30,2023 15,924 $ 37,580 53,504 $ June 30,2023 74,573 $ 4,858 37,264 133,948 13,588 264,231 $

			74,573 $ 4,858 37,264 133,948 13,588
			264,231 $

(10) Other payables

(11) Pensions

A. Defined benefit plan
(a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.
(b) For the aforementioned pension plan, the Group recognised pension costs of $910, $946, $1,820 and $1,893 for the three months and six months ended June 30, 2024 and 2023, respectively.
(c) Expected contributions to the defined benefit pension plan of the Group for the year ending December 31, 2025 amount to $1,781.

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B. Defined contribution plans:
(a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount no less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plans of the Group for the three months and six months ended June 30, 2024 and 2023 were $3,490, $3,366, $7,082 and $6,724, respectively.
(b) The Company’s mainland China subsidiary, APLUSOFT (SUZHOU) CORPORATION, has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage was 7% for the three months and six months ended June 30, 2024 and 2023. Other than the monthly contributions, the Group has no further obligations. The pension costs under the defined contribution pension plan of APLUSOFT (SUZHOU) CORPORATION for the three months and six months ended June 30, 2024 and 2023 were $137, $121, $473 and $225, respectively.

(12) Provisions

	Warranty	Warranty
2024	2,740 $ 1,263 359) ( 1,617) ( 2,027 $ December31,2023 2,740 $
$		$
June 30,2024 2,027 $		31,2023 2,740
	$

The Group provides warranties on project contract, and the provision for warranty is estimated based on historical warranty data.

(13) Share capital

As of June 30, 2024, the Company’s authorised capital was $1,156,000 (including 10 million shares reserved for employee stock options and 20 million shares reserved for convertible bonds issued by the Company), and the paid-in capital was $472,539, consisting of 47,254 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share.

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(14) Capital surplus

2024

			2024
At January 1 Donated by the shareholders (Note 1) At June 30	Share premium	Treasury share transactions 48,738 $ - 48,738 $	Donated assets received 316 $ 50 366 $	Changes in equity of associates and joint ventures accounted for using equity method 15,067 $ - 15,067 $	Total
	92,839 $ - 92,839 $				156,960 $ 50
					157,010 $

	2023
Share premium	Treasury share transactions Donated assets received 48,738 $ 318 $ - - - 2) ( 48,738 $ 316 $	Changes in equity of associates and joint ventures accounted for using equity method Total 16,869 $ 158,764 $ 1,315) ( 1,315) ( - 2) ( 15,554 $ 157,447 $	Total
92,839 $ - - 92,839 $
			157,447 $

Note 1: Capital surplus arising from donation pertain to unclaimed dividends over 5 years past due. Note 2: For the six months ended June 30, 2023, the Company returned the previously collected overdue dividends of $2, which had been outstanding for more than five years to the shareholders.

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~23~

(15) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall be distributed in the following methods and order:
(a) Pay all taxes.
(b) Offset prior years’ operating losses.
(c) 10% of the remaining amount shall be set aside as legal reserve.
(d) Set aside or reverse a special reserve in accordance with related laws.

The remaining earnings shall be distributed as dividends to shareholders which shall be proposed by the Board of Directors and resolved by the shareholders, The Board of Directors may decide not to distribute earnings for operation needs.

B. As the Company is engaged in information technology, which is a rapidly advance and growing market, the dividend policy of the Company is based on the company capital expenditure requirement and optimal financial plan for long-term operations. When the Board of Directors propose the distribution of retained earnings after deducting (a)~(d) above, the Board of Directors will propose the distribution of cash dividends and share dividends based on the operating requirements. Cash dividends shall comprise not less than 10% of total dividends distributed. However, the proportion of cash dividend could be adjusted based on the operating situation of current year.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

~24~

E. Distribution of retained earnings:

On June 19, 2024 and June 21, 2023, the shareholders during their meeting resolved the distribution of 2023 and 2022 retained earnings, respectively. The distribution of retained earnings is as follows:

earnings is as follows:
				2023					2022
				Dividend per share					Dividend per share
			Amount		(indollars)			Amount		(in dollars)
Legal reserve		$	17,237				$	14,528
Reversal of special reserve	(		203)			(		3,198)
Cash dividends			155,331	$	3.29			133,948	$	2.83

(16) Operating revenue

Operating revenue
Revenue from contracts with customers Sales revenue Services revenue Revenue from contracts with customers Sales revenue Services revenue	Three months ended June 30
	2024 2023 9,263 $ 6,944 $ 194,813 188,094 204,076 $ 195,038 $ Six months ended June 30
	2024 20,702 $ 348,652 369,354 $	2023
		16,539 $ 378,063
		394,602 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major geographical regions:

Three months ended June 30,2024(Note) Total segment revenue Revenue from external customer contracts Inter-segment Timing of revenue recognition At a point in time Over time	Asia 42,752 $ 4,805 47,557 $ 1,804 $ 40,948 42,752 $	America - $ - - $ - $ - - $	Taiwan 160,537 $ - 160,537 $ 7,459 $ 153,078 160,537 $	Others 787 $ - 787 $ - $ 787 787 $	Total
					204,076 $ 4,805
					208,881 $
					9,263 $ 194,813
					204,076 $

~25~

Three months ended June 30,2023 (Note) Total segment revenue Revenue from external customer contracts Inter-segment Timing of revenue recognition At a point in time Over time Six months ended June 30,2024(Note) Total segment revenue Revenue from external customer contracts Inter-segment Timing of revenue recognition At a point in time Over time Six months ended June 30,2023 (Note) Total segment revenue Revenue from external customer contracts Inter-segment Timing of revenue recognition At a point in time Over time	Asia 22,408 $ 4,483 26,891 $ 1,557 $ 20,851 22,408 $ Asia 61,957 $ 7,315 69,272 $ 1,812 $ 60,145 61,957 $ Asia 36,900 $ 5,383 42,283 $ 1,575 $ 35,325 36,900 $	America - $ - - $ - $ - - $ America - $ - - $ - $ - - $ America 62 $ - 62 $ - $ 62 62 $	Taiwan 172,283 $ - 172,283 $ 5,387 $ 166,896 172,283 $ Taiwan 306,362 $ - 306,362 $ 18,890 $ 287,472 306,362 $ Taiwan 357,293 $ - 357,293 $ 14,964 $ 342,329 357,293 $	Others 347 $ - 347 $ - $ 347 347 $ Others 1,035 $ - 1,035 $ - $ 1,035 1,035 $ Others 347 $ - 347 $ - $ 347 347 $	Total
					195,038 $ 4,483
					199,521 $
					6,944 $ 188,094
					195,038 $
					Total
					369,354 $ 7,315
					376,669 $
					20,702 $ 348,652
					369,354 $
					Total
					394,602 $ 5,383
					399,985 $
					16,539 $ 378,063
					394,602 $

Note: Segmental information is provided in Note 14.

~26~

B. Contract assets and liabilities

(a) The Group has recognised the following revenue-related contract assets and liabilities:

Contract assets - customer contract Less: Allowance for uncollectible accounts Contract liabilities - advance receipts from customers	June30,2024 December31,2023 139,750 $ 141,779 $ - 2,397) ( 139,750 $ 139,382 $ 212,193 $ 175,267 $	June30,2023 154,136 $ - 154,136 $ 192,672 $	January1,2023 99,294 $ - 99,294 $
			156,697 $

(b) Revenue recognised that was included in the contract liability balance at the beginning of the period

Revenue recognised that was included in period	the contract liability balance at the beginning of the	the contract liability balance at the beginning of the
Revenue recognised that was included in the contract liabilities balance at the beginning of the period Advance receipts Revenue recognised that was included in the contract liabilities balance at the beginning of the period Advance receipts	Three months ended June 30
	2024 2023 14,374 $ 17,486 $ 2024 2023 38,839 $ 45,254 $ Six months ended June 30	2023
		17,486 $
		45,254 $

The Group does not expect to have any contracts wherein the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year or contracts that are billed in accordance with actual service hour. As permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed.

(17) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost Interest income from contract assets	Three months ended June 30
	2024 1,177 $ 2,463 15 3,655 $	2023
		828 $ 3,084 -
		3,912 $

~27~

Interest income from bank deposits Interest income from financial assets measured at amortised cost Interest income from contract assets

	Six months	ended	June 30
	2024		2023
$	4,992	$	3,040
	5,375		5,139
	15		-
$	10,382	$	8,179

(18) Other income

Other income
			Threemonths	ended June 30
			2024			2023
Commission income		$	57		$	-
Others			43			128
		$	100		$	128
			Six months ended June 30
			2024			2023
Commission income		$	57		$	181
Others			115			340
		$	172		$	521
Other gains and losses
			Three months	endedJune30
			2024			2023
Gains on disposals of property, plant and
equipment		$	1,257		$	-
Foreign exchange gain			8,574			5,846
Gains on disposal of investments			-			45,434
		$	9,831		$	51,280
			Six months ended June 30
			2024			2023
Gains on disposals of property, plant and
equipment		$	1,257		$	-
Foreign exchange gain			28,784			2,608
Gains on disposal of investments			-			45,434
Miscellaneous disbursements	(		318)	(		336)
		$	29,723		$	47,706

(19) Other gains and losses

~28~

(20) Expenses by nature

Expenses by nature
			Threemonths	ended June 30
			2024		2023
Employee benefit expense		$	118,635		$	118,825
Depreciation charges on property,
plant and equipment			669			499
Depreciation charges on right-of-use assets			4,378			4,198
Amortisations			109			98
Operating lease payments			336			325
Outsourcing software			34,959			43,085
Reversal of expected credit losses	(		704)	(		4,926)
Other expenses			5,428			832
Cost of sales			7,851			4,876
Operating costs and expenses		$	171,661		$	167,812
			Six months endedJune30
			2024		2023
Employee benefit expense		$	246,040		$	238,570
Depreciation charges on property,
plant and equipment			1,275			999
Depreciation charges on right-of-use assets			8,353			8,409
Amortisations			217			196
Operating lease payments			794			635
Outsourcing software			76,078			97,246
Reversal of expected credit losses	(		3,547)	(		3,729)
Other expenses			13,507			9,030
Cost of sales			16,337			11,919
Operating costs and expenses		$	359,054		$	363,275

(21) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	Threemonths ended June 30	Threemonths ended June 30
	2024 99,214 $ 9,283 4,537 2,586 3,015 118,635 $	2023
		98,710 $ 9,037 4,433 3,796 2,849
		118,825 $

~29~

		Six months	ended June 30	ended June 30
		2024		2023
Wages and salaries	$	206,831	$	200,650
Labor and health insurance fees		19,816		18,954
Pension costs		9,375		8,842
Directors’ remuneration		4,074		5,040
Other personnel expenses		5,944		5,084
	$	246,040	$	238,570

A. As of June 30, 2024 and 2023, the Group had 320 and 312 employees, respectively.
B. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 5% and not higher than 15% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.
C. For the three months and six months ended June 30, 2024 and 2023, employees’ compensation was accrued at $5,103, $9,172, $6,256 and $10,321, respectively; while directors’ remuneration was accrued at $1,701, $3,057, $2,085 and $3,440, respectively. The aforementioned amounts were recognised in salary expenses.
D. Employees’ compensation and directors’ remuneration were estimated and accrued based on 9% and 3% of distributable profit of current year for the six months ended June 30, 2024, respectively.
E. Employees’ compensation and directors’ remuneration for 2023 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2023 financial statements.
F. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~30~

(22) Income tax

A. Income tax expense

(a) Components of income tax expense:

ome tax expense Components of income tax expense:
			Threemonths	ended June 30
			2024		2023
Current tax:
Current tax on profits for the
period		$	6,985		$	3,828
Prior year income tax over estimation	(		10)	(		102)
Total current tax			6,975			3,726
Deferred tax:
Origination and reversal of
temporary differences			67			3,434
Income tax expense		$	7,042		$	7,160
			Six months endedJune30
			2024		2023
Current tax:
Current tax on profits for the
period		$	8,564		$	3,828
Prior year income tax over estimation	(		10)	(		102)
Total current tax			8,554			3,726
Deferred tax:
Origination and reversal of
temporary differences	(		114)			5,868
Income tax expense		$	8,440		$	9,594

(b) The income tax (charge)/credit relating to components of other comprehensive income and loss is as follows:

Currency translation differences Currency translation differences	2024 2023 310 $ 526) ($ 2024 2023 185 $ 584) ($ Three months endedJune30 Six months endedJune30

~31~

B. As of June 30, 2024, the Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority. On January 6, 2023, the Company has paid an additional tax of $128 for the year ended December 31, 2020 based on the approved assessment results.
C. ARES GROUP CORP., WELJOIN TECHNOLOGIES LIMITED (BVI) and SHARP KEEN MANAGEMENT LIMITED are companies that were established in Seychelles and British Virgin Islands, respectively. These companies have no income tax.

(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Three	months endedJune30,2024
	Amount aftertax 42,918 $ 42,918 $ - 42,918 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 47,254 47,254 417 47,671	Earnings per share (indollars)
			0.91 $
			0.90 $

~32~

Three	months ended June 30,2023	months ended June 30,2023
Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (sharesinthousands) (indollars) 82,605 $ 47,254 1.75 $ 82,605 $ 47,254 - 186 82,605 $ 47,440 1.74 $ Six months ended June 30,2024		Earnings per share (indollars)
		1.75 $
		1.74 $
Amount aftertax 52,613 $ 52,613 $ - 52,613 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 47,254 47,254 440 47,694	Earnings per share (indollars)
		1.11 $
		1.10 $

~33~

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees' compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (sharesinthousands) (indollars) 91,249 $ 47,254 1.93 $ 91,249 $ 47,254 - 186 91,249 $ 47,440 1.92 $ Six months endedJune30,2023

(24) Supplemental cash flow information

Financing activities with no cash flow effects:

Financing activities with no cash flow effects:	Financing activities with no cash flow effects:	Financing activities with no cash flow effects:	Financing activities with no cash flow effects:
Changes in liabilities from financing activities 2024 2023 Cash dividends declared but yet to be paid 155,331 $ 133,948 $ Six months ended June 30 Leaseliabilities Liabilities from financing activities-gross Leaseliabilities Liabilities from financing activities-gross At January 1 16,655 $ 16,655 $ 6,971 $ 6,971 $ Changes in cash flow from financing activities 8,412) ( 8,412) ( 8,547) ( 8,547) ( Impact of changes in foreign exchange rate 14 14 35) ( 35) ( Changes in other non-cash items 7,109 7,109 26,657 26,657 At June 30 15,366 $ 15,366 $ 25,046 $ 25,046 $ 2024 2023
	Lease	liabilities 6,971 8,547) 35) 26,657 25,046
			6,971 $ 8,547) ( 35) ( 26,657 25,046 $
	$

(25) Changes in liabilities from financing activities

~34~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Group ARGO INTERNATIONAL CORPORATION Associate M-Power Information Co., Ltd. " ARES INTERNATIONAL (THAILAND) CO., LTD. " MYSHINE TECHNOLOGY CO., LTD. " MiTAC INC. Key management MiTAC INTERNATIONAL TECHNOLOGY CORP. "

(2) Significant related party transactions

A. Operating revenue

Sales of goods: -Associates -Key management Sales of goods: -Associates -Key management	2024 2023 235 $ - $ 437 45 672 $ 45 $ 2024 2023 501 $ - $ 1,286 90 1,787 $ 90 $ Threemonths ended June 30 Six months ended June 30	2024 2023 235 $ - $ 437 45 672 $ 45 $ 2024 2023 501 $ - $ 1,286 90 1,787 $ 90 $ Threemonths ended June 30 Six months ended June 30
		- $ 90
		90 $

Most of the transactions in relation to sales, services and maintenance made with related parties are separate cases, thus the transaction prices are determined based on mutual agreement. Except for the payment term of 60 days after monthly billings, other terms would be available to third parties.

B. Purchases

Purchases
Purchases of goods: -Associates Purchases of services: -Associates	Threemonths ended June 30
	2024 66 $ 114 180 $	2023
		- $ 632
		632 $

~35~

		Six months	ended June 30	ended June 30
		2024		2023
Purchases of goods:
-Associates	$	66	$	-
Purchases of services:
-Associates		114		632
	$	180	$	632

(a) The Group’s purchases are made for each system integration projects and are only purchased from related parties. Therefore, the purchase price is determined based on mutual agreement. Except for the payment term of 60 days after monthly billings, other terms would be available to third parties.
(b) Most of the transactions in relation to services and maintenance made with related parties are separate cases, thus the transaction prices are determined based on mutual agreement. Except for the payment term of 60 days after monthly billings, other terms would be available to third parties.
C. Receivables from related parties

		June 30,2024	June 30,2024	December31,	2023		June 30,2023
Accounts receivable
-MiTAC INTERNATIONAL
TECHNOLOGY CORP.	$		410	1,284 $		$	-
Payables to related parties
		June	30,2024	December31,2023			June 30, 2023
Accounts payable
-M-Power						$	-
Information Co., Ltd.	$		93	$	-
-MYSHINE
TECHNOLOGY CO.,			-		314		663
	$		93	$	314	$	663

D. Payables to related parties
E. Prepayments from related parties

Prepayments from related parties
-Associates -Key management Prepayments	June 30,2024 124 $ 1 125 $	December31,2023 - $ 2 2 $	June 30,2023
			124 $ 1
			125 $

E. In 2021, the Group entered into a three-year Argo ERP maintenance contract with an associate, in the amount of $748. The Group recognised $125 in prepayments and $125 as operating expenses for the three months and six months ended June 30, 2024 and 2023, respectively.

~36~

(3) Key management compensation

Key management compensation
		Threemonths ended June 30
		2024		2023
Salaries and other short-term employees'
benefits	$	14,669	$	17,919
		Six months ended June 30
		2024		2023
Salaries and other short-term employees'
benefits	$	35,403	$	37,893

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset June 30, 2024 Time deposits (shown as financial assets at amortised cost - current) 3,207 $ Guarantee deposits paid (shown as other current assets) 49,915 Guarantee deposits paid (shown as other non-current assets) 9,509 62,631 $	Book value	June 30,2023 Purpose 3,654 $ Bid bond 46,995 Bid bond and performance bond 7,698 Guarantees provided for leasing 58,347 $	Purpose
	December31,2023 3,207 $ 49,906 7,635 60,748 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

June 30, 2024 December 31, 2023 June 30, 2023 Software products $ 8,813 $ 8,634 $ 5,207

B. As of June 30, 2024, December 31, 2023 and June 30, 2023, the Group received promissory notes amounting to $8,650, $8,367 and $8,245 as performance guarantees, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

~37~

12. OTHERS

(1) Capital management

There was no significant change during the reporting period. Refer to Note 12 in the consolidated financial statements for the year ended December 31, 2023.

(2) Financial instruments

A. Financial instruments by category

ancial instruments Financial instruments by category
Financial assets Financial assets at amortised cost/Loans and receivables Cash and cash equivalents Current financial assets at amortised cost Notes receivable Accounts receivable Accounts receivable due from related parties Other receivables Guarantee deposits paid (shown as other current assets) Guarantee deposits paid (shown as other non- current assets) Financial liabilities Financial liabilities at amortised cost Accounts payable Accounts payable to related parties Other payables Lease liabilities	June 30,2024 468,316 $ 480,250 4,584 107,047 410 3,578 49,915 9,509 1,123,609 $ 56,034 $ 93 287,656 343,783 $ 15,366 $	December31,2023 553,759 $ 396,707 237 76,592 1,284 3,842 49,906 7,635 1,089,962 $ 69,487 $ 314 151,306 221,107 $ 16,655 $	June 30,2023
			501,316 $ 418,607 - 86,635 - 17,378 46,995 7,698
			1,078,629 $
			53,504 $ 663 264,231
			318,398 $
			25,046 $

B. Financial risk management policies

There was no significant change in the reporting period. Refer to Note 12 in the consolidated financial statements for the year ended December 31, 2023.

~38~

C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.
iii. The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD; other certain subsidiaries’ functional currency: USD and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

Foreign currency amount (inthousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 11,734 $ HKD:NTD 22,431 AUD:NTD 494 EUR:NTD 115 RMB:NTD 20,291 USD:RMB 195 Non-monetary items USD:NTD 553 THB:NTD 1,824		June 30,2024
		Exchange rate 32.45 4.16 21.52 34.71 4.46 7.27 32.45 0.89	Book value (NTD)
			380,768 $ 93,313 10,631 3,992 90,498 6,323 17,945 1,617

~39~

==> picture [430 x 504] intentionally omitted <==

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

December 31, 2023
Foreign currency
amount Exchange Book value
(in thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 11,134 30.71 $ 341,925
HKD:NTD 20,131 3.93 79,115
AUD:NTD 490 20.98 10,280
EUR:NTD 114 33.98 3,874
RMB:NTD 21,963 4.32 94,880
USD:RMB 281 7.10 8,619
Non-monetary items
USD:NTD 626 30.71 19,217
THB:NTD 3,528 0.90 3,181
June 30, 2023
Foreign currency
amount Exchange Book value
(in thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 9,730 31.14 $ 302,992
HKD:NTD 19,646 3.97 77,995
AUD:NTD 485 20.62 10,001
EUR:NTD 114 33.81 3,854
RMB:NTD 21,316 4.30 91,659
USD:RMB 241 7.25 7,513
RMB:USD 1,082 0.14 4,717
Non-monetary items
USD:NTD 469 31.14 14,620
THB:NTD 4,065 0.88 3,583
----- End of picture text -----

iv. The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and six months ended June 30, 2024 and 2023, amounted to $8,574, $5,846, $28,784 and $2,608, respectively.

~40~

v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

Six months endedJune30,2024	Six months endedJune30,2024	Six months endedJune30,2024
Sensitivityanalysis
Effect on other Degree of Effect on comprehensive variation profit or loss income 1.00% 3,808 $ - $ 1.00% 933 - 1.00% 106 - 1.00% 40 - 1.00% 905 - 1.00% 63 - 1.00% - 179 1.00% - 16 Six months endedJune30,2023		Effect on other comprehensive income
Sensitivityanalysis
Degree of variation 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%	Effect on profit or loss 3,030 $ 780 100 39 917 75 47 - -	Effect on other comprehensive income
		- $ - - - - - - 146 36

~41~

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise domestic beneficiary certificates and equity instrument issued by foreign listed companies. The prices of equity securities would change due to the variation of the future value of investee companies. If the prices of these equity securities had increased or decreased by 1% with all other variables held constant, post-tax profit for the six months ended June 30, 2024 and 2023, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost.
ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.
iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iv. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.
v. The Group classifies customers’ accounts receivable and contract assets in accordance with customer types. The Group applies the simplified approach using the provision matrix, loss rate methodology to estimate expected credit loss.

~42~

vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vii.The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable and contract assets. As of June 30, 2024, December 31, 2023 and June 30, 2023, the provision matrix and loss rate methodology are as follows:

Group1 June 30, 2024 Expected loss rate Total book value Loss allowance Group1 December 31, 2023 Expected loss rate Total book value Loss allowance Group1 June 30, 2023 Expected loss rate Total book value Loss allowance	Not past due 0.00%~ 0.1% 82,115 $ 5 $ Not past due 1.38%~ 3.23% 49,205 $ 1,126 $ Not past due 1.38%~ 3.23% 55,002 $ 1,160 $	Up to 90 days 0%~ 3.13% 9,549 $ 54 $ Up to 90 days 4.18%~ 13.87% 7,496 $ 505 $ Up to 90 days 4.18%~ 13.87% 10,473 $ 600 $	91-180 days 0.01% ~12.5% 1,412 $ 176 $ 91-180 days 10.42%~ 25% 1,017 $ 109 $ 91-180 days 10.04%~ 25% 2,574 $ 282 $	181-270 days 0.15% ~25% 2,100 $ 17 $ 181-270 days 12.75%~ 35.83% - $ - $ 181-270 days 11.69%~ 35.83% 139 $ 16 $	Over 270 days 100.00% 5,212 $ 5,212 $ Over 270 days 100% 4,812 $ 4,812 $ Over 270 days 100% 6,554 $ 6,554 $	Total
						100,388 $ 5,464 $ Total 62,530 $ 6,552 $ Total
						74,742 $ 8,612 $

~43~

June 30, 2024 Expected loss rate Total book value Loss allowance December 31, 2023 Expected loss rate Total book value Loss allowance June 30, 2023 Expected loss rate Total book value Loss allowance	Individual 0% 139,750 $ - $ Individual 1.69% 141,779 $ 2,397 $ Individual 0% 154,136 $ - $	Group2 0% 11,926 $ - $ Group 2 0% 10,455 $ - $ Group2 0% 18,509 $ - $	Group 3 Total 0% 197 $ 151,873 $ - $ - $ Group 3 Total 0% 10,159 $ 162,393 $ - $ 2,397 $ Group 3 Total 0% 1,996 $ 174,641 $ - $ - $

Group 1: General business

Group 2: Government-owned corporation

Group 3: Government organisations

ix. As of June 30, 2024, December 31, 2023 and June 30, 2023, contract assets amounted to $139,750, $139,382 and $154,136, respectively, and loss allowance are $0, $2,397 and $0, respectively, and the expected credit loss rate are 0%, 1.69% and 0%, respectively.
x. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable and contract assets are as follows:

						2024	2024
			Accounts			Contract	Notes
			receivable			assets	receivable				Total
At January 1		$	6,552		$	2,397	$	-		$	8,949
Reversal of impairment loss	(		1,150)	(		2,397)		-	(		3,547)
Effects of foreign exchange			62			-		-			62
At June 30		$	5,464		$	-	$	-		$	5,464
						2023
			Accounts			Contract	Notes
			receivable			assets	receivable				Total
At January 1		$	12,422		$	-	$	-		$	12,422
Impairment loss	(		3,729)			-		-	(		3,729)
Effects of foreign exchange	(		81)			-		-	(		81)
At June 30		$	8,612		$	-	$	-		$	8,612

~44~

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

==> picture [447 x 328] intentionally omitted <==

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

Non-derivative financial liabilities: Less than Between 3 Between 2 and
June 30, 2024 3 months months and 2 years 5 years Total
-
Accounts payable $ 54,964 $ 1,070 $ $ 56,034
Accounts payable-related parties 93 - - 93
-
Other payables 250,704 36,952 287,656
Lease liabilities 4,186 9,978 1,753 15,917
$ 309,947 $ 48,000 $ 1,753 $ 359,700
Non-derivative financial liabilities: Less than Between 3 Between 2 and
December 31, 2023 3 months months and 2 years 5 years Total
Accounts payable $ 68,742 $ 745 $ - $ 69,487
Accounts payable-related parties 314 - - 314
-
Other payables 121,620 29,686 151,306
Lease liabilities 4,272 12,477 148 16,897
$ 194,948 $ 42,908 $ 148 $ 238,004
Non-derivative financial liabilities: Less than Between 3 Between 2 and
June 30, 2023 3 months months and 2 years 5 years Total
-
Accounts payable $ 51,335 $ 2,169 $ $ 53,504
Accounts payable-related parties 663 - - 663
-
Other payables 224,240 39,991 264,231
Lease liabilities 4,347 20,872 370 25,589
$ 280,585 $ 63,032 $ 370 $ 343,987
----- End of picture text -----

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

~45~

Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in financial assets at fair value through other comprehensive income is included in Level 3.
B. Financial instruments not measured at fair value
The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, notes payable, accounts payable and other payables are approximate to their fair values.
C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

June 30, 2024 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income $ - $ - $ - $ - December 31, 2023 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income $ - $ - $ - $ - June 30, 2023 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income $ - $ - $ - $ -

D. The methods and assumptions the Group used to measure fair value are as follows:
(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Closed-end fund Open-end fund Market quoted price Closing price Closing price Net asset value

~46~

(b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).
E. For the six months ended June 30, 2024 and 2023, there was no transfer between Level 1 and Level 2.
F. For the six months ended June 30, 2024 and 2023, there was no transfer into or out from Level 3.
G. Finance segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.
H. Valuation techniques of fair value that the Group used in level 3 are net asset value and market comparable companies. The significant unobservable input of market comparable companies is the discount for lack of marketability. If the input and discount for lack of marketability are higher, the fair value will be lower.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 1.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.

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H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: None.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 2.

(3) Information on investments in Mainland China

A. Basic information: Refer to table 3.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

Major shareholders information: Refer to table 4.

14. SEGMENT INFORMATION

(1) General information

A. Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.
B. There is no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information during this period.

(2) Segment information

The Group’s segment profit and loss is measured with the operating income and loss, which is used as a basis for the Group in assessing the performance of the operating segments. The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

Six months ended June 30, 2024:

				Financial
	Commercial			business		Project
		segment		segment		segment		Total
Revenue from external customers	$	202,636	$	118,811	$	47,907	$	369,354
Inter-segment revenue		7,315		-		-		7,315
Total segment revenue	$	209,951	$	118,811	$	47,907	$	376,669
Segment income	$	10,662	$	11,565	($	4,612)	$	17,615
Segment income (loss), including:
Depreciation and amortisation	($	4,422)	($	4,336)	($	1,087)	($	9,845)

~48~

Six months ended June 30, 2023:

			Financial
	Commercial		business		Project
		segment	segment		segment		Total
Revenue from external customers	$	215,488	113,855 $	$	65,259	$	394,602
Inter-segment revenue		5,383	-		-		5,383
Total segment revenue	$	220,871	113,855 $	$	65,259	$	399,985
Segment income	$	7,441	23,790 $	$	5,479	$	36,710
Segment income (loss), including:
Depreciation and amortisation	($	4,567)	3,888) ($	($	1,149)	($	9,604)

The Group did not disclose the information in relation to segment assets and segment liabilities as this information is not provided to the Chief Operating Decision-Maker.

(3) Reconciliation for segment income and loss

The segment operating income reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income. The Group did not provide the amounts of total assets and total liabilities to the Chief Operating Decision-Maker for making operating decisions. The reconciliation on segment revenue, operating revenue, segment income/loss and income/loss before tax from continuing operations of reportable segment are as follows:

			Six months ended June 30	Six months ended June 30	Six months ended June 30
Profit or loss			2024		2023
Total reportable segment revenue		$	376,669		$	399,985
Write-off of inter-segment revenue	(		7,315)	(		5,383)
Operating revenue		$	369,354		$	394,602
			Six months endedJune30
Profit or loss			2024		2023
Segment income		$	17,615		$	36,710
Adjustments and write-offs	(		7,315)	(		5,383)
Non-operating income and expenses			50,670			69,458
Income before tax from continuing operations		$	60,970		$	100,785

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ARES INTERNATIONAL CORP. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Six months ended June 30, 2024

Securities held by Table 1	Marketable securities(Note 1)	Relationship with the securities issuer（Note 2）	General ledger account		As ofJune 30,2024	As ofJune 30,2024	(Except a Expressed	Footnote(Note 4) s otherwise indicated) in thousands of NTD
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
ARES INTERNATIONAL CORP.	Common shares/Formosa First Country Club	-	Financial assets at fair value through other comprehensive income	2,025	- $	0.01%	- $	-

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities in accordance with IFRS9, ‘Financial instruments’. Note 2: Leave the column blank if the issuer of marketable securities is a non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 1 Page 1

Names, locations, and related information on investees (excluding information on investment in Mainland China) Six months ended June 30, 2024

Table 2

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee (Note1and2)	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Sharesheld as at June 30,2024	Sharesheld as at June 30,2024	Sharesheld as at June 30,2024	Net profit (loss) of the investee for the six months ended June 30, 2024(Note2(2))	Investment income (loss) recognised by the Company for the six months ended June 30, 2024(Note2(3))	Footnote
				Balance as at June 30, 2024	Balance as at December 31,2023	Number of shares	Ownership (%)	Bookvalue
ARES INTERNATIONAL CORP. " " " " " ARES GROUP CORP. SHARP KEEN MANAGEMENT LIMITED	ARGO INTERNATIONAL CORPORATION M-POWER INFORMATION CO., LTD. MYSHINE TECHNOLOGY CO., LTD. ARES GROUP CORP. ARES INTERNATIONAL (THAILAND) CO., LTD. WELJOIN TECHNOLOGIES LIMITED (BVI) SHARP KEEN MANAGEMENT LIMITED BLITZ IT CONSULTANTS PTE LTD.	Taiwan " " Seychelles Thailand British Virgin Islands " Singapore	Provides professional service of computer application software and sells computer peripheral equipments Agency and sale of database system and professional service of software Front-end IoT integration and back-end management platform solution research and development application Investment business Provides professional service of computer application software and sells computer peripheral equipments Investment business " Agency of computer software and internet	16,974 $ 25,255 3,000 35,029 6,865 26,177 34,115 33,256	16,974 $ 25,255 3,000 35,029 6,865 26,177 34,115 33,256	1,863,446 3,843,015 200,000 1,500,000 1,470,000 50,000 1,120,000 484,000	33.88 17.47 40.00 100.00 49.00 100.00 100.00 25.00	26,754 $ 94,841 809 18,268 1,617 30,195 18,015 17,945	10,890 $ 56,499 1,055) ( 1,249) ( 3,084) ( 2,005) ( 1,251) ( 5,004) (	3,690 $ 9,870 119) ( 1,249) ( 1,513) ( 2,005) ( Note 3 Note 3	Subsidiary Subsidiary Subsidiary

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1)The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at June 30, 2024’ should fill orderly in the Company’s (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.

(2)The ‘Net profit (loss) of the investee for the six months ended June 30, 2024’ column should fill in amount of net profit (loss) of the investee for this period.

(3)The ‘Investment income (loss) recognised by the Company for the six months ended June 30, 2024’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations. Note 3: Investment income (loss) for the period was recognised by subsidiaries of investees.

Table 2 Page 1

Table 3

ARES INTERNATIONAL CORP. AND SUBSIDIARIES Information on investments in Mainland China Six months ended June 30, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Investment flows

Investeein Mainland China	Main business activities	Paid-in capital (Note 3)	Investment method	Beginning balance of accumulated outflow of investment from Taiwan	Remitted to Mainland China	Remitted back to Taiwan	Ending balance of accumulated outflow of investment from Taiwan	Net income of investee for the six months ended June 30,2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six months ended June 30, 2024 （Note2）	Book value of investments in Mainland China as of June 30, 2024	Accumulated amount of investment income remitted back to Taiwan as of June 30,2024	Note
APLUSOFT (SUZHOU) CORPORATION.	Research and development of enterprise management software and sale of self-produce product of the Company	$ 25,228	Note 1	$ 7,033	-	$ -	$ 7,033	2,016) ($	95.88	1,933) ($	$ 28,794	18,669 $	Note 4

Note 1: Through investing in an existing company in the third area, which then invested in the investee in Mainland China. The investee in the third area is WELJOIN TECHNOLOGIES LIMITED (BVI). Note 2: The financial statements were not reviewed by independent auditors.
Note 3: The paid-in capital of Aplusoft (Suzhou) Corporation amounted to RMB5,215,000 (USD750,592).
Note 4: Cash dividends included in the accumulated amount of investment income remitted back to Taiwan which had been approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) amounted to $9,053 (RMB 2,069,896.59/USD 295,672.69).

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as ofJune 30,2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
ARES INTERNATIONAL CORP.	56,479 $	77,296 $	487,285 $

Table 3 Page 1

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

Major shareholders information June 30, 2024

Table 4

Name of major shareholders YU, HONG-YANG

Shares	Shares
Number of shares held	Ownership (%)
$ 3,558,449	7.53%

Note 1:The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded in the financial statements is different from the actual number of shares issued in dematerialised form because of the different calculation basis or the differences.

Note 2: If the aforementioned data contains shares which were held in trust by the shareholders, the data was disclosed as separate account of client which was set by the trustee. As for the shareholder who reports share equity as an insider whose shareholding ratio greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio includes the self-owned shares and trusted shares, at the same time, the shareholders have power to decide how to allocate the trust assets. For the information of reported share equity of insider, please refer to Market Observation Post System.

Table 4 Page 1

AI assistant

ARES — Interim / Quarterly Report 2024

52107_rns_2024-12-24_42c4558c-777b-4ea9-b75d-8a0201f8821e.pdf

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

August 9, 2024

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

ARES INTERNATIONAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2024 AND 2023

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2024 AND 2023

ARES INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

ARES INTERNATIONAL CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

not yet adopted by the Group

IFRS 18, ‘Presentation and disclosure in financial statements’

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1) Compliance statement

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

(4) Non-current assets held for sale

(5) Employee benefits

(6) Income taxes

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at amortised cost

(3) Notes and accounts receivable

(4) Prepayments

(6) Investments accounted for using the equity method

(7) Property, plant and equipment

－ (8) Leasing arrangements lessee

(9) Accounts payable

(10) Other payables

(11) Pensions

(12) Provisions

(13) Share capital

(14) Capital surplus

2024

(15) Retained earnings

E. Distribution of retained earnings:

(16) Operating revenue

B. Contract assets and liabilities

(17) Interest income

(18) Other income

(19) Other gains and losses

(20) Expenses by nature

(21) Employee benefit expense

(22) Income tax

A. Income tax expense

(a) Components of income tax expense:

(23) Earnings per share

(24) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions

A. Operating revenue

B. Purchases

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

ARES Interim / Quarterly Report 2024

`－` (8) Leasing arrangements lessee