Hiper Global Ltd.

Quarterly Report • Nov 19, 2024

Periodic report for the quarter ended September 30, 2024

Table of Contents

Chapter A - Board of Directors' Report on the State of the Corporations' Affairs

Chapter B-Interim Condensed Consolidated Financial Statements as of September 30, 2024

This is an English translation of parts of the information in the full Hebrew report of the company, that was published on November 14, 2024 (reference no.: 2024-01-615736) at the ISA reporting website (magna.isa.gov.il) (hereafter: "the Hebrew Version"). This English version is voluntary and only for convenience purposes. This is not an official translation and has no binding force. The translation in any case cannot perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

Board of Directors' Report on the Corporation's State of Affairs for the period ended September 30, 2024

The Board of Directors of Hiper Global Ltd. ("The Company) hereby submits the Board of Directors' report on the state of affairs of the Company ("The Report") which reviews the key changes in the Company's operations for the period of the nine months ended September 30, 2024 and until the date of this report ("The Reported period") and during three months then ended ("The Quarter") in accordance with the Securities Regulations (periodic and Immediate Reports) – 1970, as detailed below.

The Company was incorporated on October 14, 2021, as a private company limited by shares pursuant to the Israeli Companies Law, -1999 ("The Companies Law") for the purpose of splitting the OEM activity (as defined below) from Emet Computing Ltd. ("Emet Computing"). From the split completion date on March 8, 2022, the Company is engaged directly and through subsidiaries under its control in the characterization, planning and assembly of custom made computing systems (the "Products" or "the Company's products") which are integrated (OEM - Original Equipment Manufacturer) into the products of its customers they are selling to their end customers. This kind of activity includes the development of the products, including the definition of appropriate infrastructures (hardware and software), the execution of planning and development processes for mechanical solutions, electronics and thermal analyzes of the product, management and documentation of the engineering information - including building the product portfolios, management of production processes and planning and execution of quality inspection processes of the products. In addition, the activity includes a service of full management of local or global production and logistics supply processes, including management of the supply chain of assembled systems according to the customer's definitions ("OEM activity").

For the offering of the securities according to the split prospectus and registration for trading on the Tel Aviv Stock Exchange Ltd. (the "Stock Exchange"), see immediate report dated February 27, 2022 (reference no.: 2022-01-023794) is the first offering of securities to the public by the Company. On March 8, 2022, the Company's shares were listed for trading on the stock exchange for the first time and the Company became a public company as defined in the Companies Law.

1. Description of the Company and its business environment

The Company, by itself and through subsidiaries and related companies in Israel and abroad ("The Group") specializes in creating computer-based solutions and enables technology companies that develop software products to realize their idea into a tangible product. The Company consults its customers from the planning stage to the stage of the final product available for sale. The Company operates in Israel, Europe and US and provides solutions with global deployment. The Company's activities include co-working with its customers R&D groups and tailoring complex technological solutions according to their needs. In the following stages, the Company manufactures and delivers the systems it has designed in a global deployment according to its customers' business needs.

The Company operates and reports two operating segments: the Israel operation segment and the International operation segment, which are characterized by a very high technological complexity. Due to the positioning of the Israeli high-tech market at the forefront of global technology, the Company has developed extensive expertise and knowledge and has gained an immense wide broad experience, which is applied in the abroad operating segment with global customers operating mainly from the United States and the UK, with the aim of expanding and deepening the penetration of foreign markets. The Company operates in a wide number of sectors including: semiconductor industries, the field of artificial intelligence (AI), defense industries, companies in the cyber field, media, data storage, printing and medical equipment.

2. Events in the corporation's activity during the reported period and up to the date of its publication

• 2.1 For events that occurred from January 1, 2024 until the publication date of the second quarter report for 2024 that was published on August 14, 2024 (reference no.: 2024-01-082062) ("The board of directors' report for the second quarter of 2024") see section 2 of the board of directors' report of the company for the periodic report for 2023 and section 2 of the board of directors' report of the company for the first quarter of 2024 that was published on May 16, 2024 (reference no.: 2024-01-050415) and section 2 of the board of directors' report for the second quarter for 2024.
• 2.2 On August 26, 2024, the Company reported that the Company's board of directors approved (after approval by the audit committee) an update of the services agreement between the Company and Emet Computing, thisin light of Mr. Roy Harari's announcement of the termination of his position as VP of Business Development at Emet Computing on October 6, 2024, so that the parties agreed to end the provision of VP business development services provided by Emet Computing through Mr. Roy Harari by virtue of service agreement in 47 days in lieu of 90 days as stipulated in the services agreement. In addition, in lieu of receiving VP business development services of Mr. Harari by Emet Computing through the aforementioned services agreement, the Company's board of directors approved (after receiving the recommendation of the remuneration committee) a direct engagement with Mr. Harari for the purpose of receiving the services of VP of Business Development effective October 7, 2024. For more details regarding the update of the services agreement and the direct engagement for VP Business Development services, see an immediate report from August 26 2024 (reference no.: 2024-01-088125).
• 2.3 On September 18, 2024, an annual general meeting of the Company's shareholders was held, in which the following decisions were made: (a) Re-appointment of the accounting firm of Kost Forer Gabbay & Kasierer (EY) for another term as the Company's auditor until the end of the next annual general meeting; (b) Re-appointment of the directors serving in the Company who

are not external directors, Messrs Gillon Beck (chairman of the joint board of directors), Yoav Weinberg (chairman of the active board of directors), Amit Ben Zvi, Ehud Lavi, Ofer Shelah and Talia Levine (independent director). For more details, see the report on the results of the general meeting from September 18, 2024 and the report on summoning the meeting from August 14, 2024 (reference no.: 2024-01-604248 and 2024-01-082071, respectively).

• 2.4 On September 30, 2024, the approval of the Registrar of Companies was received for the merger of the subsidiary Hiper Global Enterprise Ltd. (a wholly owned company, 100%), with and into the Company ("the Merger"). The date of the merger was set for September 30, 2024. The merger of the companies is part of a reorganization intended for a business and economic purpose.
• 2.5 On November 13, 2024, the Company's board of directors approved the distribution of a dividend to the Company's shareholders (which meets the distribution tests set forth in the Companies Law), in a total amount of approximately NIS 2,825 thousand. For more details, see an immediate report regarding the distribution of the dividend that will be published on or about the publication date of this report.
• 2.6 Against the background of the global geopolitical environment and the war situations in recent times (among other things, the Russia-Ukraine war and its consequences for the neighboring countries and the entire NATO alliance and between Israel and its neighbors) there is a noticeable increase in the activities of the group's companies with clients from the defense sector (in Israel and abroad).

In this framework, the Company takes advantage of the unique presence and the knowledge it has gained in its activity in selling products to this sector.

These products are characterized by high complexity, significant adjustments of computing components to the point of developing solutions from the ground up.

3. Financial position

• 3.1 The Group's total assets according to the financial statements as of September 30, 2024, amounted to approximately \$ 176,769 thousand and as of December 31, 2023, amounted to approximately \$ 173,049 thousand.
• 3.2 Below are the key changes in the Group's financial position as of September 30, 2024, compared to the statement of financial position as of December 31, 2023 (US dollars in thousands):

Item	As of September 30	As of December 31	Company's explanations
Current assets	2024 143,330	2023 146,262	The main change in the volume of current assets is due to a decrease in cash balance in the amount of \$ 2,918 thousand and a decrease in trade receivables' balance in the amount of \$ 3,001 thousand and on the other hand an increase in inventory balance balances of \$ 3,223 thousand.
Non-current assets	33,439	26,787	The main increase in the volume of non-current assets is due to an increase in right-of-use assets due to long term new lease agreements of the subsidiaries in the UK and US .
Total assets	176,769	173,049
Current liabilities	71,556	80,471	The main change in the volume of current liabilities stems from a decrease in the trade payables balance in the amount of \$ 9,657 thousand and other accounts payables balance in the amount of \$ 3,259 thousand, and on the other hand an increase in the balance of prepaid income in the amount of \$ 4,111 thousand.
Non-current liabilities	17,208	13,083	The main change in the volume of long-term liabilities stems from an increase in lease liabilities due to new lease agreements in the subsidiaries in the UK and US against a decrease in long term loans from current repayments and adjustments in liabilities for contingent consideration.
Equity	88,005	79,495	The main change in equity is due to the increase in the total profit amounting to \$ 11,897 thousand, net of the dividend declared in the amount of \$ 3,827 thousand.
Total liabilities and equity	176,769	173,049

4. Operating results

4.1 The following are the condensed consolidated statements of profit or loss for the nine months ended September 30, 2024 and 2023 (US dollars in thousands):

	For the period of nine months ended September 30
Item	2024	2023	Change in %	Company's explanations
Revenues	209,279	213,934	)2.2%(	The decrease in revenue is mainly due to a one time project in the amount of approximately \$ 35 million (see immediate report dated August 6, 2023, reference no.: 2023-01-089808) which was mostly provided in the third quarter of 2023 ("One-Time Project"). This decrease was offset by increase in revenues in the organic activity in both operations segments.
Gross profit	35,680	34,377	3.8%	The increase in gross profit is due to a change in the mix of revenues and accordingly from the improvement in the rate of profitability.
Gross profit rate	17.0%	16.1%
Selling, general and administrative and other expenses	17,105	18,027	)5.1%(	The decrease in selling and administrative expenses results from a decrease in amortizations of intangible assets and a decrease in expenses attributed to management and option plans.
Operating income	18,575	16,350	13.6%	The increase in operating income is mainly due to the increase in gross profit, alongside the decrease in selling, administrative and other expenses as mentioned above.
Operating income rate	8.9%	7.6%
Financial expenses, net	2,482	2,837	)12.5%(	The decrease in financial expenses is mainly from a decrease in interest expenses which were partially offset by liability value adjustments.
Taxes on income	4,341	4,204	3.3%	The change in tax expenses is due to the increase in profit before taxes which was partially offset due to change in deferred taxes.
Net income	11,752	9,309	26.2%
				The increase – according to the increase in

(*) EBITDA (data is not audited and not reviewed): Operating income excluding other expenses/income and excluding depreciation EBITDA (*) 21,991 19,980 10.1% operating income, see above.

and amortization expenses. The figure is included in the report as it provides information on profit from current operations, excluding expenses that do not involve cash flows.

4.2 The following are the condensed consolidated statements of profit or loss for the three months ended on September 30, 2024 and 2023 (US dollars in thousands):

Item	For the period of three months ended September 30		Change in %	Company's explanations
	2024	2023
Revenues	62,377	81,241	)23.2%(	The decrease in revenue is mainly due to a one time project which was mostly provided in the corresponding quarter, while excluding this transaction, the Company shows an increase in revenue in organic activity, mainly in the international operations segment.
Gross profit	11,534	11,702	)1.4%(	The change in gross profit is due to the aforementioned decrease in revenues, which was partly offset by the mix of revenues at a higher profitability rate.
Gross profit rate	18.5%	14.4%
Selling, general and administrative and other expenses	5,848	5,216	12.1%	The increase in selling and administrative expenses results from one-time decrease in expenses that was recorded in the corresponding period.
Operating income	5,686	6,486	)12.3%(	The decrease in operating income is mainly due to the increase in selling, administrative and other expenses.
Operating income rate	9.1%	8.0%
Financial expenses, net	833	641	30.0%	The increase in financial expenses is mainly due to an increase in expenses for exchange rate differences.
Taxes on income	1,009	1,614	)37.5%(	The decrease in tax expenses is due to a decrease in profit before taxes and change in deferred taxes.
Net income	3,844	4,231	)9.1%(	The change in net income is mainly due to the decrease in the aforementioned operating income.
EBITDA (*)	6,876	7,439	)7.6%(	The decrease – according to the decrease in operating income, see above.

(*) EBITDA (data is not audited and not reviewed): Operating income excluding other expenses/income and excluding depreciation and amortization expenses. The figure is included in the report as it provides information on profit from current operations, excluding expenses that do not involve cash flows.

4.3 Financial information on business operating segments of the group for the period of nine months ended on September 30, 2024 and 2023 (US dollars in thousands):

For the period of nine months ended September 30		Change in
Item	2024	2023	%	Company's explanations
Segment's revenues: Israeli operation	130,656	148,347	)11.9%(	The decrease in revenues is mainly due to a one-time project which was mostly provided in the corresponding period. Excluding this transaction, there was an increase in the segment's revenues.
International operation	83,687	68,284	22.6%	The increase in revenues results from the continued organic expansion of the Company's activities in this segment.
Adjustments	)5,064(	)2,697(
Total revenues	209,279	213,934	)2.2%(
Segment's results: Israeli operation	12,247	11,785	3.9%	The improvement in the results is due to mix of transactions at higher profitability rate along with a decrease in selling administrative and other expenses.
International operation	6,328	4,565	38.6%	The improvement in the results is due to the increase in revenues along with a decrease in selling administrative and other expenses.
Total operating income	18,575	16,350	13.6%

4.4 Financial information on business operating segments of the group for the period of three months ended on September 30, 2024 and 2023 (US dollars in thousands):

	For the period of three months ended September 30		Change
Item	2024	2023	in %	Company's explanations
Segment's revenues: Israeli operation	37,547	64,191	)41.5%(	The decrease in revenues is due to a significant one-time project which was recorded in the corresponding quarter.
International operation	25,886	18,720	38.3%	The increase in revenues is due to the continued organic expansion of the activity.
Adjustments	)1,056(	)1,670(
Total revenues	62,377	81,241	)23.2%(
Segment's results: Israeli operation	3,812	5,109	)25.4%(	The decrease in profit is due to a decrease in segment revenues (including the impact of one-time project as described above).
International operation	1,874	1,377	36.1%	The increase in profit is due to increase in revenues and profitability of the segment in the current quarter (despite, as mentioned, a one-time decrease in G&A expenses recorded in the corresponding quarter).
Total operating income	5,686	6,486	)12.3%(

5. Liquidity

5.1 key figures from the statement of cash flows for period of nine months ended September 30, 2024 and 2023 (dollars in thousands):

The item	For the period of nine months ended September 30
	2024	2023	Company's explanations
Net cash provided by operating activities	9,086	57,152	The change in cash from operating activities is due to changes in the items of working capital from timing differences, mainly due to a decrease in trade payables compared to an increase in the corresponding period and due to an increase in inventory compared to a decrease in inventory in the corresponding period.
Net cash used in investing activities	)1,266(	)946(	The majority of cash for investing activities was used to purchase fixed assets.
Net cash used in financing activities	)10,779(	)39,838(	The use of cash from financing activities in the current period was mainly due to dividend distribution and current repayments of long term loans. In the corresponding period, repayments of short term credit were carried out in large amounts.
Increase (decrease) in cash and cash equivalents	)2,959(	16,368

5.2 key figures from the statement of cash flows for period of three months ended September 30, 2024 and 2023 (dollars in thousands):

The item	For the period of three months ended September 30
	2024	2023	Company's explanations
Net cash provided by operating activities	4,934	37,774	The change in cash from operating activities is due to changes in the items of working capital from timing differences, mainly due to a decrease in trade payables compared to a significant increase in the corresponding period.
Net cash used in investing activities	)439(	)315(	The majority of cash for investing activities was used to purchase fixed assets.
Net cash used in financing activities	)6,850(	)23,840(	The use of cash from financing activities in the current period was mainly due to dividend distribution and repayments of short term credit, in lower amounts than the repayments that were made in the corresponding period.
Increase (decrease) in cash and cash equivalents	)2,355(	13,619

6. Financing Sources

• 6.1 The working capital of the company as of September 30, 2024 is approximately \$ 71,774 thousand compared to a total of approximately \$ 63,563 thousand as of September 30, 2023.
• 6.2 The group companies finance their business activities from independent means (equity), suppliers' credit, bank credit and credit from institutional entities. Purchases of companies are usually financed from own sources in combination with long-term bank/institutional credit. For more details regarding the financing sources, see Section 15.13 in Chapter A of the periodic report for 2023.
• 6.3 The average amount of short-term credit from banking and other corporations in the nine months ended September 30, 2024 was approximately \$ 23,137 thousand and in the nine months ended September 30, 2023 was about \$ 22,671 thousand.
• 6.4 The average amount of long-term loans in the nine months ended September 30, 2024 was about \$ 5,664 thousand and in the nine months ended September 30, 2023 was about \$ 8,428 thousand.
• 6.5 The average amount of credit from suppliers in the nine months ended September 30, 2024 was about \$ 27,789 thousand and in the nine months ended September 30, 2023 it was about \$ 36,251 thousand.
• 6.6 The average amount of credit to customers in the nine months ended September 30, 2024 was about \$ 50,211 thousand and in the nine months ended September 30, 2023 it was about \$ 46,157 thousand.

7. Effects of inflation and interest increase

In the first nine months of 2024, the consumer price index increased by approximately 3.4%, compared to an increase of approximately 2.9% in the corresponding period last year. According to the forecast of the research division of the Bank of Israel that was published in October 2024, the inflation rate during 2024 is expected to be 3.8% and in 2025 is expected to moderate to 2.8%.

On October 9, 2024, the Bank of Israel decided to leave the Bank of Israel interest rate unchanged at 4.5%. In the months of October and November 2024, the Federal Reserve Bank of the United States, as well as the European Central Bank, announced the lowering of interest rates and as of the date of the report, the interest rate in the United States is 4.75%, and the interest rate in the European Union is 3.4%.

The Company estimates that the effect of inflation on the results of its operations is not expected to be material, among other things, since the Company's obligations to banks are not linked to the CPI. However, the high interest rate environment may have a negative impact on the Company's results due to an increase in financing expenses for the current credit lines (in Israel and abroad) that are subject to variable interest rates.

The company's assessment regarding the effect of changes in interest rates and inflation on its financial position, the results of its operations, its financing expenses and its cash flows, is based

on forward-looking information as defined in the Securities Law, 1968. This assessment may not be realized, in whole or in part, or may be realized in a materially different way than expected, among other things, as a result of events that are beyond the company's control.

8. Disclosure regarding the consequences of the war and the security situation in Israel

Further to what is described in Section 6.2.5 in Chapter A of the full Hebrew report attached to the periodic report for 2023, as of the publication date of this report, the State of Israel is still at war in Gaza and the high security tensions in other regions ("The War"). In September 2024, the IDF has launched an extensive ground operation in Lebanon in order to allow the residents of the north to return to their homes.

Due to the continued security tension in the various fronts, during the last few months the international credit rating companies announced the lowering of the credit ratings of the State of Israel with a negative outlook. From the outbreak of the war, the company continued regular operations at all its sites in Israel without interrupting the production and supply of the products. It should be noted that most of the customers to whom the sales are made in Israel are exporters, thus it seems that currently the war has little effect on the global demand for their products.

As of the date of this report, in the company's short and medium-term assessment, based on the information in its possession as of the approval date of the financial statements, is that the security situation is not expected to have a material effect on the results of its operations. At the same time, the continuation of the war beyond a year and its spread to other regions increases the uncertainty and the negative sentiment towards Israel and may impede future activities. The company is unable to predict the duration of the war and the scope of the future effects of the security tensions, if any, on the company's activities and business results. The company continuously monitors the developments, including examining the consequences for the company's activities.

For more details regarding the war and its impact, including its impact on the company, see section 6.2.5 in Chapter A attached to the periodic report for 2023.

The foregoing, including the company's estimates regarding the impact of the war on its activities, is forward-looking information, as defined in the Securities Law, -1968, which may not materialize or materialize in a materially different manner, and this is due, among other things, to the existing uncertainty regarding the war, its scope, duration and impact on Israel's economy in general and the company's activities in particular.

9. Critical accounting estimates

There were no material changes in relation to the details regarding estimates and material accounting judgments in note 2 to the consolidated financial statements attached to the periodic report for 2023.

10. Corporate governance aspects

10.1 Disclosure in relation to directors with accounting and financial skills

There were no changes in the board's determination regarding the required minimum number of directors with accounting and financial expertise, as detailed in the board's report attached to the periodic report for 2023. For details regarding directors with accounting and financial expertise, see regulation 26 in Chapter D, additional details on the corporation that was attached to the periodic report for 2023.

10.2 Independent directors

As of the date of this report, the company has not adopted provisions in the articles of association regarding the proportion of independent directors, as defined in section 1 of the first supplement to the Companies Law.

10.3 Donations

The company does not have donation policy and during the third quarter of 2024, there were no changes in relation to the disclosure given in this regard, as reflected in the board of directors' report attached to the periodic report for 2023.

11. Disclosure regarding the company's internal auditor

During the quarter there was no material change in relation to the data regarding the company's internal auditor as detailed in the board of directors' report attached to the annual report for 2023.

The board of directors is grateful for the company's managers and employees for their dedicated work and the efforts they invested during the reporting period.

Yoav Weinberg Gillon Back Co-chairmen of the Board of Directors Shahaf Shrager CEO

Date: November 13, 2024

Hiper Global Ltd.

Interim Condensed Consolidated Financial Statements

As of September 30, 2024

US dollars in thousands

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of September 30	As of December 31
	2024 2023 (Unaudited)		2023 (Audited)
		\$ in thousands
Current Assets
Cash and cash equivalents	9,703	22,432	12,621
Trade receivables, net	50,224	40,245	53,225
Income receivable	1,091	1,910	1,936
Income tax receivable	1,227	2,147	564
Other accounts receivable	2,408	1,297	2,462
Inventory	78,677	82,367	75,454
Total current assets	143,330	150,398	146,262
Non-Current Assets
Other long-term accounts receivable	471	203	214
Deferred taxes	764	352	561
Fixed assets, net	5,940	5,791	5,589
Goodwill	7,392	7,246	7,340
Intangible assets, net	5,810	7,035	6,765
Right of use assets, net	13,062	6,086	6,318
Total non-current assets	33,439	26,713	26,787
Total assets	176,769	177,111	173,049

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of September 30	As of December 31 2023
	2024 2023 (Unaudited)
			(Audited)
	\$	in thousands
Current liabilities
Credit from banks and others	21,999	4,614	23,871
Current maturities of lease liabilities	2,161	1,596	1,970
Liability for PUT option to non-controlling interests	4,381	)*( 2,236	2,850
Trade payables	24,642	58,796	34,299
Prepaid income	5,231	1,354	1,120
Income tax payable	666	338	626
Other accounts payables	12,476	17,901	15,735
Total current liabilities	71,556	)*( 86,835	80,471
Non-Current Liabilities
Long term loans from banks and others	4,874	7,585	6,455
Contingent consideration in business combination	374	1,345	1,374
Long term lease liabilities	11,415	4,558	4,708
Liabilities for employee benefits, net	454	400	440
Deferred taxes	91	797	106
Total non-current liabilities	17,208	)*(14,685	13,083
Equity Attributable to Shareholders of the Parent Company
Share capital	1,479	1,472	1,472
Premium on shares	11,137	10,722	10,722
Capital reserves	36,708	35,868	36,545
Retained earnings	38,681	27,529	30,756
Total equity	88,005	75,591	79,495
Total liabilities and equity	176,769	177,111	173,049

(*) Reclassified

November 13, 2024
Date of approval of	Yoav Weinberg	Shahaf Shrager	Yossi Yaniv
the financial statements	Gillon Back	CEO	CFO
	Co-chairmen of the
	Board of Directors

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the period of nine months ended on September 30		For the period of three months ended on September 30	For the year ended on December 31
	2024	2023	2024	2023	2023
		Audited
		\$ in thousands	(except for net earnings per share data)
Revenues	209,279	213,934	62,377	81,241	285,567
Cost of revenues	173,599	179,557	50,843	69,539	237,532
Gross profit	35,680	34,377	11,534	11,702	48,035
Selling and marketing expenses General and administrative	9,099	9,796	3,161	2,951	12,735
expenses	8,100	8,325	2,690	2,359	11,367
Other income, net	)94(	)94(	)3(	)94(	)92(
	17,105	18,027	5,848	5,216	24,010
Operating income	18,575	16,350	5,686	6,486	24,025
Financial expenses	3,869	4,034	890	1,050	5,226
Financial income	1,387	1,197	57	409	545
Income before taxes on income Taxes on income	16,093 4,341	13,513 4,204	4,853 1,009	5,845 1,614	19,344 5,037
Net income	11,752	9,309	3,844	4,231	14,307

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the period of nine months ended on September 30		For the period of three months ended on September 30		For the year ended on December 31
	2024	2023	2024	2023	2023
			Unaudited		Audited
	\$ in thousands			(except for net earnings per share data)
Other comprehensive income (loss) (after tax effect):
Amounts to be reclassified or reclassified to profit or loss upon the occurrence of specific conditions:
Adjustments from translation of financial statements of foreign operations:	145	)507(	183	)313(	(42)
Amounts that will not be reclassified later to profit or loss:
Gain from re-measurement of defined benefit plans	-	-	-	-	(13)
Total other comprehensive income (loss)	145	)507(	183	)313(	(55)
Total other comprehensive income	11,897	8,802	4,027	3,918	14,252
Net income attributed to: Shareholders of the Company	11,752	9,309	3,844	4,231	14,307
Comprehensive income attributed: Shareholders of the Company	11,897	8,802	4,027	3,918	14,252
Basic earnings attributed to shareholders of the Company (in Dollar):
Basic earnings per share	0.250	0.199	0.082	0.090	0.306
Diluted earnings per share	0.242	0.194	0.079	0.088	0.298

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital	Premium on Shares	Capital reserve in respect of split transaction	Capital reserve for translations of financial statements of foreign operations	Share-based payment capital reserve Unaudited	Capital reserve for transaction with controlling shareholder	Capital reserve for transactions with non controlling interests	Retained earnings	Total Equity
For nine-month period ended September 30, 2024					\$ in thousands
Balance as of January 1, 2024 (audited)	1,472	10,722	35,307	(360)	1,799	36	(237)	30,756	79,495
Net income for the period	-	-	-	-	-	-	-	11,752	11,752
Other comprehensive income for the period	-	-	-	145	-	-	-	-	145
Total comprehensive income (loss) for the period	-	-	-	145	-		-	11,752	11,897
Share based payment	-	-	-	-	434	6	-	-	440
Exercise of warrants to shares	7	415	-	-	)422(	-	-	-	-
Dividend declared	-	-	-	-	-	-	-	)3,827(	)3,827(
Balance as of September 30, 2024	1,479	11,137	35,307	)215(	1,811	42	(237)	38,681	88,005

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital	Premium on Shares	Capital reserve in respect of split transaction	Capital reserve for translations of financial statements of foreign operations	Share-based payment capital reserve	Capital reserve for transaction with controlling shareholder	Capital reserve for transactions with non controlling interests	Retained earnings	Total Equity
					Unaudited \$ in thousands
For nine-month period ended September 30, 2023
Balance as of January 1, 2023 (audited)	1,471	10,694	35,307	)318(	893	20	)237(	22,345	70,175
Net income for the period	-	-	-	-	-	-	-	9,309	9,309
Other comprehensive loss for the period	-	-	-	)507(	-	-	-	-	)507(
Total comprehensive income (loss) for the period	-	-	-	)507(	-	-	-	9,309	8,802
Share based payment	-	-	-	-	726	13	-	-	739
Exercise of warrants to shares	1	28	-	-	)29(	-	-	-	-
Dividend declared	-	-	-	-	-	-	-	)4,125(	)4,125(
Balance as of September 30, 2023	1,472	10,722	35,307	)825(	1,590	33	)237(	27,529	75,591

	Share Capital	Premium on Shares	Capital reserve in respect of split transaction	Capital reserve for translations of financial statements of foreign operations	Share-based payment capital reserve Unaudited	Capital reserve for transaction with controlling shareholder	Capital reserve for transactions with non controlling interests	Retained earnings	Total Equity
					\$ in thousands
For three-month period ended September 30, 2024
Balance as of July 1, 2024	1,479	11,137	35,307	)398(	1,706	41	)237(	35,711	84,746
Net income for the period	-	-	-	-	-	-	-	3,844	3,844
Other comprehensive income for the period	-	-	-	183	-	-	-	-	183
Total comprehensive income (loss) for the period	-	-	-	183	-	-	-	3,844	4,027
Share based payment	-	-	-	-	105	1	-	-	106
Dividend declared	-	-	-	-	-	-	-	)874(	)874(
Balance as of September 30, 2024	1,479	11,137	35,307	)215(	1,811	42	)237(	38,681	88,005

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
----------------------------------------------------------------	--	--	--	--

	Share Capital	Premium on Shares	Capital reserve in respect of split transaction	Capital reserve for translations of financial statements of foreign operations	Share-based payment capital reserve Unaudited	Capital reserve for transaction with controlling shareholder	Capital reserve for transactions with non controlling interests	Retained earnings	Total Equity
					\$ in thousands
For three-month period ended September 30, 2023
Balance as of July 1, 2023	1,472	10,722	35,307	)512(	1,380	31	)237(	23,977	72,140
Net income for the period	-	-	-	-	-	-	-	4,231	4,231
Other comprehensive loss for the period	-	-	-	)313(	-	-	-	-	)313(
Total comprehensive income (loss) for the period	-	-	-	)313(	-		-	4,231	3,918
Share based payment	-	-	-	-	210	2	-	-	212
Dividend declared	-	-	-	-	-	-	-	)679(	)679(
Balance as of September 30, 2023	1,472	10,722	35,307	)825(	1,590	33	)237(	27,529	75,591

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital	Premium on Shares	Capital reserve in respect of split transaction	Capital reserve for translations of financial statements of foreign operations	Share-based payment capital reserve Audited	Capital reserve for transaction with controlling shareholder	Capital reserve for transactions with non controlling interests	Retained earnings	Total Equity
					\$ in thousands
For the year ended December 31, 2023
Balance as of January 1, 2023 (audited)	1,471	10,694	35,307	(318)	893	20	(237)	22,345	70,175
Net income for the year Other comprehensive loss for the	-	-	-	-	-	-	-	14,307	14,307
year	-	-	-	(42)	-	-	-	(13)	(55)
Total comprehensive loss for the year	-	-	-	(42)	-	-	-	14,294	14,252
Share based payment	-	-	-	-	935	16	-	-	951
Exercise of warrants to shares	1	28	-	-	(29)	-	-	-	-
Dividend declared	-	-	-	-	-	-	-	(5,883)	(5,883)
Balance as of December 31, 2023	1,472	10,722	35,307	(360)	1,799	36	(237)	30,756	79,495

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the period of nine months ended on September 30,		For the period of three months ended on September 30,	For the year ended on December 31,
	2024	2023	2024	2023	2023
			Unaudited		Audited
			\$ in thousands
Cash flows from operating activities
Net income	11,752	9,309	3,844	4,231	14,307
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to profit and loss:
Depreciation and amortizations	3,510	3,724	1,193	1,047	4,785
Taxes on income	4,341	4,204	1,009	1,614	5,037
Change in provision for doubtful accounts	)21(	)11(	10	)383(	)28(
Change in provision for vacation and recreation	69	)59(	)200(	)260(	)99(
Value adjustment of financial liabilities	531	390	51	2	1,033
Dividend to holders of PUT option	474	651	198	86	760
Change in employee benefits, net Interest and revaluation for short term	14	)9(	14	)4(	14
credit, net	769	1,130	341	278	1,457
Interest and revaluation of long term loans, net	323	104	160	64	339
Loss from foreign operations	-	40	-	16	40
Other financial income, net	)28(	)160(	104	)72(	)28(
Cost of share based payment	440	739	106	212	951
	10,422	10,743	2,986	2,600	14,261
Changes in asset and liability items:
Decrease (increase) in trade receivables and income receivable	4,065	11,765	)1,933(	3,857	)758(
Decrease (increase) in other accounts receivable	762	)626(	)856(	)630(	)1,751(
Decrease (increase) in inventory	)3,127(	4,629	2,089	)2,386(	11,825
Increase (decrease) in trade payables	)9,798(	25,884	)1,392(	27,010	1,186
Increase (decrease) in prepaid income	4,111	584	1,272	)144(	296
Decrease in other accounts payable	)3,278(	1,057	1,040	4,631	)1,332(
	)7,265(	43,293	220	32,338	9,466
Cash paid and received during the period for:
Taxes on income paid	)5,988(	)6,193(	)2,116(	)1,395(	)7,115(
Taxes on income received	165	-	-	-	1,078
	)5,823(	)6,193(	)2,116(	)1,395(	)6,037(
Net cash provided by operating activities	9,086	57,152	4,934	37,774	31,997

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the period of nine For the period of three months ended on months ended on September 30 September 30 2024 2023 2024 Unaudited			For the year ended on December 31
				2023	2023
				Audited
Cash flows from investing activities
Purchase of fixed assets	)1,135(	)652(	)280(	)275(	)675(
Purchase of intangible assets	)57(	)296(	)13(	)56(	)352(
Interest received	230	64	57	27	165
Increase in other investments	)304(	)62(	)203(	)11(	)88(
Net cash used in investing activities	)1,266(	)946(	)439(	)315(	)950(
Cash flows from financing activities
Short term credit from banks and others,
net	)276(	)28,878(	)3,886(	)20,581(	)9,971(
Interest paid	)1,550(	)1,824(	)602(	)472(	)2,236(
Dividend paid	)3,827(	)4,125(	)874(	)679(	)5,883(
Dividend to holders of PUT option	)583(	)1,226(	)198(	)86(	)1,226(
Principal payment of lease liabilities	)1,515(	)1,054(	)526(	)335(	)1,405(
Exercise of PUT option	-	)907(	-	)907(	)907(
Receipt of long-term loans	-	900	-	-	900
Repayment of long-term loans	)3,028(	)2,724(	)764(	)780(	)3,811(
Net cash used in financing activities	)10,779(	)39,838(	)6,850(	)23,840(	)24,539(
Increase (decrease) in cash and cash equivalents	)2,959(	16,368	)2,355(	13,619	6,508
Exchange rate differences for cash and cash equivalents	41	3	44	)32(	52
Balance of cash and cash equivalents at the beginning of the period	12,621	6,061	12,014	8,845	6,061
Balance of cash and cash equivalents at the end of the period	9,703	22,432	9,703	22,432	12,621
Appendix A Non cash significant activity Recognition of right of use assets and lease liabilities	8,352	1,923	6,428	133	2,644

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – GENERAL

a. Hiper Global Ltd. was incorporated and registered in Israel on October 14, 2021. The Company is defined as a resident of Israel. The Company's address is 8-10 Hamelacha Street, Rosh Ha'ain ("the Company").

The Company was established by N.B.A. Trusts Ltd. as a trust for the shareholders of Emet Computing Ltd. ("Emet"). Emet, which is a sister company to the Company, was incorporated on November 25, 1984 and its shares were listed for trading on the Tel Aviv Stock Exchange in January 1993.

The Company was established in order to receive the OEM activity (as defined below) of Emet, including the holdings in its subsidiaries engaged in OEM activity, in accordance with the structure change agreement approved by the Company's board of directors on February 27, 2022 (the "structure change agreement" or "the Split Agreement").

In March 2022, the activity was split. Furthermore, on March 9, 2022, the Company's shares were listed for trading on the Tel Aviv Stock Exchange.

The Company's operation is OEM (Original Equipment Manufacturer) computing - in which the Company is engaged in the characterization, planning and assembly of customized computerized systems that will be integrated into its customers' products. This activity includes analysis and technical characterization services of the appropriate computing platform, product planning, defining the appropriate infrastructures (hardware and software), performing planning and development processes for mechanical solutions, electricity, electronics and thermal analyzes of the product, management and documentation of the engineering information - including building product portfolios, management of production processes and planning and execution of product quality testing processes. In addition, the activity includes a service of full management of the logistics production and supply processes, among other things, management of the supply chain of assembled systems according to the customer's definitions. (the "OEM field", or the "OEM activity", or "OEM").

b. Definitions:

The Company	Hiper Global Ltd.
The Group	The Company and its subsidiaries (as defined below) Companies over which the Company has control (as defined in IFRS 10), directly or indirectly, whose financial statements are fully consolidated with the
Subsidiaries	Company's statements.
Related parties	As defined in IAS 24
Interested parties	As defined in the Securities Law -1968 including its regulations
Controlling shareholders	As defined in the Securities Regulations (annual financial statements) -2010

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – GENERAL (Cont.)

c. "Swords of Iron" War

In October 2023, the "Swords of Iron" war ("The war") broke out in Israel. The continuation of the war led to a slowdown in business activity in the Israeli economy due to, among other things, the closing of factories in the south and north of the country, damage to infrastructure, the recruitment of reservists for an unknown period of time, as well as the disruption of economic activity in Israel. The Company estimates at this stage, based on the information it has as of the date of approval of the financial statements, that the war in its current configuration is not expected to have a material effect on the results of its operations.

d. On June 30, 2024, the Company received advance approval from the tax authority for the merger of a subsidiary with and into the parent company according to the provisions of Section 103 of the Income Tax Ordinance - according to which Hiper Global Enterprise Ltd. (a wholly owned company) will merge with and into the Company. The merger date was set for September 30, 2024. On September 30, 2024 the approval of the Registrar of Companies for the merger was received.

NOTE 2 – REVENUES

		For the period of nine months ended September 30,	For the period of three months ended September 30,		For the year ended December 31,
	2024	2023	2024	2023	2023
		Unaudited			Audited
			\$ in thousands
Geographic information The revenues reported in the financial statements were generated in Israel and abroad based on the location of the operation as follows:
Israel	126,446	146,394	36,776	62,771	193,815
USA	75,451	60,643	21,767	16,535	81,237
UK	7,382	6,897	3,834	1,935	10,515
	209,279	213,934	62,377	81,241	285,567

HIPER GLOBAL LTD NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – INFORMATION REGARDING OPERATING SEGMENTS

General

In accordance with international financial reporting standard number 8 - Operating segments (IFRS 8), the group presents the segment information in the same way that the group's main operational decision maker ("CODM") uses it for the purpose of evaluating performance and for making the group's operational decisions.

The group operates and manages its business mainly on the basis of the geographical location of its activities and accordingly measures and presents two reportable activity segments, as follows:

1. Israel OEM operation

1. International OEM operation , which includes the OEM operations in the USA and the UK which are reported as one reportable operating segment. For this purpose, the management exercised judgment based on the following characteristics: the nature of the products, the nature of the production processes, the type or group of customers for their products and services and the distribution method of the products. The Company also examined the similarity in the economic characteristics of the grouped segments by examining the average operating profitability margins in the long term.

The accounting policy of the aforementioned operating segments is the same as that presented in note 2 in the consolidated financial statements for December 31, 2023, regarding the accounting policy.

The results of the segments are measured on the basis of operating income, as included in the reports which are regularly reviewed by the CODM. Also, the segment profits reported to the CODM include items directly attributable to the segment and items that can be attributed on a reasonable basis.

Segment assets and liabilities are not reported to the CODM and therefore are not presented in the note.

	For the period of nine months ended September 30, 2024
	Israel	International	Adjustments	Consolidated
	Unaudited
	\$ in thousands
Information on comprehensive
income
Revenues
External revenues	126,446	82,833	-	209,279
Intersegment revenues	4,210	854	)5,064(	-
Total revenues	130,656	83,687	)5,064(	209,279
Segment results	12,247	6,328	-	18,575
Financial expenses				3,869
Financial income				1,387
Income before taxes on income				16,093
Depreciation and amortizations	1,915	1,595	-	3,510

HIPER GLOBAL LTD NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – INFORMATION REGARDING OPERATING SEGMENTS (Cont.)

	For the period of nine months ended September 30, 2023
	Israel	International	Adjustments	Consolidated
			Unaudited
	\$ in thousands
Information on comprehensive
income
Revenues
External revenues	146,394	67,540	-	213,934
Intersegment revenues	1,953	744	)2,697(	-
Total revenues	148,347	68,284	)2,697(	213,934
Segment results	11,785	4,565	-	16,350
Financial expenses				4,034
Financial income				1,197
Income before taxes on income				13,513
Depreciation and amortizations	1,810	1,914	-	3,724

	For the period of three months ended September 30, 2024
	Israel	International	Adjustments	Consolidated
			Unaudited
	\$ in thousands
Information on comprehensive
income
Revenues
External revenues	36,776	25,601	-	62,377
Intersegment revenues	771	285	)1,056(	-
Total revenues	37,547	25,886	)1,056(	62,377
Segment results	3,812	1,874	-	5,686
Financial expenses				890
Financial income				57
Income before taxes on income				4,853
Depreciation and amortizations	642	551	-	1,193

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – INFORMATION REGARDING OPERATING SEGMENTS (Cont.)

	For the period of three months ended September 30, 2023
	Israel	International	Adjustments	Consolidated
			Unaudited
	\$ in thousands
Information on
comprehensive income
Revenues
External revenues	62,771	18,470	-	81,241
Intersegment revenues	1,420	250	)1,670(	-
Total revenues	64,191	18,720	)1,670(	81,241
Segment results	5,109	1,377	-	6,486
Financial expenses				1,050
Financial income				409
Income before taxes on
income				5,845
Depreciation and
amortizations	613	434	-	1,047

	For the year ended December 31, 2023
	Israel	International	Adjustments	Consolidated
			Audited
	\$ in thousands
Information on
comprehensive income
Revenues
External revenues	193,815	91,752	-	285,567
Intersegment revenues	3,722	1,051	(4,773)	-
Total revenues	197,537	92,803	(4,773)	285,567
Segment results	17,099	6,926	-	24,025
Financial expenses				5,226
Financial income				545
Income before taxes on
income				19,344
Depreciation and
amortizations	2,404	2,381	-	4,785

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 – EVENTS DURING AND AFTER THE REPORTING PERIOD

• a. On August 13, 2024, the Company's board of directors declared the distribution of a dividend at the rate of 0.07 NIS per share and a total of about \$ 874 thousand. The effective date was set for August 25, 2024.
• b. On November 13, 2024, the Company's board of directors declared the distribution of a dividend at the rate of 0.06 NIS per share and a total of about \$ 754 thousand. The effective date was set for November 21, 2024.