RUN LONG - Interim / Quarterly Report 2024

Stock Code:1808

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors' Review Report For the Six Months Ended June 30, 2024 and 2023

Address: 8F., No. 267, Lequn 2nd Rd., Zhongshan Dist., Taipei City 104, Taiwan (R.O.C.)

TEL : (02)8501-5696

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors' Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7~7-1 8 8 8~10 10~11 12 12~33 34~37 38 38~39 39 39 39 40~43 43 43 44 44~45

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

Page

1
2
3
4
5
6
7~7-1
8
8
8~10
10~11
12
12~33
34~37
38
38~39
39
39
39
40~43
43
43
44
44~45

Independent Auditors' Review Report

To the Board of Directors of Run Long Construction Co., Ltd.:

Introduction

We have reviewed the consolidated financial statements of Run Long Construction Co., Ltd. and its subsidiaries, which comprise the consolidated balance sheets as of June 30, 2024 and 2023, the consolidated statements of comprehensive income for the three months and six months ended June 30, 2024 and 2023, the statements of changes in equity and cash flows for the six months ended June 30, 2024 and 2023, and notes to the consolidated financial statements, including a summary of significant accounting policies. It is the responsibility of the management to prepare and ensure fair presentation of consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the version of IAS 34 - "Interim Financial Reporting" approved and published by the Financial Supervisory Commission. Our responsibility as auditor is to form a conclusion based on our review.

Scope of Review

We, the auditors, have performed the review in accordance with Standards on Review Engagements No. 2410 - "Financial Statement Review." The procedures executed in our review of consolidated financial statements include inquiry (mainly with employees responsible for financial and accounting affairs), analysis and other review-related processes. The scope of financial statement review is significantly smaller than a financial statement audit, therefore we may not be able to detect all material issues through the steps we have taken, and are therefore unable to provide an audit opinion.

Conclusion

Based on the outcome of our review, none of the material disclosures of the consolidated financial statements mentioned above exhibited any misstatement that did not conform with Regulations Governing the Preparation of Financial Reports by Securities Issuers or the version of IAS 34 - "Interim Financial Reporting" approved by the Financial Supervisory Commission, or compromised the fair view of the consolidated financial position of Run Long Construction Co., Ltd. and subsidiaries as of June 30, 2024 and 2023, consolidated business performance for the three months and six months ended 2024 and 2023, and cash flow for six months ended June 30, 2024 and 2023.

KPMG

Taipei, Taiwan (Republic of China) August 12, 2024

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China. The auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

As of June 30, 2024, December 31, 2023, and June 30, 2023

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

June 30, 2024	June 30, 2024	December 31, 2023	December 31, 2023	June 30, 2023 Amount % 4,135,986 8 616,789 1 25,891 - 240,559 - 360,073 1 14,049 - 8,301 - 36,202,789 70 365,426 1 5,857,848 11 49,523 - 1,412,789 3 49,290,023 95 228,505 - 87,358 - 900,894 2 15,031 - 14,363 - 1,481,194 3 49,491 - 2,776,836 5 52,066,859 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(i)) 2110 Short-term notes and bills payable (note 6(i)) 2130 Current contract liabilities (notes 6(s), 7 and 9) 2150 Notes payable 2170 Accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 7) 2230 Current tax liabilities (note 6(p)) 2250 Current provisions (notes 6(m) and (o)) 2280 Current lease liabilities (note 6(l)) 2321 Bonds payable, current portion or putable bonds (note 6(k)) 2322 Long-term borrowings, current portion (note 6(j)) 2399 Other current liabilities, others Non-Current liabilities: 2530 Bonds payable (note 6(k)) 2541 Long-term borrowings (note 6(j)) 2570 Deferred tax liabilities (note 6(p)) 2580 Non-current lease liabilities (note 6(l)) Total liabilities Equity (note 6(q)): 3110 Ordinary shares 3150 Stock dividends to be distributed 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest Total equity Total liabilities and equity	June 30, 2024	June 30, 2024	December 2023	31,	June 30, 2023	June 30, 2023
Amount	%	Amount	%	Amount	Amount	%	Amount	%	Amount	%
	9 2 - 1 3 - - 60 1 12 - 2	4,199,162 643,717 27,465 629,541 97,909 - 1,904 25,079,562 55,577 8,288,142 48,804 929,954	10 2 - 1 - - - 59 - 20 - 2	4,135,986 616,789 25,891 240,559 360,073 14,049 8,301 36,202,789 365,426 5,857,848 49,523 1,412,789	$ 11,128,838 1,655,734 3,091,574 77 2,720,872 2,039 2,439,928 280,342 82,650 30,598 1,888,656 26,093 143,469	24 4 7 - 6 - 5 1 - - 4 - -	9,098,688 1,623,524 2,536,109 - 2,954,759 3,114 843,805 1,419,784 80,656 33,977 5,871,596 25,938 223,440	21 4 6 - 7 - 2 3 - - 14 - 1	21,280,774 1,512,614 6,134,336 - 2,727,324 28,076 1,064,788 409,767 76,319 29,125 3,978,459 25,644 576,016	41 3 12 - 5 - 2 1 - - 8 - 1
					23,490,870	51	24,715,390	58	37,843,242	73
41,587,869	90	40,001,737	94	49,290,023	7,970,785 254,560 2,844 30,647	17 1 - -	3,996,868 267,576 2,844 45,459	9 1 - -	5,884,690 280,619 2,844 58,373	11 1 - -
226,848 61,292 1,065,315 14,378 15,111 2,912,372 279,372	1 - 2 - - 6 1	229,634 79,469 1,054,818 16,934 14,461 1,092,216 49,491	1 - 2 - - 3 -	228,505 87,358 900,894 15,031 14,363 1,481,194 49,491
					8,258,836	18	4,312,747	10	6,226,526	12
					31,749,706	69	29,028,137	68	44,069,768	85
					4,510,261 5,412,314 24,737 4,087,218 378,321	10 11 - 9 1	4,510,261 - 23,854 8,790,821 185,687	11 - - 21 -	4,510,261 - 23,853 3,298,418 164,559	9 - - 6 -
4,574,688	10	2,537,023	6	2,776,836
					14,412,851	31	13,510,623	32	7,997,091	15
$ 46,162,557	100	42,538,760	100	52,066,859	$ 46,162,557	100	42,538,760	100	52,066,859	100

(Please refer to the notes to consolidated financial statements afterwards)

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the Three Months and Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

For the three months ended June	For the three months ended June	For the three months ended June	For the six months ended June 30	For the six months ended June 30	For the six months ended June 30
2024	% 100 - - 100 52 48 8 2 10 38 1 - - - ( 1 ( 39 6 33 3 3 36 3.82 3.82	2023	2024	% 100 - - 100 53 47 8 2 10 37 1 1 - 1 ) ( 1 ( 38 7 31 3 3 34 4.57 4.57	2023
Amount		Amount 4,434,235 19,867 4,443 4,458,545 2,311,398 2,147,147 338,637 72,813 411,450 1,735,697 18,431 9,901 13,627 61,561 ) ( 19,602 ) 1,716,095 361,637 1,354,458 21,693 21,693 1,376,151	Amount 6,572,863 26,350 11,558 6,610,771 3,477,141 3,133,630 497,073 163,063 660,136 2,473,494 36,503 19,693 18,350 51,336 ) ( 23,210 2,496,704 434,915 2,061,789 192,634 192,634 2,254,423		Amount 7,473,124 42,414 8,879 7,524,417 3,950,492 3,573,925 596,503 136,751 733,254 2,840,671 18,819 12,395 21,794 109,529 ) ( 56,521 ) ( 2,784,150 575,007 2,209,143 33,985 33,985 2,243,128
$ 5,256,629 299 5,724
5,262,652
2,755,900
2,506,752
391,855 92,861
484,716
2,022,036
31,044 4,471 10,517 ( 24,827 )
21,205
2,043,241 319,150
1,724,091
191,832
191,832
$ 1,915,923
$
$

(Please refer to the notes to consolidated financial statements afterwards)

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

		Equity attributable to	Equity attributable to	owners of parent
Share capital		Capital surplus		Retained earnings		Total other equity interest
						Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
Ordinary shares	Stock dividends to be distributed		Legal reserve		Total
$ 4,510,261 - -	- - -	22,601 - -	1,068,459 - -		1,359,891 2,209,143 -	130,574 - 33,985
-	-	-	-		2,209,143	33,985
- - -	- - -	- - 1,252
$ 4,510,261	-	23,853	1,084,122
$ 4,510,261 - -	- - -	23,854 - -	1,084,122 - -
-	-	-	-
- - - -	- - - - 5,412,314 - - 883
$ 4,510,261	5,412,314	24,737	1,854,277

(Please refer to the notes to consolidated financial statements afterwards)

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

For the six months ended June 30, 2024 Cash flows from (used in) operating activities: Profit before tax $ 2,496,704 Adjustments: Adjustments to reconcile profit (loss): Depreciation 28,533 Amortization 2,590 Interest expenses 51,336 Interest income ( 36,503 ) ( Dividend income ( 8,026 ) ( Gain on disposal of property, plant and equipment ( 4 ) ( Gain on disposal of investment property ( 7,128 ) Gain on lease modification ( 8 ) ( Total adjustments to reconcile profit (loss) 30,790 Changes in operating assets and liabilities: Decrease in contract assets 27,406 Decrease (increase) in notes receivable 38,949 ( Decrease (increase) in accounts receivable ( 1,102,139 ) Increase in accounts receivable from related parties - ( Increase in other receivables ( 1,302 ) ( Increase in inventories (construction) ( 2,590,303 ) ( Decrease (increase) in prepayments ( 250,639 ) Decrease in other current assets 8,210 Increase in other financial assets - current ( 383,196 ) ( Decrease (increase) in assets recognized as incremental costs to obtain contract with customers ( 255,511 ) Decrease (increase) in other financial assets - non-current ( 1,458 ) Increase in other non-current assets ( 229,881 ) Increase in contract liabilities 555,465 Increase in notes payable 77 Increase (decrease) in accounts payable ( 233,887 ) Decrease in accounts payable to related parties ( 1,075 ) ( Increase in other payables 247,503 Increase in provisions 1,994 Increase (decrease) in other current liabilities ( 79,971 ) Total adjustments ( 4,218,968 ) Cash inflow (outflow) generated from operations ( 1,722,264 ) Income taxes paid ( 1,575,007 ) ( Net cash flows from (used in) operating activities ( 3,297,271 )	For the six months ended June 30, 2023 2,784,150 26,103 2,270 109,529 18,819 ) 7,231 ) 768 ) - 1 )
	111,083 23,222 45,939 ) 802,404 14,049 ) 231 ) 331,451 ) 213,553 11,174 823,148 ) 151,282 59 - 479,880 - 509,843 34,298 ) 144,140 25,775 208,842 1,432,141 4,216,291 191,247 ) 4,025,044

For the six
months ended
June 30, 2024
Cash flows from (used in) operating activities:
Profit before tax
$ 2,496,704
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation
28,533
Amortization
2,590
Interest expenses
51,336
Interest income
(
36,503 ) (
Dividend income
(
8,026 ) (
Gain on disposal of property, plant and equipment
(
4 ) (
Gain on disposal of investment property
(
7,128 )
Gain on lease modification
(
8
) (
Total adjustments to reconcile profit (loss)
30,790
Changes in operating assets and liabilities:
Decrease in contract assets
27,406
Decrease (increase) in notes receivable
38,949 (
Decrease (increase) in accounts receivable
(
1,102,139 )
Increase in accounts receivable from related parties
-
(
Increase in other receivables
(
1,302 ) (
Increase in inventories (construction)
(
2,590,303 ) (
Decrease (increase) in prepayments
(
250,639 )
Decrease in other current assets
8,210
Increase in other financial assets - current
(
383,196 ) (
Decrease (increase) in assets recognized as incremental
costs to obtain contract with customers
(
255,511 )
Decrease (increase) in other financial assets -
non-current
(
1,458 )
Increase in other non-current assets
(
229,881 )
Increase in contract liabilities
555,465
Increase in notes payable
77
Increase (decrease) in accounts payable
(
233,887 )
Decrease in accounts payable to related parties
(
1,075 ) (
Increase in other payables
247,503
Increase in provisions
1,994
Increase (decrease) in other current liabilities
(
79,971
)
Total adjustments
(
4,218,968
)
Cash inflow (outflow) generated from operations
(
1,722,264 )
Income taxes paid
(
1,575,007
) (
Net cash flows from (used in) operating activities
(
3,297,271
)

For the six
months ended
June 30, 2023
2,784,150
26,103
2,270
109,529

18,819 )

7,231 )

768 )
-

1
)

111,083
23,222

45,939 )
802,404

14,049 )

231 )

331,451 )
213,553
11,174

823,148 )
151,282
59
-
479,880
-
509,843

34,298 )
144,140
25,775
208,842
1,432,141
4,216,291

191,247
)
4,025,044

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows (continued) For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

January
to June, 2024
Cash flows from investing activities:
Acquisition of property, plant and equipment
(
581 ) (
Proceeds from disposal of property, plant and equipment
4
Acquisition of intangible assets
(
34 ) (
Proceeds from disposal of investment property
21,922
Interest received
36,277
Net cash flows from investing activities
57,588
Cash flows from (used in) financing activities:
Increase in short-term borrowings
3,280,900
Decrease in short-term borrowings
(
1,251,582 ) (
Increase in short-term notes and bills payable
5,820,800
Decrease in short-term notes and bills payable
(
5,788,800 ) (
Proceeds from issuing bonds
4,000,000
Repayment of corporate bond
(
4,000,000 )
Repayments of long-term borrowings
(
12,861 ) (
Payment of lease liabilities
(
16,129 ) (
Other financial assets - current
3,116,859 (
Other financial assets - non-current
(
1,827,861 ) (
Interest paid
(
262,924
)(
Net cash flows from (used in) financing activities
3,058,402
(
Net (decrease) increase in cash and cash equivalents
(
181,281 )
Cash and cash equivalents at beginning of period
4,199,162
Cash and cash equivalents at end of period
$
4,017,881

January
to June, 2023

527 )
1,143

1,083 )
-
18,737
18,270
4,208,000

5,553,016 )
4,943,900

4,279,100 )
-
-

12,661 )

13,656 )

930,493 )

107,330 )

415,542
)

2,159,898
)
1,883,416
2,252,570
4,135,986

(Please refer to the notes to consolidated financial statements afterwards)

7-1

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

(1)

Company history

Run Long Construction Co., Ltd. (the "Company") was incorporated in January 1977 as a company limited by shares under the Company Act of the Republic of China (R.O.C.). The Company's registered address is 8F., No. 267, Lequn 2nd Rd., Zhongshan Dist., Taipei City 104, Taiwan (R.O.C.). Shares of the Company were approved for listing by Taiwan Stock Exchange Corporation on August 3, 1994. The consolidated financial statements of the Company as of and for the period ended June 30, 2024 comprise the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The Group primarily engages in the business of construction, sale, and leasing of residential and commercial buildings. Please refer to note 14 for details.

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

The accompanying consolidated financial statements were authorized for issue by the Board of Directors on August 12, 2024.

(3) New standards, amendments and interpretations adopted

(a) The impact of the International Financial Reporting Standards ("IFRSs") endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024:

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"
Amendments to IFRS 16 "Lease Liability in a Sale and Leaseback"
(b) Impact of not adopting the International Financial Reporting Standards (IFRSs) endorsed by the Financial Supervisory Commission

Based on the Group's own evaluation, adopting the newly revised international financial reporting standards listed below that take effect from January 1, 2025 onwards does not have material impact on the consolidated financial statements.

Amendments to IAS 21 "Lack of Exchangeability"
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

Below is a list of standards and interpretations amended and announced by International Accounting Standards Board (IASB) that are yet to be approved by FSC but may be relevant to the Group:

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Standards or Interpretations

IFRS 18 - "Presentation and Disclosure in Financial Statements"

Content of amendments The new standards introduced three types of income, expense, and loss as well as two income statement subtotals and one footnote on management-defined performance measure. These three amendments and enhancements provide guidelines on how financial statement information can be classified to provide users with better and more consistent information, and will affect all companies.

Effective date per IASB

January 1, 2027

More structured income statement: The existing standards allow companies to present business outcomes using different formats, which makes it difficult for investors to compare financial performance across companies. The new standards introduce a more structured income statement along with a newly defined subtotal of "operating profit" and the need to classify all income, expenses, and losses into three different categories based on the company's main business activities.
Management-defined performance measure (MPM): The new standards define the concept of MPM and require companies to explain in a financial statement footnote how each MPM provides useful information, how it is calculated, and how it can be reconciled with the amounts recognized according to IFRS/IAS.
More detailed classification: The new standards provide guidelines on how companies can improve the grouping of information in financial statements. These guidelines also address whether information should be included in the main statements or presented in footnotes.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

The Group continues to evaluate how revisions of the above standards and interpretations affect its financial position and business performance. Outcomes of these assessments will be disclosed upon completion.

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

Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"
IFRS 17 " Insurance Contracts" and amendments to IFRS 17 " Insurance Contracts"
Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - Comparative Information"
IFRS 19 "Subsidiaries without Public Accountability: Disclosures"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"
IRFS improvements for the year

(4) Summary of material accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as "the Regulations") and the version of International Accounting Standards No. 34 - "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission (FSC), R.O.C. The consolidated financial statements do not necessarily include all the information to be disclosed in full-year consolidated financial statements that are prepared in accordance with FSC-approved IFRS, IAS, and interpretations thereof (collectively referred to as "FSC-approved IFRS/IAS" below).

(b) Basis of consolidation
(i) Principles for preparing consolidated financial statements

The consolidated financial statements were prepared using the same principles as the 2023 consolidated financial statements. Except for notes 4(c) and 4(d) mentioned below, all significant accounting policies are identical to the 2023 consolidated financial statements. For more information, please refer to note 4 in the 2023 consolidated financial statements.

(ii) List of subsidiaries included in the consolidated financial statements

List of subsidiaries in the consolidated financial statements:

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Name of investor	Subsidiaries	Principal activity	Shareholding	Shareholding	Shareholding	Description
			June 30, 2024	December 31, 2023	June 30, 2023
The Company	Jin Jyun Construction Co., Ltd.	Construction, housing and building development rental services etc.	100.00%	100.00%	100.00%

(iii) List of subsidiaries which are not included in the consolidated financial statements: None.
(c) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as noncurrent:

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as noncurrent:

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have the right to postpone settlement of the liability to more than 12 months after the end of the reporting period.
(d) Income tax

The Group measures and discloses income tax expenses for the interim period according to section B12 of IAS 34 - "Interim Financial Reporting."

Income tax expense is measured by multiplying interim profit before tax with the management's best estimate of effective tax rate for the year.

Where income tax expense is recognized directly in equity or other comprehensive income, the amount is measured using the temporary differences between asset/liability figures presented for financial reporting purpose and asset/liability figures used for taxation basis and the tax rate applicable at the time when assets/liabilities are expected to be realized/settled.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

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

The management is required to make certain judgments, estimates, and assumptions when preparing consolidated financial statements that comply with FSC-approved IAS 34 - "Interim Financial Reporting." These judgments, estimates, and assumptions may affect the types of accounting policies adopted and amounts of asset, liability, income, and expense reported. Actual results may differ from these estimates.

The accounting policies and major sources of uncertainty to significant judgments, estimates, and assumptions involved in the preparation of the consolidated financial statements were identical to note 5 of the 2023 consolidated financial statements.

(6) Explanation of significant accounts

There was no significant difference in the explanation of significant accounts between the current consolidated financial statements and the 2023 consolidated financial statements, except for the matters discussed below. Please refer to note 6 of the 2023 consolidated financial statements for more details.

(a) Cash and cash equivalents

Cash on hand and petty cash Demand deposits (including foreign currency) Check deposits Time deposits Cash and cash equivalents	June 30, 2024 $ 838 3,985,179 1,864 30,000		December 31, 2023 1,165 4,167,987 10 30,000		June 30, 2023 805 4,135,103 78 -
	$ 4,017,881		4,199,162		4,135,986

Please refer to note 6(v) for the disclosure of the Group's financial assets and liabilities interest risk and sensitivity analysis.

(b) Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income: Stocks listed on domestic market	June 30, 2024 $ 836,351		December 31, 2023 643,717		June 30, 2023 616,789

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

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

During the six months ended June 30, 2024 and 2023, dividends of $8,026 thousand and $7,231 thousand, respectively, related to equity investments at fair value through other comprehensive income, were recognized.

(ii) There was no disposal of strategic investment or transfer of any cumulative gain or loss within equity relating to these investments for the six months ended June 30, 2024 and 2023.
(iii) For credit risk (including the impairment of the debt investment) and market risk, please refer to note 6(v).
(iv) The financial assets at fair value through other comprehensive income of the Group had been pledged as collateral. Please refer to note 8.
(c) Note and account receivables, net

Notes receivable Trade receivables - measured at amortized cost Total	June 30, 2024 $ 590,592 1,200,048 $ 1,790,640		December 31, 2023 629,541 97,909	June 30, 2023 240,559 374,122
			727,450	614,681

(i) The Group applies the simplified approach to provide for its expected credit losses, i.e. expected loss provision over the useful life, for all mote and account receivables measured at amortized cost. To measure the expected credit losses, note and trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward looking information.
(ii) The expected credit losses of the note receivables and trade receivables were as follows:

June 30, 2024	June 30, 2024	Loss allowance Provision -
Gross carrying amount $ 1,790,640	Weighted average loss rate
		Loss allowance Provision -
		Loss allowance Provision -
Gross carrying amount $ 614,681	Weighted average loss rate
	-

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

For the six months ended June 30, 2024 and 2023, there were no expected credit losses recognized or reversed.

As of June 30, 2024, December 31, 2023, and June 30, 2023, note receivables had been pledged as collateral; please refer to note 8.

(d) Inventories

Prepaid for land purchase Land held for construction sites Construction in progress Properties and land held for sale Total	June 30, 2024 $ 30,962 3,397,608 21,248,240 3,166,944 $ 27,843,754		December 31, 2023 - 701,934 22,344,932 2,032,696		June 30, 2023 676,380 701,934 20,143,210 14,681,265
			25,079,562		36,202,789

For the six months ended June 30, 2024 and 2023, there were no write-offs or reversals of inventories.

For the six months ended June 30, 2024 and 2023, the cost of inventory recognized as cost of goods sold and expense were $3,444,111 thousand and $3,903,096 thousand, respectively.

For the six months ended June 30, 2024, the Group changed the usage of partial assets, and reclassified properties and land held for sale to investment property according to definition of investment property. Please see note 6(g) for details.

For the six months ended June 30, 2024 and 2023, construction in progress of the Group were calculated using a capitalization rate 2.36% and 2.39%, respectively. Please see note 6(u) for the amounts of interest capitalized.

The inventories of the Group had been pledged as collateral, please refer to note 8.

(e) Property, plant and equipment

Land (including improvements)	Buildings and construction	Machinery and equipment 425	Other equipment (Including transportation, office, leased improvements and other equipment) 15,301	Construction inprogress 2,720	Total 229,634
$ 208,180 $ 208,085 $ 208,323 $ 208,180	3,008
	2,373	354	13,316	2,720	226,848
	4,035	672	19,057	- -	232,087
	3,340	460	16,525		228,505

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

There was no significant addition, disposal, impairment, or impairment reversal of the Group's property, plant, and equipment for the six months ended June 30, 2024 and 2023. Please refer to note 12(a) for depreciation in the current period, and note 6(e) of the 2023 consolidated financial statements for other relevant information.

As of June 30, 2024, December 31, 2023, and June 30, 2023, the above-mentioned property, plant and equipment of the Group were not pledged as collateral.

(f) Right-of-use assets

The Group leases assets including land and buildings. Information about leases for which the Group as a lessee was presented below:

Land $ 8,686	Buildings and construction 70,783	Total 79,469
$ 4,373	56,919	61,292
$ 2,885	98,511	101,396
$ 2,711	84,647	87,358

There was no significant addition, disposal, impairment, or impairment reversal of the Group's right-of-use assets for the six months ended June 30, 2024 and 2023. Please refer to note 12(a) for depreciation in the current period, and note 6(f) of the 2023 consolidated financial statements for other relevant information.

(g) Investment property

The information of investment properties of the Group were as follows:

Buildings and construction 496,450 13,916 6,021 )	Right-of-use assets - Land - - - ( - 73 11 15 ) (	Total 1,099,113 34,334 14,853 ) 1,118,594 936,757 11 15 )
504,345
434,920 - - (
434,920	69	936,753

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Buildings and construction Right-of-use assets – Land 44,295 - 9,043 - ( 59 ) - 53,279 - 27,525 18 8,324 7 - ( 15 ) 35,849 10 452,155 - 451,066 - 407,395 55 399,071 59	Total 44,295 9,043 ( 59 )	Total 44,295 9,043 ( 59 )
53,279	(	53,279 27,543 8,331 15 )
35,849		35,859 1,054,818 1,065,315 909,214 900,894
452,155
451,066
407,395
399,071

The investment property includes the Group's own assets and right-of-use assets held in recognition of lease rights and office buildings and parking lots leased to third parties under operating leases. Please refer to note 6(n) for more information.

Information on fair value of the Group's investment properties was not significantly different from note 6(g) of the 2023 consolidated financial statements.

Please refer to note 8 for details on the Group's investment properties that have been placed as collateral.

(h) Other financial assets and incremental costs of obtaining a contract

Other current and non-current financial assets Current incremental costs of obtaining a contract Total	June 30, 2024 $ 8,476,014 1,185,465		December 31, 2023 9,380,358 929,954		June 30, 2023 7,339,042 1,412,789
	$ 9,661,479		10,310,312		8,751,831

(i) Other financial assets

Other financial assets include certificate of deposit as collateral, trust account for presale of properties, endorsement and performance guarantee, corporate bonds and reserve account, and construction deposit.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(ii) Current incremental costs of obtaining a contract

The Group expects that incremental commission fees paid to intermediaries, and the bonus for the internal sales department are recoverable. The Group has therefore capitalized them as contract costs. Capitalized commission fees are amortized when the related revenues are recognized. For the six months ended June 30, 2024 and 2023, the Group recognized $408,074 thousand and $487,084 thousand of selling expense, respectively.

(i) Short-term borrowings, notes and bills payable

The details of short-term borrowings, notes and bills payable of the Group were as follows:

	June 30, 2024	June 30, 2024
Currency	Interest rate	Maturity	Amount $ 10,419,838 709,000 1,655,734
NTD NTD NTD	2.25%~3.14% 2025~2029 2.38%~2.92% 2024~2027 1.73%~2.86% 2024 December 31, 2023
			$ 12,784,572

Currency	Interest rate	Maturity	Amount $ 8,511,688 587,000 1,623,524
NTD NTD NTD	2.01%~3.02% 2024~2027 2.25%~2.65% 2024~2027 1.52%~2.74% 2024 June 30, 2023
			$ 10,722,212

Currency	Interest rate Maturity		Amount $ 19,827,274 1,453,500 1,512,614
NTD NTD NTD	2.01%~3.27% 2023~2027 2.05%~3.00% 2023~2027 1.48%~2.74% 2023
			$ 22,793,388

(i) Issue of bank loan and repayment

For the six months ended June 30, 2024 and 2023, the incremental amounts were $9,101,700 thousand and $9,151,900 thousand, respectively; the repayment amounts were $7,040,382 thousand and $9,832,116 thousand, respectively.

(ii) Collateral for bank loans

The Group had pledged as collateral for bank loans, please refer to note 8.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(j) Long-term borrowings/Long-term borrowings, current portion

The details of long-term borrowings of the Group were as follows:

	June 30, 2024	June 30, 2024
Currency	Interest rate		Amount $ 280,653 26,093 ) $ 254,560
NTD
Currency	Interest rate		Amount $ 293,514 25,938 ) $ 267,576
NTD
Currency	Interest rate	Maturity 2034 (	Amount $ 306,263 25,644 ) $ 280,619
NTD	2.29%

(i) Issue of bank loan and repayment

There was no addition for the six months ended June 30, 2024 and 2023, whereas the amounts of repayment were $12,861 thousand and $12,661 thousand, respectively.

(ii) Collateral for bank loans

The Group had pledged as collateral for bank loans, please refer to note 8.

(k) Bonds payable/Bonds payable current portion or putable bonds

The details of the Group's bonds payable were as follows:

Secured ordinary bonds Discount on bonds payable - unamortized amount Ending balance: bonds payable Secured ordinary corporate bond - current Secured ordinary corporate bond - non-current Total	June 30, 2024 $ 9,900,000 ( 40,559 ) $ 9,859,441 $ 1,888,656 7,970,785 $ 9,859,441	(	December 31, 2023 9,900,000 31,536 ) 9,868,464 5,871,596 3,996,868 9,868,464	(	June 30, 2023 9,900,000 36,851 ) 9,863,149 3,978,459 5,884,690 9,863,149

(i) The Group issued secured ordinary corporate bonds amounting to $2,000,000 thousand with coupon rates of 1.70% and 1.73% in March and May 2024, respectively. The tenor for corporate bonds above both was 5 years. The Group repaid the $4,000,000 thousand corporate bond issued back in 2019 during the six months ended 2024; no issuance, recall, or early repayment of corporate bonds payable had occurred for the six months ended June 30, 2023.
(ii) The Group issued secured ordinary corporate bonds amounting to $2,000,000 thousand, $2,000,000 thousand, and $5,900,000 thousand with coupon rates of

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

0.85%, 0.57%, and 0.78%-0.85% in April 2022, November 2021, and 2019, respectively. The tenor for corporate bonds above both was 5 years.

(iii) For the details of collateral of secured both ordinary corporate bonds, please refer to note 8.
(l) Lease liabilities

The carrying amount of lease liabilities were as follows ：

Current Non-current	June 30, 2024 $ 30,598	December 31, 2023 33,977	June 30, 2023 29,125
	$ 30,647	45,459	58,373

For the maturity analysis, please refer to note 6(v).

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases				For the six months ended June 30 2024 2023 686 893	For the six months ended June 30 2024 2023 686 893
				2024 686
	$ 736	3,147		2,481	8,526

The amounts recognized in the statement of cash flows for the Group were as follows ：

Total cash outflow for leases	For the six months ended June 30 2024 2023 $ 19,296 23,075

The Group sold and leased back its office buildings, and leased land for parking lot and reception center. The leases run for a period of 1.5 to 20 years. The Group also leases out its office equipment, reception center and outdoor advertising. These leases are short-term and leases of low-value items. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

(m) Provisions

Balance on January 1, 2024 Provisions made at current period Provisions reversed at current period ( Balance on June 30, 2024 Balance on January 1, 2023 Provisions made at current period Provisions reversed at current period ( Balance on June 30, 2023	Warranty $ 72,308 5,929 2,683 ) $ 75,554 $ 43,015 33,515 4,718 ) $ 71,812

The Group's warranty provision is related to construction contract. The warranty measured by the historical record; the Group expects most of the liabilities will realize within 1-3 years after construction completion.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(n) Operating lease

The Group leases out its investment property. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(g) for information about the operating leases of investment property.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

Less than one year One to two years Two to three years Three to four years Four to five years More than five years Total undiscounted lease payments	June 30, 2024		December 31, 2023 23,828 21,452 16,480 15,663 13,852 -		June 30, 2023 15,186 11,692 5,427 4,131 4,131 969
	$ 23,633 17,416 15,600 15,229 5,876 -
	$ 77,754		91,275		41,536

For the three months and six months ended June 30, 2024 and 2023, the Group's rental income from investment properties were $5,724 thousand and $4,443 thousand, $11,558 thousand and $8,879 thousand, respectively.

(o) Employee benefits

(i) Defined benefit plans

The Group's employee benefit liabilities were as follows:

Short-term paid leave liability	June 30, 2024		December 31, 2023 8,348		June 30, 2023 4,507
	$ 7,096

(ii) Defined contribution plans

The Group had recognized the following pension expenses for the defined contribution plan, and contributed them to the Bureau of Labor Insurance:

Operating cost Selling expenses Administrative expenses Total	For the three months ended June 30 2024 2023 $ 477 889 309 348 1,505 1,249 $ 2,291 2,486	For the six months ended June 30 2024 2023 1,078 1,767 615 679 2,966 2,428 4,659 4,874
	$ 2,291

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(p) Income tax

(i) Components of income tax expense:

		For the three months	For the three months	For the six months ended	For the six months ended
		ended June 30		June 30
		2024	2023	2024	2023
Current tax expense
Current period	$	222,775	254,892	275,611	411,585
Land value increment tax		84,949	110,455	148,941	169,015
Adjustment to previous		2,713	167	2,713	167
year's income tax expense
Additional tax on		8,300	-	8,300	-
unappropriated earnings
		318,737	365,514	435,565	580,767
Deferred tax expense
Origination and reversal of		413 (	3,877 ) (	650 ) (	5,760	)
temporary differences
Tax expense	$	319,150	361,637	434,915	575,007

(ii) Assessment of tax

Profit-seeking enterprise income tax filing of the Group has been certified by the tax authority up to 2022.

(q) Capital and other equity

There was no significant change in the Group's share capital and other equity for the six months ended June 30, 2024 and 2023, except for the matters discussed below. Please refer to note 6(q) of the 2023 consolidated financial statements for more information.

(i) Capital surplus

The components of the capital surplus were as follows:

Premium on issuance of capital stock Others	June 30, 2024 $ 12,021 12,716		December 31, 2023 12,021 11,833		June 30, 2023 12,021 11,832
	$ 24,737		23,854		23,853

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding. Furthermore, changes in other capital surplus represented the difference between acquisition price and book value of subsidiaries' shares and

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

dividends that remain uncollected by shareholders past the deadline.

(ii) Retained earnings

In accordance with the Company's Articles of Incorporation, stipulates that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders' meeting for approval. Before the distribution of dividends, the Company shall first take into consideration its operating environment, industry developments, and the long-term interests of stockholders, as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial goals in determining the stock or cash dividends to be paid. When distributing dividends, the Company determines the stock or cash dividends to be paid. The limit of dividend distribution is maintained between 10% and 100% of current-year earnings distribution. The cash dividends shall not be below 10% of total dividends.

As the Company distributes all or part of dividends, or legal reserve, or capital with cash, the Company should hold a Board meeting to pass the resolution by more than half of the directors present at the Board meeting, which meeting requires a quorum of two thirds of all the directors present. The resolution should be submitted to the Shareholder's meeting.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders' meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with the FSC, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of unappropriated earnings prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders' equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

3) Earnings distribution

Earnings distribution for the years ended December 31, 2023 and 2022 were decided by the resolution adopted, at the general meeting of shareholders held on June 13, 2024 and June 13, 2023, and the dividends distribution were as follows:

Dividends distributed to ordinary shareholders: Cash Shares Total	2023 Amount Per Share (Dollars) Amount $ 3.00 1,353,078 12.00 5,412,314 $ 6,765,392	2022 Amount Per Share (Dollars) Amount 0.60 270,616 - - 270,616	2022 Amount Per Share (Dollars) Amount 0.60 270,616 - - 270,616
		Amount Per Share (Dollars)
		0.60 -
			270,616

(iii) Other equity items (net after tax)

Balance on January 1, 2024 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance on June 30, 2024 Balance on January 1, 2023 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance on June 30, 2023	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income $ 185,687 192,634
	$ 378,321
	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income $ 130,574 33,985
	$ 164,559

(r) Earnings per share

The calculations of basic and diluted earnings per share were as follows:

(i) Basic earnings per share

1) Profit attributable to ordinary shareholders of the Company 2) Weighted-average number of ordinary shares		For the three months ended June 30	For the three months ended June 30	8	For the six months ended June 30 2024 2023 2,061,789 2,209,143	For the six months ended June 30 2024 2023 2,061,789 2,209,143
			2023 1,354,45		2024 2,061,789
	451,026		451,02	6	451,026	451,026

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(ii) Diluted earnings per share

Diluted earnings per share
1) Profit attributable to ordinary shareholders of the Company (diluted) 2) Weighted-average number of ordinary shares(basic) Effect of restricted employee shares unvested Weighted-average number of ordinary shares (after adjusting for dilutive effect of potential common shares)			For the six months ended June 30 2024 2023 2,061,789 2,209,143
			2024 2,061,789
	451,026 225	451,026 90	451,026 314	451,026 112
	451,251	451,116	451,340	451,138

A resolution was decided by the annual general meeting of shareholders held on June 13, 2024 to distribute stock dividends, and the baseline date for stock dividend was set at October 2, 2024. If the stock dividend occurs before official approval and release of financial statements, the pro-forma retrospective adjustment to earnings per share would be as follows:

Basic earnings per share Diluted earnings per share				For the six months ended June 30 2024 2023 2.08 2.23	For the six months ended June 30 2024 2023 2.08 2.23
				2024 2.08
	$ 1.74	1.36		2.08	2.23

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(s) Revenue from contracts with customers

(i) Disaggregation of revenue

For the three	months ended June 30, 2024 Construction Contractor Department Total 299 5,262,652	months ended June 30, 2024 Construction Contractor Department Total 299 5,262,652
Sales Of Real Estate Department $ 5,262,353	Construction Contractor Department 299
$ 5,256,629 - 5,724	- 299 -	5,256,629 299 5,724
$ 5,262,353	299	5,262,652
$ 5,724 5,256,629	299 -	6,023 5,256,629
$ 5,262,353	299	5,262,652

For the three	months ended June 30, 2023 Construction Contractor Department Total 19,867 4,458,545	months ended June 30, 2023 Construction Contractor Department Total 19,867 4,458,545
Sales Of Real Estate Department $ 4,438,678	Construction Contractor Department 19,867
$ 4,434,235 - 4,443	- 19,867 -	4,434,235 19,867 4,443
$ 4,438,678	19,867	4,458,545
$ 4,443 4,434,235	19,867 -	24,310 4,434,235
$ 4,438,678	19,867	4,458,545

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Primary geographical markets: Taiwan Major products/services lines: Sales revenue (sales of real estate) Construction contracts Other revenue Timing of revenue recognition: Revenue transferred over time Products and services transferred at a point in time Total Primary geographical markets: Taiwan Major products/services lines: Sales revenue (sales of real estate) Construction contracts Other revenue Total Timing of revenue recognition: Revenue transferred over time Products and services transferred at a point in time Total	For the six months ended June 30, 2024 Sales Of Real Estate Department Construction Contractor Department Total $ 6,584,421 26,350 6,610,771 $ 6,572,863 - 6,572,863 - 26,350 26,350 11,558 - 11,558 $ 6,584,421 26,350 6,610,771 $ 11,558 26,350 37,908 6,572,863 - 6,572,863 $ 6,584,421 26,350 6,610,771 For the six months ended June 30, 2023 Sales Of Real Estate Department Construction Contractor Department Total $ 7,482,003 42,414 7,524,417 $ 7,473,124 - 7,473,124 - 42,414 42,414 8,879 - 8,879 $ 7,482,003 42,414 7,524,417 $ 8,879 42,414 51,293 7,473,124 - 7,473,124 $ 7,482,003 42,414 7,524,417	For the six months ended June 30, 2024 Sales Of Real Estate Department Construction Contractor Department Total $ 6,584,421 26,350 6,610,771 $ 6,572,863 - 6,572,863 - 26,350 26,350 11,558 - 11,558 $ 6,584,421 26,350 6,610,771 $ 11,558 26,350 37,908 6,572,863 - 6,572,863 $ 6,584,421 26,350 6,610,771 For the six months ended June 30, 2023 Sales Of Real Estate Department Construction Contractor Department Total $ 7,482,003 42,414 7,524,417 $ 7,473,124 - 7,473,124 - 42,414 42,414 8,879 - 8,879 $ 7,482,003 42,414 7,524,417 $ 8,879 42,414 51,293 7,473,124 - 7,473,124 $ 7,482,003 42,414 7,524,417	For the six months ended June 30, 2024 Sales Of Real Estate Department Construction Contractor Department Total $ 6,584,421 26,350 6,610,771 $ 6,572,863 - 6,572,863 - 26,350 26,350 11,558 - 11,558 $ 6,584,421 26,350 6,610,771 $ 11,558 26,350 37,908 6,572,863 - 6,572,863 $ 6,584,421 26,350 6,610,771 For the six months ended June 30, 2023 Sales Of Real Estate Department Construction Contractor Department Total $ 7,482,003 42,414 7,524,417 $ 7,473,124 - 7,473,124 - 42,414 42,414 8,879 - 8,879 $ 7,482,003 42,414 7,524,417 $ 8,879 42,414 51,293 7,473,124 - 7,473,124 $ 7,482,003 42,414 7,524,417	For the six months ended June 30, 2024 Sales Of Real Estate Department Construction Contractor Department Total $ 6,584,421 26,350 6,610,771 $ 6,572,863 - 6,572,863 - 26,350 26,350 11,558 - 11,558 $ 6,584,421 26,350 6,610,771 $ 11,558 26,350 37,908 6,572,863 - 6,572,863 $ 6,584,421 26,350 6,610,771 For the six months ended June 30, 2023 Sales Of Real Estate Department Construction Contractor Department Total $ 7,482,003 42,414 7,524,417 $ 7,473,124 - 7,473,124 - 42,414 42,414 8,879 - 8,879 $ 7,482,003 42,414 7,524,417 $ 8,879 42,414 51,293 7,473,124 - 7,473,124 $ 7,482,003 42,414 7,524,417
	Sales Of Real Estate Department $ 7,482,003		Construction Contractor Department 42,414
	$ 7,473,124 - 8,879		- 42,414 -
	$ 7,482,003		42,414
	$ 8,879 7,473,124		42,414 -
	$ 7,482,003		42,414

(ii) Contract balances

Contract assets - Construction Less: Allowance for impairment Total Contract liabilities - Sales of real estate Contract liabilities - Advance receipt Total	June 30, 2024 $ 59 -		December 31, 2023 27,465 -		June 30, 2023 25,891 - 25,891 6,134,065 271 6,134,336
	$ 59		27,465
	$ 3,090,826 748		2,535,438 671
	$ 3,091,574		2,536,109

For details on note and account receivable, and allowance for impairment, please refer to note 6(c).

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

The amount of revenue recognized for the six months ended June 30, 2024 and 2023 that was included in the contract liability - Sales of real estate balance at the beginning of the period were $815,147 thousand and $1,381,146 thousand, respectively.

The major change in the balance of contract assets and liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received. There were no other significant changes for the six months ended June 30, 2024 and 2023.

(t) Employee and directors' remuneration

In accordance with the articles of incorporation, the Company should contribute no less than 0.1% of the profit as employee remuneration and less than 1% as directors' remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The recipients of shares and cash may include the employees of the Company's affiliated companies who meet certain conditions.

The Company had estimated employee remuneration at $20,700 thousand, $4,283 thousand, $25,269 thousand, and $6,953 thousand, and director remuneration at $10,350 thousand, $2,570 thousand, $12,635 thousand, and $4,172 thousand, for the three months and six months ended June 30, 2024 and 2023, respectively. These figures were estimated by multiplying the amount of profit before tax and before employee/director remuneration with the percentages of employee/director remuneration stated in the Articles of Incorporation, and are presented as operating expense for the respective periods. If a resolution is made by the meeting of Board of Directors to distribute employee remuneration by shares, the number of shares to be distributed will be calculated based on the closing price of the Company's ordinary shares, one day before the date of the meeting of Board of Directors.

For the years 2023 and 2022, the Company estimated employee remuneration at $25,000 thousand and $4,000 thousand, and directors' remuneration at $10,000 thousand and $1,500 thousand, respectively. These amounts were indifferent from the actual amounts paid. More information can be found on the Market Observation Post System.

(u) Non-operating income and expense
(i) Interest income

The details of interest income:

System. Non-operating income and expense (i) Interest income The details of interest income:
Interest income from construction refundable deposit Interest income from bank deposit and bills Others	For the three months ended June 30 2024 2023 $ 2 1 31,042 18,430 - - $ 31,044 18,431		For the six months ended June 30 2024 2023 3 2 36,490 18,811 10 6
			2024
			3 36,490 10
		18,431	36,503	18,819

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(ii) Other income

The details of other income:

Other income The details of other income:
Dividend income Rent income			For the six months ended June 30
			2024	2023 7,231 5,164
			8,026 11,667
	$ 4,471	9,901	19,693	12,395

(iii) Other gains and losses

The details of other gains and losses:

			For the three months	For the three months	For the three months	For the three months		For the six months ended	For the six months ended	For the six months ended
				ended	June 30			June 30
			2024			2023		2024		2023
Gain on disposal of
investment property		$		7,128		-		7,128		-
Gain on disposal of
property, plant and
equipment			-			768		4		768
Foreign exchange income				1		2		3		3
Gain on lease modification			-			1		8		1
Other income				3,938		12,948		12,310		21,123
Other expenses	(			550	)(	92	)(	1,103	)(	101	)
		$	10,517			13,627		18,350		21,794

(iv) Finance costs

The details of finance costs:

			For the three months	For the three months	For the three months		For the six months ended	For the six months ended	For the six months ended
			ended	June 30			June 30
			2024		2023		2024		2023
Interest expenses
Bank loans and collateral		$	80,847		149,605		152,848		296,344
Guarantee fees			3,065		2,939		6,608		4,981
Interest on corporate bond
(including fees)			51,855		48,125		99,417		95,316
Other financial expenses			309		422		686		893
Less: capitalized interest	(		111,249	)(	139,530	)(	208,223	)(	288,005	)
		$	24,827		61,561		51,336		109,529

(v) Financial instruments

There was no significant change in the fair value of the Group's financial instruments or credit risk, liquidity risk, and market risk exposures arising from use of financial instruments, except for the matters discussed below. Please refer to note 6(v) of the 2023 consolidated financial statements for more information.

(i) Credit risk
1) Credit risk exposure

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Maximum credit exposure of the financial instruments held in possession is represented by their carry amount.

2) Concentration of credit risk

The Group deals with a vast number of customers that are unrelated, hence there is limited degree of credit risk concentration.

3) Credit risk of receivables

For credit risk information on notes and accounts receivable and Increase in other non-current assets, please refer to Note 6(c).

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying Amount	Within 1 Year	1-3years 8,446,512 372,951 - 4,194,000 - 31,060	3-5years 2,542,249 - - 4,137,200 - 145	Over 5 Years 152,050 - - - - 769
$ 10,700,491 709,000 1,655,734 9,859,441 5,162,916 61,245	335,032 366,631 1,659,000 2,011,820 5,162,916 30,611
$ 28,148,827	9,566,010	13,044,523	6,679,594	152,819
$ 8,805,202 587,000 1,623,524 9,868,464 3,801,678 79,436	3,002,023 427,181 1,627,000 5,977,220 3,801,678 34,076	5,087,064 8,689 - 2,056,800 - 46,555	1,002,326 171,669 - 2,017,000 - 137	167,339 - - - - 723
$ 24,765,304	14,869,178	7,199,108	3,191,132	168,062
$ 20,133,537 1,453,500 1,512,614 9,863,149 3,820,188 87,498	10,013,624 1,298,614 1,516,500 4,077,220 3,820,188 29,165	7,020,138 8,689 - 1,971,620 - 58,590	3,790,052 173,843 - 4,028,400 - 1,712	183,533 - - - - 724
$ 36,870,486	20,755,311	9,059,037	7,994,007	184,257

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

(iii) Market risk

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

1) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. Interest rate sensitivity analyses are reported to the management by applying a variance of 0.5% above and below. This variance conforms with the management's expectation about the possible and reasonable range of interest rate variation.

If the interest rate had increased / decreased by 0.5%, the Group's interest expenses would have increased / decreased by $28,526 thousand and $53,975 thousand, respectively, for the six months ended June 30, 2024 and 2023, with all other variable factors remaining constant. After taking capitalized interest into account, net profit would have decreased or increased by $5,642 thousand and $14,871 thousand, respectively. This is mainly due to the Group's borrowing at variable rates.

2) Other market price risk

For the years ended March 31, 2024 and 2023, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Price Of Securities At Reporting Date	For the six months ended June 30 2024 2023 Other Comprehensive Income After Tax Other Comprehensive Income After Tax $ 83,635 61,679 $ 83,635 ) ( 61,679 )
10% increase 10% decrease (

(iv) Information of fair value

1) Valuation techniques for financial instruments measured at fair value

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

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

	June 30, 2024	June 30, 2024	June 30, 2024
Carrying amount $ 836,351		Fair value
	Level 1 836,351	Level 2 -	Level 3 -	Total 836,351
$ 4,017,881 1,790,640 11,458 5,563,642 2,912,372 231,676	- - - - - -	- - - - - -	- - - - - -	- - - - - -
14,527,669	-	-	-	-
$ 15,364,020	836,351	-	-	836,351
$ 11,128,838 1,655,734 5,162,916 61,245 9,859,441 280,653	- - - - - -	- - - - - -	- - - - - -	- - - - - -
$ 28,148,827	-	-	-	-

Long-term loans (including current portion) Total	280,653 $ 28,148,827	- - - - - -	- - - - - -	- - - - - -	- - - - - -	- -
Financial assets at fair value through other comprehensive income Stocks listed on domestic markets Financial assets measured at amortized cost Cash and cash equivalents Notes and accounts receivable Other receivables Other financial assets - current Other financial assets - non-current Subtotal Total Financial liabilities measured at amortized cost Short-term loans Short-term notes and bills payable Notes payable, accounts payable and other payables Lease liabilities Corporate bonds payable (including current portion) Long-term loans (including current portion) Total		December 31, 2023				Total 643,717
	Carrying amount $ 643,717		Fair	value
		Level 1 643,717	Level 2 -		Level 3 -
	$ 4,199,162 727,450 1,904 8,288,142 1,092,216	- - - - -	- - - - -		- - - - -	- - - - -
	14,308,874	-	-		-	-
	$ 14,952,591	643,717	-		-	643,717
	$ 9,098,688 1,623,524 3,801,678 79,436 9,868,464 293,514	- - - - - -	- - - - - -		- - - - - -	- - - - - -
	$ 24,765,304	-	-		-	-

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

	June 30, 2023	June 30, 2023			Total 616,789
Carrying amount $ 616,789		Fair	value
	Level 1 616,789	Level 2 -		Level 3 -
$ 4,135,986 614,681 8,301 5,857,848 1,481,194	- - - - -	- - - - -		- - - - -	- - - - -
12,098,010	-	-		-	-
$ 12,714,799	616,789	-		-	616,789
$ 21,280,774 1,512,614 3,820,188 87,498 9,863,149 306,263	- - - - - -	- - - - - -		- - - - - -	- - - - - -
$ 36,870,486	-	-		-	-

2) Valuation techniques for financial instruments measured at fair value

a) Non-derivative financial instruments

Financial instruments that are openly quoted in an active market will have fair value determined at the openly quoted price. Fair values of public-listed (OTC-traded) equity instruments and debt instruments openly quoted in active markets are determined using market prices quoted on major exchange and OTC center for actively traded government bonds.

A financial instrument is deemed to be openly quoted on an active market if reliable quotations (that are representative of transactions actually and frequently taking place in a fair market) can be obtained from stock exchange, brokers, underwriters, industry associations, pricing institutions, or the authority on a timely and frequent basis. A market is deemed inactive if it fails to satisfy the above conditions. Determining whether a market is active involves judgment.

Fair values and extents of financial instruments quoted in active markets are listed as follows:

Fair value of listed stocks and corporate bonds are determined by market prices, for they are issued with standard terms and conditions, and are quoted in active markets.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

b) Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of forward currency is usually determined by the forward currency exchange rate. Structured Interest Rate Derivatives financial instruments are based on appropriate option pricing models (such as the Black-Scholes model) or other evaluation methods.

The discounted cash flow method is used to estimate the fair value. The main assumptions are considering the probability of occurrence base on the surplus before the tax, interest, depreciation and amortization to estimate the price to be paid, and are estimated as the present value after discounting, whose discount rate is adjusted base on the risk.

3) Transfers between levels

Stock held by the Group quoted in an active market is sorted to Level 1. There was no change in valuation techniques for six months ended June 30, 2024 and 2023. There was no transfer between levels of fair value input for the six months ended June 30, 2024 and 2023.

(w) Financial risk management

There was no significant change in the Group's financial risk management goals and policies from those disclosed in Note 6(w) of the 2023 consolidated financial statements.

(x) Capital management

The Group's capital management goals, policies, and procedures were consistent with those disclosed in the 2023 consolidated financial statements. There was no change in the quantitative data used for capital management from that disclosed in the 2023 consolidated financial statements. Please see note 6(x) of the 2023 consolidated financial statements for more information.

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

The Group's investing and financing activities which did not affect the current cash flow in the six months ended June 30, 2024 and 2023, were as follows:

1) Please refer to note 6(f) for right-of-use assets acquired through lease.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(7) Related-party transactions

(a) Parent company and ultimate controlling company

On June 30, 2024, December 31, 2023, and June 30, 2023, Guang Yang Investment Co., Ltd. (Guang Yang) was the parent company of the Group and it owned 5.95%, 6.37%, and 6.37% of all shares outstanding of the Group, respectively. Chyi Yuh Construction Co., Ltd. is the parent company of Guang Yang. Highwealth Construction Corp. is the ultimate controlling party of the Group. It has issued Consolidated Financial Statements available for Public Use.

(b) Names and relationship with related party

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

Name Of Related Party	Relationship With The Group
GuangYang Investment Construction	Parent company of the Group
Co., Ltd.
Chyi Yuh Construction Co., Ltd.	Parent company of GuangYang Investment
	Construction Co., Ltd.
Highwealth Construction Corp.	Ultimate controlling company of the Group
Well Rich International Co., Ltd.	Same ultimate controlling company with the
	Group
BoYuan Construction Co., Ltd.	〃
Ju Feng Hotel Management Consultant	〃
Co., Ltd.
Highwealth Real Estate Co., Ltd.	〃
Da Li Investment Co., Ltd.	Corporate director of the Group
Fang ○○ architectural firm	Key management personnel of the Group who is
	in charge of the architectural firm (Note)
A party of 5 including Chiu, ○○	Relatives by blood within the second degree of
	relationship of key management personnel of the
	Group
Chen, ○	Relatives by blood within the second degree of
	relationship of key management personnel of the
	Group's ultimate parent

Note: The party is no longer a key management personnel of the Group since March 1, 2024.
(c) Significant transactions with related parties
(i) Operating revenue

For the six months ended June 30, 2024 and 2023, the Group's board of directors resolved to sell real estates to related parties in accordance with the employee purchase policy, which resulted in amounts of $0 and $16,627 thousand being recognized as sales revenue, and advance real estate receipts of $3,770 thousand, $0, and $2,260 thousand being recognized as contract liabilities on June 30, 2024, December 31, 2023, and June 30, 2023, respectively. The values of the above transactions were $46,290 thousand, $32,077 thousand, and $32,077 thousand (all tax-inclusive), respectively. The collection terms were indifferent from non-related party transactions.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(ii) Purchase

1) The amounts of purchases from contract construction by the Group from related parties were as follows:

	Purchase (Charged)	Purchase (Charged)	Purchase (Charged)	Purchase (Charged)
			For the six months ended June 30 2024 2023 16 46,553 1,840 1,210
	2024		2024 16 1,840
$ 16 920
$ 936		47,763	1,856	47,763

There were no significant differences of the price and conditions for related parties and ordinary contract mentioned above.

The above purchase from other related parties represented a purchase of construction permit from BoYuan, with a contract price of $48,852 thousand (tax-inclusive).

2) The Group commissioned related parties to administer construction properties. Administration fees were as follows:

	Expense paid	Expense paid	Expense paid	Expense paid
			For the six months ended June 30 2024 2023 371 5,133 - 559
	2024
$ - -
$ -		4,762	371	5,692

(iii) Receivables from related parties

The receivables from related parties were as follows:

Accounted Items	Categories	June 30, 2024 $ - 8,026 - 1,166	December 31, 2023 - - 449 -	June 30, 2023 14,049 7,231 - 381
Accounts receivable Other receivables 〃〃	Other related parties Parent company - Highwealth Construction Corp. Parent company - Chyi Yuh Construction Co., Ltd. Other related parties
		$ 9,192	449	21,661

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(iv) Payables to related parties

The payables to related parties were as follows:

Accounted Items	Categories	June 30, 2024 $ - - 1,067 971 1,152 43,529 822	December 31, 2023 - - 2,887 227 18 19,468 591	June 30, 2023 4,762 18,637 3,467 1,210 18 26,716 1,527
Accounts payable 〃〃〃 Other payables 〃〃	Parent company - Highwealth Construction Corp. Parent company - Chyi Yuh Construction Co., Ltd. Other related party - Well Rich International Co., Ltd. Other related parties Parent company Other related party - Ju Feng Hotel Management Consultant Co., Ltd. Other related parties
		$ 47,541	23,191	56,337

(v) Leases

The leases between the Group and related parties were as follows:

1) Rent income

Guarantee deposits June 30, 2024 December 31, 2023 June 30, 2023 $ - - - 1,378 1,378 1,378 200 200 - - - -	Guarantee deposits June 30, 2024 December 31, 2023 June 30, 2023 $ - - - 1,378 1,378 1,378 200 200 - - - -	Guarantee deposits June 30, 2024 December 31, 2023 June 30, 2023 $ - - - 1,378 1,378 1,378 200 200 - - - -	Rent income	Rent income	Rent income	Rent income
June 30, 2024	December 31, 2023		For the three months ended June 30 2024 2023 15 15 1,975 1,975 1,395 - 11 296		For the six months ended June 30 2024 2023 29 29 3,970 3,951 6,121 - 21 402
			2024		2024 29 3,970 6,121 21
$ - 1,378 200 -	- 1,378 200 -	- 1,378 - -	15 1,975 1,395 11
$ 1,578	1,578	1,378	3,396	2,286	10,141	4,382

2) Rent expense

Refundable deposits June 30, 2024 December 31, 2023 June 30, 2023 $ 215 215 215 140 140 140	Refundable deposits June 30, 2024 December 31, 2023 June 30, 2023 $ 215 215 215 140 140 140	Refundable deposits June 30, 2024 December 31, 2023 June 30, 2023 $ 215 215 215 140 140 140	Rent expense	Rent expense	Rent expense	Rent expense
June 30, 2024 $ 215 140	December 31, 2023		For the three months ended June 30		For the six months ended June 30 2024 2023 898 2,269 389 389
			2024	2023 791 195	2024 898 389
	215 140	215 140	449 195
$ 355	355	355	644	986	1,287	2,658

(vi) Others

1) As of June 30, 2024, December 31, 2023, and June 30, 2023, the Group's contracts with related parties for construction cooperation were as follows:

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Property June 30, 2024 Shicheng Aiyue (Huei An section) December 31, 2023 Shicheng Aiyue (Huei An section) June 30, 2023	Land Owner /Investor Parent company – Highwealth Construction Corp. Parent company – Highwealth Construction Corp. Parent company – Highwealth Construction Corp.	Type	Portion
		Redistribution under cooperative construction Redistribution under cooperative construction Redistribution under cooperative construction
Shicheng Aiyue (Huei An section)

2) As of June 30, 2024, December 31, 2023, and June 30, 2023, the Group received guarantee notes of $0, $0, and $20,951 thousand, respectively, from Chyi Yuh Construction Co., Ltd. for construction contracts.
3) As of June 30, 2024, December 31, 2023, and June 30, 2023, the Group issued guarantee notes of $0, $0, and 49,281 thousand, respectively, to Highwealth Construction Corp. for contracting project.
4) The Group commissioned related parties to sell real estate and administer the construction sites. Related consulting fees and commission and sales expense were as follows:

Expense paid For the three months ended June 30 For the six months ended June 30 2024 2023 2024 2023 $ 2,857 2,857 5,714 5,714 28,803 18,691 29,337 33,311	Expense paid For the three months ended June 30 For the six months ended June 30 2024 2023 2024 2023 $ 2,857 2,857 5,714 5,714 28,803 18,691 29,337 33,311	Expense paid For the three months ended June 30 For the six months ended June 30 2024 2023 2024 2023 $ 2,857 2,857 5,714 5,714 28,803 18,691 29,337 33,311	Expense paid For the three months ended June 30 For the six months ended June 30 2024 2023 2024 2023 $ 2,857 2,857 5,714 5,714 28,803 18,691 29,337 33,311
For the three months ended June 30 2024 2023 $ 2,857 2,857 28,803 18,691
$ 2,857 28,803
$ 31,660	21,548	35,051	39,025

(d) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits	For the three months ended June 30 2024 2023 $ 18,629 6,878	For the six months ended June 30 2024 2023 25,004 12,447
	2024	2024
	$ 18,629	25,004

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged Assets	Object	June 30, 2024 $ 684,855 821,448 7,436,586 22,701,654 1,062,648		December 31, 2023 527,115 627,831 8,392,288 19,787,143 1,052,151		June 30, 2023 560,634 233,605 6,547,613 30,387,026 900,835
Financial assets at fair value through other comprehensive income - current Notes receivable Other financial assets - current and non-current Inventories (construction) Investment property	Bank loans Bank loans, short-term notes and bonds Trust account, performance guarantee, bank loan, short-term bills payable, guarantees and endorsements, and bonds Bank loans, short-term notes and long-term borrowings Long-term borrowings and short-term bills payable
		$ 32,707,191		30,386,528		38,629,713

As of June 30, 2024, December 31, 2023, and June 30, 2023, the book value of the above assets pledged for undrawn loan limits were $2,395,773 thousand, $4,598,488 thousand, and $0, respectively. As of June 30, 2024, December 31, 2023, and June 30, 2023, the Group provided notes receivable on presale cases totaling $1,556,005 thousand, $1,525,139 thousand, and $2,351,912 thousand, respectively, as collateral for bank loans.

(9) Commitments and contingencies

(a) Unrecognized contractual commitments
(i) Amount of signed contract and received amount from contracts for construction released, for properties sold in advance and sold after completion, were as follows:

follows:
Amounts of signed contracts Received amount from contracts Outstanding checks received from presale cases	June 30, 2024 $ 41,579,134	December 31, 2023 32,463,218	June 30, 2023 50,010,359
	$ 3,090,826	2,535,437	6,134,065
	$ 2,824,713	2,782,497	2,721,679

(ii) As of June 30, 2024, December 31, 2023, and June 30, 2023, the amount of refundable deposits placed for joint construction with land owners amounted to $4,005,000 thousand, $4,305,000 thousand, and $4,325,000 thousand, respectively. For the above-mentioned joint construction projects, the Group will settle the amounts on dates agreed by both parties.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(iii) As of June 30, 2024, December 31, 2023, and June 30, 2023, the contract price of administration services the Group provided to joint investors was $14,286 thousand, and the amount received was $11,429 thousand for all of the above dates.
(iv) The Group had the following contractual commitments for inventory acquisition that were not recognized on balance sheet:

Inventory acquisition (construction)	June 30, 2024 $ 64,101	December 31, 2023 -	June 30, 2023 1,589,270

(v) Construction contract price signed by subsidiaries was as follows:

Amount of signed contracts Received amount from contracts Guarantee notes issued (Note 1)	June 30, 2024 $ 457	December 31, 2023 188,992	June 30, 2023 154,678
	$ 457	143,128	96,093
	$ 4,135	2,458	55,948

Note 1. Includes guarantee notes issued to related parties, which amounted to $0, $0, and $49,281 thousand as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively.

(10) Losses due to major disasters: None

(11) Subsequent events: None

(12) Others

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

Function Item	For the three months ended June 30, 2024	For the three months ended June 30, 2024	For the three months ended June 30, 2024	For the three months ended June 30, 2023	For the three months ended June 30, 2023	For the three months ended June 30, 2023
	Operating Cost	Operating Expense	Total	Operating Cost	Operating Expense	Total
Employee benefits
Salary	18,679	58,625	77,304	22,906	31,428	54,334
Labor and health insurance	2,074	3,654	5,728	2,479	3,458	5,937
Pension	477	1,814	2,291	889	1,597	2,486
Others	359	4,743	5,102	661	4,624	5,285
Depreciation	4,725	9,252	13,977	4,310	8,533	12,843
Amortization	-	1,284	1,284	-	1,139	1,139

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Function Item	For the six months ended June 30, 2024	For the six months ended June 30, 2024	For the six months ended June 30, 2024	For the six months ended June 30, 2023	For the six months ended June 30, 2023	For the six months ended June 30, 2023
	Operating Cost	Operating Expense	Total	Operating Cost	Operating Expense	Total
Employee benefits
Salary	38,594	88,857	127,451	49,366	65,651	115,017
Labor and health insurance	4,166	8,144	12,310	4,662	7,793	12,455
Pension	1,078	3,581	4,659	1,767	3,107	4,874
Others	768	7,122	7,890	1,301	7,851	9,152
Depreciation	9,631	18,902	28,533	8,782	17,321	26,103
Amortization	-	2,590	2,590	-	2,270	2,270

(b) Seasonality of operations

The Group's operations are not affected by seasonality or cyclicality.

Regarding the fraud allegations against TSAI, TSUNG-PIN, the former chairman of the Group, in connection with the Kuobin Dayuan case, the Taipei District Prosecutors Office decided not to prosecute TSAI, TSUNG-PIN and others on December 21, 2016. However, after the plaintiff requested a review and the Taiwan High Prosecutors Office revoked the non-prosecution decision, the prosecutor filed charges of ordinary fraud against TSAI, TSUNG-PIN on January 5, 2023. The case is now being tried by the Taipei District Court, and the Group assesses that the aforementioned event has no significant impact on the financial operations of the Group.

(13) Other disclosures

(a) Information on significant transactions:

The following is the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Group for the six months ended June 30, 2024:

(i) Loans to other parties: None

(ii) Guarantees and endorsements for other parties:

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(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)
Counter-Party Of
Guarantee And
Endorsement
No. [Name Of ]
Guarantor
Company Nature Of
name Relationship
0 The Jin Jyun 2 14,412,851 100,000 100,000 - - 0.69% 28,825,702 Y N N
Company Construction
Co., Ltd.
1 Jin Jyun The 3 3,574,610 1,000,000 1,000,000 - - 55.95% 7,149,219 N Y N
Construction Company
Co., Ltd.
Period China
Company
Specific Enterprise Endorsements For A Guarantees And Limitation On Amount Of Endorsements During The Guarantees And Highest Balance For Reporting Date Endorsements As Of Balance Of Guarantees And During The Period Actual Usage Amount Endorsements (Amount) Guarantees And Property Pledged For Financial Statements Worth Of The Latest And Endorsements To Net Amounts Of Guarantees Ratio Of Accumulated Endorsements Guarantees And Maximum Amount For Of Subsidiary To Third Parties On Behalf Endorsements/ Guarantees Parent Company On Behalf Of Parent Guarantees To Third Parties Subsidiary Endorsements/ Of Companies In Mainland To Third Parties On Behalf Endorsements/Guarantees
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Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Note 1. The numbering is as follows:
1) "0" represents the company
2) Investees are sequentially numbered from 1 by company
Note 2. The relationship between the guaranteed and the guarantor are as follows:
1) Transactions between the companies.
2) The Company directly or indirectly holds more than 50% voting right.
3) When other companies directly or indirectly hold more than 50% voting rights of the Company.
4) The Company directly or indirectly holds more than 90% voting right.
5) A company that is mutually protected under contractual requirements based on the needs of the contractor.
6) A company that is endorsed by all the contributing shareholders in accordance with their shareholding ratio due to joint investment relationship.
7) Under the Consumer Protection Act, performance guarantees for pre-sale contracts for companies in the same industry.
Note 3. The Company endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:
1) The aggregate amount of endorsements and guarantees endorsed by the company and its subsidiaries shall not exceed 200% of current net value of the Company.
2) The aggregate amount of endorsements and guarantees endorsed by the company and its subsidiaries for a single enterprise shall not exceed 100% of current net value of the Company.
Note 4. Jin Jyun Construction Co., Ltd. endorsed the operation method for the total amount of guarantees and the limit for endorsement of a single enterprise:
1) The aggregate amount of endorsements and guarantees endorsed by the company shall not exceed 400% of the net value of the company.
2) The aggregate amount of endorsements and guarantees endorsed by the company for a single enterprise shall not exceed 200% of the net value of the company.
(iii) Securities held as of June 30, 2024 (excluding investment in subsidiaries, associates and joint ventures):

(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)

Name Of Holder	Category And Name Of Security	Relationship With Company	Account Name	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Note
				Shares/Unit	Carrying amount	Percentage Of Ownership (%)	Fair value
The Company	Stock - Highwealth Construction Corp.	Ultimate Controlling company of the Company	Financial assets at fair value through other comprehensive income- current	16,052,801	836,351	0.85 %	836,351

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:

			(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)
Name Of Company	Name Of Property	Transaction Date	Transaction Amount	Status Of Payment	Counter-Party	Nature Of Relationship	If Th Relat Previou	e Counter-Party Is A ed Party, Disclose The s Transfer Information			Pricing reference	Purpose of acquisition and usage	Other terms and conditions
							References For Determining Price	Purpose Of Acquisition And Current Condition	Others	Amount
The Company	Jincheng Section, Anping District, Tainan City	February 26, 2024	591,881	533,666	A party of 10 including Yeh	Not related parties	-	-	-	-	Appraisal	Construction	-
Jin Jyun Construction Co., Ltd.	Guoan Section, Annan District, Tainan City	March 29, 2024	2,265,750	Amount has been fully paid	Taipang Shoufu Construction Co.,Ltd.	Not related parties	-	-		-	Appraisal	Construction	Note

Note: Includes floor area transfer expenses of $125,470 thousand (tax-inclusive).
(vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)

Name Of Company	Counter-Party	Nature Of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions With Terms Different From Others	Transactions With Terms Different From Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/Sale	Amount	Percentage Of Total Purchases/ Sales	Payment Terms	Unit Price	Payment Terms	Ending Balance	Percentage Of Total Notes/Accounts Receivable (Payable)
The Company	Jin Jyun Construction Co.,Ltd.	Subsidiary of the Company	Contracting project management fee	2,646,610	57.95%		-	-	(623,929)	(38.45)%	Note 2, Note 3
Jin Jyun Construction Co.,Ltd.	The Company	Parent company	Contracted project management responsibility	(1,895,221)	98.63%		-	-	623,929	98.37%	Note 1, Note 3

Note 1. The contracted company recognizes its construction revenue through percentage of completion method, and the amount of sales included.
Note 2. The contracting company records its import price through estimates of amount of purchase through number of trials.

Note 3. Reconciliated in the preparation of consolidated report.

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)

Name Of Company	Counter-Party	Nature Of Relationship	Related party receivables balance	Turnover rate	Overdue receivables from related parties	Overdue receivables from related parties	Amounts received from related parties in subsequentperiod	Allowance For Bad Debts
					Amount	Action taken
The Company	Jin Jyun Construction Co.,Ltd.	Subsidiary of the Company	100,210	Note	-	-	-	-
Jin Jyun Construction Co.,Ltd.	The Company	Parent company	623,929	6.25	-	-	366,198	-

Note: Mainly represents 2023 cash dividends, therefore is not subject to turnover rate calculation.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(ix) Trading in derivative instruments: None.
(x) Business relationships and significant intercompany transactions:

				(Amount in Thousands of New Taiwan Dollars,Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars,Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars,Unless specified Otherwise)	(Amount in Thousands of New Taiwan Dollars,Unless specified Otherwise)
No.	Name Of Company	Name Of Counter-Party	Relationship with the transaction counterparty	Intercompany Transactions
				Account Name	Amount	Trading Terms	Percentage Of The Consolidated Net Revenue Or Total Assets
0	The Company	Jin Jyun Construction Co., Ltd.	1	Accounts payable	$ 623,929	Same with peer terms	1.35%
			1	Operating cost	1,895,221	Same with peer terms	28.67%
1	Jin Jyun Construction Co., Ltd.	The Company	2	Accounts receivable	623,929	Same with peer terms	1.35%
			2	Operating revenue	1,895,221	Same with peer terms	28.67%

Note 1. The numbering is as follows:

  - 1) "0" represents the parent company.

2) Subsidiaries are sequentially numbered from 1 by company.
Note 2. Relation between related parties are as follows:
- 1) Parent company and its subsidiaries
- 2) Subsidiaries and its parent company
(b) Information on investees:

The following is the information on investees for the six months ended June 30, 2024 (excluding information on investees in Mainland China):

(Amount in Thousands of New Taiwan Dollars, Unless specified Otherwise)

Name of investor	Name of investee	Location	Primary business activities	Amount of initial investment	Amount of initial investment	End-of-period holding position	End-of-period holding position	End-of-period holding position	Current period profit or loss of investee	Investment gains or losses recognized in the current period	Note
				End of current period	Previous year	Shares/Unit	Percentage	Carrying amount
Run Long Construction Co., Ltd.	Stock - Jin Jyun Construction Co., Ltd.	Taiwan	Construction, housing and building development rental services etc.	1,718,300	1,718,300	170,000,000	100.00%	1,591,556	32,632	36,103

Note: Eliminated during preparation of consolidated financial statements.

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(d) Major shareholders:

Major shareholders:	Major shareholders:	Major shareholders:
(Expressed in shares) Shareholding Shareholder's Name Shares Percentage Ching Shr Ban Investment Co., Ltd. 44,419,740 9.84% Shing Ri Sheng Investment Co., Ltd. 32,574,642 7.22% GuangYang Investment Construction Co., Ltd. 26,864,103 5.95% Wan Sheng Fa Investment Co., Ltd. 25,873,040 5.73% Highwealth Construction Corp. 23,698,288 5.25%
Shareholding Shareholder's Name	Shares	Percentage
Ching Shr Ban Investment Co., Ltd.	44,419,740	9.84%
Shing Ri Sheng Investment Co., Ltd.	32,574,642	7.22%
GuangYang Investment Construction Co., Ltd.	26,864,103	5.95%
Wan Sheng Fa Investment Co., Ltd.	25,873,040	5.73%
Highwealth Construction Corp.	23,698,288	5.25%

(14) Segment information

Information on the Group's segments and reconciliation:

Developing Segment $ 5,262,353 -	Constructing Segment 299 1,242,485		Reconciliation And Elimination - 1,242,485
$ 5,262,353	1,242,784		1,242,485
$ 2,038,939	20,912		16,610
Developing Segment $ 4,438,678 -	Constructing Segment 19,867 1,940,170		Reconciliation And Elimination - 1,940,170 )
$ 4,438,678	1,960,037		1,940,170 )
$ 1,706,364	48,316	(	38,585	)

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Developing Segment	Constructing Segment 26,350 1,895,221	(	Reconciliation And Elimination - 1,895,221 )
$ 6,584,421 -
$ 6,584,421	1,921,571	(	1,895,221 )
$ 2,489,011	40,325	(	32,632
Developing Segment $ 7,482,003 -	Constructing Segment 42,414 2,608,914	(	Reconciliation And Elimination - 2,608,914 )
$ 7,482,003	2,651,328	(	2,608,914 )
$ 2,770,254	70,915	(	57,019 )
$ 44,071,691	4,695,486	(	2,604,620
$ 40,800,707	4,233,342	(	2,495,289
$ 51,114,984	3,190,592	(	2,238,717

AI assistant

RUN LONG — Interim / Quarterly Report 2024

51927_rns_2024-11-29_173f19e1-c7f8-46d4-bed4-6ea224a673fa.pdf

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors' Review Report For the Six Months Ended June 30, 2024 and 2023

Table of Contents

Independent Auditors' Review Report

Introduction

Scope of Review

Conclusion

KPMG

Notes to Readers

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

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

As of June 30, 2024, December 31, 2023, and June 30, 2023

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the Three Months and Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows (continued) For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

RUN LONG CONSTRUCTION CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements For the Six Months Ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

(1)

Company history

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

(3) New standards, amendments and interpretations adopted

Standards or Interpretations

Effective date per IASB

(4) Summary of material accounting policies

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

(6) Explanation of significant accounts

(f) Right-of-use assets

(g) Investment property

(i) Other financial assets

(n) Operating lease

(i) Defined benefit plans

(ii) Defined contribution plans

(p) Income tax

(i) Capital surplus

3) Earnings distribution

(iii) Other equity items (net after tax)

(r) Earnings per share

(ii) Diluted earnings per share

(i) Disaggregation of revenue

(t) Employee and directors' remuneration

(ii) Other income

(iii) Other gains and losses

(v) Financial instruments

1) Interest rate analysis

2) Other market price risk

(iv) Information of fair value

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(7) Related-party transactions

(ii) Purchase

(iii) Receivables from related parties

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(iv) Payables to related parties

(v) Leases

1) Rent income

2) Rent expense

(vi) Others

(8) Pledged assets

(9) Commitments and contingencies

(10) Losses due to major disasters: None

(11) Subsequent events: None

(12) Others

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(13) Other disclosures

(ii) Guarantees and endorsements for other parties:

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

(d) Major shareholders:

(14) Segment information

Notes to Consolidated Financial Statements of Run Long Construction Co., Ltd. and Subsidiaries (continued)

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RUN LONG Interim / Quarterly Report 2024