SYSCOM - Interim / Quarterly Report 2024

Stock Code: 2453

Syscom Computer Engineering Co. and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2024 and 2023 and Independent Auditors’ Review Report

Address: 6th Floor, No. 115, Emei Street, Wanhua District, Taipei City TEL: (02)2191-6066

The independent 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 independent auditors’ review report and consolidated only financial statements, the Chinese version shall prevail.

§ Table of Contents §

Item
Page
1. Cover
1
2. Table of Contents
2
3. Independent Auditors’ Review Report
3～4
4. Consolidated Balance Sheets
5
5. Consolidated Statements of Comprehensive Income
6～7
6. Consolidated Statements of Changes in Equity
8
7. Consolidated Statements of Cash Flows
9～10
8. Notes to Consolidated Financial Statements
(1) General
11
(2) The Date and Procedures of Authorization of
Financial Statements
11
(3) Application of New and Revised Standards and
Interpretations
11
(4) Summary of Significant Accounting Policies
12
(5) Critical Accounting Judgments and Key
Sources of Estimation and Uncertainty
13
(6) Explanation of Significant Accounts
13～32
(7) Related Parties Transactions
32~34
(8) Assets Pledged as Collateral
35
(9) Significant Contingent Liabilities and
Unrecognized Commitments
35
(10) Significant Disaster Loss
-
(11) Other Matters
-
(12) Significant Events after Reporting Period
-
(13) Significant Assets and Liabilities Denominated
in Foreign Currencies
35~36
(14) Separately Disclosed Items
A. Information about significant transactions
36、38～40
B. Information on investees
36、41
C. Information on investment in mainland
China
36~37、42
D. Information of major shareholders
37、43
(15) Segment Information
37 Notes to Financial
Statements

-
-
-
-
-
-
-
1
2
3
4
5
6-25
26
27
28
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-
-
29
30
30
30
30
31

§ Table of Contents §
Item Page 1. Cover 1 2. Table of Contents 2 3. Independent Auditors’ Review Report 3`～`4 4. Consolidated Balance Sheets 5 5. Consolidated Statements of Comprehensive Income 6`～`7 6. Consolidated Statements of Changes in Equity 8 7. Consolidated Statements of Cash Flows 9`～`10 8. Notes to Consolidated Financial Statements (1) General 11 (2) The Date and Procedures of Authorization of Financial Statements 11 (3) Application of New and Revised Standards and Interpretations 11 (4) Summary of Significant Accounting Policies 12 (5) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty 13 (6) Explanation of Significant Accounts 13`～`32 (7) Related Parties Transactions 32~34 (8) Assets Pledged as Collateral 35 (9) Significant Contingent Liabilities and Unrecognized Commitments 35 (10) Significant Disaster Loss - (11) Other Matters - (12) Significant Events after Reporting Period - (13) Significant Assets and Liabilities Denominated in Foreign Currencies 35~36 (14) Separately Disclosed Items A. Information about significant transactions 36`、`38`～`40 B. Information on investees 36`、`41 C. Information on investment in mainland China 36~37`、`42 D. Information of major shareholders 37`、`43 (15) Segment Information 37	Notes to Financial Statements
	- - - - - - - 1 2 3 4 5 6-25 26 27 28 - - - 29 30 30 30 30 31

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Syscom Computer Engineering Company

Introduction

We have reviewed the accompanying consolidated balance sheets of Syscom Computer Engineering Company and its subsidiaries (collectively, the “Group”) as of June 30, 2024 and 2023, the related consolidated statements of comprehensive income for the three months ended June 30, 2024 and 2023 and for the six months ended June 30,2024 and 2023, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2024 and 2023 combined total assets of these non-significant subsidiaries were NT$371,952 thousand and NT$377,872 thousand, respectively, representing 8% and 9%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$228,269 thousand and NT$255,919 thousand, respectively, representing 10% and 11%, respectively, of the consolidated total liabilities; for the three months ended June 30, 2024 and 2023 and for the six months ended June 30,2024 and 2023, the amounts of combined total comprehensive loss of these subsidiaries were NT$5,113 thousand, NT$12,985 thousand, NT$26,497 thousand and NT$25,352 thousand, respectively, representing (7)%, (26)%, (18)% and (19)%, respectively, of the consolidated total comprehensive income. As disclosed in Note 12 to the consolidated financial statements, as of June 30, 2024 and 2023, investments accounted for using the equity method were NT$67,357 thousand and NT$67,431 thousand, respectively, and for the three months ended June 30, 2024 and 2023 and for the six months ended June 30, 2024 and 2023, the comprehensive income(loss) of these equity-method investments were NT$433 thousand, NT$(140) thousand, NT$550 thousand and NT$(787) thousand, respectively, which were calculated on the basis of financial statements that have not been reviewed. In addition, the information related to the subsidiaries and investee companies mentioned in Note 30 have also not been reviewed.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries, the investments

accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2024 and 2023, its consolidated financial performance for the three months ended June 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting”endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Li-Wen Kuo and Pei-De Chen.

Deloitte & Touche Taipei, Taiwan Republic of China

August 12, 2024

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

Code 1100 1110 1136 1140 1150 1172 1200 1220 130X 1410 1479 11XX 1517 1535 1550 1600 1755 1821 1840 1990 15XX 1XXX Code 2100 2130 2150 2170 2200 2230 2280 2399 21XX 2572 2580 2640 2645 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 31XX 36XX 3XXX	ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current Financial assets at amortized cost - current (Notes 8 and 27) Contract assets - current (Note 20) Notes receivable Accounts receivable (Notes 9 and 26) Other receivables Current tax assets Inventories (Note 10) Prepayments Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 7) Financial assets at amortized cost - non-current (Notes 8 and 27) Investments accounted for using the equity method (Note12) Property, plant and equipment (Notes 13 and 26) Right-of-use assets (Notes 14 and 26) Intangible assets (Note 15) Deferred tax assets Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 16 and 27) Contract liabilities - current (Note 20) Notes payable Accounts payable (Note 26) Other payables (Note 17) Current tax liabilities Lease liabilities - current (Notes 14 and 26) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities Lease liabilities - non-current (Notes 14 and 26) Net defined benefits liabilities - non-current (Note 4) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 19) Share capital - ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity of the owners of the Company Non-controlling interests (Note 19) Total equity TOTAL		June 30,2024 Amount `％` $ 651,568 15 11,840 - 249,589 6 674,551 15 23,186 1 822,191 19 8,532 - 307 - 621,012 14 392,803 9 110,570 2 3,566,149 81 42,197 1 200,080 5 67,357 1 366,764 8 80,407 2 2,863 - 9,149 - 71,144 2 839,961 19 $ 4,406,110 100 $ 168,739 4 485,081 11 338 - 1,083,010 24 431,500 10 39,533 1 46,876 1 26,547 1 2,281,624 52 10,357 - 34,358 1 29,245 1 15,921 - 89,881 2 2,371,505 54 1,000,000 23 1,797 - 358,096 8 17,619 1 623,838 14 999,553 23 21,470 - 2,022,820 46 11,785 - 2,034,605 46 $ 4,406,110 100		(In Thousands of New Taiwan Dollars) December 31,2023 June 30,2023 Amount `％` Amount `％` $ 884,494 18 $ 569,612 13 10,457 - 454 - 215,604 5 177,690 4 483,322 10 521,665 12 12,062 - 2,702 - 1,425,698 29 964,905 23 6,316 - 4,563 - 286 - 312 - 473,593 10 662,332 16 414,915 9 438,238 10 89,362 2 137,038 3 4,016,109 83 3,479,511 81 33,026 1 38,050 1 197,876 4 174,861 4 67,858 1 67,431 2 362,728 8 357,460 8 94,888 2 119,248 3 2,312 - 2,625 - 12,486 - 10,545 - 58,987 1 55,730 1 830,161 17 825,950 19 $ 4,846,270 100 $ 4,305,461 100 $ 190,855 4 $ 173,178 4 465,330 10 252,555 6 131 - 1,329 - 1,453,533 30 1,268,300 29 417,993 9 399,689 9 20,234 - 32,696 1 46,175 1 48,693 1 18,065 - 21,062 1 2,612,316 54 2,197,502 51 10,429 - 10,709 - 49,503 1 71,325 2 41,947 1 41,941 1 14,771 - 14,524 - 116,650 2 138,499 3 2,728,966 56 2,336,001 54 1,000,000 21 1,000,000 23 1,797 - 1,399 - 330,483 7 330,483 8 17,619 - 17,619 - 752,580 16 598,150 14 1,100,682 23 946,252 22 11,728 - 18,079 1 2,114,207 44 1,965,730 46 3,097 - 3,730 - 2,117,304 44 1,969,460 46 $ 4,846,270 100 $ 4,305,461 100	(In Thousands of New Taiwan Dollars) December 31,2023 June 30,2023 Amount `％` Amount `％` $ 884,494 18 $ 569,612 13 10,457 - 454 - 215,604 5 177,690 4 483,322 10 521,665 12 12,062 - 2,702 - 1,425,698 29 964,905 23 6,316 - 4,563 - 286 - 312 - 473,593 10 662,332 16 414,915 9 438,238 10 89,362 2 137,038 3 4,016,109 83 3,479,511 81 33,026 1 38,050 1 197,876 4 174,861 4 67,858 1 67,431 2 362,728 8 357,460 8 94,888 2 119,248 3 2,312 - 2,625 - 12,486 - 10,545 - 58,987 1 55,730 1 830,161 17 825,950 19 $ 4,846,270 100 $ 4,305,461 100 $ 190,855 4 $ 173,178 4 465,330 10 252,555 6 131 - 1,329 - 1,453,533 30 1,268,300 29 417,993 9 399,689 9 20,234 - 32,696 1 46,175 1 48,693 1 18,065 - 21,062 1 2,612,316 54 2,197,502 51 10,429 - 10,709 - 49,503 1 71,325 2 41,947 1 41,941 1 14,771 - 14,524 - 116,650 2 138,499 3 2,728,966 56 2,336,001 54 1,000,000 21 1,000,000 23 1,797 - 1,399 - 330,483 7 330,483 8 17,619 - 17,619 - 752,580 16 598,150 14 1,100,682 23 946,252 22 11,728 - 18,079 1 2,114,207 44 1,965,730 46 3,097 - 3,730 - 2,117,304 44 1,969,460 46 $ 4,846,270 100 $ 4,305,461 100	(In Thousands of New Taiwan Dollars) December 31,2023 June 30,2023 Amount `％` Amount `％` $ 884,494 18 $ 569,612 13 10,457 - 454 - 215,604 5 177,690 4 483,322 10 521,665 12 12,062 - 2,702 - 1,425,698 29 964,905 23 6,316 - 4,563 - 286 - 312 - 473,593 10 662,332 16 414,915 9 438,238 10 89,362 2 137,038 3 4,016,109 83 3,479,511 81 33,026 1 38,050 1 197,876 4 174,861 4 67,858 1 67,431 2 362,728 8 357,460 8 94,888 2 119,248 3 2,312 - 2,625 - 12,486 - 10,545 - 58,987 1 55,730 1 830,161 17 825,950 19 $ 4,846,270 100 $ 4,305,461 100 $ 190,855 4 $ 173,178 4 465,330 10 252,555 6 131 - 1,329 - 1,453,533 30 1,268,300 29 417,993 9 399,689 9 20,234 - 32,696 1 46,175 1 48,693 1 18,065 - 21,062 1 2,612,316 54 2,197,502 51 10,429 - 10,709 - 49,503 1 71,325 2 41,947 1 41,941 1 14,771 - 14,524 - 116,650 2 138,499 3 2,728,966 56 2,336,001 54 1,000,000 21 1,000,000 23 1,797 - 1,399 - 330,483 7 330,483 8 17,619 - 17,619 - 752,580 16 598,150 14 1,100,682 23 946,252 22 11,728 - 18,079 1 2,114,207 44 1,965,730 46 3,097 - 3,730 - 2,117,304 44 1,969,460 46 $ 4,846,270 100 $ 4,305,461 100	(In Thousands of New Taiwan Dollars) December 31,2023 June 30,2023 Amount `％` Amount `％` $ 884,494 18 $ 569,612 13 10,457 - 454 - 215,604 5 177,690 4 483,322 10 521,665 12 12,062 - 2,702 - 1,425,698 29 964,905 23 6,316 - 4,563 - 286 - 312 - 473,593 10 662,332 16 414,915 9 438,238 10 89,362 2 137,038 3 4,016,109 83 3,479,511 81 33,026 1 38,050 1 197,876 4 174,861 4 67,858 1 67,431 2 362,728 8 357,460 8 94,888 2 119,248 3 2,312 - 2,625 - 12,486 - 10,545 - 58,987 1 55,730 1 830,161 17 825,950 19 $ 4,846,270 100 $ 4,305,461 100 $ 190,855 4 $ 173,178 4 465,330 10 252,555 6 131 - 1,329 - 1,453,533 30 1,268,300 29 417,993 9 399,689 9 20,234 - 32,696 1 46,175 1 48,693 1 18,065 - 21,062 1 2,612,316 54 2,197,502 51 10,429 - 10,709 - 49,503 1 71,325 2 41,947 1 41,941 1 14,771 - 14,524 - 116,650 2 138,499 3 2,728,966 56 2,336,001 54 1,000,000 21 1,000,000 23 1,797 - 1,399 - 330,483 7 330,483 8 17,619 - 17,619 - 752,580 16 598,150 14 1,100,682 23 946,252 22 11,728 - 18,079 1 2,114,207 44 1,965,730 46 3,097 - 3,730 - 2,117,304 44 1,969,460 46 $ 4,846,270 100 $ 4,305,461 100
			Amount $ 651,568 11,840 249,589 674,551 23,186 822,191 8,532 307 621,012 392,803 110,570 3,566,149 42,197 200,080 67,357 366,764 80,407 2,863 9,149 71,144 839,961 $ 4,406,110 $ 168,739 485,081 338 1,083,010 431,500 39,533 46,876 26,547 2,281,624 10,357 34,358 29,245 15,921 89,881 2,371,505 1,000,000 1,797 358,096 17,619 623,838 999,553 21,470 2,022,820 11,785 2,034,605 $ 4,406,110		Amount $ 884,494 10,457 215,604 483,322 12,062 1,425,698 6,316 286 473,593 414,915 89,362 4,016,109 33,026 197,876 67,858 362,728 94,888 2,312 12,486 58,987 830,161 $ 4,846,270 $ 190,855 465,330 131 1,453,533 417,993 20,234 46,175 18,065 2,612,316 10,429 49,503 41,947 14,771 116,650 2,728,966 1,000,000 1,797 330,483 17,619 752,580 1,100,682 11,728 2,114,207 3,097 2,117,304 $ 4,846,270		Amount $ 569,612 454 177,690 521,665 2,702 964,905 4,563 312 662,332 438,238 137,038 3,479,511 38,050 174,861 67,431 357,460 119,248 2,625 10,545 55,730 825,950 $ 4,305,461 $ 173,178 252,555 1,329 1,268,300 399,689 32,696 48,693 21,062 2,197,502 10,709 71,325 41,941 14,524 138,499 2,336,001 1,000,000 1,399 330,483 17,619 598,150 946,252 18,079 1,965,730 3,730 1,969,460 $ 4,305,461	`％`
								13 - 4 12 - 23 - - 16 10 3 81 1 4 2 8 3 - - 1 19 100 4 6 - 29 9 1 1 1 51 - 2 1 - 3 54 23 - 8 - 14 22 1 46 - 46 100

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

(With Deloitte & Touche auditors’ review report dated August 12, 2024)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

			For the	Three Months EndedJune 30	Three Months EndedJune 30	Three Months EndedJune 30			For the	Six Months	Six Months	EndedJune 30
			2024			2023			2024			2023
Code			Amount	`％`		Amount	`％`		Amount	`％`		Amount	`％`
	OPERATING REVENUE
	(Notes 20 and 26)
4100	Sales		$ 1,144,704	74		$ 1,057,569	74		$ 2,203,876	75		$ 1,961,260	73
4600	Maintenance revenue		399,662	26		369,706	26		735,714	25		708,499	27
4300	Rental revenue		4,269	-		4,378	-		8,538	-		8,815	-
4000	Total operating revenue		1,548,635	100		1,431,653	100		2,948,128	100		2,678,574	100
	OPERATING COSTS (Notes
	10, 18, 21, and 26)
5110	Cost of goods sold		849,674	55		790,970	55		1,644,011	56		1,460,109	55
5600	Maintenance costs		287,155	18		248,965	18		530,900	18		488,958	18
5300	Rental costs		3,230	-		3,243	-		6,483	-		7,363	-
5000	Total operating costs		1,140,059	73		1,043,178	73		2,181,394	74		1,956,430	73
5900	GROSS PROFIT		408,576	27		388,475	27		766,734	26		722,144	27
	OPERATING EXPENSES
	(Notes 9, 18, 21, and 26)
6100	Selling and marketing
	expenses		298,747	19		287,366	20		496,635	17		464,986	18
6300	Research and development
	expenses		57,306	4		55,641	4		125,272	4		108,947	4
6450	Expected credit loss		19	-		27	-		13	-		23	-
6000	Total operating expenses		356,072	23		343,034	24		621,920	21		573,956	22
6900	PROFIT FROM OPERATIONS		52,504	4		45,441	3		144,814	5		148,188	5
	NON-OPERATING INCOME
	AND EXPENSES
7100	Interest income (Note 21)		3,619	-		3,008	-		6,321	-		5,513	-
7010	Other income (Notes 21 and
	26)		20,462	1		5,095	-		35,390	1		9,067	-
7020	Other gains and losses (Note
	21)	(	1,086 )	-	(	4,763 )	-		3,997	-	(	2,464 )	-
7050	Finance costs (Notes 21 and
	26)	(	3,886 )	-	(	3,919 )	-	(	7,895 )	-	(	7,764 )	-
7060	Share of profit or loss of
	associates and joint
	ventures (Note 12)		433	-	(	140)	-		550	-	(	787)	-
7000	Total non-operating
	income and expenses		19,542	1	(	719)	-		38,363	1		3,565	-
7900	PROFIT BEFORE INCOME
	TAX		72,046	5		44,722	3		183,177	6		151,753	5
7950	INCOME TAX EXPENSE
	(Notes 4 and 22)		15,321	1		8,091	1		42,113	1		31,131	1
8200	NET PROFIT		56,725	4		36,631	2		141,064	5		120,622	4
												(Continued)

	For the Three Months EndedJune 30 2024 2023 Amount `％` Amount `％` $ 14,279 1 $ 9,172 1 471 - 3,753 - 103) - ( 153) - 14,647 1 12,772 1 $ 71,372 5 $ 49,403 3 $ 56,930 4 $ 37,270 2 205) - ( 639) - $ 56,725 4 $ 36,631 2 $ 71,506 5 $ 49,962 3 134) - ( 559) - $ 71,372 5 $ 49,403 3 $ 0.57 $ 0.37 $ 0.57 $ 0.37	For the Three Months EndedJune 30 2024 2023 Amount `％` Amount `％` $ 14,279 1 $ 9,172 1 471 - 3,753 - 103) - ( 153) - 14,647 1 12,772 1 $ 71,372 5 $ 49,403 3 $ 56,930 4 $ 37,270 2 205) - ( 639) - $ 56,725 4 $ 36,631 2 $ 71,506 5 $ 49,962 3 134) - ( 559) - $ 71,372 5 $ 49,403 3 $ 0.57 $ 0.37 $ 0.57 $ 0.37	For the Three Months EndedJune 30 2024 2023 Amount `％` Amount `％` $ 14,279 1 $ 9,172 1 471 - 3,753 - 103) - ( 153) - 14,647 1 12,772 1 $ 71,372 5 $ 49,403 3 $ 56,930 4 $ 37,270 2 205) - ( 639) - $ 56,725 4 $ 36,631 2 $ 71,506 5 $ 49,962 3 134) - ( 559) - $ 71,372 5 $ 49,403 3 $ 0.57 $ 0.37 $ 0.57 $ 0.37	For the Three Months EndedJune 30 2024 2023 Amount `％` Amount `％` $ 14,279 1 $ 9,172 1 471 - 3,753 - 103) - ( 153) - 14,647 1 12,772 1 $ 71,372 5 $ 49,403 3 $ 56,930 4 $ 37,270 2 205) - ( 639) - $ 56,725 4 $ 36,631 2 $ 71,506 5 $ 49,962 3 134) - ( 559) - $ 71,372 5 $ 49,403 3 $ 0.57 $ 0.37 $ 0.57 $ 0.37		For the	Six Months	Six Months	EndedJune 30	EndedJune 30
	2024	`％` 1 - - 1 5 4 - 4 5 - 5		2023		2024	`％` - - - - 5 5 - 5 5 - 5		2023
	Amount $ 14,279 471 103) 14,647 $ 71,372 $ 56,930 205) $ 56,725 $ 71,506 134) $ 71,372 $ 0.57 $ 0.57			Amount $ 9,172 3,753 153) 12,772 $ 49,403 $ 37,270 639) $ 36,631 $ 49,962 559) $ 49,403 $ 0.37 $ 0.37		Amount $ 9,171 986 164) 9,993 $ 151,057 $ 142,602 1,538) $ 141,064 $ 152,344 1,287) $ 151,057 $ 1.43 $ 1.42			Amount $ 12,313 2,283 193) 14,403 $ 135,025 $ 121,701 1,079) $ 120,622 $ 136,033 1,008) $ 135,025 $ 1.22 $ 1.22	`％`
( ( (			( ( (		( ( (			( ( (		1 - - 1 5 4 - 4 5 - 5

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated August 12, 2024)

(Concluded)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30,2024 AND 2023

			Equity attributable to o	wners ofthe Company	( In Thousands of New Taiwan Dollars, except Dividend Per Share) Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income Total Non-controlling interests Totalequity ( $ 10,592 ) $ 14,339 $ 2,049,845 $ 4,968 $ 2,054,813 - - - - - - - ( 220,000 ) - ( 220,000 ) - - 121,701 ( 1,079 ) 120,622 2,019 12,313 14,332 71 14,403 2,019 12,313 136,033 ( 1,008) 135,025 - - ( 148 ) ( 202 ) ( 350 ) - - - ( 28) ( 28) ($ 8,573) $ 26,652 $ 1,965,730 $ 3,730 $ 1,969,460 ( $ 9,900 ) $ 21,628 $ 2,114,207 $ 3,097 $ 2,117,304 - - - - - - - ( 240,000 ) - ( 240,000 ) - - 142,602 ( 1,538 ) 141,064 571 9,171 9,742 251 9,993 571 9,171 152,344 ( 1,287) 151,057 - - ( 3,731 ) 10,008 6,277 - - - ( 33) ( 33) ($ 9,329) $ 30,799 $ 2,022,820 $ 11,785 $ 2,034,605	( In Thousands of New Taiwan Dollars, except Dividend Per Share) Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income Total Non-controlling interests Totalequity ( $ 10,592 ) $ 14,339 $ 2,049,845 $ 4,968 $ 2,054,813 - - - - - - - ( 220,000 ) - ( 220,000 ) - - 121,701 ( 1,079 ) 120,622 2,019 12,313 14,332 71 14,403 2,019 12,313 136,033 ( 1,008) 135,025 - - ( 148 ) ( 202 ) ( 350 ) - - - ( 28) ( 28) ($ 8,573) $ 26,652 $ 1,965,730 $ 3,730 $ 1,969,460 ( $ 9,900 ) $ 21,628 $ 2,114,207 $ 3,097 $ 2,117,304 - - - - - - - ( 240,000 ) - ( 240,000 ) - - 142,602 ( 1,538 ) 141,064 571 9,171 9,742 251 9,993 571 9,171 152,344 ( 1,287) 151,057 - - ( 3,731 ) 10,008 6,277 - - - ( 33) ( 33) ($ 9,329) $ 30,799 $ 2,022,820 $ 11,785 $ 2,034,605	( In Thousands of New Taiwan Dollars, except Dividend Per Share) Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income Total Non-controlling interests Totalequity ( $ 10,592 ) $ 14,339 $ 2,049,845 $ 4,968 $ 2,054,813 - - - - - - - ( 220,000 ) - ( 220,000 ) - - 121,701 ( 1,079 ) 120,622 2,019 12,313 14,332 71 14,403 2,019 12,313 136,033 ( 1,008) 135,025 - - ( 148 ) ( 202 ) ( 350 ) - - - ( 28) ( 28) ($ 8,573) $ 26,652 $ 1,965,730 $ 3,730 $ 1,969,460 ( $ 9,900 ) $ 21,628 $ 2,114,207 $ 3,097 $ 2,117,304 - - - - - - - ( 240,000 ) - ( 240,000 ) - - 142,602 ( 1,538 ) 141,064 571 9,171 9,742 251 9,993 571 9,171 152,344 ( 1,287) 151,057 - - ( 3,731 ) 10,008 6,277 - - - ( 33) ( 33) ($ 9,329) $ 30,799 $ 2,022,820 $ 11,785 $ 2,034,605	( In Thousands of New Taiwan Dollars, except Dividend Per Share) Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income Total Non-controlling interests Totalequity ( $ 10,592 ) $ 14,339 $ 2,049,845 $ 4,968 $ 2,054,813 - - - - - - - ( 220,000 ) - ( 220,000 ) - - 121,701 ( 1,079 ) 120,622 2,019 12,313 14,332 71 14,403 2,019 12,313 136,033 ( 1,008) 135,025 - - ( 148 ) ( 202 ) ( 350 ) - - - ( 28) ( 28) ($ 8,573) $ 26,652 $ 1,965,730 $ 3,730 $ 1,969,460 ( $ 9,900 ) $ 21,628 $ 2,114,207 $ 3,097 $ 2,117,304 - - - - - - - ( 240,000 ) - ( 240,000 ) - - 142,602 ( 1,538 ) 141,064 571 9,171 9,742 251 9,993 571 9,171 152,344 ( 1,287) 151,057 - - ( 3,731 ) 10,008 6,277 - - - ( 33) ( 33) ($ 9,329) $ 30,799 $ 2,022,820 $ 11,785 $ 2,034,605
Share capital - ordinary shares $ 1,000,000 - - - - - - - $ 1,000,000 $ 1,000,000 - - - - - - - $ 1,000,000	Capitalsurplus $ 1,547 - - - - - ( 148) - $ 1,399 $ 1,797 - - - - - - - $ 1,797		Retained earnings	Unappropriated earnings $ 772,955 ( 26,506 ) ( 220,000 ) 121,701 - 121,701 - - $ 598,150 $ 752,580 ( 27,613 ) ( 240,000 ) 142,602 - 142,602 ( 3,731 ) - $ 623,838	Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income ( $ 10,592 ) $ 14,339 - - - - - - 2,019 12,313 2,019 12,313 - - - - ($ 8,573) $ 26,652 ( $ 9,900 ) $ 21,628 - - - - - - 571 9,171 571 9,171 - - - - ($ 9,329) $ 30,799
					Exchange differences on translating the financial statements of foreign operations ( $ 10,592 ) - - - 2,019 2,019 - - ($ 8,573) ( $ 9,900 ) - - - 571 571 - - ($ 9,329)
		Legal reserve $ 303,977 26,506 - - - - - - $ 330,483 $ 330,483 27,613 - - - - - - $ 358,096	Special reserve $ 17,619 - - - - - - - $ 17,619 $ 17,619 - - - - - - - $ 17,619
				( ( ( ( (	( ( ( (	( ( ( (	( ( ( ( (	$ 2,054,813 - 220,000 ) 120,622 14,403 135,025 350 ) 28) $ 1,969,460 $ 2,117,304 - 240,000 ) 141,064 9,993 151,057 6,277 33) $ 2,034,605

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

(With Deloitte & Touche auditors’ review report dated August 12, 2024)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30,2024 AND 2023

(In Thousands of New Taiwan Dollars)

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Income before income tax A20010 Adjustments for: A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit loss A20400 Net gain on financial assets at fair value through profit or loss A20900 Finance costs A21200 Interest income A22300 Share of profit or loss of associates and joint ventures accounted for using the equity method A22500 Gain on disposal of property, plant and equipment A23800 Write-downs of inventories (reversal of write-downs of inventories) A24100 Net loss(gain) on foreign currency exchange A30000 Changes in operating assets and liabilities A31125 Contract assets A31130 Notes receivable A31150 Accounts receivable A31180 Other receivables A31200 Inventories A31230 Prepayments A31240 Other current assets A32125 Contract liabilities A32130 Notes payable A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A32240 Net defined benefits liabilities A33000 Cash (used in) generated from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash (used in) generated from operating activities		For the Six Months EndedJune 30	For the Six Months EndedJune 30	For the Six Months EndedJune 30
		2024 $ 183,177 56,835 419 13 1,383 ) 7,895 6,321 ) 550 ) 88 ) 33 144 ) 191,229 ) 11,124 ) 607,686 2,179 ) 148,056 ) 22,094 5,922 ) 19,751 207 371,094 ) 227,308 ) 8,482 12,702) 71,508 ) 6,339 7,667 ) 19,675) 92,511)		2023
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 151,753 55,572 339 23 2,306 ) 7,764 5,513 ) 787 - 140 ) 3,428 35,284 ) 104 ) 525,186 1,445 210,794 ) 55,142 ) 8,662 ) 13,972 14,697 ) 131,425 ) 212,549 ) 6,266 12,717) 77,202 5,532 7,639 ) 28,914) 46,181

(Continued)

For the Six Months EndedJune 30 Code 2024 2023 CASH FLOWS FROM INVESTING ACTIVITIES B00040 Acquisition of financial assets at amortized cost ( $ 36,189 ) ( $ 20,635 ) B00100 Purchase of financial assets at fair value through profit or loss - ( 4,500 ) B00200 Proceeds from sale of financial assets at fair value through profit or loss - 26,308 B02800 Proceeds from disposal of property, plant and equipment 435 - B02700 Payments for property, plant and equipment ( 35,063 ) ( 28,054 ) B03700 Increase in refundable deposits ( 27,443 ) ( 12,792 ) B04500 Payments for intangible assets ( 947 ) ( 586 ) B06000 Increase in lease receivables - ( 91) BBBB Net cash used in from investing activities ( 99,207) ( 40,350) CASH FLOWS FROM FINANCING ACTIVITIES C00100 Decrease in short-term borrowings ( 32,026 ) ( 9,796 ) C03000 Increase (decrease) in guarantee deposits received 1,150 ( 3,132 ) C04020 Repayment of the principal portion of lease liabilities ( 24,251 ) ( 24,301 ) C05400 Acquisition of interests in subsidiaries - ( 350 ) C05800 Change in non-controlling interests 6,277 - CCCC Net cash used in financing activities ( 48,850) ( 37,579) DDDD EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES 7,642 419 EEEE NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS ( 232,926 ) ( 31,329 ) E00100 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 884,494 600,941 E00200 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 651,568 $ 569,612 The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated August 12, 2024)		For the Six Months EndedJune 30	For the Six Months EndedJune 30	For the Six Months EndedJune 30
				2023
				$ 20,635 ) 4,500 ) 26,308 - 28,054 ) 12,792 ) 586 ) 91) 40,350) 9,796 ) 3,132 ) 24,301 ) 350 ) - 37,579) 419 31,329 ) 600,941 $ 569,612

(Concluded)

10 -

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Notes to Consolidated Financial Statements

For the Six Months Ended June 30, 2024 and 2023

(Amounts in thousands of NTD, unless otherwise indicated)

1. General

SYSCOM COMPUTER ENGINEERING CO. (the"Company")was incorporated in July 1975. The Company mainly leases and sells computer systems and designs computer software. It also provides services for the integration of computer information systems and maintenances of computer hardware. The Company's shares have been listed on the Taiwan Stock Exchange since May 22, 2001.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

The Company and its subsidiaries are hereinafter collectively referred to as the "The Group ".

The Date and Procedures of Authorization of Financial Statements The consolidated financial statements were approved by the Board of Directors on August 12, 2024.
Application of New and Revised Standards and Interpretations (1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).
- The initial application of the IFRS Accounting Standards endorsed and issued into effect
- by the FSC did not have material impact on the Group’s accounting policies.
(2) The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New/Revised/Amended Standards and Interpretations Amendments to IAS 21 “Lack of Exchangeability”	Effective Date Announced byIASB
	January 1, 2025 (Note 1)

Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

	differences in equity as well as affected assets or liabilities.	differences in equity as well as affected assets or liabilities.
(3)	IFRSs issued by the IASB but not yet endorsed and issued into effect by the FSC New/Revised/Amended Standards and Interpretations Effective Date Announced by the IASB(Note 1) “Annual Improvements to IFRS Accounting Standards - Volume 11” January 1, 2026 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” January 1, 2026 Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 IFRS 19 “Subsidiaries without Public Accountability: Disclosures” January 1, 2027
		January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2027 January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

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IFRS 18 “Presentation and Disclosures in Financial Statements”

IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise:

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discounted operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as ‘other’ only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of other standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. Summary of Significant Accounting Policies (1) Statement of Compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRSs endorsed and issued into effect by the FSC.

(2) Basis of Preparation

The consolidated financial statements were prepared on the historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of the defined benefit obligation less the fair value of plan assets. The evaluation of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of the related input value:

A. Level 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment).
B. Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.
C. Level 3 input value: the unobservable input value of asset or liability.

(3) Basis of Consolidation

The consolidated financial statements include the financial statements of the Company and entities controlled by the Company (subsidiaries). The subsidiaries’ financial statements have been properly adjusted to make the accounting policies consistent with the accounting policies of the Group. In preparing the consolidated financial statements, all intra-group transactions, account balances, gains and losses have been eliminated. The total comprehensive income of the subsidiaries is attributable to the shareholders and non-controlling interests of the Company, even if this results in a loss balance for the non-controlling interests.

When a change in the Group 's ownership interest in a subsidiary does not result in a loss of control, it is treated as an equity transaction. The carrying amounts of the Group and

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(4) Other significant accounting policies

non-controlling interests have been adjusted to reflect the changes in their relative interests in subsidiaries. The difference between the adjustment of the non-controlling interests and the fair value of the consideration paid or received is recognized directly in equity attributable to shareholders of the Company.

Please refer to Note 11 and Tables 4 and 5 for details of subsidiaries, shareholding percentage and principal businesses.

Except for the following, please refer to the consolidated financial statements for the year ended 2023.

A. Classification of current and non-current assets and liabilities

Current assets include:

a. Assets held primarily for the purpose of trading;
b. Assets expected to be realized within twelve months after the reporting period; and
c. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Current liabilities include:
a. Liabilities held primarily for the purpose of trading;
b. Liabilities due to be settled within twelve months after the reporting period; and
c. Liabilities for which the Group does not have an unconditional right to defer settlement for at least twelve months after the reporting period.
Assets and liabilities that are not classified as current are classified as noncurrent.
B. Defined benefits of retirement
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations for the current period, and for amendments in significant plans, settlements, or other significant one-off events.
C. Income tax expense
Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

5. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

In the application of the Group’s accounting policies, the management is required to make judgments, estimates and assumptions which are based on historical experience and other factors that are not readily apparent from other sources. Actual results may differ from these estimates.

The consolidated financial statements for critical accounting judgments and key sources of estimation uncertainty are consistent with the consolidated financial statements for the year ended December 31, 2023.

6. Cash and cash equivalents

Cash and cash equivalents
Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of less than 3 months) Time deposits Commercial papers		June 30, 2024 $ 822 476,934 78,740 95,072 $ 651,568	December 31, 2023 $ 701 504,127 75,627 304,039 $ 884,494		June 30, 2023
					$ 710 239,850 75,772 253,280 $ 569,612

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7. Financial assets at fair value through other comprehensive income

Investments in equity instruments-non-current Domestic investments Listed shares Unlisted shares		June 30, 2024 $ 40,602 1,595 $ 42,197	December 31, 2023 $ 31,431 1,595 $ 33,026		June 30, 2023
					$ 36,455 1,595 $ 38,050

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

8. Financial assets at amortized cost

Financial assets at amortized cost
Pledged time deposits Time deposits with original maturities of more than 3 months Current Non-current Total		June 30, 2024 $ 344,228 105,441 $ 449,669 $ 249,589 200,080 $ 449,669	December 31, 2023 $ 326,433 87,047 $ 413,480 $ 215,604 197,876 $ 413,480		June 30, 2023
					$ 245,741 106,810 $ 352,551 $ 177,690 174,861 $ 352,551

Refer to Note 27 for information relating to financial assets at amortized cost pledged as security.

Based on the Group’s assessment, the credit risk of the above-mentioned financial assets at amortized cost is not expected to be high and has not increased since initial recognition. The Group does not expect to recognize any credit loss resulting from default events on financial assets at amortized cost that are possible within 12 months after the reporting date. Accordingly, no impairment loss was recognized as of June 30, 2024, December 31, 2023 and June 30, 2023.

9. Accounts receivable

Accounts receivable
At amortized cost Accounts receivable Less:Allowance for impairment loss		June 30, 2024 $ 830,456 8,265) $ 822,191		December 31, 2023 $ 1,433,941 8,243) $ 1,425,698		June 30, 2023
	(		(		(	$ 966,414 1,509) $ 964,905

The average credit period of sales of goods was 30 to 120 days. No interest was charged on accounts receivable.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to

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ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for all accounts receivables at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated by reference to past default experience of the debtor, an analysis of the debtor’s current financial position, past experience with collecting payments, observable changes in national or local economic conditions that correlate with defaults on receivables, as well as indicators of the industry in which the debtors operate.

The Group writes off a accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

Considering the above conditions, the Groupe assesses the credit risk of individual customers based on the aging schedule of accounts receivable (based on invoice date). The following table details the loss allowance of accounts receivable. June 30, 2024

June 30, 2024
Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2023 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost June 30, 2023 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost		Less than 60 Days		61 to 90 Days		91 to120 Days		Over 120 Days		Total
		$ 689,023 - $ 689,023 Less than 60 Days		$ 55,208 - $ 55,208 61 to 90 Days		$ 11,049 - $ 11,049 91 to120 Days	(	$ 75,176 8,265) $ 66,911 Over 120 Days	(	$ 830,456 8,265) $ 822,191 Total
	(	$ 1,218,276 85) $ 1,218,191 Less than 60 Days	(	$ 64,330 408) $ 63,922 61 to 90 Days	(	$ 9,306 1,506) $ 7,800 91 to120 Days	(	$ 142,029 6,244) $ 135,785 Over 120 Days	(	$ 1,433,941 8,243) $ 1,425,698 Total
		$ 749,828 - $ 749,828		$ 54,905 - $ 54,905		$ 57,611 - $ 57,611	(	$ 104,070 1,509) $ 102,561	(	$ 966,414 1,509) $ 964,905

The movements of the loss allowance of accounts receivable were as follows: For the Six Months EndedJune 30 2024 2023 Balance at January 1 $ 8,243 $ 1,483 Impairment of loss allowance 13 23 Foreign exchange gains and losses 9 3 Balance at June 30 $ 8,265 $ 1,509 Inventories June 30, 2024 December 31, 2023 June 30, 2023 Commodities $ 355,781 $ 205,958 $ 346,292 Prepayments for contracts 222,808 261,488 260,696 Inventories in transit 41,658 5,397 54,619 Maintenance materials 765 750 725 Total $ 621,012 $ 473,593 $ 662,332	The movements of the loss allowance of accounts receivable were as follows: For the Six Months EndedJune 30 2024 2023 Balance at January 1 $ 8,243 $ 1,483 Impairment of loss allowance 13 23 Foreign exchange gains and losses 9 3 Balance at June 30 $ 8,265 $ 1,509 Inventories June 30, 2024 December 31, 2023 June 30, 2023 Commodities $ 355,781 $ 205,958 $ 346,292 Prepayments for contracts 222,808 261,488 260,696 Inventories in transit 41,658 5,397 54,619 Maintenance materials 765 750 725 Total $ 621,012 $ 473,593 $ 662,332	The movements of the loss allowance of accounts receivable were as follows: For the Six Months EndedJune 30 2024 2023 Balance at January 1 $ 8,243 $ 1,483 Impairment of loss allowance 13 23 Foreign exchange gains and losses 9 3 Balance at June 30 $ 8,265 $ 1,509 Inventories June 30, 2024 December 31, 2023 June 30, 2023 Commodities $ 355,781 $ 205,958 $ 346,292 Prepayments for contracts 222,808 261,488 260,696 Inventories in transit 41,658 5,397 54,619 Maintenance materials 765 750 725 Total $ 621,012 $ 473,593 $ 662,332	The movements of the loss allowance of accounts receivable were as follows: For the Six Months EndedJune 30 2024 2023 Balance at January 1 $ 8,243 $ 1,483 Impairment of loss allowance 13 23 Foreign exchange gains and losses 9 3 Balance at June 30 $ 8,265 $ 1,509 Inventories June 30, 2024 December 31, 2023 June 30, 2023 Commodities $ 355,781 $ 205,958 $ 346,292 Prepayments for contracts 222,808 261,488 260,696 Inventories in transit 41,658 5,397 54,619 Maintenance materials 765 750 725 Total $ 621,012 $ 473,593 $ 662,332	The movements of the loss allowance of accounts receivable were as follows: For the Six Months EndedJune 30 2024 2023 Balance at January 1 $ 8,243 $ 1,483 Impairment of loss allowance 13 23 Foreign exchange gains and losses 9 3 Balance at June 30 $ 8,265 $ 1,509 Inventories June 30, 2024 December 31, 2023 June 30, 2023 Commodities $ 355,781 $ 205,958 $ 346,292 Prepayments for contracts 222,808 261,488 260,696 Inventories in transit 41,658 5,397 54,619 Maintenance materials 765 750 725 Total $ 621,012 $ 473,593 $ 662,332
	2024 $ 8,243 13 9 $ 8,265 December 31, 2023 $ 205,958 261,488 5,397 750 $ 473,593		2023
	$		$ 1,483 23 3 $ 1,509 June 30, 2023
	$

$ 355,781 222,808 41,658 765		$ 205,958 261,488 5,397 750 $ 473,593		$ 346,292 260,696 54,619 725 $ 662,332
$ 621,012

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The commodities mainly consisted of computer hardware and software. Prepayment for contracts are the cost incurred to date related to computer hardware, software and labor.

The cost of inventories recognized as cost of goods sold for the three months and six months ended June 30, 2024 and 2023 were $849,674 thousand, $790,970 thousand, $1,644,011 thousand and $1,460,109 thousand respectively. The cost of goods sold related to the inventories which included the write-down of inventories (reversal of write-down of inventories), totaling $557 thousand, ($40) thousand, $33 thousand and ($140) thousand, respectively. The reversals of previous write-downs resulted from the sale of these inventories.

11. Subsidiaries

(1) Subsidiaries included in the consolidated financial statements The consolidated entities were as follows:

Investor The Company Coach Technology Management Inc. Casemaker Inc. and SYSCOM INTERNA- TIONAL INC.	Investee Casemaker Inc. SYSCOM INTERNATIONAL INC.(SYSCOM) Coach Technology Management Inc. Syscom Computer (Thailand)Co., Ltd. Wisemaker Technology Co.(Wisemaker Technology Co.) Netmaker Technology Co., Ltd. Syscom Computer (Thailand)Co., Ltd. Syscom Computer (Shenzhen)Co., Ltd. Xian Linan Computer Co., Ltd.(Xian Linan)	Nature of Activities Sales of computer software, hardware and related products. Investments in other businesses Diagnostic consulting for corporate management, domestic and foreign investment referral, and computerized design consulting Development and maintenance of software and other businesses Sales of computer software, hardware and related products. Information software, data processing and electronic information supply services Development and maintenance of software and other businesses Computer equipment software development, sales of selfdeveloped technical achievements services, computer system integration and network wiring engineering Development and manufacture of computer equipment and computer software; sale of self-manufactured products and provision of technical services	Proportion of Ownership (%) June 30,2024 December 31,2023 June 30,2023 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 97.50% 97.50% 97.50% 92.47% 92.47% 91.80% 99.24% 99.24% 99.04% 86.60% 86.60% 86.60% 0.54% 0.54% 0.54% 98.27% 98.27% 98.27% 79.23% 74.38% 74.38%	Proportion of Ownership (%) June 30,2024 December 31,2023 June 30,2023 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 97.50% 97.50% 97.50% 92.47% 92.47% 91.80% 99.24% 99.24% 99.04% 86.60% 86.60% 86.60% 0.54% 0.54% 0.54% 98.27% 98.27% 98.27% 79.23% 74.38% 74.38%	Description
			June 30,2024 100.00% 100.00% 97.50% 92.47% 99.24% 86.60% 0.54% 98.27% 79.23%	December 31,2023 100.00% 100.00% 97.50% 92.47% 99.24% 86.60% 0.54% 98.27% 74.38%
					A A A A`、`C A`、`B A A A A`、`D

A. The subsidiaries are not significant subsidiaries. The financial statements have not been reviewed by CPAs.
B. In January 、 February and August 2023, the Company acquired additional 14 thousand shares of Wisemaker Technology Co. from an unrelated party for $494 thousand; after the acquisition of further interests, the Company ’ s percentage of ownership in Wisemaker Technology Co. increased to 99.24%.
C. In June and July 2023, the Company acquired additional 40 thousand shares of Syscom Computer (Thailand) Co.,Ltd. from an unrelated party for $108 thousand; after the acquisition of further interests, the Company’s percentage of ownership in Syscom Computer (Thailand) Co.,Ltd. increased to 92.47%.
D. Xian Lian increased its capital by US$1,500 thousand in February 2024, the Company subscribed for cash capital increase of indirect subsidiary, Xian Lian Company through SYSCOM. The investments amounted to US$1,300 thousand. The Company’s percentage of ownership in Xian Lian increased to 79.23%.
(2) Subsidiaries excluded from the consolidated financial statements: None.
(3) Subsidiaries with material non-controlling interests: None.

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12. Investments accounted for using the equity method

Investments in associates Investments in joint ventures (1) Investments in associates Associates that is not individually materiality Unlisted companies DBMaker Japan Inc.		June 30, 2024 $ 11,543 55,814 $ 67,357 June 30, 2024 $ 11,543	December 31, 2023 $ 12,432 55,426 $ 67,858 December 31, 2023 $ 12,432		June 30, 2023
					$ 13,375 54,056 $ 67,431 June 30, 2023
					$ 13,375

As at the end of the reporting period, the	proportions of ownership and voting rights in	proportions of ownership and voting rights in
associates held by the Group were as follows:
June 30,	December 31,	June 30,
Name of the company 2024	2023	2023
DBMaker Japan Inc. 49.89%	49.89%	49.89%

Refer to Table 4 “Information on Investees” for the nature of activities, principal place of business and country of incorporation of the associates.

(2) Investments in joint ventures

Investments in joint ventures
Joint venture that is not individually material CloudMaster Co., Ltd.		June 30, 2024 $ 55,814	December 31, 2023 $ 55,426		June 30, 2023
					$ 54,056

At the end of the reporting period, the proportion of ownership and voting rights in jointly controlled entity held by the Group was as follows:

CloudMaster Co., Ltd.	June 30, 2024 50.00%	December 31, 2023 50.00%	June 30, 2023
			50.00%

Refer to Table 4 “Information on Investees” for the nature of activities, principal place of business and country of incorporation of the Joint venture.

In March 2013, under the authorization of the Investment Commission of the Ministry of Economic Affairs, the Group incorporated CloudMaster under the joint venture agreement and had 50% of ownership. CloudMaster provides services in information software, data processing and electronic information. Under the joint venture agreement, in the meetings of the board of directors and the shareholders of CloudMaster, majority rule shall prevail. However, the Group’s seat in CloudMaster’s board of director does not exceed half of the board. Besides, under CloudMaster’s policies, significant strategic decisions should be made by unanimous agreement of the shareholders of both entities, and the Group has no right to obtain the variable rewards which is unavailable to CloudMaster’s shareholders and does not have direct ability to affect the rewards from investing in CloudMaster. As a result, the Group has no control over CloudMaster.

The investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the joint venture’s financial statements that have not been reviewed by CPAs.

-17-

13. Property, plant and equipment

Property, plant and equipment
Assets used by the Group Assets leased under operating leases (1) Assets used by the Group Land Computer equipment Buildings Maintenance equipment Leasehold improvements Others	June 30, 2024 $ 350,296 16,468 $ 366,764 June 30, 2024 $ 123,417 107,024 44,200 55,225 10,476 9,954 $ 350,296	December 31, 2023 $ 343,833 18,895 $ 362,728 December 31, 2023 $ 122,712 110,685 44,785 46,323 10,596 8,732 $ 343,833	June 30, 2023
			$ 336,192 21,268 $ 357,460 June 30, 2023
			$ 122,887 106,209 45,950 47,463 5,438 8,245 $ 336,192

Except for the recognition of depreciation expenses, the Group’s property, plant and equipment did not have significant addition, disposal and impairment for the six months ended June 30, 2024 and 2023.Depreciation expenses were depreciated on a straight-line basis over the estimated useful life of the asset:

the estimated useful life of the asset:
Buildings	39 to 60 years
Maintenance equipment	6 years
Computer equipment	3 to 6 years
Leasehold improvements	3 to 10 years
Others
- Office equipment	3 to 8 years
-Transportation equipment	5 years

(2) Assets leased under operating leases

Leased equipment		June 30, 2024 $ 16,468	December 31, 2023 $ 18,895		June 30, 2023
					$ 21,268

Operating leases relate to leases of equipment with lease terms between 1 to 3 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating lease payments was as follows:

as follows:
Year 1 Year 2 Year 3		June 30, 2024 $ 16,934 8,356 - $ 25,290	December 31, 2023 $ 17,029 16,787 12 $ 33,828		June 30, 2023
					$ 17,143 16,897 8,325 $ 42,365

Except for the recognition of depreciation expenses, the Group’s Leased equipment did not have significant addition, disposal and impairment for the six months ended June 30, 2024 and 2023.

The equipment leased under operating leases are depreciated on a straight-line basis over 3 to 6 years estimated useful lives.

-18-

14. Lease agreements (1) Right-of-use assets

se agreements Right-of-use assets
		June	30,		December		31,			June		30,
		2024				2023					2023
Carrying amounts
Buildings	$	80,407			$	94,888				$	119,248
	For	the Three Months Ended					For the		Six Months Ended
			June 30						June		30
		2024			2023			2024				2023
Addition of right-of-use assets							$	9,395			$	123,694
Depreciation charge for
right-of-use assets
Buildings	$	12,166		$	12,395		$	24,313			$	24,819

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the six months ended June 30, 2024 and 2023.

(2) Lease liabilities

Lease liabilities
Carrying amounts Current Non-current		June 30, 2024 $ 46,876 $ 34,358	December 31, 2023 $ 46,175 $ 49,503		June 30, 2023
					$ 48,693 $ 71,325

The ranges of discount rate for lease liabilities were 0.75%-7.64%, 0.75%-7.28% and 0.75%-7.28% per annum as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively.

(3) Material leasing activities and terms

As lessee, the Group leases buildings for the use as offices and dormitory with lease terms of 2 to 10 years. All lease contracts with lease terms over 5 years specify that lease payments will be adjusted every 5 years on the basis of changes in market rental rates. The Group does not have bargain purchase options to acquire the leasehold buildings at the end of the lease terms.

(4) Other lease information

Lease-out arrangements under operating leases for freehold property, plant, and equipment were set out in Note 13.

Expenses relating to short-term leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2024 $ 2,557 $ 159		2023		2024 $ 4,956 $ 297 $ 30,558)		2023
				$ 1,706 $ 146	(		(	$ 3,332 $ 235 $ 30,004)

As lessee, the Group leases certain buildings and leasehold improvements which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

-19-

15. Intangible assets

ngible assets
Computer software Goodwill		June 30, 2024 $ 2,270 593 $ 2,863	December 31, 2023 $ 1,719 593 $ 2,312		June 30, 2023
					$ 2,032 593 $ 2,625

Except for the recognition of amortization expenses, the Group’s intangible assets did not have significant addition, disposal and impairment for the six months ended June 30, 2024 and 2023. Computer software is being depreciated on a straight-line basis and will be amortized over 1 to 10 years.

16. Loans

Loans
Unsecured borrowings Line of credit borrowings		June 30, 2024 $ 168,739		December 31, 2023 $ 190,855		June 30, 2023
						$ 173,178

The range of interest rates on bank revolving loans was 7.30%- 7.84%, 2.26%- 8.31% and 4.50%-7.69% per annum as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively.

17. Other payables

Other payables
Payables for dividends Payables for salaries or bonus Payables for insurance Payables for pension Payable for compensation of employees Payables for value-added tax Payables for annual leave Others		June 30, 2024 $ 240,037 83,616 40,873 27,582 16,020 6,842 26 16,504 $ 431,500	December 31, 2023 $ - 298,098 19,569 16,183 10,300 43,128 1,529 29,186 $ 417,993		June 30, 2023
					$ 220,031 90,980 29,050 20,427 14,327 7,132 748 16,994 $ 399,689

18.

Retirement benefits plans

For the three months and six months ended, June 30, 2024 and 2023, relevant pension costs for defined benefit plans which were determined by the pension cost rates of actuarial valuation as of December 31, 2023 and 2022 were as follows:

Operating costs Operating expenses		For the Three Months Ended June 30 2024 2023 $ 21 $ 39 174 233 $ 195 $ 272	For the Three Months Ended June 30 2024 2023 $ 21 $ 39 174 233 $ 195 $ 272		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2024 $ 21 174 $ 195			2024 $ 39 357 $ 396		2023
							$ 67 477 $ 544

-20-

19. Equity

(1) Share capital - ordinary shares

uity Share capital - ordinary shares
Number of authorized shares (in thousands) Amount of authorized shares Number of issued and fully paid shares (in thousands) Amount of issued and fully paid shares		June 30, 2024 157,000 $ 1,570,000 100,000 $ 1,000,000		December 31, 2023 157,000 $ 1,570,000 100,000 $ 1,000,000		June 30, 2023
						157,000 $ 1,570,000 100,000 $ 1,000,000

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

(2) Capital surplus

Such capital surplus arise from the difference between consideration paid or received and the carrying amount of the subsidiaries’ net assets during actual acquisition or disposal under equity transactions and from donated assets.

(3) Retained earnings and dividend policy

The shareholders of the Company held their regular meeting on June 13, 2023 and in that meeting, resolved the amendments to the Company’s Articles of Incorporation. Under the dividends policy as set forth in the Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, unless the legal reserve has reached the Company’s total paid-up capital. The remaining profit shall be set aside or reverse a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan. The board of directors is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders’ meeting. However, other additional distribution should be resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders.

Under the dividends policy as set forth in the Articles before the amendments where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, unless the legal reserve has reached the Company’s total paid-up capital. The remaining profit shall be set aside or reverse a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders. For the policies on distribution of employees’ compensation and remuneration of directors, refer to “employee’s compensation and remuneration of directors ” in Note 21,(7).

The Company distributes both cash and share dividends, taking into account its profitability, future capital expenditure requirements and cash position. The distribution of cash dividends should not be less than 10% of the total dividends of the year. The Company may raise the percentage of cash dividend distribution only if the Company’s earnings and cash position are strong.

An appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Pursuant to existing regulations, the Company is required to set aside additional special reserve equivalent to the net debit balance of the other equity interests. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

-21-

The appropriations of earnings and dividends per share for 2023 and 2022 were approved in the shareholders’ meetings on June 12, 2024 and June 13, 2023, respectively, were as follows:

were as follows:
Legal reserve Cash dividends Cash dividends per share (NT$)		2023 $ 27,613 $ 240,000 $ 2.4		2022
				$ 26,506 $ 220,000 $ 2.2

The cash dividends for 2023 were approved by the board of directors on March 12, 2024, and the remaining appropriations of earnings were approved by the shareholders’ meeting on June 12, 2024 and June 13, 2023, respectively.

(4)

Special reserve

On the first-time adoption of IFRSs, the Company appropriated for special reserve, the amount that was the same as the cumulative translation differences transferred to retained earnings, which was $17,619 thousand.

(5) Other equity interests
A. Exchange differences on translating the financial statements of foreign operations

	For the Six Months EndedJune 30	For the Six Months EndedJune 30
	2024 2023 $ 9,900 ) ( $ 10,592 ) 735 2,212 164) ( 193) $ 9,329) ($ 8,573) at FVTOCI For the Six Months EndedJune 30	2023
( ( ( assets
	2024 $ 21,628 9,171 $ 30,799	2023
		$ 14,339 12,313 $ 26,652

B. Unrealized gain (loss) on financial assets at FVTOCI

-22-

(6) Non-controlling interests

For the Six Months Ended June 30

Balance at January 1 Share in loss for the period Other comprehensive income (loss) during the period Exchange difference on translating the financial statements of foreign operations Effective acquisition of partial interest in a subsidiary by the parent company (Note 11) Changes in ownership interests in subsidiaries (Note 24) Cash dividends from subsidiaries Balance at June 30		2024 $ 3,097 1,538 ) 251 - 10,008 33) $ 11,785		2023
	( (		( ( (	$ 4,968 1,079 ) 71 202 ) - 28) $ 3,730

20. Revenue

Revenue
Revenue from contracts with customers Contract revenue and revenue from sale of goods Revenue from rendering of services Rental income Rental income from equipment	For the Three Months Ended June 30 2024 2023 $ 1,144,704 $ 1,057,569 399,662 369,706 4,269 4,378 $ 1,548,635 $ 1,431,653		For the Six Months Ended June 30
		2024 $ 1,144,704 399,662 4,269 $ 1,548,635	2024 $ 2,203,876 735,714 8,538 $ 2,948,128	2023
				$ 1,961,260 708,499 8,815 $ 2,678,574

(1) Contract information Revenue from contracts with customers

Contract revenue comes from rendering of computer software and hardware integration services according to contract, which is recognized by reference to the stage of completion of contract activity. The consideration promised is paid by customers based on the schedule in the contract.

Revenue from the sale of goods is recognized when performance obligations are satisfied. The performance obligations are satisfied when customers obtained control and right of use of the promised good and bear inventory risks. Revenue from rendering of services

Revenue from rendering of services comes from maintenance services. The Group requires partial payments from the customers when the contract is signed. Revenue is recognized on a straight-line basis during the contract period.

-23-

(2) Contract balances Accounts receivable (Note 9) Contract assets System integration services Less:Allowance for impairment loss Contract assets - current Contract liabilities System integration services		June 30, 2024 $ 822,191 $ 674,551 - $ 674,551 $ 485,081		December 31, 2023 $ 1,425,698 $ 483,322 - $ 483,322 $ 465,330		June 30, 2023
						$ 964,905 $ 521,665 - $ 521,665 $ 252,555

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Group’s performance and the respective customer’s payment. Except for adjustments resulting from the changes in the measure of progress, there was no significant change in the current period.

(3) Revenue from contracts with customers For the Six Months Ended June 30, 2024

For the Six Months Ended June	30, 2024
Type of products or services Contract revenue and revenue from sale of goods Revenue from rendering of services Rental income		Reportable segment
	Business segments of the Company $ 2,125,202 725,517 8,538 $ 2,859,257	Business segments of the entities controlled bythe Company $ 78,674 10,197 - $ 88,871	Total
			$ 2,203,876 735,714 8,538 $ 2,948,128

For the Six Months Ended June 30, 2023

For the Six Months Ended June	30, 2023
Type of products or services Contract revenue and revenue from sale of goods Revenue from rendering of services Rental income		Reportable segment
	Business segments of the Company $ 1,847,596 695,079 8,757 $ 2,551,432	Business segments of the entities controlled bythe Company $ 113,664 13,420 58 $ 127,142	Total
			$ 1,961,260 708,499 8,815 $ 2,678,574

-24-

21. Net profit

(1) Interest income

Interest income
Bank deposits	For the Three Months Ended June 30 2024 2023 $ 3,619 $ 3,008	For the Six Months Ended June 30
	2024 $ 3,619	2024 $ 6,321	2023
			$ 5,513

(2) Other income

Other income
Government grants Marketing incentive income Rental income Others	For the Three Months Ended June 30 2024 2023 $ 10,194 $ 434 8,058 2,783 901 1,477 1,309 401 $ 20,462 $ 5,095	For the Six Months Ended June 30
	2024 $ 10,194 8,058 901 1,309 $ 20,462	2024 $ 20,544 10,033 2,687 2,126 $ 35,390	2023
			$ 434 4,679 2,953 1,001 $ 9,067

(3) Other gains and losses

Other gains and losses
Net foreign exchange (loss)gains Net (loss)gains on fair value changes of financial assets mandatorily classified as at FVTPL Net gains on disposal of property, plant and equipment Others Finance costs Interest on bank loans Interest on lease liabilities	For the Three Months Ended June 30 2024 2023 ( $ 858 ) ( $ 5,844 ) ( 258 ) 1,164 88 - ( 58) ( 83) ($ 1,086) ($ 4,763) For the Three Months Ended June 30 2024 2023 $ 3,403 $ 3,236 483 683 $ 3,886 $ 3,919			For the Six Months Ended June 30
				2024 2023 $ 2,705 ( $ 4,436 ) 1,383 2,306 88 - 179) ( 334) $ 3,997 ($ 2,464) For the Six Months Ended June 30		2023
			(
		2024		2024 $ 6,879 1,016 $ 7,895	2023
		$ 3,403 483 $ 3,886			$ 6,371 1,393 $ 7,764

(4) Finance costs
(5) Depreciation and amortization

Depreciation and amortization
An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating expenses	For the Three Months Ended June 30 2024 2023 $ 5,258 $ 5,518 23,370 21,938 $ 28,628 $ 27,456 $ 251 $ 169		For the Six Months Ended June 30
		2024 $ 5,258 23,370 $ 28,628 $ 251		2024 $ 10,273 46,562 $ 56,835 $ 419	2023
					$ 10,966 44,606
					$ 55,572
					$ 339

-25-

(6) Employee benefits expenses

Employee benefits expenses
Short-term employee benefits Salary Labor and health Insurance Others Post-employment benefits (Note 18) Defined contribution plans Defined benefits plans Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended June 30 2024 2023 $ 383,801 $ 383,523 36,599 35,407 18,684 12,622 439,084 431,552 16,818 15,597 195 272 17,013 15,869 $ 456,097 $ 447,421 $ 166,965 $ 167,222 289,132 280,199 $ 456,097 $ 447,421		For the Six Months Ended June 30
		2024 $ 383,801 36,599 18,684 439,084 16,818 195 17,013 $ 456,097 $ 166,965 289,132 $ 456,097		2024 $ 658,072 76,829 36,181 771,082 33,004 396 33,400 $ 804,482 $ 306,923 497,559 $ 804,482	2023
					$ 641,234 72,619 24,399
					738,252
					30,528 544
					31,072
					$ 769,324
					$ 307,498 461,826
					$ 769,324

(7) Employees’ compensation and remuneration of directors According to the Articles of Incorporation of the Company, the Company accrued employees’ compensation at rates of no less than 3%. The employees’ compensation in the amounts of $2,242 thousand, $1,403 thousand, $5,720 thousand and $4,727 thousand, both representing 3% of net profit before tax for the three and six months ended June 30, 2024 and 2023, respectively. The Company did not accrue remuneration of directors for the six months ended June 30, 2024 and 2023.

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of employees’ compensation and remuneration of directors for 2023 and 2022 that were resolved by the board of directors on March 12, 2024 and March 17, 2023, respectively. The employees’ compensation amounted to $10,300 thousand and $9,600 thousand, respectively. The Company did not accrue remuneration of directors for the years ended December 31, 2023 and 2022.

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2023 and 2022.

Information on the employees’ compensation resolved by the Company’s board of directors in 2024 and 2023 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

-26-

22. Income tax

(1) Income tax recognized in profit or loss

The major components of income tax expense were as follows:

Current tax In respect of the current period Adjustments for prior years Deferred tax In respect of the current period Income tax expense recognized in profit or loss		For the Three Months Ended June 30 2024 2023 $ 15,102 $ 10,683 122 ( 2,926 ) 97 334 $ 15,321 $ 8,091	For the Three Months Ended June 30 2024 2023 $ 15,102 $ 10,683 122 ( 2,926 ) 97 334 $ 15,321 $ 8,091		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2024 $ 15,102 122 97 $ 15,321			2024 $ 37,627 1,221 3,265 $ 42,113		2023
			(			(	$ 31,358 2,926 ) 2,699 $ 31,131

(2) Income tax assessments The Company and subsidiaries’ income tax returns have been assessed by the tax authority are as follows:

Income tax assessments The Company and subsidiaries’ income tax returns authority are as follows:	have been assessed
Name of the company The Company Netmaker Technology Co., Ltd. Wisemaker Technology Co. Coach Technology Management Inc.	Year of assessment
	2022 2022 2022 2021

Earnings per share

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

Net profit for the period

Net profit for the period
Earnings used in the computation of basic earnings per share Earnings used in the computation of diluted earnings per share Shares Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months EndedJune 30 2024 2023 $ 56,930 $ 37,270 $ 56,930 $ 37,270 For the Three Months EndedJune 30			For the Six Months Ended June 30
					2024 2023 $ 142,602 $ 121,701 $ 142,602 $ 121,701 (Thousand shares) For the Six Months Ended June 30	2023


		2024	2023		2024	2023
		100,000 90	100,000 69 100,069		100,000 163 100,163	100,000 143 100,143
		100,090

-27-

Since the Group offered to settle compensation paid to employees in cash or shares, the Group assumed the entire amount of the compensation will be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

24. Equity transactions with non-controlling interests

In Februrary 2024, the Group subscribed for new shares issued by Xian Linan Computer Co., Ltd. at a percentage different from its original ownership percentage, and consequently the shareholding in Xian Linan Computer Co., Ltd. increased. Please refer to Note 11.

The above transactions were accounted for as equity transactions, since the Group did not cease to have control over its subsidiary.

cease to have control over its subsidiary.
Consideration received The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests Differences recognized from equity transactions Line items adjusted for equity transactions Unappropriated earnings	Xian Linan Computer Co., Ltd.
		$ 6,277 ( 10,008) ($ 3,731) ($ 3,731)

25. Financial instruments

(1) Fair value of financial instruments not measured at fair value

The Group’s management believes the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values. Therefore, the carrying amounts of balance sheet is a reasonable basis for estimating the fair value.

(2) Fair value of financial instruments measured at fair value on a recurring basis Fair value hierarchy

June 30, 2024

Fair value hierarchy June 30, 2024
Financial assets at FVTPL Fund beneficial certificates Financial assets at FVTOCI Investments in equity instruments at FVTOCI Listed shares Unlisted shares Total		Level 1 $ 11,840 $ 40,602 - $ 40,602		Level 2 $ - $ - - $ -		Level 3 $ - $ - 1,595 $ 1,595		Total
								$ 11,840 $ 40,602 1,595 $ 42,197

-28-

December 31, 2023 Financial assets at FVTPL Fund beneficial certificates Financial assets at FVTOCI Investments in equity instruments at FVTOCI Listed shares Unlisted shares Total June 30, 2023 Financial assets at FVTPL Fund beneficial certificates Financial assets at FVTOCI Investments in equity instruments at FVTOCI Listed shares Unlisted shares Total		Level 1 $ 10,457 $ 31,431 - $ 31,431 Level 1 $ 454 $ 36,455 - $ 36,455		Level 2 $ - $ - - $ - Level 2 $ - $ - - $ -		Level 3 $ - $ - 1,595 $ 1,595 Level 3 $ - $ - 1,595 $ 1,595		Total
								$ 10,457 $ 31,431 1,595 $ 33,026 Total
								$ 454 $ 36,455 1,595 $ 38,050

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2024 and 2023.

(3) Categories of financial instruments

Financial assets Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Financial liabilities Financial liabilities at amortized cost (Note 2)	June 30, 2024 $ 11,840 1,955,146 42,197 1,683,587	December 31, 2023 $ 10,457 2,742,050 33,026 2,062,512	June 30, 2023
			$ 454 1,894,333 38,050 1,842,496

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, debt investments, notes receivable, accounts receivable, and other receivables.

Note 2: The balances include financial liabilities measured at amortized cost, which comprise short-term loans, notes payable, accounts payable and other payables.

(4) Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, accounts receivable, accounts payable, borrowings and lease liabilities. The Group’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree

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and magnitude of risks. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

A. Market risk

The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see a. below) and interest rates (see b. below).

a. Foreign currency risk

The Group have foreign currency sales and purchases, which exposes the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 29.

Sensitivity analysis

The Group is mainly exposed to USD.

The following details the Group’s sensitivity to a 10% increase and decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies. The sensitivity rate of 10% used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign currency forward contracts designated as cash flow hedges and adjusts their translation at the end of the reporting period for a 10% change in foreign currency rates. For the six months ended June 30, 2024 and 2023, there would be an increase of $11,085 thousand and $3,533 thousand, respectively, in pre-tax profit associated with New Taiwan dollars strengthen 10% against USD. For a 10% weakening of New Taiwan dollars against USD, there would be an equal and opposite impact on pre-tax profit and the balances would be negative. The effect of exchange rate changes was mainly attributable to the exposure outstanding on USD cash, payables and borrowings, which were not hedged at the end of the reporting period.

b. Interest rate risk

The Group is exposed to interest rate risk because the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings.

The carrying amount of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

follows:
Fair value interest rate risk - Financial assets - Financial liabilities Cash flow interest rate risk - Financial assets - Financial liabilities	June 30, 2024 $ 616,941 81,234 476,875 168,739	December 31, 2023 $ 786,099 95,678 506,639 190,855	June 30, 2023
			$ 684,306 120,018 233,346 173,178

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 1 basis point increase or decrease

-30-

is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the six months ended June 30, 2024 and 2023 would increase/decrease by $385 thousand and $75 thousand, respectively.

B. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of counterparties to discharge its obligation and due to the financial guarantees provided by the Group, could arise from the carrying amount of the respective recognized financial assets as stated in the consolidated Balance Sheet.

The Group adopted a policy of only dealing with creditworthy counterparties. Before trading with new customers, the Group assessed the credit quality of potential customer by internal credit checking and set the credit limit which is reassessed annually.

C. Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2024 and 2023, the Group had available unutilized short-term bank loan facilities set out in b. below.

a. Liquidity and interest risk rate table for non-derivative financial liabilities The following table details the Group’s remaining contractual maturity for
its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

June 30, 2024

June 30, 2024
	Payment on
	demand or less
	than 1	month	1`～`3 months		3 months`～`1year				1`～`5years	More than 5years
Non-derivative financial
liabilities
Non-interest bearing	$	-	$	1,513,323	$		-	$	-	$	-
Lease liabilities		4,234		8,132			36,123		35,071		-
Variable interest rate
liabilities		1,110		37,791			136,819		-		-
	$	5,344	$	1,559,246	$		172,942	$	35,071	$	-
Additional information about the maturity					analysis for lease liabilities:
		Less than 1year				1	to 5years		5 to 10years
Lease liabilities		$	48,489		$		35,071		$		-

-31-

December 31, 2023

	Payment on	Payment on	Payment on
	demand		or less
	than 1 month			1`～`3 months		3 months`～`1year			1`～`5	years	More than 5years
Non-derivative financial
liabilities
Non-interest bearing		$		-	$ 1,870,360	$		-	$	-	$	-
Lease liabilities			4,208		8,360			35,575		50,404		-
Variable interest rate
liabilities			26,664		53,049			115,673		-		-
		$	30,872		$ 1,931,769	$		151,248	$	50,404	$	-
Additional information about the maturity						analysis for lease				liabilities:
			Less than 1year				1	to 5years		5 to 10years
Lease liabilities			$	48,143			$	50,404		$		-
June 30, 2023
	Payment on
	demand		or less
	than 1 month			1`～`3 months		3 months`～`1year			1`～`5	years	More than 5years
Non-derivative financial
liabilities
Non-interest bearing	$		-	$	1,668,104	$		-	$	-	$	-
Lease liabilities			4,270		8,546			38,121		72,463		-
Variable interest rate
liabilities			7,209		66,715			104,008		-		-
Fixed interest rate
liabilities			-		-			-		-		-
	$	11,479		$	1,743,365	$		142,129	$	72,463	$	-
Additional information about the maturity						analysis for lease				liabilities:
			Less than 1year				1	to 5years		5 to 10years
Lease liabilities			$	50,937			$	72,463		$		-

The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities is subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

b.

Financing facilities

Financing facilities
Unsecured bank financing facilities, reviewed annually and payable on demand: Amount used Amount unused		June 30, 2024 $ 866,501 1,838,082 $ 2,704,583	December 31, 2023 $ 918,091 1,874,583 $ 2,792,674		June 30, 2023
					$ 876,569 1,620,721 $ 2,497,290

26. Related Party Transactions

Transactions and balances between the Company and its subsidiaries, which were related parties of the Company, had been eliminated on consolidation and are not disclosed in this note. Besides as disclosed elsewhere in the other notes, details of transactions between the Group and other related parties were disclosed below.

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(1) Related-party and its relationship Related party Relationship Furly Investment Co., Ltd.(Furly Substantive related party Investment) Chuan Gao Investment Co., Ltd.(Chuan Substantive related party Gao Investment) Welida Investment Co., Ltd. Substantive related party DBMaker Japan Inc. Associate CloudMaster Co., Ltd.( CloudMaster) Joint ventures

(2) Operating revenue (sales, maintenance and rental revenue)

Related PartyCategories Associate Joint ventures	For the Three Months Ended June 30 2024 2023 $ 6,016 $ 8,810 441 294 $ 6,457 $ 9,104	For the Three Months Ended June 30 2024 2023 $ 6,016 $ 8,810 441 294 $ 6,457 $ 9,104	For the Three Months Ended June 30 2024 2023 $ 6,016 $ 8,810 441 294 $ 6,457 $ 9,104	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2024			2024 $ 8,615 1,877 $ 10,492		2023
		$ 6,016 441 $ 6,457					$ 15,200 716 $ 15,916

(3) Operating costs (including sales, maintenance and rental)

Operating costs (including sales, maintenance and rental)	Operating costs (including sales, maintenance and rental)	Operating costs (including sales, maintenance and rental)
For the Three Months Ended June 30 For the Six Months Ended June 30 Related PartyCategories 2024 2023 2024 2023 Associate $ - $ 2,797 $ - $ 2,797 Joint ventures - - - 4 $ - $ 2,797 $ - $ 2,801 Receivables from related parties (excluding loans to related parties) Line Item Related Party Categories June 30, 2024 December 31, 2023 June 30, 2023 Accounts Associate $ 11,152 $ 15,160 $ 2,842 receivable Joint ventures 66 247 12 $ 11,218 $ 15,407 $ 2,854			For the Six Months Ended June 30
				2024		2023
				$ - -	$ 2,797 4 $ 2,801 June 30, 2023
				$ -
Accounts receivable	Associate Joint ventures	$ 11,152 66 $ 11,218			$ 2,842 12 $ 2,854

(4) Receivables from related parties (excluding loans to related parties)

The outstanding accounts receivable from related parties are unsecured. For the six months ended June 30, 2024 and 2023, no impairment loss was recognized on accounts receivable from related parties.

(5) Payables to related parties (excluding loans from related parties)

Line Item Accounts payable	Related Party Categories Associate Joint ventures Substantive related party		June 30, 2024 $ 1,120 6 4 $ 1,130	December 31, 2023 $ 1,206 1,500 9 $ 2,715		June 30, 2023
						$ 1,592 4 6 $ 1,602

The outstanding accounts payable from related parties are unsecured.

(6) Acquisitions of property, plant and equipment

Related PartyCategories Associate		For the Six Months EndedJune 30	For the Six Months EndedJune 30	For the Six Months EndedJune 30
		2024 $ 2,242		2023
				$ -

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(7) Lease agreement

For the Six Months Ended June 30

Related Party Categories /Name Acquisition of Substantive related party right-of-use Chuan Gao Investment assets Furly Investment Line Item Related Party Categories /Name June 30, 2024 Lease liabilities Substantive related party Chuan Gao Investment $ 38,414 Furly Investment 26,330 $ 64,744	2024 $ - - $ - December 31, 2023 $ 50,483 34,923 $ 85,406		2023
		$	68,488 51,843 120,331 June 30, 2023
		$

$ 38,414 26,330 $ 64,744	$ 50,483 34,923 $ 85,406		$ 62,422 43,427 $ 105,849

Related Party Categories/Name	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30 2024 2023 $ 442 $ 687 314 492 $ 756 $ 1,179	For the Six Months Ended June 30 2024 2023 $ 442 $ 687 314 492 $ 756 $ 1,179
	2024	2023	2024	2023
Substantive related party Chuan Gao Investment Furly Investment	$ 206 146 $ 352	$ 328 235	$ 442 314 $ 756	$ 687 492
		$ 563		$ 1,179

(8) Rental expenses

Related Party Categories/Name	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30 2024 2023 $ 3,317 $ 2,012 939 669 $ 4,256 $ 2,681	For the Six Months Ended June 30 2024 2023 $ 3,317 $ 2,012 939 669 $ 4,256 $ 2,681
	2024	2023	2024	2023
Substantive related party Chuan Gao Investment Furly Investment	$ 1,728 536 $ 2,264	$ 1,006 334	$ 3,317 939 $ 4,256	$ 2,012 669
		$ 1,340		$ 2,681

(9) Rental income

Line Item	Related Party Categories/Name Joint venture CloudMaster	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
			2024 $ 118		2023		2024 $ 532		2023
Other income					$ 441				$ 919

(10) Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended June 30 2024 2023 $ 72,386 $ 74,151 3,412 3,256 $ 75,798 $ 77,407	For the Three Months Ended June 30 2024 2023 $ 72,386 $ 74,151 3,412 3,256 $ 75,798 $ 77,407	For the Three Months Ended June 30 2024 2023 $ 72,386 $ 74,151 3,412 3,256 $ 75,798 $ 77,407		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2024 $ 72,386 3,412 $ 75,798			2024 $ 135,266 6,682 $ 141,948		2023
							$ 136,547 6,458 $ 143,005

The remuneration of directors and key executives was determined by the Remuneration Committee based on the performance of individuals and market trends.

-34-

27. Assets Pledged as Collateral

The assets pledged as collaterals for system design contract, bank loans and for product warranty were as follows:

warranty were as follows:
Pledge deposits (classified as financial assets at amortized cost)		June 30, 2024 $ 344,228	December 31, 2023 $ 326,433		June 30, 2023
					$ 245,741

28. Significant Contingent Liabilities and Unrecognized Commitments

As of June 30, 2024, for the contracts with customers , the Group issued guarantee notes and had bank guarantee amounting to $100,272 thousand and $697,762 thousand, respectively.

29. Significant Assets and Liabilities Denominated in Foreign Currencies

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows: June 30, 2024

June 30, 2024
Financial assets Monetary items USD Non-monetary item JPY Financial liabilities Monetary items USD December 31, 2023 Financial assets Monetary items USD Non-monetary items JPY Financial liabilities Monetary items USD June 30, 2023 Financial assets Monetary items USD Non-monetary items JPY Financial liabilities Monetary items USD	Foreign currency $ 1,973 57,228 5,389 Foreign currency $ 3,090 57,237 5,590 Foreign currency $ 4,435 62,211 5,570	Exchange rate 32.45 0.2017 32.45 Exchange rate 30.705 0.2172 30.705 Exchange rate 31.14 0.215 31.14	Carryingamount
			$ 64,032 11,543 174,885 Carryingamount
			$ 94,864 12,432 171,642 Carryingamount
			$ 138,106 13,375 173,439

-35-

The significant realized and unrealized foreign exchange gains (losses) were as follows: For the Three Months Ended June 30

	For	For	ths EndedJune 30
Foreign currency USD USD Foreign currency USD USD	2024		2023
				Net exchange (loss) gain
				$ 2,449 ( 8,317 )
	2024	Net exchange (loss) gain $ 3,612 ( 289 )	2023
	Exchange rate 31.901(USD: NTD) 7.105(USD: RMB)		Exchange rate 30.550(USD: NTD) 6.925(USD: RMB)	Net exchange (loss) gain
				$ 1,996 ( 6,458 )

Separately Disclosed Items
(1) Information on significant transactions:
- A. Financing provided to others: None.
- B. Endorsements/guarantees provided (Table 1).
- C. Marketable securities held (excluding investment in subsidiaries, associates and joint ventures) (Table 2).
- D. Marketable securities acquired and disposed of at costs or prices at least NT$300 million or 20% of the paid-in capital: None.
- E. Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
- F. Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
- G. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
- H. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
- I. Trading in derivative instruments: None.
- J. Other: Intercompany relationships and significant intercompany transactions: (Table 3).
(2) Information on investees: (Table 4).
(3) Information on investments in Mainland China:
- A. Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 5).
- B. Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: None.
  - a. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
  - b. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
  - c. The amount of property transactions and the amount of the resultant gains or losses.
  - d. The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

-36-

The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.
(4) Information of major shareholders: list all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder(Table 6).

31. Segment Information

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group’s reportable segments were the operating segments of the Company and the entities controlled by the Company.

(1) Segment revenue and results

	Segment revenue For the Six Months Ended June 30 2024 2023 $ 2,861,423 $ 2,553,828 108,281 142,160 21,576) ( 17,414) $ 2,948,128 $ 2,678,574	Segment revenue For the Six Months Ended June 30 2024 2023 $ 2,861,423 $ 2,553,828 108,281 142,160 21,576) ( 17,414) $ 2,948,128 $ 2,678,574	Segmentprofit or loss	Segmentprofit or loss
			For the Six Months Ended June 30
	2024 $ 2,861,423 108,281 21,576) $ 2,948,128		2024	2023 $ 151,539 ( 3,870 ) 519 148,188 3,565 $ 151,753
(		(	$ 156,712 ( 12,355 ) 457 144,814 38,363 $ 183,177

Segment revenue reported above represents revenue generated from external customers and inter-segment transactions.

(2) Total segment assets and liabilities

Segment assets Business segments of the Company Business segments of the entities controlled by the Company Total Segment liabilities Business segments of the Company Business segments of the entities controlled by the Company Total		June 30, 2024 $ 4,033,565 372,545 $ 4,406,110 $ 2,143,236 228,269 $ 2,371,505		December 31, 2023 $ 4,484,930 361,340 $ 4,846,270 $ 2,474,375 254,591 $ 2,728,966		June 30, 2023
						$ 3,926,996 378,465 $ 4,305,461 $ 2,080,082 255,919 $ 2,336,001

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Endorsements/Guarantees Provided

For the Six Months Ended June 30, 2024

Table 1

(In Thousands of New Taiwan Dollars and U.S Dollars/Foreign Currency)

No.	Endorser/ Guarantor	Endorsee/ Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement /Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement /Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement /Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement /Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	Syscom Computer Engineering Co.	Syscom Computer (Shenzhen) Co., Ltd. Xian Linan Computer Co., Ltd. Netmaker Technology Co., Ltd. Coach Technology Management Inc. Syscom Computer (Thailand)Co., Ltd.	Indirect subsidiary Indirect subsidiary Subsidiaries Subsidiaries Subsidiaries	20% of the net worth $404,564 Same as above Same as above Same as above Same as above	$ 298,540 ( USD 9,200 ) 42,996 ( USD 1,325 ) 85,000 15,000 8,867 (THB 10,000)	$ 220,660 ( USD 6,800 ) 8,924 ( USD 275 ) 85,000 15,000 8,867 (THB 10,000)	$ 168,740 ( USD 5,200 ) - - - -	$ - - - - -	10.91 0.44 4.20 0.74 0.44	50% of the net worth $1,011,410 Same as above Same as above Same as above Same as above	Yes Yes Yes Yes Yes	No No No No No	Yes Yes No No No

Note : The above amounts were translated into New Taiwan dollar at the prevailing exchange rate as of June 30, 2024.

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Marketable Securities Held June 30, 2024

			Marketable Securities Held June 30, 2024
Table 2				(In Thousands of New Taiwan Dollars and in thousands of Shares(Thousands of Units))
Holding Company Name	Type and name of marketable securities	Relationship with the Holding Company	Financial Statement Account		June 30,	2024		Note
				Number of shares/units	Carrying amount	Percentage of Ownership (%)	Fair value
SYSCOM COMPUTER ENGINEERING CO. Coach Technology Management Inc.	Beneficial certificates Yuanta Japan Leaders Equity Fund Stocks Engsound Technical Enterprise Co., Ltd. Turn Cloud Technology Service Inc. Shin Kong Financial Holding Co., Ltd. Dimension Computer Technology Co., Ltd. Beneficial certificates Fuh Hwa Money Market Fund	`－` `－` `－` `－` `－` `－`	Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current	1,000 273 195 166 2 31	$ 11,380 1,595 38,886 1,635 81 460	- 9.09 0.90 - - -	$ 11,380 1,595 38,886 1,635 81 460

Note 1: The securities referred to in this table include stocks, bonds, mutual funds and securities derived from the above - mentioned items within the scope of International Financial Reporting Standard No. 9 “Financial Instruments”. Note 2: The above shares or certificates were not provided as guarantee.

-39-

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

Intercompany Relationships and Significant Intercompany Transactions and Subsidiary and Between Subsidiaries For the Six Months Ended June 30, 2024

Table 3

(In Thousands of New Taiwan Dollars)

No.	Name of the trader	Counterparty of the transaction	Relationship with the trader (Note)		Transaction details	Transaction details
				Account on the financial statements	Amount	Trading terms	As a percentage of consolidated total revenue or total assets
0 1	The Company The Company The Company The Company The Company The Company The Company Casemaker Inc.	Netmaker Technology Co. Netmaker Technology Co. Netmaker Technology Co. Netmaker Technology Co. Wisemaker Technology Co. Wisemaker Technology Co. Wisemaker Technology Co. Syscom Computer(Shenzhen)Co.,Ltd.	1 1 1 1 1 1 1 2	Prepayment for purchases Maintenance revenue Cost of goods sold Maintenance costs Accounts payable Cost of goods sold Maintenance costs Sales revenue	$ 1,134 1,147 1,269 1,693 1,576 10,210 2,063 5,481	General trading terms General trading terms General trading terms General trading terms General trading terms General trading terms General trading terms General tradingterms	- - - - - - - -

Note: 1.Parent to subsidiary. Note: 2.Subsidiary to subsidiary.

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investees

June 30, 2024

Table 4

(In Thousands of New Taiwan Dollars/Thousands of Shares)

Investor Company	Investee Company	Location	Main Businesses and Products	Original investment amount	Original investment amount		As ofJune 30,2024	As ofJune 30,2024	Net Income (Loss) of the Investee(Note)	Share of Profit (Loss)	Note
				June 30, 2024	December 31, 2023	Number of Shares (Thousands)	Percentage of Ownership	Carrying amount
SYSCOM COMPUTER ENGINEERING CO. Coach Technology Management Inc.	Coach Technology Management Inc. Casemaker Inc. SYSCOM INTERNATIONAL INC. Netmaker Technology Co., Ltd. Wisemaker Technology Co. DBMaker Japan, Inc. Syscom Computer(Thailand)Co., Ltd. Cloudmaster Co., Ltd. Syscom Computer(Thailand)Co., Ltd.	Taipei City California, U.S.A. Cayman Islands Taipei City Taipei City Tokyo, Japan Thailand Taipei City Thailand	Diagnostic consulting for corporate management, domestic and foreign investment referral, and computerized design consulting. Sales of computer software, hardware and related products. Investments in other businesses Information software, data processing and electronic information supply services Sales of computer software, hardware and related products. Development and sales of computer system software and hardware Development and maintenance of software and other businesses Information software, data processing and electronic information supply services Development and maintenance of software and other businesses	$ 19,200 USD 1,300 USD 7,400 18,763 42,191 JPY 53,260 THB 33,134 65,000 THB 200	$ 19,200 USD 1,300 USD 6,050 18,763 42,191 JPY 53,260 THB 33,134 65,000 THB 200	1,950 1,300 7,400 2,858 2,679 5 3,440 6,500 20	97.50 100.00 100.00 86.60 99.24 49.89 92.47 50.00 0.54	$ 6,627 104,640 ( 72,605 ) 33,650 52,860 11,543 3,013 55,814 18	$ 79 ( 358 ) ( 9,834 ) ( 2,302 ) ( 3,063 ) ( 4 ) 64 1,104 64	$ 77 ( 358 ) ( 9,834 ) ( 1,994 ) ( 3,039 ) ( 2 ) 59 552 Not applicable	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Equity-method investee Subsidiary Equity-method investee Subsidiary

Note: The foreign currency amount of the net income of the investee is expressed in New Taiwan dollars at the average exchange rate of the six months ended June 30,2024.

-41-

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investments in Mainland China

For the Six Months Ended June 30, 2024

Table 5

(In Thousands of New Taiwan Dollars/foreign currency)

Investee Company	Main Businesses and Products	Paid-in capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January1,2024	Accumulated Outward Remittance for Investment from Taiwan as of January1,2024	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of June 30,2024	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of June 30, 2024	Accumulated Repatriation of Investment Income as of June 30, 2024
						Outward	Inward
Syscom Computer (Shenzhen)Co., Ltd. Xian Linan Computer Co., Ltd.	Computer equipment software development, sales of self-developed technical achievements services, computer system integration and network wiring engineering. Development and manufacture of computer equipment and computer software; sale of self-manufactured products and provision of technical services.	$ 146,025 ( USD 4,500 ) 123,310 ( USD 3,800 )	Note 1 Note 1	$ ( USD ( USD	135,317 4,170 ) 49,259 1,518 )	$ - 42,185 ( USD 1,300 )	$ - -	$ 135,317 ( USD 4,170 ) 91,444 ( USD 2,818 )	( $ 6,339 ) ( (USD 199 )) (Note 2) ( 5,027 ) ( (USD 158 )) (Note 2)	98.27% 79.23%	( $ 6,229 ) ( (USD 195 )) (Note 2) ( 3,924 ) ( (USD 123)) (Note 2)	( $ 107,472 ) ( (USD 3,312 )) (Note 2) 29,324 ( USD 904 ) (Note 2)	$ - -

Accumulated Outward Remittance for Investment in Mainland China as of June 30,2024		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 3)
$ 226,761 (USD 6,988)		$ 226,761 (USD 6,988) (Note 1(II))			$ 1,213,692
		14,155 (USD 436) (Note 1(I))

Note 1: Investment methods are classified into the following two categories:

(I) An investee of CASEMaker, Inc., a wholly owned subsidiary of Syscom Computer Engineering Company and capital increase from capital surplus.

(II) An investee of Syscom International Inc., a wholly owned subsidiary of Syscom Computer Engineering Company.

Note 2: Amount was recognized based on the financial statements which were not reviewed by CPAs on June 30, 2024.

Note 3: According to the "Principles for the Review of Investment or Technical Cooperation in the Mainland Area" stipulated by the Investment Commission of the Ministry of Economic Affairs (MOEAIC), the upper limit is calculated as follows: 60% of the shareholders’ equity = $2,022,820 × 60% = $1,213,692

Note 4: The foreign currency amounts of original investment amount and carrying value are expressed in New Taiwan dollars at exchange rate as of June 30, 2024. The foreign currency amount of net income is expressed in New Taiwan dollars at average exchange rate for the six months ended June 30, 2024.

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SYSCOM COMPUTER ENGINEERING CO. Information on major shareholders June 30, 2024

Table 6

Table 6
Name of major shareholder	Shareholding
	Number of shares held	Shareholding percentage
Jui-Fu Liu Chi-Shan Liu Su-Chen Yang	18,346,787 7,598,911 7,256,001	18.35% 7.60% 7.26%

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Corporation as of the last business day for the current quarter. The share capital in the parent company only financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

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AI assistant

SYSCOM — Interim / Quarterly Report 2024

52093_rns_2024-12-24_9bc494e4-c179-4ae3-80c1-85fd649840ae.pdf

§ Table of Contents §

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30,2024 AND 2023

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Notes to Consolidated Financial Statements

1. General

IFRS 18 “Presentation and Disclosures in Financial Statements”

4. Summary of Significant Accounting Policies (1) Statement of Compliance

(2) Basis of Preparation

(3) Basis of Consolidation

5.

Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

6. Cash and cash equivalents

7. Financial assets at fair value through other comprehensive income

8. Financial assets at amortized cost

9. Accounts receivable

11. Subsidiaries

12. Investments accounted for using the equity method

13. Property, plant and equipment

14. Lease agreements (1) Right-of-use assets

(2) Lease liabilities

(3) Material leasing activities and terms

15. Intangible assets

16.

Loans

17. Other payables

18.

19. Equity

20. Revenue

(1) Contract information Revenue from contracts with customers

21. Net profit

22. Income tax

Net profit for the period

24. Equity transactions with non-controlling interests

25. Financial instruments

June 30, 2024

(4) Financial risk management objectives and policies

A. Market risk

Sensitivity analysis

b. Interest rate risk

Sensitivity analysis

December 31, 2023

b.

Financing facilities

26. Related Party Transactions

27. Assets Pledged as Collateral

28. Significant Contingent Liabilities and Unrecognized Commitments

29. Significant Assets and Liabilities Denominated in Foreign Currencies

31. Segment Information

Table 1

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Marketable Securities Held June 30, 2024

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

Table 3

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investees

June 30, 2024

Table 4

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investments in Mainland China

Table 5

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SYSCOM Interim / Quarterly Report 2024