SYSCOM - Interim / Quarterly Report 2025

Stock Code: 2453

Syscom Computer Engineering Co. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2025 and 2024 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 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
11～12
(4) Summary of Significant Accounting Policies
12
(5) Critical Accounting Judgments and Key
Sources of Estimation and Uncertainty
13
(6) Explanation of Significant Accounts
14～32
(7) Related Parties Transactions
32～34
(8) Assets Pledged as Collateral
34
(9) Significant Contingent Liabilities and
Unrecognized Commitments
34
(10) Significant Disaster Loss
-
(11) Significant Events after the Balance Sheet Date
-
(12) Significant Assets and Liabilities Denominated
in Foreign Currencies
34～35
(13) Separately Disclosed Items
A. Information on Significant Transactions
35、38～40
B. Information on investees
35、41
C. Information on investment in Mainland
China
36、42
(14) Segment Information
36～37 Notes to Financial
Statements

-
-
-
-
-
-
-
1
2
3
4
5
6-25
26
27
28
-
-
29
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`～`12 (4) Summary of Significant Accounting Policies 12 (5) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty 13 (6) Explanation of Significant Accounts 14`～`32 (7) Related Parties Transactions 32`～`34 (8) Assets Pledged as Collateral 34 (9) Significant Contingent Liabilities and Unrecognized Commitments 34 (10) Significant Disaster Loss - (11) Significant Events after the Balance Sheet Date - (12) Significant Assets and Liabilities Denominated in Foreign Currencies 34`～`35 (13) Separately Disclosed Items A. Information on Significant Transactions 35`、`38`～`40 B. Information on investees 35`、`41 C. Information on investment in Mainland China 36`、`42 (14) Segment Information 36`～`37	Notes to Financial Statements
	- - - - - - - 1 2 3 4 5 6-25 26 27 28 - - 29 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 March 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended March 31, 2025 and 2024, and the 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 March 31, 2025 and 2024, combined total assets of these non-significant subsidiaries were NT$381,928 thousand and NT$383,162 thousand, respectively, both representing 9% of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$256,981 thousand and NT$241,722 thousand, respectively, representing 11% and 10%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2025 and 2024, the amounts of combined total comprehensive loss of these subsidiaries were NT$7,587 thousand and NT$21,384 thousand, respectively, representing (9) % and (27)% respectively, of the consolidated total comprehensive income. As disclosed in Note 12 to the consolidated financial statements, as of March 31, 2025 and 2024, investments accounted for using the equity method were NT$70,785 thousand and NT$67,588 thousand, respectively, and for the three months ended March 31, 2025 and 2024, the comprehensive income(loss) of these equity-method investments were NT$(993) thousand and NT$56 thousand, respectively, which were calculated on the basis of financial statements that have not been reviewed. The related information on investments in subsidiaries and associates stated above, as shown in Note 30 to the consolidated financial statements, was also unreviewed.

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 March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2025 and 2024 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 Pei-De Chen and Liu Wen-Ling.

Deloitte & Touche Taipei, Taiwan Republic of China

May 9, 2025

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

MARCH 31, 2025, DECEMBER 31, 2024 AND MARCH 31, 2024

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 (Note 14 ) 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		March 31,2025 Amount `％` $ 597,055 14 465 - 264,172 6 722,320 17 720 - 767,161 18 11,208 - 502 - 578,629 14 477,916 11 97,570 2 3,517,718 82 42,284 1 187,314 4 70,785 2 362,347 8 47,168 1 2,797 - 14,154 - 67,683 2 794,532 18 $ 4,312,250 100 $ 178,953 4 491,270 11 1,403 - 1,024,189 24 403,667 9 49,438 1 36,840 1 31,117 1 2,216,877 51 10,442 - 10,990 - 51,743 1 15,041 1 88,216 2 2,305,093 53 1,000,000 23 1,835 - 358,096 8 17,619 1 593,977 14 969,692 23 24,479 1 1,996,006 47 11,151 - 2,007,157 47 $ 4,312,250 100		(In Thousands of New Taiwan Dollars) December 31,2024 March 31,2024 Amount `％` Amount `％` $ 722,387 15 $ 810,894 19 463 - 12,098 - 250,277 5 215,556 5 858,494 18 683,474 16 2,866 - 560 - 1,157,180 24 744,104 17 8,403 - 18,766 1 493 - 299 - 457,662 9 549,410 13 479,218 10 352,712 8 85,124 2 96,325 2 4,033,567 83 3,484,198 81 49,063 1 27,918 1 211,034 4 198,161 5 70,937 2 67,588 2 366,735 8 367,542 8 59,139 1 83,227 2 2,531 - 2,159 - 16,090 - 9,054 - 70,434 1 56,729 1 845,963 17 812,378 19 $ 4,879,530 100 $ 4,296,576 100 $ 176,651 4 $ 180,808 4 611,197 12 493,056 11 150 - 517 - 1,248,869 26 1,068,061 25 468,442 10 383,390 9 27,405 - 42,514 1 47,738 1 45,570 1 17,762 - 26,101 1 2,598,214 53 2,240,017 52 10,535 - 10,165 - 12,247 - 38,442 1 56,406 1 29,690 1 17,877 1 14,996 - 97,065 2 93,293 2 2,695,279 55 2,333,310 54 1,000,000 21 1,000,000 24 1,783 - 1,797 - 358,096 7 330,483 8 17,619 - 17,619 - 765,101 16 594,521 14 1,140,816 23 942,623 22 30,144 1 6,894 - 2,172,743 45 1,951,314 46 11,508 - 11,952 - 2,184,251 45 1,963,266 46 $ 4,879,530 100 $ 4,296,576 100	(In Thousands of New Taiwan Dollars) December 31,2024 March 31,2024 Amount `％` Amount `％` $ 722,387 15 $ 810,894 19 463 - 12,098 - 250,277 5 215,556 5 858,494 18 683,474 16 2,866 - 560 - 1,157,180 24 744,104 17 8,403 - 18,766 1 493 - 299 - 457,662 9 549,410 13 479,218 10 352,712 8 85,124 2 96,325 2 4,033,567 83 3,484,198 81 49,063 1 27,918 1 211,034 4 198,161 5 70,937 2 67,588 2 366,735 8 367,542 8 59,139 1 83,227 2 2,531 - 2,159 - 16,090 - 9,054 - 70,434 1 56,729 1 845,963 17 812,378 19 $ 4,879,530 100 $ 4,296,576 100 $ 176,651 4 $ 180,808 4 611,197 12 493,056 11 150 - 517 - 1,248,869 26 1,068,061 25 468,442 10 383,390 9 27,405 - 42,514 1 47,738 1 45,570 1 17,762 - 26,101 1 2,598,214 53 2,240,017 52 10,535 - 10,165 - 12,247 - 38,442 1 56,406 1 29,690 1 17,877 1 14,996 - 97,065 2 93,293 2 2,695,279 55 2,333,310 54 1,000,000 21 1,000,000 24 1,783 - 1,797 - 358,096 7 330,483 8 17,619 - 17,619 - 765,101 16 594,521 14 1,140,816 23 942,623 22 30,144 1 6,894 - 2,172,743 45 1,951,314 46 11,508 - 11,952 - 2,184,251 45 1,963,266 46 $ 4,879,530 100 $ 4,296,576 100	(In Thousands of New Taiwan Dollars) December 31,2024 March 31,2024 Amount `％` Amount `％` $ 722,387 15 $ 810,894 19 463 - 12,098 - 250,277 5 215,556 5 858,494 18 683,474 16 2,866 - 560 - 1,157,180 24 744,104 17 8,403 - 18,766 1 493 - 299 - 457,662 9 549,410 13 479,218 10 352,712 8 85,124 2 96,325 2 4,033,567 83 3,484,198 81 49,063 1 27,918 1 211,034 4 198,161 5 70,937 2 67,588 2 366,735 8 367,542 8 59,139 1 83,227 2 2,531 - 2,159 - 16,090 - 9,054 - 70,434 1 56,729 1 845,963 17 812,378 19 $ 4,879,530 100 $ 4,296,576 100 $ 176,651 4 $ 180,808 4 611,197 12 493,056 11 150 - 517 - 1,248,869 26 1,068,061 25 468,442 10 383,390 9 27,405 - 42,514 1 47,738 1 45,570 1 17,762 - 26,101 1 2,598,214 53 2,240,017 52 10,535 - 10,165 - 12,247 - 38,442 1 56,406 1 29,690 1 17,877 1 14,996 - 97,065 2 93,293 2 2,695,279 55 2,333,310 54 1,000,000 21 1,000,000 24 1,783 - 1,797 - 358,096 7 330,483 8 17,619 - 17,619 - 765,101 16 594,521 14 1,140,816 23 942,623 22 30,144 1 6,894 - 2,172,743 45 1,951,314 46 11,508 - 11,952 - 2,184,251 45 1,963,266 46 $ 4,879,530 100 $ 4,296,576 100	(In Thousands of New Taiwan Dollars) December 31,2024 March 31,2024 Amount `％` Amount `％` $ 722,387 15 $ 810,894 19 463 - 12,098 - 250,277 5 215,556 5 858,494 18 683,474 16 2,866 - 560 - 1,157,180 24 744,104 17 8,403 - 18,766 1 493 - 299 - 457,662 9 549,410 13 479,218 10 352,712 8 85,124 2 96,325 2 4,033,567 83 3,484,198 81 49,063 1 27,918 1 211,034 4 198,161 5 70,937 2 67,588 2 366,735 8 367,542 8 59,139 1 83,227 2 2,531 - 2,159 - 16,090 - 9,054 - 70,434 1 56,729 1 845,963 17 812,378 19 $ 4,879,530 100 $ 4,296,576 100 $ 176,651 4 $ 180,808 4 611,197 12 493,056 11 150 - 517 - 1,248,869 26 1,068,061 25 468,442 10 383,390 9 27,405 - 42,514 1 47,738 1 45,570 1 17,762 - 26,101 1 2,598,214 53 2,240,017 52 10,535 - 10,165 - 12,247 - 38,442 1 56,406 1 29,690 1 17,877 1 14,996 - 97,065 2 93,293 2 2,695,279 55 2,333,310 54 1,000,000 21 1,000,000 24 1,783 - 1,797 - 358,096 7 330,483 8 17,619 - 17,619 - 765,101 16 594,521 14 1,140,816 23 942,623 22 30,144 1 6,894 - 2,172,743 45 1,951,314 46 11,508 - 11,952 - 2,184,251 45 1,963,266 46 $ 4,879,530 100 $ 4,296,576 100
			Amount $ 597,055 465 264,172 722,320 720 767,161 11,208 502 578,629 477,916 97,570 3,517,718 42,284 187,314 70,785 362,347 47,168 2,797 14,154 67,683 794,532 $ 4,312,250 $ 178,953 491,270 1,403 1,024,189 403,667 49,438 36,840 31,117 2,216,877 10,442 10,990 51,743 15,041 88,216 2,305,093 1,000,000 1,835 358,096 17,619 593,977 969,692 24,479 1,996,006 11,151 2,007,157 $ 4,312,250		Amount $ 722,387 463 250,277 858,494 2,866 1,157,180 8,403 493 457,662 479,218 85,124 4,033,567 49,063 211,034 70,937 366,735 59,139 2,531 16,090 70,434 845,963 $ 4,879,530 $ 176,651 611,197 150 1,248,869 468,442 27,405 47,738 17,762 2,598,214 10,535 12,247 56,406 17,877 97,065 2,695,279 1,000,000 1,783 358,096 17,619 765,101 1,140,816 30,144 2,172,743 11,508 2,184,251 $ 4,879,530		Amount $ 810,894 12,098 215,556 683,474 560 744,104 18,766 299 549,410 352,712 96,325 3,484,198 27,918 198,161 67,588 367,542 83,227 2,159 9,054 56,729 812,378 $ 4,296,576 $ 180,808 493,056 517 1,068,061 383,390 42,514 45,570 26,101 2,240,017 10,165 38,442 29,690 14,996 93,293 2,333,310 1,000,000 1,797 330,483 17,619 594,521 942,623 6,894 1,951,314 11,952 1,963,266 $ 4,296,576	`％`
								19 - 5 16 - 17 1 - 13 8 2 81 1 5 2 8 2 - - 1 19 100 4 11 - 25 9 1 1 1 52 - 1 1 - 2 54 24 - 8 - 14 22 - 46 - 46 100

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

(With Deloitte & Touche auditors’ review report dated May 9, 2025)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31,2025 AND 2024

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

	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2025	`％` 74 26 - 100 59 16 - 75 25 14 3 - 17 8 - - - - - - 8 2 6		2024
	Amount $ 1,094,652 374,070 4,245 1,472,967 865,054 236,600 3,337 1,104,991 367,976 207,154 51,453 43 258,650 109,326 3,305 4,083 283 3,404 ) 1,124) 3,143 112,469 24,034 88,435			Amount $ 1,059,172 336,052 4,269 1,399,493 794,337 243,745 3,253 1,041,335 358,158 197,888 67,966 ( 6) 265,848 92,310 2,702 14,928 5,083 4,009 ) 117 18,821 111,131 26,792 84,339	`％`
( (			(		76 24 - 100 57 17 - 74 26 14 5 - 19 7 - 1 - - - 1 8 2 6

(Continued)

	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2025	`％` - - - - - 6 6 - 6 6 - 6		2024
	Amount $ 6,779 ) 1,067 131 1,198 5,581) $ 82,854 $ 88,876 441) $ 88,435 $ 83,211 357) $ 82,854 $ 0.89 $ 0.89			Amount $ 5,108 ) 515 61) 454 4,654) $ 79,685 $ 85,672 1,333) $ 84,339 $ 80,838 1,153) $ 79,685 $ 0.86 $ 0.85	`％`
( ( ( (			( ( ( ( (		- - - - - 6 6 - 6 6 - 6

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

(With Deloitte & Touche auditors’ review report dated May 9, 2025)

(Concluded)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31,2025 AND 2024

			Equity attributable to o	wners of the Company				(In Thousands of New Non-controlling interests $ 3,097 - ( ( 1,333 ) 180 ( ( 1,153) 10,088 $ 11,952 $ 11,508 - ( ( 441 ) 84 ( ( 357) - $ 11,151	(In Thousands of New Non-controlling interests $ 3,097 - ( ( 1,333 ) 180 ( ( 1,153) 10,088 $ 11,952 $ 11,508 - ( ( 441 ) 84 ( ( 357) - $ 11,151	Taiwan Dollars) Total equity
Share capital - ordinary shares $ 1,000,000 - - - - - $ 1,000,000 $ 1,000,000 - - - - - $ 1,000,000	Capital surplus $ 1,797 - - - - - $ 1,797 $ 1,783 - - - - 52 $ 1,835		Retained earnings	Unappropriated earnings $ 752,580 ( 240,000 ) 85,672 - 85,672 ( 3,731) $ 594,521 $ 765,101 ( 260,000 ) 88,876 - 88,876 - $ 593,977	Otherequity Exchange differences on translating the financial statements of foreign operations Unrealized gain or loss on financial assets at fair value through other comprehensive income ( $ 9,900 ) $ 21,628 - - - - 274 ( 5,108) 274 ( 5,108) - - ($ 9,626) $ 16,520 ( $ 7,521 ) $ 37,665 - - - - 1,114 ( 6,779) 1,114 ( 6,779) - - ($ 6,407) $ 30,886
					Exchange differences on translating the financial statements of foreign operations ( $ 9,900 ) - - 274 274 - ($ 9,626) ( $ 7,521 ) - - 1,114 1,114 - ($ 6,407)
		Legal reserve $ 330,483 - - - - - $ 330,483 $ 358,096 - - - - - $ 358,096	Special reserve $ 17,619 - - - - - $ 17,619 $ 17,619 - - - - - $ 17,619
				( ( (	( ( ( (	( ( ( (	( ( ( ( (	( ( ( (	( ( ( (	$ 2,117,304 240,000 ) 84,339 4,654) 79,685 6,277 $ 1,963,266 $ 2,184,251 260,000 ) 88,435 5,581) 82,854 52 $ 2,007,157

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

(With Deloitte & Touche auditors’ review report dated May 9, 2025)

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31,2025 AND 2024

(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 (gain) 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 Reversal of write-downs of inventories A24100 Net 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 from operating activities	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2025 $ 112,469 28,646 796 43 2 ) 3,404 3,305 ) 1,124 224 ) 2,978 ) 854 ) 136,174 2,146 392,093 2,804 ) 118,474 ) 1,302 6,912 ) 119,927 ) 1,253 225,526 ) 325,059 ) 13,355 4,663) 117,923 ) 3,323 3,271 ) 204) 118,075)		2024
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 111,131 28,207 168 6 ) 1,641 ) 4,009 2,702 ) 117 ) - 524 ) 1,693 ) ( 200,152 ) 11,502 684,849 12,426 ) 75,601 ) 62,185 4,327 ) 27,726 386 386,025 ) 275,282 ) 8,036 12,257) 34,554 ) 2,720 3,795 ) 1,434) 37,063)

(Continued)

Code CASH FLOWS FROM INVESTING ACTIVITIES B00050 Proceeds (acquisition) from sale of financial assets at amortized cost B02700 Payments for property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Increase in refundable deposits B04500 Payments for intangible assets B06100 Decrease in lease receivable BBBB Net cash used in from investing activities CASH FLOWS FROM FINANCING ACTIVITIES C00200 Decrease in short-term borrowings C03000 Increase (Decrease) in guarantee deposits received C04020 Repayment of the principal portion of lease liabilities C05800 Change in non-controlling interests C09900 Unclaimed dividends CCCC Net cash used in financing activities DDDD EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES EEEE NET (DECREASE) INCREASEIN CASH AND CASH EQUIVALENTS E00100 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD E00200 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2025 $ 9,825 11,599 ) 557 3,774 ) 1,047 ) 991 5,047) - 2,836 ) 12,404 ) - 52 15,188) 1,978 136,332 ) 733,387 $ 597,055		2024
	( ( ( ( ( ( ( (		( ( ( ( ( ( ( (	$ 237 ) 19,641 ) - 378 ) - - 20,256) 17,499 ) 225 12,126 ) 6,277 - 23,123) 6,842 73,600 ) 884,494 $ 810,894

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ review report dated May 9, 2025)

(Concluded)

10 -

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

For the Three Months Ended March 31, 2025 and 2024

(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 financial statements are presented in the Company’s functional currency, New Taiwan dollars.

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 May 9,
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 Group has assessed that the application of the revised 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 2026

Effective Date Announced by New/ Revised /Amended Standards and Interpretations the IASB Amendments to IFRS 9 and IFRS 7 “Amendments to the January 1, 2026 (Note )

Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets

Note : An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025.

As of the date the consolidated company financial statements were authorized for issue, the Group had assessed that the application of above standards and interpretations would not have a material impact on the Group’s financial position and financial performance.

(3) IFRSs issued by the IASB but not yet endorsed and issued into effect by the FSC

Effective Date Announced by New/ Revised /Amended Standards and Interpretations the IASB (Note ) Annual Improvements to IFRS Accounting Standards - January 1, 2026 Volume 11 Amendments to IFRS 9 and IFRS 7 “Amendments to the January 1, 2026 Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities Amendments to IFRS 9 and IFRS 7 “Contracts January 1, 2026 Referencing Nature-dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution To be determined by IASB of Assets between an Investor and its Associate or Joint

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Effective Date Announced by New/ Revised /Amended Standards and Interpretations the IASB (Note )

New/Revised/Amended Standards and Interpretations	Effective Date A the IASB
Venture”
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17	January 1, 2023
and IFRS 9 - Comparative Information”
IFRS 18 “Presentation and Disclosure in Financial	January 1, 2027
Statements”
IFRS 19 “Subsidiaries without Public Accountability:	January 1, 2027
Disclosures”

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

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 discontinued 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 have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligations less the fair value of the plan assets.

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The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

A. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
B. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
C. Level 3 inputs are unobservable inputs for the 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 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.

(4) Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended 2024.

A. 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.

B. 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.

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, 2024.

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6. Cash and cash equivalents

6.	Cash and cash equivalents	Cash and cash equivalents
7.	March 31, 2025 December 31, 2024 Cash on hand $ 577 $ 1,003 Checking accounts and demand deposits 399,307 466,339 Cash equivalents (investments with original maturities of less than 3 months) Time deposits 108,321 99,315 Repurchase agreements 88,850 166,730 $ 597,055 $ 733,387 Financial assets at fair value through other comprehensive income Investments in equity instruments-non-current March 31, 2025 December 31, 2024 Domestic investments Listed shares $ 40,689 $ 47,468 Unlisted shares 1,595 1,595 $ 42,284 $ 49,063		March 31, 2024
			$ 760 497,305 120,754 192,075 $ 810,894 March 31, 2024
	Investments in equity instruments	-non-current March 31, 2025 $ 40,689 1,595 $ 42,284
	Domestic investments Listed shares Unlisted shares
			$ 26,323 1,595 $ 27,918

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		March 31, 2025 $ 344,680 106,806 $ 451,486 $ 264,172 187,314 $ 451,486	December 31, 2024 $ 349,765 111,546 $ 461,311 $ 250,277 211,034 $ 461,311		March 31, 2024
					$ 321,148 92,569 $ 413,717 $ 215,556 198,161 $ 413,717

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 March 31, 2025, December 31, 2024 and March 31, 2024.

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9. Accounts receivable

Accounts receivable
At amortized cost Accounts receivable Less: Allowance for impairment loss		March 31, 2025	(	December 31, 2024 $ 1,166,602 9,422) $ 1,157,180		March 31, 2024
	(	$ 776,628 9,467) $ 767,161			(	$ 752,346 8,242) $ 744,104

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 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 receivable 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 Group 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. March 31, 2025

March 31, 2025
Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2024 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost March 31, 2024 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Less than 60 Days	61 to 90 Days		91 to120 Days		Over 121 Days		Total
	$ 607,955 - $ 607,955 Less than 60 Days	$ 58,530 - $ 58,530 61 to 90 Days	(	$ 42,533 532) $ 42,001 91 to120 Days	(	$ 67,610 8,935) $ 58,675 Over 121 Days	(	$ 776,628 9,467) $ 767,161 Total
	$ 1,034,542 - $ 1,034,542 Less than 60 Days	$ 55,815 - $ 55,815 61 to 90 Days		$ 19,452 - $ 19,452 91 to120 Days	(	$ 56,793 9,422) $ 47,371 Over 121 Days	(	$ 1,166,602 9,422) $ 1,157,180 Total
	$ 587,899 - $ 587,899	$ 57,907 - $ 57,907	(	$ 34,883 1,543) $ 33,340	(	$ 71,657 6,699) $ 64,958	(	$ 752,346 8,242) $ 744,104

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The movements of the loss allowance of accounts receivable were as follows:

For the Three Months Ended March 31

10.

March 31, 2025	2025 $ 9,422 43 2 $ 9,467 December 31, 2024 $ 255,721 195,488 5,228 1,225 $ 457,662	2025 $ 9,422 43 2 $ 9,467 December 31, 2024 $ 255,721 195,488 5,228 1,225 $ 457,662	2024	2024
	$		$ 8,243 ( 6 ) 5 $ 8,242 March 31, 2024
	$

$ 319,170 198,698 60,324 437		$ 255,721 195,488 5,228 1,225 $ 457,662		$ 295,960 178,761 73,857 832 $ 549,410
$ 578,629

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 ended March 31,2025 and 2024 was $865,054 thousand and $794,337 thousand, respectively. The cost of goods sold included reversal of write-downs of inventories of $2,978 thousand and $524 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. 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 (%) March 31,2025 December 31,2024 March 31,2024 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 97.50% 97.50% 97.50% 92.47% 92.47% 92.47% 99.28% 99.28% 99.24% 86.60% 86.60% 86.60% 0.54% 0.54% 0.54% 98.27% 98.27% 98.27% 79.23% 79.23% 79.23%	Proportion of Ownership (%) March 31,2025 December 31,2024 March 31,2024 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 97.50% 97.50% 97.50% 92.47% 92.47% 92.47% 99.28% 99.28% 99.24% 86.60% 86.60% 86.60% 0.54% 0.54% 0.54% 98.27% 98.27% 98.27% 79.23% 79.23% 79.23%	Description
			March 31,2025 100.00% 100.00% 97.50% 92.47% 99.28% 86.60% 0.54% 98.27% 79.23%	December 31,2024
				100.00% 100.00% 97.50% 92.47% 99.28% 86.60% 0.54% 98.27% 79.23%	A A A A A`、`C A A A A`、`B

A. The subsidiaries are not significant subsidiaries. The financial statements have not been reviewed by CPAs.
B. 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

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through SYSCOM. The investments amounted to US$1,300 thousand. The Company’s percentage of ownership in Xian Lian increased to 79.23%.

C. In November 2024, the Company acquired additional 1 thousand shares of Wisemaker Technology Co. from an unrelated party for $35 thousand; after the acquisition of further interests, the Company’s percentage of ownership in Wisemaker Technology Co. increased to 99.28%.
(2) Subsidiaries excluded from the consolidated financial statements: None.
(3) Subsidiaries with material non-controlling interests: None.

12. (1)	Investments accounted for using the equity method March 31, 2025 December 31, 2024 March 31, 2024 Investments in associates $ 14,347 $ 14,145 $ 11,882 Investments in joint ventures 56,438 56,792 55,706 $ 70,785 $ 70,937 $ 67,588 Investments in associates March 31, 2025 December 31, 2024 March 31, 2024 Associates that is not individually materiality Unlisted companies DBMaker Japan Inc. $ 14,347 $ 14,145 $ 11,882 As at the end of the reporting period, the proportions of ownership and voting rights in associates held by the Group were as follows: Name of the company March 31, 2025 December 31, 2024 March 31, 2024 DBMaker Japan Inc. 49.89% 49.89% 49.89%		March 31, 2024
			$ 11,882 55,706 $ 67,588 March 31, 2024
		49.89%

As at the end of the reporting period, the proportions of ownership and voting rights in associates held by the Group were as follows:

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
March 31, 2025 December 31, 2024 March 31, 2024 Joint venture that is not individually material CloudMaster Co., Ltd. $ 56,438 $ 56,792 $ 55,706 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: March 31, 2025 December 31, 2024 March 31, 2024 CloudMaster Co., Ltd. 50.00% 50.00% 50.00%		March 31, 2024
	50.00%

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:

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

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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.

13. Property, plant and equipment

Property, plant and equipment
Assets used by the Group Assets leased under operating leases Assets used by the Group Land Computer equipment Buildings Maintenance equipment Leasehold improvements Others	March 31, 2025 $ 349,694 12,653 $ 362,347 March 31, 2025 $ 123,722 102,430 42,825 57,098 13,727 9,892 $ 349,694	December 31, 2024 $ 352,694 14,041 $ 366,735 December 31, 2024 $ 123,552 106,735 43,248 55,195 14,853 9,111 $ 352,694	March 31, 2024
			$ 349,860 17,682 $ 367,542 March 31, 2024
			$ 123,235 107,229 44,603 56,635 9,807 8,351 $ 349,860

(1) Assets used by the Group

Except for the recognition of depreciation expenses, the Group’s property, plant and equipment did not have significant addition, disposal and impairment for the three months ended March 31, 2025 and 2024.Depreciation expenses were depreciated on a straight-line basis over the estimated useful life of the asset:

basis over the estimated useful life of the asset:
Buildings Maintenance equipment Computer equipment Leasehold improvements Others - Office equipment -Transportation equipment Assets leased under operating leases March 31, 2025 Leased equipment $ 12,653	December 31, 2024 $ 14,041	39 to 60 years 6 years 3 to 6 years 3 to 10 years 3 to 8 years 5 years March 31, 2024
			$ 17,682

(2) Assets leased under operating leases

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.

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During the lease period, the lease commitment at the beginning of the balance sheet was as follows:

as follows:
Year 1 Year 2 Year 3		March 31, 2025 $ 12,684 98 - $ 12,782	December 31, 2024 $ 16,787 12 - $ 16,799		March 31, 2024
					$ 16,986 12,570 3 $ 29,559

Except for the recognition of depreciation expenses, the Group’s Leased equipment did not have significant addition, disposal and impairment for the three months ended March 31, 2025 and 2024.

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

14. (1)	Lease agreements Right-of-use assets Carrying amounts Buildings Addition of right-of-use assets Depreciation charge for right-of-use assets Buildings		March 31, 2025 December 31, 2024 $ 47,168 $ 59,139 For the Three Months 2025 $ 136 $ 12,222	March 31, 2025 December 31, 2024 $ 47,168 $ 59,139 For the Three Months 2025 $ 136 $ 12,222	March 31, 2025 December 31, 2024 $ 47,168 $ 59,139 For the Three Months 2025 $ 136 $ 12,222	December 31, 2024	March 31, 2024 $ 83,227 Ended March 31			March 31, 2024


					2025 $ 136 $ 12,222				2024
									$ 131 $ 12,147

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2025 and 2024.

(2) Lease liabilities

Lease liabilities
Carrying amounts Current Non-current		March 31, 2025 $ 36,840 $ 10,990	December 31, 2024 $ 47,738 $ 12,247		March 31, 2024
					$ 45,570 $ 38,442

The ranges of discount rate for lease liabilities were 1.04%-7.60%, 1.04%-7.64% and 0.75%-7.64% per annum as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

(3) Material leasing activities and terms

As lessee, the Group leases buildings for the use as offices and dormitory with lease terms of 1 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.

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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 March 31	Ended March 31
		2025 $ 2,669 $ 133 $ 19,542)		2024
	(		(	$ 2,399 $ 138 $ 18,841)

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.

15. Intangible assets

ngible assets
Goodwill Computer software		March 31, 2025 $ 593 2,204 $ 2,797	December 31, 2024 $ 593 1,938 $ 2,531		March 31, 2024
					$ 593 1,566 $ 2,159

Except for the recognition of amortization expenses, the Group’s intangible assets did not have significant addition, disposal and impairment for the three months ended March 31, 2025 and 2024. 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		March 31, 2025 $ 178,953	December 31, 2024 $ 176,651		March 31, 2024
					$ 180,808

The range of interest rates on bank revolving loans was 4.45%- 6.87%, 4.45%- 7.23% and 2.40%-7.89% per annum as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

17. Other payables

Other payables
Payables for dividend Payables for insurance Payables for salaries or bonus Payables for pension Payable for compensation of employees Payables for value-added tax Payables for annual leave Others		March 31, 2025 $ 260,000 41,496 32,897 29,247 14,992 11,181 343 13,511 $ 403,667	December 31, 2024 $ - 20,782 341,689 17,451 11,500 44,851 2,267 29,902 $ 468,442		March 31, 2024
					$ 240,000 38,600 37,023 26,859 13,778 9,304 25 17,801 $ 383,390

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18. Retirement benefits plans

For the three months ended March 31, 2025 and 2024, relevant pension costs for defined benefit plans which were determined by the pension cost rates of actuarial valuation as of December 31, 2024 and 2023 were as follows:

For the Three Months Ended March 31

Operating costs Operating expenses		2025 $ 14 252 $ 266		2024
				$ 18 183 $ 201

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		March 31, 2025 157,000 $ 1,570,000 100,000 $ 1,000,000		December 31, 2024 157,000 $ 1,570,000 100,000 $ 1,000,000		March 31, 2024
						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

In accordance with the Company's Articles of Incorporation, if 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. 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

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appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

The appropriations of earnings for 2024 that were proposed by the board of directors on March 12, 2025 and the appropriations of earnings for 2023 that had been resolved by the shareholders in their meeting on June 12, 2024, were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)		2024 $ 28,013 $ 260,000 $ 2.6		2023
				$ 27,613 $ 240,000 $ 2.4

The appropriations for cash dividends were resolved by the Company’s board of directors, other additional distribution should be resolved in the shareholders’ meeting to be held on June 11, 2025.

(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 translation of financial statements of foreign operations

For the Three Months Ended March 31

Balance at January 1 Exchange differences on translating the financial statements of foreign operations Share from associates and joint venture accounted for using the equity method Balance at March 31		2025 $ 7,521 ) 983 131 $ 6,407)		2024
	( (		( ( (	$ 9,900 ) 335 61) $ 9,626)

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

Unrealized gain (loss) on financial	assets	at FVTOCI
Balance at January 1 Unrealized gain - equity instruments Balance at March 31		For the Three Months	Ended March 31
		2025 $ 37,665 6,779) $ 30,886		2024
	(		(	$ 21,628 5,108) $ 16,520

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(6) Non-controlling interests

For the Three Months Ended March 31

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 Changes in ownership interests in subsidiaries (Note 24) Balance at March 31		2025 $ 11,508 441 ) 84 - $ 11,151		2024
	(		(	$ 3,097 1,333 ) 180 10,008 $ 11,952

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 March 31
	2025 $ 1,094,652 374,070 4,245 $ 1,472,967		2024
			$ 1,059,172 336,052 4,269 $ 1,399,493

(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.

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(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		March 31, 2025 $ 767,161 $ 722,320 - $ 722,320 $ 491,270		December 31, 2024 $ 1,157,180 $ 858,494 - $ 858,494 $ 611,197		March 31, 2024
						$ 744,104 $ 683,474 - $ 683,474 $ 493,056

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 Three Months Ended March 31, 2025

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 $ 1,041,334 369,490 4,245 $ 1,415,069	Business segments of the entities controlled bythe Company $ 53,318 4,580 - $ 57,898		Total
				$ 1,094,652 374,070 4,245 $ 1,472,967

For the Three Months Ended March 31, 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 $ 1,031,045 336,070 4,269 $ 1,365,984	Business segments of the entities controlled bythe Company $ 28,127 5,382 - $ 33,509		Total
				$ 1,059,172 336,052 4,269 $ 1,399,493

-24-

21. Net profit (1) Interest income

t profit Interest income
Bank deposits Other income Government grants Marketing incentive income Rental income Others Other gains and losses Net foreign exchange gains Net gain on fair value changes of financial assets mandatorily classified as at FVTPL Gain on disposal of property, plant and equipment Others		For the Three Months	Ended March 31
		2025 $ 3,305 For the Three Months		2024
			$ 2,702 Ended March 31
		2025 $ 12 2,065 1,377 629 $ 4,083 For the Three Months		2024
			$ 10,350 1,975 1,786 817 $ 14,928 Ended March 31
		2025 $ 1,565 2 224 1,508) $ 283		2024
	(		(	$ 3,563 1,641 - 121) $ 5,083

(2) Other income
(3) Other gains and losses
(4) Finance costs

(4) Finance costs
Interest on bank loans Interest on lease liabilities (5) 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 March 31
	2025 $ 3,069 335 $ 3,404 For the Three Months		2024
		$ 3,476 533 $ 4,009 Ended March 31
	2025 $ 5,162 23,484 $ 28,646 $ 796		2024
			$ 5,015 23,192 $ 28,207 $ 168

-25-

(6) Employee benefits expenses

For the Three Months Ended March 31

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		2025 $ 292,025 43,002 18,540 353,567 17,522 266 17,788 $ 371,355 $ 167,934 203,421 $ 371,355		2024
				$ 274,271 40,230 17,497 331,998 16,186 201 16,387 $ 348,385 $ 139,958 208,427 $ 348,385

(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%. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company plans to adopt an amendment to its Articles of Incorporation at the 2025 Meeting of Shareholders to stipulate that the compensation for grassroots employees shall be no less than 20% of the employee compensation amount set aside in that year.The employees’ compensation in the amounts of $3,492 thousand and $3,478 thousand, both representing 3% of net profit before tax for the three months ended March 31, 2025 and 2024, respectively. The Company did not accrue remuneration of directors for the three months ended March 31, 2025 and 2024.

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 2024 and 2023 that were resolved by the board of directors on March 12, 2025 and March 12, 2024, respectively. The employees’ compensation amounted to $11,500 thousand and $10,300 thousand, respectively. The Company did not accrue remuneration of directors for the years ended December 31, 2024 and 2023

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, 2024 and 2023.

Information on the employees’ compensation resolved by the Company’s board of directors in 2025 and 2024 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 March 31	Ended March 31
		2025 $ 22,191 - 1,843 $ 24,034		2024
				$ 22,525 1,099 3,168 $ 26,792

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

Income tax assessments The Company’s 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
	2023 2023 2022 2023

23. 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	Ended March 31 2024 $ 85,672 $ 85,672 (Thousands shares) Ended March 31 2024 100,000 203 100,203
	2025 $ 88,876 $ 88,876 For the Three Months

	2025 100,000 199 100,199

-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 March 31, 2025

Fair value hierarchy March 31, 2025
Financial assets at FVTPL Fund beneficial certificates Financial assets at FVTOCI Investments in equity instruments at FVTOCI Listed shares Unlisted shares Total December 31, 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 $ 465 $ 40,689 - $ 40,689 Level 1 $ 463 $ 47,468 - $ 47,468	Level 2 $ - $ - - $ - Level 2 $ - $ - - $ -	Level 3 $ - $ - 1,595 $ 1,595 Level 3 $ - $ - 1,595 $ 1,595	Total
				$ 465 $ 40,689 1,595 $ 42,284 Total
				$ 463 $ 47,468 1,595 $ 49,063

-28-

March 31, 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 $ 12,098 $ 26,323 - $ 26,323		Level 2 $ - $ - - $ -		Level 3 $ - $ - 1,595 $ 1,595		Total
								$ 12,098 $ 26,323 1,595 $ 27,918

There were no transfers between Levels 1 and 2 for the three months ended March 31, 2025 and 2024.

(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)	March 31, 2025 $ 465 1,828,343 42,284 1,608,212	December 31, 2024 $ 463 2,364,851 49,063 1,894,112	March 31, 2024
			$ 12,098 1,988,041 27,918 1,632,776

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, debt investments, notes receivable, accounts receivable, lease 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 and lease liabilities. The Company’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 Company through internal risk reports which analyze exposures by degree 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.

-29-

Sensitivity analysis

The Group is mainly exposed to USD and JPY.

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. A positive number below indicates an increase in pre-tax profit with the New Taiwan dollar strengthening 10% against the relevant currency. For a 10% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be negative.

USD JPY	Profit or Loss	Profit or Loss
	For the Three Months	Ended March 31
	2025 $ 16,008 ( 1,271 )	2024
		$ 6,768 ( 1,203 )

b.

The above effect of exchange rate changes was mainly attributable to the exposure outstanding on foreign currency cash, receivables, payables and borrowings, which were not hedged at the end of the reporting period. 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 amounts of the Group's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

as follows:
Fair value interest rate risk - Financial assets - Financial liabilities Cash flow interest rate risk - Financial assets - Financial liabilities	March 31, 2025 $ 630,734 47,830 413,511 178,953	December 31, 2024 $ 719,248 59,985 468,996 176,651	March 31, 2024
			$ 703,715 84,012 516,226 180,808

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 25 basis point increase or decrease 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 three months ended March 31, 2025 and 2024 would increase/decrease by $147 thousand and $210 thousand, respectively.

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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 balance sheets.

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 March 31, 2025, December 31, 2024, and March 31, 2024, 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.

March 31, 2025

N	on-derivative financial liabilities on-interest bearing ease liabilities ariable interest rate liabilities	Payment on demand or less than 1 month $ - 4,233 1,025 $ 5,258		1`～`3 months	3	months`～`1year $ - 25,305 140,610 $ 165,915		1`～`5years $ - 11,394 - $ 11,394	M	ore than 5years
				$ 1,428,020 8,307 44,630 $ 1,480,957						$ - - - $ -
N L V

Further information about the maturity analysis for lease liabilities was as follows:

follows:	follows:	follows:	follows:
Less than 1year Lease liabilities $ 37,845 December 31, 2024 Payment on demand or less than 1 month 1`～`3 months Non-derivative financial liabilities Non-interest bearing $ - $ 1,716,354 Lease liabilities 4,225 8,427 Variable interest rate liabilities 40,326 70,241 $ 44,551 $ 1,795,022					1 to 5years $ 11,394 months`～`1year 1`～`5 $ - $ 36,266 69,902 $ 106,168 $			5 to 10years
		$		3			years	$		- ore than 5years
					months`～`1year $ - 36,266 69,902 $ 106,168				M
N	on-derivative financial liabilities on-interest bearing ease liabilities ariable interest rate liabilities
			$ 1,716,354 8,427 70,241 $ 1,795,022			$				$ - - - $ -
N L V
						$

Further information about the maturity analysis for lease liabilities was as follows:

follows:
Lease liabilities	Less than 1year $ 48,918		1 to 5years $ 12,738		5 to 10years
					$ -

-31-

March 31, 2024

	Payment on	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	$	-	$	1,450,457	$	-	$	-	$	-
Lease liabilities		4,170		8,224		34,957		39,104		-
Variable interest rate
liabilities		15,513		107,169		62,184		-		-
	$	19,683	$	1,565,850	$	97,141	$	39,104	$	-
Further information about			the	maturity	analysis for lease liabilities was					as
follows:
		Less	than	1year	1	to 5years		5 to 10years
Lease liabilities		$	47,351		$	39,104		$	-

Further information about the maturity analysis for lease liabilities was as follows:

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		March 31, 2025 $ 982,613 2,289,239 $ 3,271,849		December 31, 2024 $ 1,089,626 1,916,371 $ 3,005,997		March 31, 2024
						$ 886,546 1,865,598 $ 2,752,144

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.

(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) DBMaker Japan Inc. Associate CloudMaster Co., Ltd. Joint ventures

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

For the Three Months Ended March 31

Related PartyCategories Associate Joint ventures		2025 $ 2,815 675 $ 3,490		2024
				$ 2,599 1,436 $ 4,035

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

Line Item	Related Party Categories	March 31, 2025	March 31, 2025	December 31, 2024 $ 16,232 226 $ 16,458	March 31, 2024	March 31, 2024
Accounts receivable	Associate Joint ventures		$ 13,231 196 $ 13,427			$ 12,103 1,503 $ 13,606

The outstanding accounts receivable from related parties are unsecured. For the three months ended March 31, 2025and 2024 no impairment loss was recognized on accounts receivable from related parties.

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

Line Item Accounts payable	Related Party Categories Associate Joint ventures Substantive related party	March 31, 2025 $ 914 505 - $ 1,419	December 31, 2024 $ 3,654 3,668 12 $ 7,334	March 31, 2024	March 31, 2024
					$ 1,174 5 - $ 1,179

The outstanding accounts payable from related parties are unsecured.

(5) Acquisitions of property, plant and equipment

	For the Three Months	For the Three Months	Ended March 31	Ended March 31
	2025	December 31, 2024 $ 26,332 17,645 $ 43,977	2024
$ - March 31, 2025 $ 20,187 13,268 $ 33,455	$ -		$	1,454 March 31, 2024
				$ 44,586 30,637 $ 75,223

(6) Lease agreement

For the Three Months Ended March 31

Line Item Finance costs	Related Party Categories /Name Substantive related party Chuan Gao Investment Furly Investment		2025 $ 111 77 $ 188		2024
					$ 236 168 $ 404

(7) Rental expenses

For the Three Months Ended March 31

Line Item Operating expenses	Related Party Categories/Name Substantive related party Chuan Gao Investment Furly Investment		2025 $ 1,728 534 $ 2,262		2024
					$ 1,589 403 $ 1,992

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(8) Rental revenue

For the Three Months Ended March 31

Line Item Related Party Categories/Name Other income Joint venture Cloudmaster Co., Ltd. Compensation of key management personnel Short-term employee benefits Post-employment benefits	Related Party Categories/Name	Related Party Categories/Name	2025 $ 433 For the Three Months		2025	2024 $ 414 Ended March 31			2024
			2025 $ 67,116 3,461 $ 70,577					2024
								$ 62,880 3,270 $ 66,150

(9) Compensation of key management personnel

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

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)		March 31, 2025 $ 344,680	December 31, 2024 $ 349,765		March 31, 2024
					$ 321,148

28. Significant Contingent Liabilities and Unrecognized Commitments

As of March 31, 2025 for the contracts with customers, the Group issued guarantee notes and had bank guarantee amounting to $121,861 thousand and $803,660 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: March 31, 2025

March 31, 2025
Financial assets Monetary items USD JPY Non-monetary item JPY Financial liabilities Monetary items USD JPY	Foreign currency $ 1,383 61,191 64,420 6,203 4,105	Exchange rate 33.205 0.2227 0.2227 33.205 0.2227	Carryingamount
			$ 45,908 13,627 14,347 205,984 914

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December 31, 2024

December 31, 2024
Financial assets Monetary items USD JPY Non-monetary items JPY Financial liabilities Monetary items USD JPY March 31, 2024 Financial assets Monetary items USD JPY Non-monetary items JPY Financial liabilities Monetary items USD JPY	Foreign currency $ 959 79,459 67,388 7,221 17,408 Foreign currency $ 3,568 62,413 56,179 5,683 5,553	Exchange rate 32.785 0.2099 0.2099 32.785 0.2099 Exchange rate 32.00 0.2115 0.2115 32.00 0.2115	Carryingamount
			$ 31,427 16,678 14,145 236,737 3,654 Carryingamount
			$ 114,175 13,200 11,882 181,852 1,174

The significant realized and unrealized foreign exchange gains (losses) were as follows: For the Three Months Ended March 31

Foreign currency USD USD JPY	2025	Net exchange (loss) gain $ 418 441 706	2024
	Exchange rate 32.895 (USD: NTD) 7.176 (USD: RMB) 0.0474(JPY : RMB)		Exchange rate 31.448 (USD: NTD) 7.103 (USD: RMB) 0.0481(JPY : RMB)	Net exchange (loss) gain
				$ 3,493 281 ( 211 )

Separately Disclosed Items
(1) Information on significant transactions:
- A. Financing provided to others: None.
- B. Endorsements/guarantees provided (Table 1).
- C. Significant marketable securities held (excluding investment in subsidiaries, associates and joint ventures) (Table 2).
- D. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
- E. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
- F. Other: Intercompany relationships and significant intercompany transactions: (Table 3).
(2) Information on investees: (Table 4).

-35-

(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.
- e. The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
- f. 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.

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 Three Months Ended March 31 2025 2024 $ 1,415,337 $ 1,366,474 68,686 39,188 11,056) ( 6,169) $ 1,472,967 $ 1,399,493	Segment revenue For the Three Months Ended March 31 2025 2024 $ 1,415,337 $ 1,366,474 68,686 39,188 11,056) ( 6,169) $ 1,472,967 $ 1,399,493	Segmentprofit or loss	Segmentprofit or loss
			For the Three Months Ended March 31
	2025 $ 1,415,337 68,686 11,056) $ 1,472,967		2025 $ 112,503 ( 3,402 ) 225 109,326 3,143 $ 112,469	2024
(		(		$ 106,931 ( 14,844 ) 223 92,310 18,821 $ 111,131

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

-36-

(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		March 31, 2025 $ 3,929,729 382,521 $ 4,312,250 $ 2,048,112 256,981 $ 2,305,093		December 31, 2024 $ 4,494,302 385,228 $ 4,879,530 $ 2,438,808 256,471 $ 2,695,279		March 31, 2024
						$ 3,912,821 383,755 $ 4,296,576 $ 2,091,588 241,722 $ 2,333,310

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Endorsements/Guarantees Provided

For the Three Months Ended March 31, 2025

Table 1									(In Thousands of New Taiwan Dollars and U.S Dollars/Foreign Currency)	(In Thousands of New Taiwan Dollars and U.S Dollars/Foreign Currency)	(In Thousands of New Taiwan Dollars and U.S Dollars/Foreign Currency)	(In Thousands of New Taiwan Dollars and U.S Dollars/Foreign Currency)	(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 (Note 2)	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. Netmaker Technology Co., Ltd. Coach Technology Management Inc. Syscom Computer (Thailand)Co., Ltd.	Note 1 Note 1 Note 1 Note 1	20% of the net worth $399,201 Same as above Same as above Same as above	$ 302,166 ( USD 9,100 ) 85,000 15,000 14,763 ( THB 15,000 )	$ 302,166 ( USD 9,100 ) 80,000 15,000 14,763 ( THB 15,000 )	$ 174,075 ( USD 5,242 ) - - 4,921 ( THB 5,000 )	$ - - - -	15.14 4.01 0.75 0.74	50% of the net worth $998,003 Same as above Same as above Same as above	Yes Yes Yes Yes	No No No No	Yes No No No

Note 1 : The company in which the public company directly and indirectly holds more than 50% of the voting shares Note 2 : The above amounts were translated into New Taiwan dollar at the prevailing exchange rate as of March 31, 2025.

-38-

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Significant Marketable Securities Held March 31, 2025

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		March 31, 2025	March 31, 2025		Note
				Number of shares/units	Carrying amount	Percentage of Ownership (%)	Fair value
SYSCOM COMPUTER ENGINEERING CO.	Stocks Turn Cloud Technology Service Inc.	`－`	Financial assets at fair value through other comprehensive income - non-current	205	$ 38,574	0.90	$ 38,574

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: This table is the securities that the company judges and must be listed in accordance with the principle of significance.

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

Intercompany Relationships and Significant Intercompany Transactions and Subsidiary and Between Subsidiaries For the Three Months Ended March 31, 2025

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 Casemaker Inc. Casemaker Inc.	Netmaker Technology Co. Netmaker Technology Co. Netmaker Technology Co. Netmaker Technology Co. Wisemaker Technology Co. Syscom Computer(Thailand)Co., Ltd. Syscom Computer (Shenzhen)Co., Ltd. Syscom Computer(Shenzhen)Co.,Ltd.	1 1 1 1 1 1 2 2	Account receivable Accounts payable Sales revenue Maintenance costs Cost of goods sold Account receivable Account receivable Sales revenue	$ 1,232 1,292 1,211 1,113 11,495 3,169 6,255 6,196	General trading terms General trading terms General trading terms General trading terms General trading terms General trading terms General trading terms General tradingterms	- - - - 1 - - -

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

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SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investees March 31, 2025

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 of March 31,2025	As of March 31,2025	As of March 31,2025	Net Income (Loss) of the Investee(Note)	Share of Profit (Loss)	Note
				March 31, 2025	December 31, 2024	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 42,226 JPY 53,260 THB 33,134 65,000 THB 200	$ 19,200 USD 1,300 USD 7,400 18,763 42,226 JPY 53,260 THB 33,134 65,000 THB 200	1,950 1,300 7,400 2,858 2,680 5 3,440 6,500 20	97.50 100.00 100.00 86.60 99.28 49.89 92.47 50.00 0.54	$ 6,092 106,065 ( 98,318 ) 33,458 58,027 14,347 7,907 56,438 46	( $ 454 ) 175 ( 2,644 ) ( 52 ) 21 ( 1,282 ) ( 123 ) ( 969 ) ( 123 )	( $ 443 ) 175 ( 2,644 ) ( 45 ) 21 ( 640 ) ( 113 ) ( 484 ) Not applicable	Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Investee accounted for using the equity method Subsidiaries Investee accounted for using the equity method Subsidiaries

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 three months ended March 31,2025.

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

For the Three Months Ended March 31, 2025

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 January1,2025	Accumulated Outward Remittance for Investment from Taiwan as of January1,2025	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of March 31,2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2025	Accumulated Repatriation of Investment Income as of March 31, 2025
						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.	$ 149,423 ( USD 4,500 ) 126,179 ( USD 3,800 )	Note 1 Note 1	$ ( USD ( USD	138,465 4,170 ) 93,572 2,818 )	$ - -	$ - -	$ 138,465 ( USD 4,170 ) 93,572 ( USD 2,818 )	( $ 1,348 ) ( (USD 41 )) (Note 2) ( 1,881 ) ( (USD 57 )) (Note 2)	98.27% 79.23%	( $ 1,324 ) ( (USD 40 )) (Note 2) ( 1,490 ) ( (USD 45)) (Note 2)	( $ 132,431 ) ( (USD 3,988)) (Note 2) 27,270 ( USD 821 ) (Note 2)	$ - -

Accumulated Outward Remittance for Investment in Mainland China as of March 31,2025		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 3)
$ 232,037 (USD 6,988)		$ 232,037 (USD 6,988) (Note 1(II))			$ 1,197,604
		14,484 (USD 436) (Note 1(I))

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

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

(2) 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 March 31, 2025.

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 = $1,996,006 × 60% = $1,197,604

Note 4: The foreign currency amounts of original investment amount and carrying value are expressed in New Taiwan dollars at exchange rate as of March 31, 2025. The foreign currency amount of net income is expressed in New Taiwan dollars at average exchange rate for the three months ended March 31, 2025.

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AI assistant

SYSCOM — Interim / Quarterly Report 2025

52093_rns_2025-12-22_577897db-0165-4b1f-98ee-aea4a1f103e8.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

MARCH 31, 2025, DECEMBER 31, 2024 AND MARCH 31, 2024

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31,2025 AND 2024

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 THREE MONTHS ENDED MARCH 31,2025 AND 2024

1. General

IFRS 18 “Presentation and Disclosures in Financial Statements”

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

6. Cash and cash equivalents

8. Financial assets at amortized cost

9. Accounts receivable

10.

11. Subsidiaries

13. Property, plant and equipment

(3) Material leasing activities and terms

(4) Other lease information

15. Intangible assets

16.

Loans

17. Other payables

18. Retirement benefits plans

Retained earnings and dividend policy

20. Revenue

Revenue from contracts with customers

21. Net profit (1) Interest income

22. Income tax

23. Earnings per share

24. Equity transactions with non-controlling interests

25. Financial instruments

(4) Financial risk management objectives and policies

A. Market risk

Sensitivity analysis

b.

Sensitivity analysis

B. Credit risk

C. Liquidity risk

March 31, 2025

March 31, 2024

26. Related Party Transactions

(8) Rental revenue

(9) Compensation of key management personnel

27. Assets Pledged as Collateral

28. Significant Contingent Liabilities and Unrecognized Commitments

29. Significant Assets and Liabilities Denominated in Foreign Currencies

December 31, 2024

31. Segment Information

(1) Segment revenue and results

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Significant Marketable Securities Held March 31, 2025

Table 2

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES

Table 3

SYSCOM COMPUTER ENGINEERING CO. AND SUBSIDIARIES Information on Investees March 31, 2025

Table 4

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

Table 5

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SYSCOM Interim / Quarterly Report 2025