Chroma ATE Inc. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The entities required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standards 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we did not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

CHROMA ATE INC.

LEO HUANG
Chairman

February 25, 2026

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders
Chroma ATE Inc.

Opinion

We have audited the accompanying consolidated financial statements of Chroma ATE Inc. and its subsidiaries (collectively as the “Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the report of other auditors (refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion based on our audits and the report of other auditors.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter of the consolidated financial statements for the year ended December 31, 2025 is stated as follows:

The Occurrence of Revenue Recognition

The Group is mainly engaged in the manufacture and sale of test instruments, which are applied in power electronic testing solutions, electric vehicle and battery testing solutions, automated transportation engineering equipment as well as customized products. The Group has a worldwide sales network with a widely diverse and dispersed customer base, engaging in a high volume of transactions with significant amounts. In addition, considering the risks associated with the China market, and that sales revenue generated in China relies on manual review of relevant supporting documents to determine whether revenue should be recognized. Therefore, the occurrence of revenue in China was considered a key audit matter.

The main audit procedures that we performed in response to this matter included the following:

We obtained an understanding of the design and implementation of internal controls over revenue recognition and tested the operating effectiveness of the related controls.
We performed tests of details on revenue, including inspecting customer purchase orders, shipping documents, sales invoices, receipt signed by customers, and performing sales confirmation procedures.
We reviewed subsequent sales ledgers to check no material sales returns occurring after year-end period to ensure that revenue was recognized without material misstatement.

Other Matter

The financial statements of some investees included in the financial statements were audited by other auditors. Our opinion, insofar as it relates to the amounts included in the accompanying financial statement for investees, is based solely on the reports of other auditors. As of December 31, 2025 and 2024, the carrying amounts of investments accounted for using the equity method were NT$4,435,581 thousand and NT$4,385,973 thousand, respectively, representing 9% and 12%, respectively, of the total assets. For the years ended December 31, 2025 and 2024, the related shares of profit or loss of associates were NT$655,259 thousand and NT$607,618 thousand, respectively, representing 5% and 9%, respectively, of the profit before income tax.

We have also audited the parent company only financial statements of Chroma ATE Inc. as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion with the other matter section.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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 IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the FSC of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group's financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.
4 -

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with statements that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors' report are Yi-Wen Wang and Yih-Shin Kao.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 10, 2026

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 audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' 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' report and consolidated financial statements shall prevail.

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 6,222,160	13	$ 4,099,223	11
Financial assets at fair value through profit or loss (Note 7)	1,664,173	4	461,741	1
Financial assets at fair value through other comprehensive income (Note 8)	-	-	73,778	-
Financial assets at amortized cost (Notes 9 and 29)	427,913	1	405,560	1
Contract assets (Note 21)	143,514	-	272,090	1
Notes receivable (Note 10)	103,660	-	232,855	1
Trade receivables (Note 10)	8,814,476	19	5,827,117	16
Trade receivables - related parties (Notes 10 and 28)	6,912	-	10,258	-
Inventories (Note 11)	7,918,880	17	5,458,484	15
Non-current assets held for sale (Note 16)	111,147	-	-	-
Other current assets	712,831	1	584,280	1
Total current assets	26,125,666	55	17,425,386	47
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)	80,218	-	80,530	-
Financial assets at fair value through other comprehensive income (Note 8)	1,167,781	3	1,247,260	3
Financial assets at amortized cost (Notes 9 and 29)	55,181	-	235,819	1
Investments accounted for using the equity method (Note 13)	4,937,103	11	4,876,005	13
Property, plant and equipment (Notes 14, 28 and 29)	7,232,375	15	6,955,641	19
Right-of-use assets (Notes 15 and 28)	572,867	1	329,592	1
Investment properties (Note 16)	1,712,338	4	2,478,333	7
Goodwill	190,705	1	193,144	-
Intangible assets	133,837	-	95,543	-
Deferred tax assets (Note 23)	453,205	1	386,421	1
Prepayments for equipment and construction (Note 30)	4,318,555	9	2,838,181	8
Other non-current assets	170,221	-	165,727	-
Total non-current assets	21,024,386	45	19,882,196	53
TOTAL	$ 47,150,052	100	$ 37,307,582	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 17 and 29)	$ 10,040	-	$ 1,413,607	4
Contract liabilities (Note 21)	1,133,269	2	777,907	2
Notes payable	57,970	-	34,367	-
Notes payable - related parties (Note 28)	3,352	-	4,024	-
Trade payables	4,053,515	9	3,059,024	8
Trade payables - related parties (Note 28)	725	-	8,630	-
Other payables (Note 18)	2,720,518	6	2,036,854	6
Current tax liabilities	945,320	2	674,728	2
Lease liabilities (Notes 15 and 28)	131,577	-	154,376	-
Current portion of long-term borrowings (Notes 17 and 29)	3,857	-	3,828	-
Other current liabilities	99,050	-	67,440	-
Total current liabilities	9,159,193	19	8,234,785	22
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 17 and 29)	3,303,771	7	2,108,078	6
Deferred tax liabilities (Note 23)	1,583,619	4	1,210,044	3
Lease liabilities (Notes 15 and 28)	439,413	1	194,610	1
Net defined benefit liabilities (Note 19)	77,241	-	79,587	-
Guarantee deposits received	20,834	-	20,839	-
Other non-current liabilities	3,410	-	9,938	-
Total non-current liabilities	5,428,288	12	3,623,096	10
Total liabilities	14,587,481	31	11,857,881	32
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 20)
Ordinary share capital	4,252,457	9	4,253,220	12
Capital surplus	4,212,580	9	4,597,402	12
Retained earnings
Legal reserve	4,655,502	10	4,142,360	11
Special reserve	86,888	-	86,888	-
Unappropriated earnings	18,082,744	39	10,934,111	30
Total retained earnings	22,825,134	49	15,163,359	41
Other equity	638,429	1	893,566	2
Treasury shares	(30,868)	-	(30,868)	-
Total equity attributable to owners of the Corporation	31,897,732	68	24,876,679	67
NON-CONTROLLING INTERESTS	664,839	1	573,022	1
Total equity	32,562,571	69	25,449,701	68
TOTAL	$ 47,150,052	100	$ 37,307,582	100

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

(With Deloitte & Touche auditors' report dated March 10, 2026)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
NET OPERATING REVENUE (Notes 21 and 28)	$ 28,310,935	100	$ 21,603,837	100
OPERATING COSTS (Notes 11, 22 and 28)	10,886,103	39	8,857,861	41
GROSS PROFIT	17,424,832	61	12,745,976	59
REALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES	77	-	259	-
REALIZED GROSS PROFIT	17,424,909	61	12,746,235	59
OPERATING EXPENSES (Notes 22 and 28)
Selling and marketing expenses	3,778,923	13	3,497,955	16
General and administrative expenses	1,959,426	7	1,520,622	7
Research and development expenses	2,556,457	9	2,198,622	10
(Reversal of) expected credit loss	(67,413)	-	46,870	1
Total operating expenses	8,227,393	29	7,264,069	34
PROFIT FROM OPERATIONS	9,197,516	32	5,482,166	25
NON-OPERATING INCOME AND EXPENSES
Finance costs	(29,021)	-	(44,672)	-
Share of profit of associates and joint ventures (Note 13)	734,076	3	668,580	3
Interest income	85,447	-	92,552	1
Other income	137,874	1	209,887	1
Gain on disposal of property, plant and equipment (Note 22)	101,870	-	8,661	-
Gains on disposal of intangible assets	-	-	24	-
Gain on disposal of investments accounted for using the equity method (Note 13)	525,297	2	46,589	-
Gain on lease modification	141	-	26	-
Gain on disposal of non-current assets held for sale (Note 16)	3,197,018	11	-	-
Foreign exchange gain	1,303	-	250,220	1
Gain on financial assets at fair value through profit or loss	43,106	-	9,053	-
Other expenses	(76,866)	-	(14,523)	-
Total non-operating income and expenses	4,720,245	17	1,226,397	6

(Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
PROFIT BEFORE INCOME TAX	$ 13,917,761	49	$ 6,708,563	31
INCOME TAX EXPENSE (Note 23)	1,991,862	7	1,308,450	6
NET PROFIT FOR THE YEAR	11,925,899	42	5,400,113	25
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 19)	(23,680)	-	49,129	-
Unrealized gain or loss on investments in equity investments designated as at fair value through other comprehensive income	(40,558)	-	(35,653)	-
Share of the other comprehensive income (loss) of associates and joint ventures accounted for using the equity method	68	-	11,024	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(49,442)	-	279,961	2
Share of the other comprehensive income (loss) of associates and joint ventures accounted for using the equity method	(181,931)	(1)	276,792	1
Total other comprehensive income (loss)	(295,543)	(1)	581,253	3
TOTAL COMPREHENSIVE INCOME	$ 11,630,356	41	$ 5,981,366	28
NET PROFIT ATTRIBUTABLE TO:
Owners of the Corporation	$ 11,692,052	41	$ 5,264,251	24
Non-controlling interests	233,847	1	135,862	1
	$ 11,925,899	42	$ 5,400,113	25
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Corporation	$ 11,406,169	40	$ 5,821,526	27
Non-controlling interests	224,187	1	159,840	1
	$ 11,630,356	41	$ 5,981,366	28
				(Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
EARNINGS PER SHARE (NT$; Note 24)
Basic	$ 27.70		$ 12.49
Diluted	$ 27.51		$ 12.38

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

(With Deloitte & Touche auditors’ report dated March 10, 2026) (Concluded)

CHROMA ATE INC. AND SUBSIDIARIES

COMMUNICATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 30, 2025 AND 2026

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Corporation
	Ordinary Share Capital	Capital Surplus	Retained Earnings				Other Equity				Treasury Shares	Total	Non-controlling Interests	Total Equity
			Legal Reserve	Special Reserve	Compensational Earnings	Total	Exchange Differences on Translating the Financial Statements of Foreign Operations	Consulted Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income	Unearned Employee Benefit	Total
BALANCE ON JANUARY 1, 2024	$ 4,253,644	$ 4,544,878	$ 3,747,675	$ 86,808	$ 9,084,779	$ 12,839,342	$ (137,409)	$ 595,377	$ (109,800)	$ 348,088	$ (30,860)	$ 21,955,876	$ 561,089	$ 22,516,885
Appropriation of the 2023 earnings
Legal reserve	-	-	394,685	-	(394,685)	-	-	-	-	-	-	-	-	-
Cash dividends - NT$0.6 per share	-	-	-	-	(2,807,405)	(2,807,405)	-	-	-	-	-	(2,807,405)	-	(2,807,405)
Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method		42,676	-	-	-	-	-	-	-	-	-	42,676	-	42,676
Unclaimed dividends	(48)	353	-	-	-	-	-	-	-	-	-	305	-	305
Net profit for the year ended December 31, 2024	-	-	-	-	5,264,251	5,264,251	-	-	-	-	-	5,264,251	135,862	5,400,113
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	49,054	49,854	532,798	(25,360)	-	587,421	-	557,275	23,970	581,233
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	5,314,105	5,314,105	532,798	(25,360)	-	587,421	-	5,821,526	159,840	5,981,366
Adjustments of capital surplus for the Corporation's cash dividends received by subsidiary	-	10,920	-	-	-	-	-	-	-	-	-	10,920	-	10,920
Disposal of investments accounted for using the equity method	-	(3,417)	-	-	-	-	-	-	-	-	-	(3,417)	-	(3,417)
Differences between the consideration received and the carrying amount of the subsidiaries' net assets during acquisition or disposal	-	-	-	-	(286,011)	(286,011)	(1,407)	-	-	(1,407)	-	(207,418)	(56,428)	(265,846)
Changes in ownership interests in subsidiaries	-	1,624	-	-	-	-	-	-	-	-	-	1,624	(1,624)	-
Shares based payment	(376)	376	-	-	-	-	-	-	61,992	61,992	-	61,992	-	61,992
Shares based payment by subsidiary	-	-	-	-	-	-	-	-	-	-	-	-	5	5
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	-	(89,780)	(89,780)
Disposal of equity instruments at fair value through other comprehensive income	-	-	-	-	23,297	23,297	-	(23,297)	-	(23,297)	-	-	-	-
Others	-	-	-	-	31	31	-	(31)	-	(31)	-	-	-	-
BALANCE ON DECEMBER 31, 2024	4,253,220	4,597,402	4,142,360	86,808	10,934,111	15,163,359	393,894	546,680	(47,808)	893,566	(30,860)	24,876,679	573,022	25,449,701
Appropriation of the 2024 earnings
Legal reserve	-	-	513,142	-	(513,142)	-	-	-	-	-	-	-	-	-
Cash dividends - NT$0.0 per share	-	-	-	-	(1,827,898)	(1,827,898)	-	-	-	-	-	(1,827,898)	-	(1,827,898)
Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method	-	(398,641)	-	-	(26,207)	(26,207)	-	-	-	-	-	(424,848)	-	(424,848)
Net profit for the year ended December 31, 2025	-	-	-	-	11,692,052	11,692,052	-	-	-	-	-	11,692,052	233,847	11,925,899
Other comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	(24,014)	(24,014)	(231,757)	(40,112)	-	(261,869)	-	(205,803)	(9,060)	(295,542)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	11,668,038	11,668,038	(221,757)	(40,112)	-	(261,869)	-	11,406,169	224,187	11,630,356
Adjustment of capital surplus for the Corporation's cash dividends received by subsidiary	-	14,891	-	-	-	-	-	-	-	-	-	14,891	-	14,891
Disposal of investments accounted for using the equity method	-	(51,138)	-	-	-	-	-	-	-	-	-	(51,138)	-	(51,138)
Differences between the consideration received and the carrying amount of the subsidiaries' net assets during acquisition or disposal	-	11,371	-	-	(153,464)	(153,464)	-	-	-	-	-	(142,893)	(55,665)	(197,758)
Shares based payment	(763)	38,651	-	-	-	-	-	-	8,038	8,038	-	45,926	-	45,926
Shares based payment by subsidiary	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	-	(76,661)	(76,661)
Disposal of equity instruments at fair value through other comprehensive income	-	-	-	-	393	393	-	(393)	-	(393)	-	-	-	-
Others	-	64	-	-	913	913	-	(913)	-	(913)	-	64	(64)	-
BALANCE ON DECEMBER 31, 2025	$ 4,252,457	$ 4,212,580	$ 4,655,582	$ 86,808	$ 10,082,744	$ 22,825,134	$ 172,137	$ 505,262	$ (38,870)	$ 638,429	$ (30,860)	$ 31,897,732	$ 664,839	$ 32,562,571

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

(With Deloitte & Touche auditors' report dated March 10, 2026)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 13,917,761	$ 6,708,563
Adjustments for:
Depreciation expenses	764,427	744,792
Amortization expenses	76,210	30,370
(Reversal of) expected credit loss recognized on trade receivables	(67,413)	46,870
Gain on financial assets at fair value through profit or loss	(43,106)	(9,053)
Finance costs	29,021	44,672
Interest income	(85,447)	(92,552)
Dividend income	(45,243)	(39,295)
Compensation costs of share-based payment	63,042	61,997
Share of profit of associates and joint ventures accounted for using the equity method	(734,076)	(668,580)
Gain on disposal of property, plant and equipment	(101,870)	(8,661)
Gain on disposal of non-current assets held for sale	(3,197,018)	-
Gain on disposal of intangible assets	-	(24)
Gain on disposal of investments accounted for using the equity method	(525,297)	(46,589)
Reversal of write-downs of inventories	(32,532)	(35,254)
Realized gain on transactions with associates	(77)	(259)
Net loss (gain) on foreign currency exchange	114,617	(31,985)
Gain on lease modification	(141)	(26)
Gain on bargain purchase	-	(721)
Net changes in operating assets and liabilities
Contract assets	128,576	271,228
Notes receivable	129,195	64,480
Trade receivables	(3,021,369)	(655,928)
Inventories	(2,653,760)	(816,026)
Other current assets	(88,808)	(191,136)
Contract liabilities	355,362	(412,554)
Notes payable	22,931	10,919
Trade payables	978,321	447,544
Other payables	672,957	416,585
Other current liabilities	31,610	(16,366)
Net defined benefit liabilities	(26,026)	(24,519)
Cash generated from operations	6,661,847	5,798,492
Income tax paid	(1,404,215)	(1,014,562)
Net cash generated from operating activities	5,257,632	4,783,930
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	(338,433)	(299,163)
Proceeds from disposal of financial assets at fair value through other comprehensive income	415,685	291,626
		(Continued)

11 -

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	$ 5,758	$ 7,198
Increase in financial assets at amortized cost	(305,595)	(452,854)
Decrease in financial assets at amortized cost	462,436	225,169
Payments to acquire financial assets at fair value through profit or loss	(1,059,011)	(510,912)
Proceeds from disposal of financial assets at fair value through profit or loss	687,024	324,196
Increase in investments accounted for using the equity method	(150,000)	-
Proceeds from disposal of investments accounted for using the equity method	30,925	74,669
Net cash inflow on acquisition of subsidiaries	-	684
Increase in non-current assets held for sale	(18,007)	-
Proceeds from disposal of non-current assets held for sale	3,884,140	-
Payments for property, plant and equipment	(622,046)	(166,944)
Proceeds from disposal of property, plant and equipment	74,118	53,599
Increase in refundable deposits	(904)	(1,653)
Payments for intangible assets	(113,881)	(57,185)
Proceeds from disposal of intangible assets	-	207
Payments for right-of-use assets	(12,639)	-
Increase in other non-current assets	(6,551)	(47,987)
Increase in prepayments for equipment and construction	(1,660,602)	(1,837,836)
Interest received	81,253	92,561
Dividends received	74,766	413,740
Net cash generated from (used in) investing activities	1,428,436	(1,890,885)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	3,473,476	12,991,745
Decrease in short-term borrowings	(4,875,773)	(13,709,298)
Proceeds from long-term borrowings	1,206,778	1,150,000
Repayments of long-term borrowings	(4,057)	(39,365)
(Decrease) increase in guarantee deposits	(5)	5
Repayment of lease principal	(186,807)	(186,181)
(Decrease) increase in other non-current liabilities	(6,528)	5,177
Cash dividends paid	(3,827,898)	(2,807,405)
Acquisition of non-controlling interests in a subsidiary	(209,132)	(262,439)
Interest paid	(41,618)	(49,917)
Dividends paid to non-controlling interests	(76,661)	(89,780)
Unclaimed dividends	-	305
Net cash used in financing activities	(4,548,225)	(2,997,153)

(Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(14,906)	71,070
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,122,937	(33,038)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	4,099,223	4,132,261
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 6,222,160	$ 4,099,223

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

(With Deloitte & Touche auditors’ report dated March 10, 2026) (Concluded)

13 -

CHROMA ATE INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Chroma ATE Inc. (the "Corporation") was incorporated in the Republic of China (ROC) in November 1984. The Corporation mainly designs, assembles, calibrates, manufactures, sells, repairs and maintains software/hardware for computers and peripherals, computerized automatic test systems, electronic test instruments, signal generators, power supplies, telecom power supplies, etc. as well as serves as an agent to sell these products. The Corporation's shares have been listed on the Taiwan Stock Exchange since December 21, 1996.

The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollar (NT$).

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation's board of directors on February 25, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Group's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

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

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
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.
15 -

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended 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 MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. 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 obligation less the fair value of plan assets.

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:

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

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

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

16 -

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

Refer to Note 12 and Tables 7 and 8 for the detailed information of subsidiaries, including the percentage of ownership and main business.

e. Foreign currencies

In preparing the financial statements of each individual entity in the Group, transactions in currencies other than the Corporation's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

17 -

Goodwill and fair value adjustments recognized on identifiable assets and liabilities of acquired foreign operation are treated as assets and liabilities of the foreign operation and translated at the rates of exchange prevailing at the end of each reporting period. Exchange differences are recognized in other comprehensive income.

For the purpose of presenting consolidated financial statements, the financial statements of the Corporation's foreign operations (including subsidiaries, associates and joint ventures in other countries) that are prepared using functional currencies which are different from the currency of the Corporation are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Corporation and non-controlling interests as appropriate).

On the disposal of a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Corporation are reclassified to profit or loss.

f. Inventories

Inventories consist of raw materials, work-in-process, semi-finished goods, finished goods and inventory in transit, which are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at standard cost and make timely adjustments to ensure that they approximate to weighted-average cost.

g. Investments in associates and joint ventures

The Group uses the equity method to account for its investments in associates and joint ventures. Under the equity method, investment is initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group's share of the equity of associates and joint ventures.

An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture. A joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate and a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized.

When the Group subscribes for additional new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

18 -

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate and the joint venture that are not related to the Group.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation.

Property, plant and equipment in the course of construction are measured at cost. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties include properties under construction that meet the definition of investment properties. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation. Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

j. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that are expected to benefit from the synergies of the combination.

19 -

If goodwill has been allocated to a cash-generating unit and the Group disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

k. Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. To meet the criteria for the sale being highly probable, the appropriate level of management must be committed to the sale, and the sale should be expected to qualify for recognition as a completed sale within 1 year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Such assets classified as held for sale are not depreciated.

l. Financial instruments

Financial assets and financial liabilities are recognized when an entity in the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

For those financial assets which are measured at fair value, its fair value is determined in the manner described in Note 27.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

a) Financial assets at FVTPL

The Group's financial assets mandatorily classified as at FVTPL are investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria which was measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses.

b) Financial assets at amortized cost

If the financial assets, which are invested by the Group, are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are subsequently measured at amortized cost.

20 -

Subsequent to initial recognition, financial assets are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss. On derecognition, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

c) Investments in debt instruments at FVTOCI

The Group's debt instruments that achieved by both the collecting of contractual cash flows and the selling of such financial assets; and the contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI.

Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

d) Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

2) Equity instruments

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Group's own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Group's own equity instruments.

21 -

3) Financial liabilities

Financial liabilities are measured at amortized cost using the effective interest method. When derecognition of financial liabilities, the difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

m. Assessment of assets impairment

1) Property, plant and equipment, right-of-use asset, investment properties and intangible assets

At the end of each reporting period, the Group reviews the carrying amounts of the above assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

2) Investments accounted for using the equity method

The entire carrying amount of an investment in associates (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

3) Goodwill

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

22 -

4) Financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables) and contract assets on each balance sheet date.

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables and contract assets. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If the credit risk on a financial instrument has not increased significantly, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Group considers the following situations as indication that a financial asset is in default:

a) Internal or external information shows that the debtor is unlikely to pay its creditors.
b) Financial asset past the normal credit period unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

n. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of test instruments and other products. Revenue is recognized when the goods are delivered to the customer's specific location or the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and bears the risks of obsolescence. Trade receivables are recognized concurrently. The transaction price received is recognized as a contract liability when performance obligations are satisfied.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

2) Construction contract revenue

For construction contracts to build customized production line, the Group recognizes revenue over time. The Group measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Contract assets are recognized during the construction and are reclassified to trade receivables at the point at which the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Group recognizes contract liabilities for the difference. Certain payment retained by the customer as specified in the contract is intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations.

23 -

o. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

1) The Group as lessor

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms. Right-of-use assets and lease liabilities are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities. Right-of-use assets are subsequently measured at cost less accumulated depreciation and adjusted for any remeasurement of the lease liabilities.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications.

For sale and leaseback transactions, if the transfer of an asset satisfies the requirements of IFRS 15 to be accounted for as a sale, the Group recognizes only the amount of any gain or loss which relates to the rights transferred to the buyer-lessor, and adjusts the off-market terms to measure the sale proceeds at fair value. If the transfer does not satisfy the requirements of IFRS 15 to be accounted for as a sale, it is accounted for as a financing transaction.

p. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

24 -

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

q. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represents the actual deficit in the Group’s defined benefit plan.

r. Share-based payment arrangements

Employee share options and restricted shares for employees granted to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value at the grant date of the employee share options and restricted shares for employees granted to employees are expensed on a straight-line basis over the vesting period, based on the Group’s best estimate of the number of the shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options and other equity - unearned employee benefits. The expense is recognized in full at the grant date if the grants are vested immediately.

When restricted shares for employees are issued, other equity - unearned employee benefits is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. If restricted shares for employees are granted for consideration and the considerations received should be returned if employees resign in the vesting period, payables are continuously measured based on its estimated turnover rate for those granted before October 10, 2024 in accordance with the Q&A issued by the FSC. Dividends paid to employees on restricted shares that do not need to be returned if employees resign in the vesting period are recognized as expenses when the dividends are declared with a corresponding adjustment in retained earnings and capital surplus - restricted shares for employees.

At the end of each reporting period, the Group revises its estimate of the number of employee share options and restricted shares for employees that are to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options and capital surplus - restricted shares for employees.

25 -

s. Taxation

Current and deferred taxes are recognized in profit or loss as income tax expense.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences based on the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

26 -

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revisions affect both current and future periods.

Key Sources of Estimation Uncertainty

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 2,934	$ 3,203
Checking accounts and demand deposits	4,513,150	3,547,992
Cash equivalents - time deposits	1,706,076	548,028
	$ 6,222,160	$ 4,099,223

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Mandatorily at FVTPL - current
Domestic listed shares*	$ 656,713	$ 4,993
Domestic unlisted shares	72,978	71,584
Open-ended beneficiary certificates	934,482	385,164
	$ 1,664,173	$ 461,741
Mandatorily at FVTPL - non-current
Open-ended beneficiary certificates	$ 2,303	$ 2,102
Convertible bonds	77,915	78,428
	$ 80,218	$ 80,530

Refer to Note 13 for information in June 2025 relating to financial instruments transferred from investments accounted for using the equity method, amounting to $793,521 thousand.

28 -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Investments in debt instruments - current
Foreign government bonds	$ -	$ 73,778
Investments in equity instruments - non-current
Domestic listed shares and emerging market shares	$ 995,445	$ 999,100
Domestic unlisted shares	110,178	183,867
Foreign unlisted shares	62,158	64,293
	$ 1,167,781	$ 1,247,260

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Refer to Table 3 for the detailed information. 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.

9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST

	December 31
	2025	2024
Current
Time deposits with maturities of more than 3 months	$ 427,898	$ 246,879
Pledged deposits (Note 29)	15	118
Repurchase agreements collateralized by bills	-	158,563
	$ 427,913	$ 405,560
Non-current
Time deposits with maturities of more than 3 months	$ 44,943	$ 213,438
Pledged deposits (Note 29)	7,093	5,988
Restricted accounts	3,145	16,393
	$ 55,181	$ 235,819

The market rate of time deposits at the end of the year were as follows:

	December 31
	2025	2024
Time deposits	1.00%-3.10%	0.85%-3.25%
Repurchase agreements collateralized by bills	-	1.45%-1.50%

NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
Gross carrying amount at amortized cost
- unrelated parties	$ 103,660	$ 232,855
Less: Allowance for impairment loss	-	-
	$ 103,660	$ 232,855
Trade receivables
Gross carrying amount at amortized cost
- unrelated parties	$ 8,941,489	$ 6,532,355
- related parties	6,912	10,258
Less: Allowance for impairment loss	(127,013)	(705,238)
	$ 8,821,388	$ 5,837,375

The average credit period for sales of goods is 60 to 120 days from the date. Before accepting any new customer, the Group uses the bank's credit investigation or external credit scoring system to assess the potential customer's credit quality and defines credit limits by customer. Management will review the credit limit and rating of customers as needed.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated by reference to the past default experience and the current financial position, in which the debtors operate. As the Group's historical credit loss experience does not show other factors that matter significantly, the expected credit loss rate is based on the past due status of trade receivables.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables 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.

The aging schedule of notes receivable and trade receivables based on the past due days was as follows:

	December 31
	2025	2024
Not past due	$ 7,194,180	$ 4,342,402
Past due 1-60 days	1,155,825	737,348
Past due 61-180 days	419,178	388,810
Past due 181-365 days	163,129	519,618
Past due over 365 days	112,837	777,032
	$ 9,045,149	$ 6,765,210

The movements of the loss allowance of notes receivable and trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 705,238	$ 653,829
Add: Amounts recovered	-	7
Net remeasurement of loss allowance	-	46,870
Less: Net remeasurement of loss allowance	(67,413)	-
Amounts written off	(507,931)	-
Foreign exchange gains and losses	(2,881)	4,532
Balance on December 31	$ 127,013	$ 705,238

11. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 2,504,373	$ 1,499,118
Semi-finished products	610,057	542,312
Work in process	2,651,072	1,616,167
Raw materials	2,108,787	1,734,511
Inventory in transit	44,591	66,376
	$ 7,918,880	$ 5,458,484

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $9,993,975 thousand and $7,707,348 thousand, respectively. The cost of goods sold included the reversal of inventory write-downs of $32,532 thousand and $35,254 thousand, respectively. The reversal of inventory write-downs was attributable to the disposal of certain slow-moving inventories.

12. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor	Investee	Business	Percentage of Ownership as of December 31		Remark
			2025	2024
The Corporation	Neworld Electronics Limited	Sale and maintenance of electronic test instruments, etc.	100.0	100.0
	Mas Automation Corp.	Design, manufacturing, installment and testing of automated factory conveyor systems	100.0	100.0
	Chroma ATE Inc.	Sale and maintenance of electronic test instruments, etc.	100.0	100.0
	Chroma Systems Solutions Inc.	Sale and maintenance of electronic test instruments, etc.	35.0	30.0	Note 1
	Chroma ATE Europe B.V.	Sale and maintenance of electronic test instruments, etc.	100.0	100.0
	Chroma Germany GmbH	Sale and maintenance of electronic test instruments, etc.	100.0	100.0	Note 2
	Chroma Japan Corp.	Sale and maintenance of electronic test instruments, etc.	100.0	100.0	Note 3
	CHI Incorporation Ltd.	Test of inductance, capacitance and resistance and sale of parts	100.0	100.0
Chen Hwa Technology Inc.	Test of inductance, capacitance and resistance and sale of parts	100.0	100.0
			(Continued)

Investor	Investee	Business	Percentage of Ownership as of December 31		Remark
			2025	2024
	San Eagle Development Corp.	Investment	100.0	100.0
	Sensational Holdings Ltd.	Investment	100.0	100.0
	Deep Red Holding Co., Ltd.	Investment	100.0	100.0
	Testar Electronics Corporation	Testing of LED	67.2	67.2
	Adivic Technology Co., Ltd.	Sale and research of RF device	91.1	83.7	Note 4
	Chroma Investment Co., Ltd.	Investment	100.0	100.0
	Quantel Private Ltd.	Sale and maintenance of test instruments, etc.	60.0	60.0
	EVT Technology Co., Ltd.	Manufacturing of motorcycles and its parts	-	85.6	Note 5
	Innovative Nanotech Incorporated	Monitoring instruments of nanoparticles	67.2	67.2
	Touch IntelliConnect Inc.	Intelligent data IoT device integration, platform design, and system solutions	83.1	83.1	Note 6
	Chroma Europe Holding B.V.	Investment	100.0	-	Note 7
Neworld Electronics Limited	Chroma Electronics (Shenzhen) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0
	Chroma Electronics (Shanghai) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0
Chroma ATE Inc.	Chroma Systems Solutions Inc.	Sale and maintenance of electronic test instruments, etc.	50.0	50.0	Note 1
Chen Hwa Technology Inc.	Chroma (Shanghai) Trading Co., Ltd.	International and transit trading, commercial simple processing and commercial consulting services, etc.	100.0	100.0
CHI Incorporation Ltd.	Chroma ATE (Suzhou) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0
San Eagle Development Corp.	Wei Kuang Mech. Eng. Inc.	Investment	100.0	100.0
Wei Kuang Mech. Eng. Inc.	Wei Kuang Automatic Equipment (Nanjing) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	100.0	100.0
	Wei Kuang Automatic Equipment (Xiamen) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	100.0	100.0
Deep Red Holding Co., Ltd.	Sajet System Technology (Suzhou) Co., Ltd.	Research, development and design of computer network security systems and information management	100.0	100.0
Quantel Private Ltd.	Quantel Technologies India Private Ltd.	Sale of test instruments, etc.	100.0	100.0
	Quantel Global Vietnam Co., Ltd.	Sale of test instruments, etc.	100.0	100.0
	Quantel Global Sdn. Bhd.	Sale of test instruments, etc.	100.0	100.0
	Quantel Global Philippines Corporation	Sale of test instruments, etc.	100.0	100.0
	Quantel Global Company Limited PT Quantel	Sale of test instruments, etc.	100.0	100.0
Chroma Investment Co., Ltd.	Testar Electronics Corporation	Testing of LED	15.0	15.0
Chroma Electronics (Shenzhen) Co., Ltd.	Chroma ATE (Dongguan) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0
Chroma Electronics (Shanghai) Co., Ltd.	Smartrise Semiconductor (Shanghai) Co., Ltd.	Sales of semiconductor equipment	100.0	100.0	Note 8
Chroma ATE (Suzhou) Co., Ltd.	Chroma ATE (Xiamen) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0	Note 8

Note 1: The Corporation acquired $5\%$ equity interests in Chroma Systems Solutions Inc. in May 2025 for US$6,936 thousand. As a result, the Corporation and Chroma ATE Inc., jointly increased their equity interest in Chroma Systems Solutions Inc to $85\%$ .

Note 2: The Corporation acquired a $100\%$ equity interest in Chroma Germany GmbH from Chroma ATE Europe B.V. in January 2024 for a consideration of €849 thousand. The transaction was a business reorganization under common control.

Note 3: Chroma Japan Corp. conducted a capital reduction of JPY199,000 thousand to offset accumulated losses, followed by a capital injection of JPY199,000 thousand in October 2025. The Corporation's board of directors decided to participate in the capital injection. The Corporation's equity interest in Chroma Japan Corp. remained unchanged after the cash injection.

Note 4: Adivic Technology Co., Ltd. conducted a capital reduction of NT$150,000 thousand to offset accumulated losses, followed by a capital injection of NT$100,000 thousand in May 2025. The Corporation's board of directors decided to participate in the capital injection. The Corporation's equity interest in Adivic increased to 91.1% after the cash injection.

Note 5: EVT Technology Co., Ltd. was liquidated in December 2025.

Note 6: Touch Cloud Inc. was renamed Touch IntelliConnect Inc. in April 2025.

Note 7: Considering the future strategy of products and the enhancement of product competitiveness, the Group established Chroma Europe Holding B.V. in September 2025.

Note 8: Considering the future strategy of products and the enhancement of product competitiveness, the Group established Smartrise Semiconductor (Shanghai) Co., Ltd. and Chroma ATE (Xiamen) Co., Ltd. in September 2024.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in associates	$ 4,921,364	$ 4,863,439
Investments in joint ventures	15,739	12,566
	$ 4,937,103	$ 4,876,005

a. Investments in associates

	December 31
	2025		2024
	Amount	Percentage of Equity Interest (%)	Amount	Percentage of Equity Interest (%)
Material associate
Camtek Ltd.	$ 4,435,581	17.1	$ 4,385,973	17.2
Associates that are not individually material
Adlink Technology Inc.	-	-	218,572	6.2
Dynascan Technology Corp.	306,445	27.3	258,894	27.3
NanoSeeX Inc.	179,338	47.7	-	-
	$ 4,921,364		$ 4,863,439

1) Material associate

Although the Group's equity interest in Camtek Ltd. is less than 20%, after assessing number of seats in the board of directors of Camtek Ltd., the Group has a significant influence.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

Name of Associate	December 31
	2025	2024
Camtek Ltd.	$ 26,130,423	$ 20,700,929

The summarized financial information below represents amounts shown in the associates' financial statements prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

	December 31
	2025	2024
Current assets	$ 28,411,149	$ 20,106,267
Non-current assets	11,146,744	8,916,963
Current liabilities	(4,403,217)	(4,062,389)
Non-current liabilities	(16,423,098)	(7,176,538)
Equity	$ 18,731,578	$ 17,784,303
Proportion of the Group’s ownership	17.1%	17.2%
Equity attributable to the Group	$ 3,203,099	$ 3,058,900
Intangible assets	1,232,482	1,327,073
Carrying amount	$ 4,435,581	$ 4,385,973
	For the Year Ended December 31
	2025	2024
Operating revenue	$ 15,467,525	$ 13,783,562
Net profit for the year	$ 3,831,924	$ 3,532,663
Other comprehensive income (loss)	(515)	50,808
Total comprehensive income (loss) for the year	$ 3,831,409	$ 3,583,471
Dividends received	$ -	$ 330,995

Investments accounted for using the equity method and the Group's share of profit or loss and other comprehensive income from consolidated subsidiaries are audited by other auditors in the financial statements of Camtek Ltd.

2) Aggregate information of associates that are not individually material

	For the Year Ended December 31
	2025	2024
The Group’s share of:
Net profit for the year	$ 75,644	$ 62,161
Other comprehensive income (loss)	(1,488)	16,982
Total comprehensive income (loss) for the year	$ 74,156	$ 79,143

The Group was not elected as directors and consequently ceased to have significant influence over Adlink Technology Inc. since June 2025. The Group reclassified the remaining 6.0% interest as a financial asset at FVTPL at the date of loss of significant influence. This change resulted in the recognition of a gain in profit or loss, and calculated as follows:

Fair value of the investment $ 793,521
Less: Carrying amount of investment on the date of loss of significant influence (185,128)
Less: Deferred gains from transactions with the associate (Note 22) (115,487)
Others 21,229
Gain recognized $ 514,135

The Group acquired NanoSeeX Inc. in 2025. Included in the cost of investment in the associate was goodwill of $31,319 thousand.

Refer to Table 7, for the nature of activities, principal place of business and country of incorporation of the associates.

b. Investments in joint ventures

December 31
2025		2024
Amount	Percentage of Equity Interest (%)	Amount	Percentage of Equity Interest (%)
Joint ventures that are not individually material
Chih Ho Shun Development Co., Ltd.	$ 15,739	35.0	$ 12,566
			35.0

Aggregate information of joint ventures that are not individually material:

For the Year Ended December 31
	2025	2024
The Group’s share of:
Net profit (loss) for the year	$ 3,173	$ (1,199)
Other comprehensive income (loss)	-	-
Total comprehensive income (loss) for the year	$ 3,173	$ (1,199)

For the investment and development plan, "The Action Plan for Developing Land Surrounding the MRT Airport Station to Improve Civilians' Life", the Group invested jointly with Dynapack International Corporation and Heran Co., Ltd. to set up Chih Ho Shun Development Co., Ltd. ("Chih Ho Shun") in February 2012. The Group invested for a 35% entity interest in Chih Ho Shun but did not have control over this investee.

Refer to Table 7, for the nature of activities, principal place of business and country of incorporation of the joint ventures.

PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery	Office Equipment	Total
Cost
Balance on January 1, 2024	$ 1,753,655	$ 5,671,928	$ 893,956	$ 1,921,236	$ 10,240,775
Additions	-	25,148	54,376	87,420	166,944
Disposals	-	(1,302)	(58,975)	(217,442)	(277,719)
Reclassification	-	8,763	24,593	136,569	169,925
Acquisitions through business combinations	-	-	-	505	505
Exchange differences	3,440	50,468	11,490	20,813	86,211
Balance on December 31, 2024	$ 1,757,095	$ 5,755,005	$ 925,440	$ 1,949,101	$ 10,386,641
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 1,108,630	$ 687,713	$ 1,274,748	$ 3,071,091
Depreciation	-	258,678	90,608	223,377	572,663
Disposals	-	(468)	(56,049)	(168,372)	(224,889)
Reclassification	-	-	(22)	(15,270)	(15,292)
Acquisitions through business combinations	-	-	-	391	391
Exchange differences	-	8,222	7,386	11,428	27,036
Balance on December 31, 2024	$ -	$ 1,375,062	$ 729,636	$ 1,326,302	$ 3,431,000
Carrying value at December 31, 2024	$ 1,757,095	$ 4,379,943	$ 195,804	$ 622,799	$ 6,955,641
Cost
Balance on January 1, 2025	$ 1,757,095	$ 5,755,005	$ 925,440	$ 1,949,101	$ 10,386,641
Additions	56,863	118,673	45,859	400,651	622,046
Disposals	-	(77,180)	(107,732)	(140,458)	(325,370)
Reclassification	12,034	128,391	33,336	177,927	351,688
Exchange differences	(5,118)	(34,464)	(7,106)	5,252	(41,436)
Balance on December 31, 2025	$ 1,820,874	$ 5,890,425	$ 889,797	$ 2,392,473	$ 10,993,569
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 1,375,062	$ 729,636	$ 1,326,302	$ 3,431,000
Depreciation	-	263,402	80,538	241,544	585,484
Disposals	-	(24,847)	(106,518)	(102,764)	(234,129)
Reclassification	-	73	(628)	(14,087)	(14,642)
Exchange differences	-	(5,183)	(4,494)	3,158	(6,519)
Balance on December 31, 2025	$ -	$ 1,608,507	$ 698,534	$ 1,454,153	$ 3,761,194
Carrying value at December 31, 2025	$ 1,820,874	$ 4,281,918	$ 191,263	$ 938,320	$ 7,232,375

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings 1-51 years
Machinery 2-10 years
Office equipment 1-10 years

Refer to Note 29 for property, plant and equipment that have been pledged to secure borrowings of the Group.

36 -

15. LEASE ARRANGEMENTS

The Group's important lease projects include lease land from other companies and government department for the use of the plants, warehouses and parking spaces, as well as leases of information systems cloud services, etc. The lease term is 2 to 10 years. The Group does not have bargain purchase options to acquire lease items at the end of lease terms. Refer to the consolidated balance sheet for the balance of right-of-use assets and lease liabilities of lease arrangement as of balance sheet date.

Other significant lease related information are as follows:

	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 418,739	$ 193,571
Depreciation charge for right-of-use assets	$ 178,943	$ 172,129
Total cash outflow for leases	$ 294,003	$ 329,978

16. INVESTMENT PROPERTIES

The investment properties of land held for a currently undetermined use by the Group are located in Taoyuan City.

	December 31
	2025	2024
Balance on January 1	$ 2,478,333	$ 2,478,333
Reclassified as non-current assets held for sale	(740,452)	-
Reclassified as property, plant and equipment	(25,543)	-
Balance on December 31	$ 1,712,338	$ 2,478,333

In the third quarter of 2018, the Group acquired the land rights under the investment and development plan, "The Action Plan of Developing Land Surrounding the Airport MRT Station to Improve Civilian's Life".

In the third quarter of 2019, part of the land was entered into a joint building construction agreement with Fu-Yu Construction Co., Ltd. (Fu-Yu Construction) located at No. 61-0 and No. 61-1, Lejie section, Guishan District, Taoyuan City. Under the agreement, the Group provided the land, and Fu-Yu Construction provided fund to construct. Upon completion, the building will be distributed to the Group and Fu-Yu Construction for 47% and 53%, respectively. The construction project was completed and obtained its usage license in the first quarter of 2025.

In the next 12 months, the Group intends to dispose the land and properties distributed; therefore, it is reclassified as non-current assets held for sale of $740,452 thousand and property, plant, and equipment of $25,543 thousand from the investment properties.

In order to take care of its non-executive employees, the Group entered into a sale agreement of real estate with employees of the Corporation since March 2025, pursuant to the aforementioned properties. As of December 31, 2025, the total sale price was $3,884,140 thousand and the gain on disposal of non-current assets held for sale recognized was $3,197,018 thousand. The remaining unsold properties amounting to $111,147 thousand are expected to continue to be sold to employees within the next 12 months.

The determination of fair value was performed by independent qualified professional valuers, and the fair value was measured using Level 3 inputs. The valuation was arrived at by reference to market evidence of transaction prices for similar properties and involved the use of significant unobservable inputs. The fair value as appraised was as follows:

	December 31
	2025	2024
Fair value	$ 7,516,653	$ 10,742,472

17. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Secured bank loans (Note 29)	$ 10,040	$ 76,100
Unsecured bank loans	-	1,337,507
	$ 10,040	$ 1,413,607
Interest rates (%)	2.23%	0.50%-5.47%

b. Long-term borrowings

	December 31
	2025	2024
Secured bank loans (Note 29)	$ 165,513	$ 111,906
Unsecured bank loans	3,142,115	2,000,000
	3,307,628	2,111,906
Less: Current portions	3,857	3,828
Long-term borrowings	$ 3,303,771	$ 2,108,078
Secured bank loans
Final repayment period	June 2031 to November 2032	April 2025 to June 2031
Interest rate (%)	2.25%-3.50%	2.43%-3.50%
Unsecured bank loans
Final maturity date	January 2030 to November 2030	April 2029
Interest rate (%)	1.34%-9.45%	1.34%-1.53%

38 -

18. OTHER PAYABLES

	December 31
	2025	2024
Compensation of employees	$ 1,277,230	$ 828,252
Salaries and bonuses	905,446	774,612
Others	537,842	433,990
	$ 2,720,518	$ 2,036,854

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation and its subsidiaries in the ROC adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

Employees of the Group's subsidiaries in the foreign are under the retirement benefit plans operated by their respective local governments. Subsidiaries have to contribute amounts at certain percentages of salaries to the retirement benefit plans to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

The defined benefit plans adopted by the Corporation and its subsidiaries, Adivic Technology Co., Ltd. in accordance with the Labor Standard Law is operated by the government of the ROC. Pension benefits are calculated on the basis of length of service and average monthly salaries of the 6 months before retirement. The Corporation and its subsidiaries mentioned above contribute amount equal to 4% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of year, the Corporation and its subsidiaries assess the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation and its subsidiaries are required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 607,590	$ 562,312
Fair value of plan assets	(530,349)	(487,864)
	77,241	74,448
Net defined benefit assets (recognized in other non-current assets)	-	5,139
Net defined benefit liabilities	$ 77,241	$ 79,587

Movements in net defined benefit liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 597,604	$ (448,780)	$ 148,824
Current service cost	3,161	-	3,161
Net interest expense (income)	7,243	(5,651)	1,592
Recognized in profit or loss	10,404	(5,651)	4,753
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(38,704)	(38,704)
Actuarial loss (gain)
Changes in financial assumptions	(13,353)	-	(13,353)
Experience adjustments	2,928	-	2,928
Recognized in other comprehensive income	(10,425)	(38,704)	(49,129)
Contributions from the employer	-	(30,000)	(30,000)
Benefits paid	(35,271)	35,271	-
Balance on December 31, 2024	562,312	(487,864)	74,448
Current service cost	2,529	-	2,529
Net interest expense (income)	8,341	(7,497)	844
Recognized in profit or loss	10,870	(7,497)	3,373
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(34,468)	(34,468)
Actuarial loss
Changes in financial assumptions	19,012	-	19,012
Experience adjustments	39,136	-	39,136
Recognized in other comprehensive income	58,148	(34,468)	23,680
Contributions from the employer	-	(30,000)	(30,000)
Benefits paid	(23,740)	23,740	-
Withdrawal of plan assets	-	5,740	5,740
Balance on December 31, 2025	$ 607,590	$ (530,349)	$ 77,241

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rates	1.25%-1.38%	1.38%-1.50%
Expected rates of salary increase	2.50%-3.75%	2.50%-3.50%

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rates
0.25% increase	$ (13,220)	$ (12,724)
0.25% decrease	$ 13,650	$ 13,152
Expected rates of salary increase
0.25% increase	$ 13,130	$ 12,689
0.25% decrease	$ (12,787)	$ (12,344)

The sensitivity analysis presented above may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ 30,000	$ 30,000
Average duration of the defined benefit obligation	9.3 years	9.6 years

20. EQUITY

a. Ordinary share capital

	December 31
	2025	2024
Number of shares authorized (in thousands)	500,000	500,000
Shares authorized	$ 5,000,000	$ 5,000,000
Number of shares issued and fully paid (in thousands)	425,246	425,322
Shares issued	$ 4,252,457	$ 4,253,220

The authorized shares include 30,000 thousand shares reserved for the exercise of employee share options. The change in the Corporation's share capital is mainly due to the cancellation of employee restricted shares. The company has not yet registered with Ministry of Economic Affairs before the date of approval of issuance of the consolidated financial statements.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1)
Additional paid-in capital	$ 3,685,779	$ 3,535,055
Treasury share transactions	291,262	276,371
Consolidation excess	146,976	146,976
May be used to offset a deficit only
Share of changes in capital surplus of associates or joint ventures	1,420	440,039
Changes in percentage of ownership interests in subsidiaries (Note 2)	1,879	1,624
Unclaimed dividends	353	353
May not be used for any purpose
Employee restricted shares	84,911	196,984
	$ 4,212,580	$ 4,597,402

Note 1: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and once a year).

Note 2: Such capital surplus arises from the effect of changes in ownership interests in subsidiaries resulting from changes in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Corporation’s Articles of Incorporation (the “Articles”), where the Corporation 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, the Corporation is not required to set aside legal reserve where the legal reserve amounts to the total authorized capital and setting aside or reversing 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 Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders. For the abovementioned distribution of earnings, the board of directors was 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. For the policies on distribution of employees’ compensation of employees and remuneration to directors, refer to d. employees’ compensation of employees and remuneration of directors in Note 22 (d).

Taking into account future capital expenditure requirements and its cash position, the total of cash dividends paid in any given year may not be less than 20% of total dividends distributed in that year. The final amount, type and percentage of the cash dividends and share dividends are subject to actual earnings and capital requirements of the Corporation in a particular year.

The legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

When a special reserve is appropriated for cumulative net debit balance reserves from prior period, the special reserve is only appropriated from the prior unappropriated earnings.

The appropriations of earnings for 2024 and 2023 were as follows:

	Appropriation of Earnings		Dividend Per Share (NT$)
	For Fiscal Year 2024	For Fiscal Year 2023	For Fiscal Year 2024	For Fiscal Year 2023
Legal reserve	$ 513,142	$ 394,685
Cash dividends	3,827,898	2,807,405	$ 9.0	$ 6.6

The appropriation of earnings for 2025, which were proposed by the Company’s board of directors, were as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Cash dividends	$ 8,292,292	$ 19.5

d. Special reserve

If a special reserve appropriated on the first-time adoption of IFRS Accounting Standards relates to exchange differences on translation of the financial statements of foreign operations (including the subsidiaries of the Corporation), the special reserve of $86,888 thousand will be reversed on a proportionate basis according to the Corporation’s disposal of foreign operations; on the Corporation’s loss of significant influence, however, the entire special reserve will be reversed. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRS Accounting Standards. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

e. Unearned employee benefits

Refer to Note 25 for the issuance of restricted shares for employees by the Corporation.

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (47,008)	$ (109,000)
Revised estimate of the number of shares expected to vest	(55,004)	-
Share-based payment expenses recognized	63,042	61,992
Balance on December 31	$ (38,970)	$ (47,008)

f. Treasury shares

The Corporation’s shares held by its subsidiary, Chroma Investment Co., Ltd., at the end of the reporting periods were as follows:

	For the Year Ended December 31
	2025	2024
Number of shares held (in thousand shares)	1,655	1,655
Carrying amount	$ 30,868	$ 30,868
Market price	$ 1,282,299	$ 676,723

Under the Securities and Exchange Act, the Corporation shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.

REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 27,166,591	$ 20,418,424
Construction contract revenue	883,042	872,293
Other revenue	261,302	313,120
	$ 28,310,935	$ 21,603,837

a. Contract balances

	December 31
	2025	2024
Contract assets - construction contract	$ 143,514	$ 272,090
Contract liabilities - sale of goods	$ 1,091,140	$ 698,054
Contract liabilities - construction contract	42,129	79,853
	$ 1,133,269	$ 777,907

The changes in the balance of contract liabilities primarily result from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment. The Group recognized revenue from the contract liabilities outstanding balance at the beginning of the year in the amount of $706,261 thousand and $1,148,212 thousand for the years ended December 31, 2025 and 2024, respectively.

b. Disaggregation of revenue

Refer to Note 33 for the information on disaggregation of revenue.

44 -

22. NET PROFIT

a. Gain on disposal of property, plant and equipment

	For the Year Ended December 31
	2025	2024
Deferred gains from transactions with the associate
Disposal of investment in the associate	$ 3,506	$ 7,892
Loss of significant influence of the associate (Note 13)	115,487	-
Gain (loss) on disposal of property, plant and equipment	(17,123)	769
	$ 101,870	$ 8,661

b. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 250,467	$ 248,546
Operating expenses	513,960	496,246
	$ 764,427	$ 744,792
An analysis of amortization by function
Operating costs	$ 4,505	$ 3,274
Operating expenses	71,705	27,096
	$ 76,210	$ 30,370

c. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Short-term benefits	$ 6,405,098	$ 5,556,110
Share-based payments (Note 25)	63,042	61,997
Post-employment benefits
Defined contribution plans	132,264	120,786
Defined benefit plans (Note 19)	3,373	4,753
Other employee benefits	124,040	114,806
	$ 6,727,817	$ 5,858,452
Summarized by function
Operating costs	$ 904,461	$ 810,502
Operating expenses	5,823,356	5,047,950
	$ 6,727,817	$ 5,858,452

d. Compensation of employees and remuneration of directors

According to the Company's Articles, the Corporation accrues compensation of employees and remuneration of directors at the rates of 5%-20% and no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Corporation resolved the amendments to the Company's Articles at their 2025 shareholders meeting. The amendments explicitly stipulate at the rates of 10%-30% of the compensation of employees, which is based on accrued compensation of employees at the rates of 5%-20% of net profit before income tax, compensation of employees, and remuneration of directors, as compensation distributions for non-executive employees.

The compensation of employees and the remuneration of directors and supervisors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors, are as follows.

For the Year Ended December 31
	2025		2024
	Amount	Rate %	Amount	Rate %
Compensation of employees	$ 1,200,000	8.36	$ 790,000	11.14
Remuneration of directors	15,000	0.10	15,000	0.21

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

There is no difference between the actual amounts of the compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employee and remuneration of directors resolved by the Corporation's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

INCOME TAXES

a. Major components of income tax expense recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 1,736,502	$ 1,246,918
Land value increment tax	29,351	-
Income tax on unappropriated earnings	2,291	-
Adjustments for prior years	(81,827)	(2,948)
	1,686,317	1,243,970
Deferred tax
In respect of the current year	305,545	64,480
Income tax expense recognized in profit or loss	$ 1,991,862	$ 1,308,450

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 13,917,761	$ 6,708,563
Income tax expense calculated at the statutory rate	$ 3,260,196	$ 1,560,179
Adjustment items in determining taxable income
Tax-exempt income	(813,475)	(62,852)
Deductible temporary differences	(100,556)	-
Realized investment loss	(53,075)	-
Others	(21,713)	(12,826)
Income tax on unappropriated earnings	2,291	-
Land value increment tax	29,351	-
Unrecognized deductible differences
Loss carryforward	95,548	24,375
Deductible temporary differences	(72,709)	(218)
Investment credits	(252,169)	(197,260)
Adjustments for prior years’ tax	(81,827)	(2,948)
Income tax expense recognized in profit or loss	$ 1,991,862	$ 1,308,450

b. Deferred tax assets and liabilities

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Exchange Differences and Other	Closing Balance
Unrealized intercompany gain	$ 231,295	$ 115,641	$ -	$ 346,936
Loss carryforwards	13,794	(12,916)	(673)	205
Inventory reserve	58,483	(6,174)	-	52,309
Allowance for impairment loss	41,459	(38,043)	(674)	2,742
Tax credit	29,197	(7,477)	(1,266)	20,454
Others	12,193	18,498	(132)	30,559
	$ 386,421	$ 69,529	$ (2,745)	$ 453,205
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Exchange Differences and Other	Closing Balance
Unappropriated earnings of foreign subsidiaries	$ 1,098,697	$ 308,427	$ -	$ 1,407,124
Goodwill	54,483	-	(636)	53,847
Unrealized exchange gain	10,608	31,858	-	42,466
Others	46,256	34,789	(863)	80,182
	$ 1,210,044	$ 375,074	$ (1,499)	$ 1,583,619

For the year ended December 31, 2024

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Exchange Differences and Other	Closing Balance
Unrealized intercompany gain	$ 232,451	$ (1,156)	$ -	$ 231,295
Loss carryforwards	37,363	(25,047)	1,478	13,794
Inventory reserve	63,765	(5,339)	57	58,483
Allowance for impairment loss	31,688	9,466	305	41,459
Tax credit	36,319	(9,386)	2,264	29,197
Unrealized exchange loss	16,397	(16,474)	77	-
Others	6,585	5,255	353	12,193
	$ 424,568	$ (42,681)	$ 4,534	$ 386,421
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Exchange Differences and Other	Closing Balance
Unappropriated earnings of foreign subsidiaries	$ 1,098,347	$ 350	$ -	$ 1,098,697
Goodwill	53,507	-	976	54,483
Unrealized exchange gain	-	10,608	-	10,608
Others	33,787	10,841	1,628	46,256
	$ 1,185,641	$ 21,799	$ 2,604	$ 1,210,044

c. Information on unused loss carryforwards of subsidiaries

Loss carryforwards as of December 31, 2025 comprised:

	Unused Amount	Expiry Year
Adivic Technology Co., Ltd.	$ 369,303	2035
Mas Automation Corp.	360,451	2035
Touch IntelliConnect Inc.	138,896	2035
Chroma ATE Europe B.V.	93,859	Indefinite
Testar Electronics Corporation	34,317	2033
Quantel Global Vietnam Co., Ltd.	4,597	2030
Chroma ATE Inc.	975	2039
	$ 1,002,398

d. Income tax assessments

The income tax returns of the Corporation and domestic subsidiaries through 2023 have been assessed by the tax authorities.

48 -

24. EARNINGS PER SHARE

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

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 11,692,052	$ 5,264,251

	(In Thousands of Shares)
	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	422,061	421,385
Effect of potentially dilutive ordinary shares:
Compensation of employees	1,879	2,139
Employee restricted shares	1,008	1,623
Weighted average number of ordinary shares used in the computation of diluted earnings per share	424,948	425,147

If the Group offered to settle compensation paid to employees in cash or shares, the Group assumed the entire amount of the compensation would 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.

25. SHARE-BASED PAYMENT ARRANGEMENTS

Restricted Shares for Employees

In the shareholders' meeting on June 9, 2022, the shareholders approved a Restricted Share Unit Plan ("RSU" Plan) for employees with a total amount of $30,000 thousand, consisting of 3,000 thousand shares with issuance price of $40 dollars per share. It can be issued at one time or several times depending on the circumstance. The RSU Plan was approved under Rule No. 1110346852 issued by the FSC on June 20, 2022. The Group issued 2,960 thousand shares on July 1, 2022, the subscription date. The details of RSU Plan are as follows:

a. Employees who are granted RSUs, upon meeting the Corporation's financial performance and personal performance indicators, are eligible to be vested 10, 20, 30 and 40 percent of the RSUs granted after 1, 2, 3 and 4 years of tenure after the subscription date, respectively.

b. The restrictions on the rights of the employees who are granted RSUs but have not met the vesting conditions are as follows:

1) The employees are not eligible to sell, pledge, transfer, donate or to dispose any RSUs in any form.

2) The employees holding RSUs are entitled to receive dividends and similar purchasing rights to ordinary shares during capital increase. Dividends from RSUs are not restricted during the vesting period and are appropriated to the employees' personal account from trust account after the dividend distribution date.

3) Before the restricted shares are vested to the employees, the right of attendance, proposal, speech, voting and other rights of shareholders are acted by the custodian.

4) The RSUs should be delivered to trust custodians upon grant date. The employees cannot request for return in any manner before vesting conditions are met.

5) Restrictions on employee rights during delivery of new shares to the Trust, the Corporation shall act as the exclusive agent of the employees and authorize the chairman of the board (including but not limited) in negotiating, signing, amending, extending, cancelling and terminating the Trust Deed and the delivery, use and disposal instructions of the Trust Property with the Stock Trust.

c. If an employee fails to meet the vesting conditions, the Corporation will recall or buy back and cancel the restricted shares at issued price. If an employee voluntarily resigns, retires, disabled or decease due to occupational hazards, dismissed, be transferred to another post, violates labor contracts or working protocols substantially or abandons restricted shares, related guidelines of RSU Plan will be followed accordingly.

Information on outstanding employee restricted shares were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	2,016	2,592
Shares vested	(816)	(538)
Shares canceled	(76)	(38)
Balance on December 31	1,124	2,016

Compensation costs recognized were $63,042 thousand and $61,992 thousand for the years ended December 31, 2025 and 2024, respectively.

26. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The Group's capital management aims to maintain the sufficiency of financial resources and the soundness of operating strategies to meet the needs for operating capital, capital expenditure, R&D expenses, debt handling, dividend disbursement, etc.

27. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

Management believes the carrying amounts of financial assets and financial liabilities not measured at fair value recognized in the consolidated financial statements approximate their fair values.

49 -

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

	Level 1	Level 2	Level 3	Total
December 31, 2025
Financial assets at FVTPL
Domestic listed shares	$ 656,713	$ -	$ -	$ 656,713
Domestic unlisted shares	-	-	72,978	72,978
Convertible bonds	-	-	77,915	77,915
Open-ended beneficiary certificates	934,482	-	2,303	936,785
	$ 1,591,195	$ -	$ 153,196	$ 1,744,391
Financial assets at FVTOCI
Investments in equity instruments
Domestic listed shares and emerging markets shares	$ 796,843	$ -	$ 198,602	$ 995,445
Domestic unlisted shares	-	-	110,178	110,178
Foreign unlisted shares	-	-	62,158	62,158
	$ 796,843	$ -	$ 370,938	$ 1,167,781
December 31, 2024
Financial assets at FVTPL
Domestic listed shares	$ 4,993	$ -	$ -	$ 4,993
Domestic unlisted shares	-	-	71,584	71,584
Convertible bonds	-	-	78,428	78,428
Open-ended beneficiary certificates	385,164	-	2,102	387,266
	$ 390,157	$ -	$ 152,114	$ 542,271
Financial assets at FVTOCI
Investments in equity instruments
Domestic listed shares and emerging markets shares	$ 670,344	$ -	$ 328,756	$ 999,100
Domestic unlisted shares	-	-	183,867	183,867
Foreign unlisted shares	-	-	64,293	64,293
	$ 670,344	$ -	$ 576,916	$ 1,247,260
Investments in debt instruments
Foreign government bonds	$ 73,778	$ -	$ -	$ 73,778

There were no transfers between Levels 1 and 2 for the years ended December 31, 2025 and 2024.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2025

Financial Assets	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
Balance on January 1, 2025	$ 152,114	$ 576,916	$ 729,030
Transfers to investments accounted for using the equity method	-	(33,120)	(33,120)
Reduction of capital cash return	-	(5,758)	(5,758)
Recognized in profit or loss	1,082	-	1,082
Recognized in other comprehensive income	-	(167,100)	(167,100)
Balance on December 31, 2025	$ 153,196	$ 370,938	$ 524,134

For the year ended December 31, 2024

Financial Assets	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
Balance on January 1, 2024	$ 79,605	$ 862,485	$ 942,090
Purchases	95,830	47,580	143,410
Sales	(31,610)	(9,529)	(41,139)
Reclassification	-	33,120	33,120
Transfers out of Level 3	-	(98,806)	(98,806)
Reduction of capital cash return	-	(7,198)	(7,198)
Recognized in profit or loss	8,289	-	8,289
Recognized in other comprehensive income	-	(250,736)	(250,736)
Balance on December 31, 2024	$ 152,114	$ 576,916	$ 729,030

3) Valuation techniques and inputs applied for Level 3 fair value measurement

a) The fair values of convertible bonds are determined using option pricing models where the significant unobservable input is share price volatility. An increase in the share price volatility used in isolation would result in an increase in the fair value.

b) The fair values of domestic emerging market and unlisted equity securities, both domestically and internationally, as well as open-end beneficiary certificates, are determined using the asset approach and the market approach. Asset approach evaluates the total market value of individual asset and liability of the evaluated target, taking into account the risk factors (lack of marketability, etc.) to estimate the fair value. Market approach refers to the transaction prices in active market of the listed companies engaging in similar business, related price multiplier, transaction and information implied by the transaction price, to arrive at the fair value.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at FVTPL	$ 1,744,391	$ 542,271
Financial assets at amortized cost (1)	15,886,263	11,044,868
Financial assets at FVTOCI
Equity instruments	1,167,781	1,247,260
Debt instruments	-	73,778
Financial liabilities
Financial liabilities at amortized cost (2)	10,174,582	8,689,251

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets measured at amortized cost, notes receivable, trade receivables (including related parties), other receivables (classified as other current assets) and refundable deposits (classified as other non-current assets).

2) The balances include financial liabilities measured at amortized cost, which comprise short-term loans, notes payable (including related parties), trade payables (including related parties), other payables, long-term loans (including current portion) and guarantee deposits received.

d. Financial risk management objectives and policies

The Group's major financial instruments consist of equity and debt investments, cash and cash equivalents, receivables, long-term and short-term borrowings and trade payables. The Group's financial risk management pertains to financial risks relating to the operations of the Group, including currency risk, interest rate risk, credit risk and liquidity risk. The Group seeks to identify, evaluate and hedge against market uncertainties to lower the effect of market changes on the Group's financial performance.

The Group manages foreign exchange risk through setting up of foreign currency deposit bank accounts and through the use of foreign currency directly received from sale to pay for purchases in foreign currency to reduce the impact of foreign exchange fluctuation and to achieve a natural hedge effect. The Group actively observes the exchange rate information to fully control the foreign currency hedge.

1) Market risk

The Group's activities expose it primarily to the financial risks of changes in exchange rates (see item (a) below), interest rates (see item (b) below) and price (see item (c) below).

There has been no change to the Group's exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period are set out in Note 31.

52 -

Sensitivity analysis

The Group was mainly exposed to the USD and RMB.

Had the NTD strengthened by 5% against the relevant currency, the pre-tax profit would have decreased by $417,544 thousand and $284,424 thousand for the years ended December 31, 2025 and 2024, respectively. The 5% sensitivity rate is used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency - denominated monetary items and their translation at period-end is adjusted for a 5% change in foreign-currency rates.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds both at fixed and floating interest rates. The Group evaluates hedging activities regularly to align with interest rate views and defined risk appetite and ensures that the most cost-effective hedging strategies are applied.

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

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 2,189,170	$ 1,189,407
Financial liabilities	738,618	463,892
Cash flow interest rate risk
Financial assets	4,250,123	3,217,258
Financial liabilities	3,150,040	3,410,607

Sensitivity analysis

The sensitivity analysis below has been determined on the basis of the exposure to interest rates for non-derivative instruments at balance sheet dates. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the balance sheet dates was outstanding for the whole year. A 50-basis point increase or decrease was 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 50 basis points higher and all other variables were held constant, the Group's pre-tax profit for the years ended December 31, 2025 and 2024 would increase by $5,500 thousand and decrease by $967 thousand, respectively.

c) Price risk

The Group is exposed to equity price risks mainly arising from the following:

i. Investments in financial assets at FVTOCI (mainly investments in domestic and foreign shares), which are held for strategic rather than trading purposes. The Group does not actively trade these investments.

53 -

ii. Investments in financial assets at FVTPL (mainly investments in domestic and foreign open-ended beneficiary certificates and listed shares in Taiwan).

The Group manages risk through holding various investment portfolios and having each equity investment to get prior approval from the Group’s management.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If prices had been 5% higher, the pre-tax profit for the years ended December 31, 2025 and 2024 would have increased by $87,220 thousand and $27,114 thousand, respectively, as a result of the changes in fair values of financial assets at FVTPL, and the pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have increased by $58,389 thousand and $66,052 thousand, respectively, as a result of the changes in fair values of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the year, the Group’s maximum exposure to credit risk is mainly resulted 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 and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

To maintain the quality of trade receivables, the Group established operating procedures related to credit risk management to manage credit risks. Risk factors associated with individual customers include a customer’s financial condition, internal credit rating, transaction history, current macroeconomic environment and other items that might affect a customer’s ability to pay.

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 writes off trade receivables when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables 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.

The credit risk of bank deposits, fixed-income financial instruments and other financial instruments are evaluated, managed and controlled by the Group’s financial department. The Group’s exposure to credit risk was limited because the Group adopted a policy of only dealing with creditworthy counterparties.

54 -

3) Liquidity risk

The Group manages liquidity risk by managing and maintaining sufficient cash and cash equivalents to supply the Group’s demand and mitigate the effects of fluctuations in cash flow. The Group continuously monitors the use of credit lines and conformity to loan terms.

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Group’s available unutilized bank loan facilities were $7,565,120 thousand and $8,034,015 thousand, respectively.

Liquidity and interest risk tables for non-derivative financial liabilities

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have 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.

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.

	December 31, 2025
	Within 1 Year	1-5 Years	More Than 5 Years
Non-derivative financial liabilities
Non-interest bearing	$ 6,836,080	$ -	$ -
Fixed interest rate instruments	7,661	30,599	158,626
Floating interest rate instruments	54,513	3,210,291	-
Lease liabilities	148,479	279,985	233,979
	$ 7,046,733	$ 3,520,875	$ 392,605
	December 31, 2024
	Within 1 Year	1-5 Years	More Than 5 Years
Non-derivative financial liabilities
Non-interest bearing	$ 5,142,899	$ -	$ -
Fixed interest rate instruments	10,737	29,715	97,426
Floating interest rate instruments	1,442,281	2,062,560	-
Lease liabilities	160,438	185,176	17,879
	$ 6,756,355	$ 2,277,451	$ 115,305

After considering the financial position of the Group, management does not expect the banks will execute their rights of requiring the Group to repay the bank loans immediately. In addition, management believes the operating funds of the Corporation and subsidiaries are sufficient to meet cash flow demand; thus, liquidity risk is not considered significant.

The Group’s operating funds are sufficient to meet its cash flow demand, as a result, the Group does not use its overdraft limit.

55 -

56 -

28. TRANSACTIONS WITH RELATED PARTIES

a. Related parties and relationships

In addition to the related parties and its subsidiaries disclosed in Note 13, the other related parties are as follows:

Related Party	Relationship with the Group
Adlink Technology Inc.	Associates (until June 2025)
Mou Kuan Industry Co., Ltd.	Other related party
Taiwan Advanced Nanotech Inc.	Other related party
CycleBond Healthcare Consulting Inc.	Other related party’s subsidiary
Tian Zheng International Precision Machinery Co., Ltd.	Other related party
Tian Zheng International Precision Machinery Co., Ltd. (Dongguan)	Other related party’s subsidiary
Omnitek Technology Co., Ltd.	Other related party’s subsidiary
Master Machinery Technology Co., Ltd.	Other related party’s subsidiary
Tian Wei Laser Precision Machinery Co., Ltd.	Other related party’s subsidiary
Tian Zheng Holding Co., Ltd.	Other related party’s subsidiary
NanoSeeX Inc.	Other related party (associates since November 2025)
Prance Systems Technology Corporation	Other related party
TFBS Bioscience, Inc.	Other related party
Chroma Foundation	Other related party
Quantel Co., Ltd.	Other related party
Quantel Sdn. Bhd.	Other related party
PT Quantel	Other related party (subsidiary since November 2024)
Fred Joseph Sabatine	Other related party

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and its related parties are disclosed below.

The related-party transactions were conducted under normal terms unless specified otherwise.

b. Sales

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Associates	$ 38,069	$ 34,860
Other related parties	19,509	5,344
	$ 57,578	$ 40,204

c. Purchases

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Associates	$ 11,071	$ 18,281
Other related parties	16,431	16,024
	$ 27,502	$ 34,305

d. Receivables from related parties (excluding loans to related parties)

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade receivables - related parties	Associates	$ 6,777	$ 9,499
	Other related parties	135	759
		$ 6,912	$ 10,258

Outstanding trade receivables from related parties are unsecured.

e. Payables to related parties (excluding loans from related parties)

Line Item	Related Party Category/Name	December 31
		2025	2024
Notes payable - related parties	Other related parties	$ 3,352	$ 4,024
Trade payables - related parties	Associates	$ 180	$ 7,717
	Other related parties	545	913
		$ 725	$ 8,630

f. Acquisition of property, plant and equipment

	Purchase Price
	For the Year Ended December 31
Related Party Category/Name	2025	2024
Associates	$ 333	$ -
Other related parties	-	2,615
	$ 333	$ 2,615

g. Lease arrangements

		For the Year Ended December 31
Related Party Category/Name		2025	2024
Acquisitions of right-of-use assets
Other related parties
Mou Kuan Industry Co., Ltd.		$ 36,536	$ -
		December 31
Line Item	Related Party Category/Name	2025	2024
Lease liabilities	Associates
Adlink Technology Inc.
Other related parties
Mou Kuan Industry Co., Ltd.	$ -	$ 55,422
		24,626	-
		$ 24,626	$ 55,422
		For the Year Ended December 31
Line Item	Related Party Category/Name	2025	2024
Depreciation expense	Associates
Other related parties	$ 17,632	$ 35,265
		12,179	11,481
		$ 29,811	$ 46,746

h. Acquisitions of ownership interests in subsidiary

	Purchase Price
	For the Year Ended December 31
Related Party Category/Name	2025	2024
Other related parties
Fred Joseph Sabatine	$ 209,132	$ 262,439

The above transaction in which the Corporation acquired equity interests from Fred Joseph Sabatine, the General Manager of its subsidiary, Chroma Systems Solutions, Inc.

i. Compensation of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 353,654	$ 260,165
Post-employment benefits	3,749	2,983
Share-based payments	30,243	27,645
	$ 387,646	$ 290,793

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

59 -

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The assets pledged as collaterals for bank loans and product warranties were as follows:

	December 31
	2025	2024
Property, plant and equipment, net	$ 206,296	$ 115,803
Pledged deposits (classified as financial assets measured at amortized cost)	7,108	6,106
	$ 213,404	$ 121,909

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. Chroma's subsidiary, MAS Automation Corporation ("MAS"), entered into an Equipment Purchase Agreement (the "Agreement") with LINCO Technology Co., Ltd. ("LINCO") in 2017, in which MAS entrusted LINCO to manufacture automation equipment. However, during the delivery process, LINCO failed to provide several critical parts and refused to cooperate during the installation process. As a result, MAS claimed a delay penalty of approximately US$83,455 thousand against LINCO.

In response, LINCO alleged that MAS had breached its payment obligation under the Agreement and filed a counterclaim against MAS in the Taiwan Taoyuan District Court on October 30, 2019, claiming for the payment of approximately US$8,240 thousand along with interest.

The aforementioned case was pronounced by the Taoyuan District Court on May 30, 2023, with MAS losing the lawsuit. However, LINCO also lost the counterclaim. Both parties have appealed for a second trial to the High Court. As of December 31, 2025, the lawsuit has not yet been settled and the outcome of the judgment cannot be evaluated.

b. As of December 31, 2025 and 2024, the Group engaged financial institutions to issue performance guarantee letters for import and export of goods, lease agreements, and R&D subsidies, amounting to $86,842 thousand and $101,017 thousand, respectively.

c. As of December 31, 2025 and 2024, the Group had outstanding promissory notes issued for research and development projects and business purposes, amounting to $180,600 thousand and $175,681 thousand, respectively.

d. As of December 31, 2025 and 2024, the Group engaged financial institutions to issue warranty guarantee letters to fulfill contractual warranty obligations, amounting to $101,892 thousand and $413,357 thousand, respectively.

e. In response to future production and research and development requirements, the Group entered into construction contracts for property, plant and equipment relating to the second-phase factory and office building on self-owned land. The commitments were as follows:

	December 31
	2025	2024
Unrecognized commitments	$ 403,083	$ 1,574,649
Recognized commitments (classified as prepayments for equipment and construction)	$ 3,507,132	$ 2,335,566

31. 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:

December 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 151,845	31.430 (USD:NTD)	$ 4,772,504
USD	77,210	7.784 (USD:HKD)	2,426,699
USD	7,945	26,315.789 (USD:VND)	249,723
RMB	494,658	4.496 (RMB:NTD)	2,223,981
RMB	347,397	1.113 (RMB:HKD)	1,561,898
			$ 11,234,805
Non-monetary items
Investments accounted for using the equity method
USD	101,912	31.430 (USD:NTD)	$ 3,203,099
Financial liabilities
Monetary items
USD	25,801	31.430 (USD:NTD)	$ 810,911
USD	10,073	26,315.789 (USD:VND)	316,604
USD	5,414	4.202 (USD:MRY)	170,151
USD	5,300	7.784 (USD:HKD)	166,594
RMB	315,761	1.113 (RMB:HKD)	1,419,663
			$ 2,883,923
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 122,900	32.785 (USD:NTD)	$ 4,029,285
USD	20,502	7.765 (USD:HKD)	672,159
USD	14,728	1.359 (USD:SGD)	482,852
RMB	233,815	4.478 (RMB:NTD)	1,047,024
RMB	188,996	1.061 (RMB:HKD)	846,326
			$ 7,077,646
			(Continued)

	Foreign Currency	Exchange Rate	Carrying Amount
Non-monetary items
Investments accounted for using the equity method
USD	$ 93,302	32.785 (USD:NTD)	$ 3,058,900
Financial liabilities
Monetary items
USD	13,333	32.785 (USD:NTD)	$ 437,115
USD	5,325	7.765 (USD:HKD)	174,571
RMB	173,623	1.061 (RMB:HKD)	777,485
			$ 1,389,171
			(Concluded)

Realized and unrealized net foreign exchange gains (losses) were $1,303 thousand and $250,220 thousand for the years ended December 31, 2025 and 2024, respectively. It is impractical to disclose net foreign exchange gains by each significant foreign currency due to the variety of the foreign currency transactions of the entities in the Group.

32. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others: Table 1.
2) Endorsements/guarantees provided: Table 2.
3) Significant marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Table 3.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5.
6) Others: Intercompany relationships and significant intercompany transactions: Table 6.

b. Information on investees: Table 7

c. Information on investments in mainland China

1) 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, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 8.

2) 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:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year: Table 4.
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year: Table 4.
c) The amount of property transactions and the amount of the resultant gains or losses: None.
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: Table 2.
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds: Table 1.
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: Table 6.

33. SEGMENT INFORMATION

Information reported to the Group's chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of products delivered or services provided. The Group's reportable segments are as follows:

a. Test instrument department.
b. Automatic equipment department.
c. Other

1) Segment revenues and results

	Test Instrument Department	Automatic Equipment Department	Other	Elimination	Total
For the year ended December 31, 2025
Revenue from external customers	$ 27,166,591	$ 883,042	$ 261,302	$ -	$ 28,310,935
Inter-segment revenue	18,913,671	362,310	58,587	(19,334,568)	-
Consolidated revenue	$ 46,080,262	$ 1,245,352	$ 319,889	$ (19,334,568)	$ 28,310,935
Segment income	$ 8,819,960	$ 234,417	$ 474	$ 142,665	$ 9,197,516
Non-operating income and expenses					4,720,245
Profit before tax					$ 13,917,761
For the year ended December 31, 2024
Revenue from external customers	$ 20,418,424	$ 872,293	$ 313,120	$ -	$ 21,603,837
Inter-segment revenue	13,001,125	576,825	856	(13,578,806)	-
Consolidated revenue	$ 33,419,549	$ 1,449,118	$ 313,976	$ (13,578,806)	$ 21,603,837
Segment income	$ 5,250,899	$ 83,120	$ 12,088	$ 136,059	$ 5,482,166
Non-operating income and expenses					1,226,397
Profit before tax					$ 6,708,563

The sales between segments are based on fair value.

The above revenues were generated through transactions with external customers and among segments. The inter-segment revenues for the years ended December 31, 2025 and 2024 had been adjusted and eliminated from the consolidated financial statements.

Segment profit represents the profit before tax earned by each segment without allocation of central administration costs, and remuneration of directors, non-operating revenue and expenses. This was the measure reported to the Group's chief operating decision maker to allocate resources to each segment and evaluate its performance.

2) Segment assets and liabilities

The assets and liabilities of the Group have not been provided to the operating decision maker; hence, the valuation amounts of assets and liabilities are not disclosed.

3) Geographical information

The Group's primary operating areas are Taiwan, Republic of China, America, and others.

The Group's revenue from external customers by location of operations and information about its non-current assets by geographical location are detailed below.

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31
	2025	2024	2025	2024
Taiwan	$ 8,943,662	$ 5,992,209	$ 11,838,463	$ 10,972,351
China	7,231,763	6,788,805	648,284	603,169
America	9,021,295	6,429,099	1,194,299	1,006,157
Others (Note)	3,114,215	2,393,724	649,852	474,484
	$ 28,310,935	$ 21,603,837	$ 14,330,898	$ 13,056,161

Note: Including all area amount of non-significant subsidiaries.

Non-current assets exclude non-current assets classified as financial instruments, investments accounted for using the equity method, and deferred tax assets.

4) Information about major customers

Included in revenue of $28,310,935 thousand and $21,603,837 thousand in 2025 and 2024, respectively, is revenue of approximately $5,100,376 thousand and $3,585,354 thousand which arose from sales to the Group's largest customer. No other single customers contributed 10% or more to the Group's revenue for both 2025 and 2024.

TABLE 1

CHROMA ATE INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate	Nature of Financing (Note 4)	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
0	The Corporation	Chroma Japan Corp.	Other receivables	Y	$ 236,346	$ 231,272	$ 156,350	1.70%	a	$ 450,758	-	$ -	-	$ -	$ 3,189,773 (Note 1)	$ 6,379,546 (Note 2)
		Chroma Germany GmbH	Other receivables	Y	147,600	147,600	130,892	2.60%	b	-	Working capital turnover	-	-	-	3,189,773 (Note 1)	6,379,546 (Note 2)

Note 1: Based on 10% of the net value of the Corporation.
Note 2: Based on 20% of the net value of the Corporation.
Note 3: The amounts listed in the table were translated into the New Taiwan dollars at the exchange rate of JPY1=NT$0.2008, EUR1=NT$36.90 as of December 31, 2025.
Note 4: Financing provided:

a. For transactions.
b. For short-term financing.

TABLE 2

CHROMA ATE INC. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee		Limits on Endorsement/Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/Guaranteed During the Period	Outstanding Endorsement/Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/Guaranteed by Collateral	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements	Aggregate Endorsement Guarantee Limit (Note 2)	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	The Corporation	Chroma ATE Inc.	Subsidiary	$ 4,784,660	$ 125,720	$ 125,720	$ -	$ -	0.39%	$ 9,569,320	Y	-	-
		Chroma Japan Corp.	Subsidiary	4,784,660	102,408	102,408	71,942	-	0.32%	9,569,320	Y	-	-
		Chroma ATE (Suzhou) Co., Ltd.	Subsidiary	4,784,660	674,400	539,520	93,333	-	1.69%	9,569,320	Y	-	Y
		Chroma ATE Europe B.V.	Subsidiary	4,784,660	55,350	55,350	-	-	0.17%	9,569,320	Y	-	-
		Chroma Electronics (Shanghai) Co., Ltd.	Subsidiary	4,784,660	224,800	224,800	-	-	0.70%	9,569,320	Y	-	Y
		Sajet System Technology (Suzhou) Co., Ltd.	Subsidiary	4,784,660	22,480	13,488	-	-	0.04%	9,569,320	Y	-	Y
		Mas Automation Corp.	Subsidiary	4,784,660	100,000	-	-	-	-	9,569,320	Y	-	-

Note 1: According to Regulation of the "Procedures for Endorsement/Guarantee and lending of Funds", the Corporation limits the endorsement/guarantee amount on each entity to within 15% of the net value of the Corporation.
Note 2: According to Regulation of the "Procedures for Endorsement/Guarantee and Lending of Funds", the Corporation limits the endorsement/guarantee amount within the 30% of the net value of the Corporation.
Note 3: The amounts listed in columns were translated into New Taiwan dollars at the exchange rate of US$1=NT$31.430, JPY1=NT$0.2008, RMB1=NT$4.496, EUR1=NT$36.90, as of December 31, 2025.

TABLE 3

CHROMA ATE INC. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Shares/Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation	Fund
	Mega Diamond Money Market Fund	-	Financial assets at fair value through profit or loss - current	15,076	$ 200,171	-	$ 200,171	-
	Yuanta Wan Tai Money Market Fund	-	n	12,511	200,166	-	200,166	-
	WI Harper INC Fund VII LP	-	Financial assets at fair value through profit or loss - non-current	-	2,303	-	2,303	-
	Debt
	Enteligent Inc. Convertible bonds	-	n	-	77,915	-	77,915	-
	Shares
	Adlink Technology Inc.	-	Financial assets at fair value through profit or loss - current	10,271	649,143	4.7	649,143	Note 2
	DynaColor, Inc.	-	Financial assets at fair value through other comprehensive income - non-current	6,050	243,525	6.1	243,525	-
	Chunghwa Telecom Co., Ltd.	-	n	412	53,816	-	53,816	-
	China Communications Media Group Co., Ltd.	-	n	10	-	-	-	-
	Tian Zheng International Precision Machinery Co., Ltd.	-	n	2,681	227,855	6.5	227,855	-
	Twoway Catv Service Inc.	-	n	3,556	271,647	3.7	271,647	-
	Taiwan Advanced Nanotech Inc.	-	n	3,475	70,189	11.3	70,189	-
	TFBS Bioscience, Inc.	-	n	2,675	112,461	7.7	112,461	-
	WK Technology Fund IX Ltd.	-	n	2,303	38,880	4.6	38,880	-
	WK Technology Fund IX II Ltd.	-	n	6,000	50,358	5.3	50,358	-
	Gaius Automotive Inc.	-	n	1,800	20,940	2.2	20,940	-
	Enteligent Inc.	-	n	1,662	62,158	5.4	62,158	-
Chroma Systems Solutions, Inc.	Fund
	Franklin California Tax Free Income FD Inc.	-	Financial assets at fair value through profit or loss - current	485	103,300	-	103,300	-
Fidelity Government Money Market	-	n		233,161	-	233,161	-
Chroma Investment Co., Ltd.	Fund
	Hua Nan Kirin Money Market Fund	-	n	499	6,301	-	6,301	-
	Taishin 1699 Money Market Fund	-	n	1,793	25,767	-	25,767	-
	Taishin Ta-Chong Money Market Fund	-	n	1,003	15,088	-	15,088	-

(Continued)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Shares/Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
	Shares
	Greatek Electronics Inc.	-	Financial assets at fair value through profit or loss - current	85	$ 7,570	-	$ 7,570	-
	Hephas Energy Co., Ltd.	-	〃	2,267	72,978	6.7	72,978	-
	Chroma ATE Inc.	The Corporation	Financial assets at fair value through other comprehensive income - non-current	1,655	1,282,299	0.4	1,282,299	-
	Taiwan Advanced Nanotech Inc.	-	〃	790	15,952	2.6	15,952	-
	Cosmactive Broadband Networks Co., Ltd.	-	〃	4	-	0.6	-	-
	Prance Systems Technology Corporation	-	〃	111	-	5.1	-	-
Innovative Nanotech Incorporated	Fund
Testar Electronics Corporation	Mega Diamond Money Market Fund	-	Financial assets at fair value through profit or loss - current	1,527	20,270	-	20,270	-
	Fund
	Mega Diamond Money Market Fund	-	〃	9,811	130,258	-	130,258	-

Note 1: The fair value of open-ended beneficiary certificates and listed market securities were calculated based on the net asset value and closing price as of balance sheet date.
Note 2: Refer to Note 13.

(Concluded)

TABLE 4

CHROMA ATE INC. AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchases (Sales)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Corporation	Neworld Electronics Limited	Subsidiary	(Sales)	$ (3,881,015)	(18)	Note	-	-	$ 1,484,370	16	-
	Chroma Electronics (Shanghai) Co., Ltd.	Subsidiary	(Sales)	(109,971)	-	Note	-	-	2,848	-	-
	Chroma ATE Inc.	Subsidiary	(Sales)	(5,297,887)	(24)	Note	-	-	2,368,214	26	-
	Chroma Systems Solutions Inc.	Subsidiary	(Sales)	(982,114)	(4)	Net 120 days after delivery	-	-	254,336	3	-
	Chroma ATE Europe B.V.	Subsidiary	(Sales)	(214,580)	(1)	Note	-	-	235,749	3	-
	Chroma Japan Corp.	Subsidiary	(Sales)	(450,758)	(2)	Note	-	-	511,209	6	-
	Chroma ATE (Suzhou) Co., Ltd.	Subsidiary	(Sales)	(520,930)	(2)	Note	-	-	123,089	1	-
	Quantel Private Ltd.	Subsidiary	(Sales)	(1,389,154)	(6)	Net 90 days after delivery	-	-	502,874	5	-
	Smartrise Semiconductor (Shanghai) Co., Ltd.	Subsidiary	(Sales)	(1,207,658)	(5)	Note	-	-	524,412	6	-
Neworld Electronics Limited	Chroma Electronics (Shenzhen) Co., Ltd.	Subsidiary	(Sales)	(2,238,134)	(53)	Net 90 days after delivery	-	-	1,200,918	63	-
	Chroma Electronics (Shanghai) Co., Ltd.	Subsidiary	(Sales)	(198,083)	(5)	Net 90 days after delivery	-	-	14,176	1	-
	Chroma ATE (Suzhou) Co., Ltd.	Same parent company	(Sales)	(460,210)	(11)	Net 90 days after declaration	-	-	256,389	14	-
Chroma Electronics (Shenzhen) Co., Ltd.	Chroma ATE (Dongguan) Co., Ltd.	Subsidiary	(Sales)	(183,986)	(7)	Net 120 days after delivery	-	-	155,044	14	-
Quantel Private Ltd.	Quantel Global Vietnam Co., Ltd.	Subsidiary	(Sales)	(367,271)	(19)	Net 90 days after declaration	-	-	316,604	44	-
	Quantel Global Sdn. Bhd.	Subsidiary	(Sales)	(168,798)	(9)	Net 90 days after declaration	-	-	19,298	3	-
Wei Kuang Mech. Eng. (Nanjing) Co., Ltd.	Chroma ATE (Suzhou) Co., Ltd.	Same parent company	(Sales)	(208,309)	(82)	Net 90 days after delivery	-	-	93,691	56	-

Note: The actual credit period is longer than other customers, the recovery of receivables depends on the related parties' financial position.

TABLE 5

CHROMA ATE INC. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period (Note)	Allowance for Impairment Loss
					Amount	Action Taken
The Corporation	Neworld Electronics Limited	Subsidiary	Trade receivables $ 1,484,370	3.26	$ -	-	$ 259,045	$ -
	Chroma ATE Inc.	Subsidiary	Trade receivables 2,368,214	2.08	-	-	2,208	-
	Chroma Systems Solutions Inc.	Subsidiary	Trade receivables 254,336	3.66	-	-	63,586	-
	Chroma ATE Europe B.V.	Subsidiary	Trade receivables 235,749	1.16	15,279	-	-	-
	Chroma Germany GmbH	Subsidiary	Other receivables - financing provided	130,892	-	-	-	-
	Chroma Japan Corp.	Subsidiary	Trade receivables 511,209	1.07	48,671	-	-	-
	Chroma Japan Corp.	Subsidiary	Other receivables - financing provided	156,350	-	-	108,315	-
	Chroma ATE (Suzhou) Co., Ltd.	Subsidiary	Trade receivables 123,089	3.60	-	-	-	-
	Quantel Private Ltd.	Subsidiary	Trade receivables 502,874	4.96	-	-	139,416	-
	Smartrise Semiconductor (Shanghai) Co., Ltd.	Subsidiary	Trade receivables 524,412	4.17	-	-	150,168	-
Neworld Electronics Limited	Chroma Electronics (Shenzhen) Co., Ltd.	Subsidiary	Trade receivables 1,200,918	2.35	-	-	62,812	-
	Chroma ATE (Suzhou) Co., Ltd.	Same parent company	Trade receivables 256,389	2.43	-	-	21,443	-
Chroma Electronics (Shenzhen) Co., Ltd.	Chroma ATE (Dongguan) Co., Ltd.	Subsidiary	Trade receivables 155,044	1.50	28,714	-	-	-
Quantel Private Ltd.	Quantel Global Vietnam Co., Ltd.	Subsidiary	Trade receivables 316,604	2.15	89,422	-	-	-

Note: As of January 31, 2026.

TABLE 6

CHROMA ATE INC. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Company Name	Counterparty	Flow of Transactions (Note 1)	Transaction Details			Percentage to Consolidated Total Operating Revenues or Total Assets
				Account	Amount	Transaction Terms
0	The Corporation	Neworld Electronics Limited	a	Operating revenue	$ 3,881,015	Note 2	14
		Neworld Electronics Limited	a	Trade receivables	1,484,370	Based on regular terms	3
		Chroma Electronics (Shanghai) Co., Ltd.	a	Operating revenue	109,971	Note 2	-
		Chroma ATE Inc.	a	Operating revenue	5,297,887	Note 2	19
		Chroma ATE Inc.	a	Trade receivables	2,368,214	Based on regular terms	5
		Chroma Systems Solutions Inc.	a	Operating revenue	982,114	Note 2	3
		Chroma Systems Solutions Inc.	a	Trade receivables	254,336	Based on regular terms	1
		Chroma ATE Europe B.V.	a	Operating revenue	214,580	Note 2	1
		Chroma ATE Europe B.V.	a	Trade receivables	235,749	Based on regular terms	1
		Chroma Germany GmbH	a	Other receivables - financing provided	130,892	Based on regular terms	-
		Chroma Japan Corp.	a	Operating revenue	450,758	Note 2	2
		Chroma Japan Corp.	a	Trade receivables	511,209	Based on regular terms	1
		Chroma Japan Corp.	a	Other receivables - financing provided	156,350	Based on regular terms	-
		Chroma ATE (Suzhou) Co., Ltd.	a	Operating revenue	520,930	Note 2	2
		Chroma ATE (Suzhou) Co., Ltd.	a	Trade receivables	123,089	Based on regular terms	-
		Quantel Private Ltd.	a	Operating revenue	1,389,154	Note 2	5
		Quantel Private Ltd.	a	Trade receivables	502,874	Based on regular terms	1
		Smartrise Semiconductor (Shanghai) Co., Ltd.	a	Operating revenue	1,207,658	Note 2	4
		Smartrise Semiconductor (Shanghai) Co., Ltd.	a	Trade receivables	524,412	Based on regular terms	1
1	Neworld Electronics Limited	Chroma Electronics (Shenzhen) Co., Ltd.	a	Operating revenue	2,238,134	Based on regular terms	8
		Chroma Electronics (Shenzhen) Co., Ltd.	a	Trade receivables	1,200,918	Based on regular terms	3
		Chroma Electronics (Shanghai) Co., Ltd.	a	Operating revenue	198,083	Based on regular terms	1
		Chroma ATE (Suzhou) Co., Ltd.	b	Operating revenue	460,210	Based on regular terms	2
		Chroma ATE (Suzhou) Co., Ltd.	b	Trade receivables	256,389	Based on regular terms	1
2	Chroma Electronics (Shenzhen) Co., Ltd.	Chroma ATE (Dongguan) Co., Ltd.	a	Operating revenue	183,986	Based on regular terms	1
		Chroma ATE (Dongguan) Co., Ltd.	a	Trade receivables	155,044	Based on regular terms	-
3	Quantel Private Ltd.	Quantel Global Vietnam Co., Ltd.	a	Operating revenue	367,271	Based on regular terms	1
		Quantel Global Vietnam Co., Ltd.	a	Trade receivables	316,604	Based on regular terms	1
		Quantel Global Sdn. Bhd.	a	Operating revenue	168,798	Based on regular terms	1
4	Wei Kuang Mech. Eng. (Nanjing) Co., Ltd.	Chroma ATE (Suzhou) Co., Ltd.	b	Operating revenue	208,309	Based on regular terms	1

Note 1: a. From parent to subsidiary.
b. Between subsidiaries.

Note 2: The prices were determined after taking the selling and post-sale service expenses into consideration.

Note 3: Transaction amounting to at least NT$100,000 thousand was disclosed.

TABLE7

CHROMA ATE INC. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investor	Investor	Location	Main Businesses and Products	Investment Amount	Balance as of December 31, 2025	Net Income (Loss) of the Investor	Investment Gain (Loss)	Note
December 31, 2025	December 31, 2024	Shares	Percentage of Ownership	Carrying Amount
The Corporation	Neworld Electronics Limited	Hong Kong	Sale and maintenance of electronic test instruments, etc.	$ 271,873	$ 271,873	64,012,815	100.0	$ 1,821,545
Mas Automation Corp.	Hsinchu, Taiwan	Design, manufacturing, installment and testing of automated factory conveyor systems	533,000	533,000	10,000,000	100.0	256,028	118,790
Chroma ATE Inc.	USA	Sale and maintenance of electronic test instruments, etc.	29,895	29,895	1,000,000	100.0	1,015,396	580,029
Chroma Systems Solutions Inc.	USA	Sale and maintenance of electronic test instruments, etc.	501,198	292,067	168,000	35.0	156,524	494,722
Chroma ATE Europe B.V.	The Netherlands	Sale and maintenance of electronic test instruments, etc.	54,026	54,026	1,000	100.0	(49,973)	(89,236)
Chroma Germany GmbH	Germany	Sale and maintenance of electronic test instruments, etc.	97,974	97,974	2,030,000	100.0	88,957	(22,176)
Chroma Japan Corp.	Japan	Sale and maintenance of electronic test instruments, etc.	242,863	201,750	10,970	100.0	(98,259)	53,989
CHI Incorporation Ltd.	British Virgin Islands	Test of inductance, capacitance and resistance and sale of parts	122,884	122,884	3,830,000	100.0	468,753	59,746
Chen Hwu Technology Inc.	British Virgin Islands	Test of inductance, capacitance and resistance and sale of parts	88,914	88,914	2,800,000	100.0	90,572	2,559
San Eagle Development Corp.	British Virgin Islands	Investment	186,514	186,514	2,050,000	100.0	725,921	85,778
Sensational Holdings Ltd.	British Virgin Islands	Investment	38,301	38,301	1,200,000	100.0	65,316	2,674
Deep Red Holding Co., Ltd.	Mauritius	Investment	12,217	12,217	215,000	100.0	77,789	17,588
Textar Electronics Corporation	Taoyuan, Taiwan	Testing of LED	247,096	247,096	20,159,600	67.2	185,600	13,398
Adivic Technology Co., Ltd.	Taoyuan, Taiwan	Sale and research of RF device	473,800	373,800	20,040,000	91.1	125,225	(26,360)
Chroma Investment Co., Ltd.	Taoyuan, Taiwan	Investment	80,000	80,000	14,000,000	100.0	189,434	5,962
Quantel Private Ltd.	Singapore	Sale of test instruments, etc.	112,328	112,328	1,914,000	60.0	369,353	303,377
EVT Technology Co., Ltd.	Taoyuan, Taiwan	Manufacturing of motorcycles and its parts	-	-	-	-	-	3,939
Innovative Nanotech Incorporated	Hsinchu, Taiwan	Monitoring instruments of nanoparticles	142,140	142,140	14,214,000	67.2	229,266	105,434
Touch IntelliConnect Inc.	Taipei, Taiwan	Intelligent data IoT device integration, platform design, and system solutions	110,457	110,457	11,045,667	83.1	(1,853)	(7,880)
Chroma Europe Holding B.V.	The Netherlands	Investment	-	-	-	100.0	-	-
Adlink Technology Inc.	Taoyuan, Taiwan	Manufacturing, processing and retailing of software/hardware of computers and peripherals	-	88,896	-	-	-	50,967
DynaScan Technology Corp.	Taoyuan, Taiwan	Research and manufacture of LED generators	238,746	238,746	9,841,112	27.3	306,445	289,851
NanoSecX Inc.	Hsinchu, Taiwan	Manufacturing of semiconductor and X-ray metrology equipment	183,120	33,120	183,120,000	47.7	179,338	(8,777)
Cantek Ltd.	Israel	Automatic optical inspection equipment	2,342,340	2,342,340	7,817,440	17.1	4,435,581	4,286,533
Chih Ho Shun Development Co., Ltd.	Taoyuan, Taiwan	Construction and development of residence, buildings and specialized field; construction and investment of public works	17,500	17,500	1,750,000	35.0	15,739	9,067
Chroma ATE Inc.	Chroma Systems Solutions Inc.	USA	Sale and maintenance of electronic test instruments, etc.	64	64	240,000	50.0	678,300
San Eagle Development Corp.	Wei Kuang Mech. Eng. Inc.	Mauritius	Investments	185,686	185,686	4,475,000	100.0	718,932
Quantel Private Ltd.	Quantel Technologies India Private Ltd.	India	Sale of test instruments, etc.	3,056	3,056	64,999	100.0	8,504
Quantel Global Vietnam Co., Ltd.	Vietnam	Sale of test instruments, etc.	16,071	16,071	-	100.0	38,921	22,140
Quantel Global Sdn. Bhd.	Malaysia	Sale of test instruments, etc.	4,199	4,199	2,004,000	100.0	37,313	6,062
Quantel Global Philippines Corporation	Philippines	Sale of test instruments, etc.	16,486	610	384,095	100.0	26,048	721
Quantel Global Company Limited	Thailand	Sale of test instruments, etc.	22,884	22,884	273,461	100.0	26,666	(18,683)
PT Quantel	Indonesia	Sale of test instruments, etc.	18,514	18,514	1,110,888	100.0	14,527	(2,757)
Chroma Investment Co., Ltd.	Textar Electronics Corporation	Taoyuan, Taiwan	Testing of LED	11,250	11,250	4,500,000	15.0	45,202

Note 1: For amounts that were translated from foreign currencies, the amount of the original investment was translated into New Taiwan dollars at the historical exchange rate, while the amount of net income (loss) of the investee and investment gain (loss) were translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2025. Other amounts were translated into New Taiwan dollars at the spot exchange rate on December 31, 2025.
Note 2: Chroma Europe Holding B.V. was established in September 2025, and no investment amount was recorded on the license.
Note 3: Refer to Note 13.

TABLE 8

CHROMA ATE INC. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investee Company	Main Businesses and Products	Paid-in Capital (Note 2)	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 (Note 3)	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025 (Note 3)	Net Income (Loss) of the Investee	Percentage of Ownership in Investment	Investment Gain (Loss) (Notes 4 and 5)	Carrying Amount as of December 31, 2025 (Note 2)	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outward	Inward
Chroma Electronics (Shenzhen) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	$ 121,140 (HK$ 30,000)	b. Subsidiary of Neworld Electronics Limited	$ 132,178 (HK$ 1,200 US$ 3,853)	$ -	$ -	$ 132,178 (HK$ 1,200 US$ 3,853)	$ 129,817	100	$ 129,817	$ 1,176,018	$ 531,848 (RMB 119,748)
Chroma Electronics (Shanghai) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	94,290 (US$ 3,000)	b. Subsidiary of Neworld Electronics Limited	101,993 (US$ 3,000)	-	-	101,993 (US$ 3,000)	150,064	100	150,064	616,484	102,062 (RMB 23,443)
Chroma (Shanghai) Trading Co., Ltd.	International and transit trading, commercial simple processing and commercial consulting service, etc.	84,861 (US$ 2,700)	b. Subsidiary of Chen Hwa Technology Inc.	84,988 (US$ 2,700)	-	-	84,988 (US$ 2,700)	2,415	100	2,415	80,093	-
Chroma ATE (Suzhou) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	119,434 (US$ 3,800)	b. Subsidiary of CHI Incorporation Ltd.	121,115 (US$ 3,800)	-	-	121,115 (US$ 3,800)	59,745	100	59,745	684,532	135,357 (US$ 4,343)
Wei Kuang Mech. Eng. (Nanjing) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	53,372 (RMB 11,871)	b. Subsidiary of Wei Kuang Mech. Eng. Inc.	43,751 (US$ 1,338)	-	-	43,751 (US$ 1,338)	63,918	100	63,918	317,291	517,575 (US$ 16,149)
Wei Kuang Automatic Equipment (Xiamen) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	51,331 (RMB 11,417)	b. Subsidiary of Wei Kuang Mech. Eng. Inc.	49,935 (US$ 1,500)	-	-	49,935 (US$ 1,500)	21,851	100	21,851	394,495	290,824 (US$ 8,950)
Sajet System Technology (Suzhou) Co., Ltd.	Research, development and design of computer network security systems and information management	37,650 (RMB 8,374)	b. Subsidiary of Deep Red Holding Co., Ltd.	(Note 7)	-	-	(Note 7)	17,775	100	17,775	76,687	91,726 (US$ 2,950)
Chroma ATE (Dongguan) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	184,336 (RMB 41,000)	c. Subsidiary of Chroma Electronics (Shenzhen) Co., Ltd.	-	-	-	-	10,360	100	10,360	196,637	-
Smartrise Semiconductor (Shanghai) Co., Ltd.	Sales of semiconductor equipment	159,608 (RMB 35,500)	c. Subsidiary of Chroma Electronics (Shanghai) Co., Ltd.	-	-	-	-	131,168	100	131,168	280,771	-
Chroma ATE (Xiamen) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	35,968 (RMB 8,000)	c. Subsidiary of Chroma ATE (Suzhou) Co., Ltd.	-	-	-	-	3,040	100	3,040	38,977	-

(Continued)

Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$533,960
(HK$1,200, US$16,191)	$623,006
(HK$1,400, US$18,926)	$19,138,639
(Note 6)

Note 1: Methods of investment have following type:
a. Direct investment in mainland China.
b. Indirect investment in mainland China through an existing company in a third region.
c. Others.

Note 2: The amounts of paid-in capital and carrying value as of balance sheet date were translated into New Taiwan dollars at the rates of HK$1=NT$4.038, US$1=NT$31.430, RMB1=NT$4.496 prevailing on December 31, 2025.

Note 3: The amounts of accumulated outflow of investment from Taiwan as of January 1, 2025 and December 31, 2025 were translated into the New Taiwan dollars on the original outflow day.

Note 4: Based on audited financial statements.

Note 5: Investment income (loss) was translated into New Taiwan dollars at the average rate of HK$1=NT$4.000, US$1=NT$31.180, RMB1=NT$4.333 for the year ended December 31, 2025.

Note 6: The upper limit on investment was calculated in accordance with the regulations of the Investment Commission of the Ministry of Economic Affairs for 60% of the net equity or consolidated net equity.

Note 7: The investment in Sajet Technology Inc. (liquidated on September 15, 2008) was authorized by the Investment Commission in 2004.

(Concluded)

AI assistant

CHROMA — Audit Report / Information 2025

52029_rns_2026-04-27_39abb686-6eb8-4300-9491-8d3c1ffac59a.pdf

Chroma ATE Inc. and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

The Occurrence of Revenue Recognition

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Key Sources of Estimation Uncertainty

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST

11. INVENTORIES

12. SUBSIDIARIES

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

15. LEASE ARRANGEMENTS

16. INVESTMENT PROPERTIES

17. BORROWINGS

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

20. EQUITY

22. NET PROFIT

24. EARNINGS PER SHARE

Net Profit for the Year

Shares

25. SHARE-BASED PAYMENT ARRANGEMENTS

Restricted Shares for Employees

26. CAPITAL MANAGEMENT

27. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

28. TRANSACTIONS WITH RELATED PARTIES

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

32. SEPARATELY DISCLOSED ITEMS

33. SEGMENT INFORMATION

CHROMA ATE INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

More from CHROMA

CHROMA Audit Report / Information 2025