Chroma ATE Inc.

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

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 parent company only financial statements of Chroma ATE Inc. (the “Corporation”), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, based on our audits and the report of other auditors (refer to the Other Matter paragraph), the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Corporation as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 Parent Company Only Financial Statements section of our report. We are independent of the Corporation 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 parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only 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 parent company only financial statements for the year ended December 31, 2025 is stated as follows:

Appropriateness of the Revenue cutoff

The Corporation is mainly engaged in the manufacture and sale of test instruments applied in power electronic testing solutions, electric vehicle and battery testing solutions as well as customized products. The Corporation has a worldwide sales network with a widely diverse and dispersed customer base, engaging in a high volume of transactions with significant amounts. The timing of revenue recognition varies depending on different commercial terms with customers, resulting in the transfer timing of the promised goods to customers may be different. Therefore, mistakes may occur in the evaluation process, and revenue could be recorded in the incorrect reporting period.

The main audit procedures we performed for the aforementioned matter are as follows:

We obtained an understanding of, and inspected, the terms of the sales contracts or customer purchase orders to identify the appropriate point of revenue recognition.
We obtained an understanding of and evaluated the process and related controls over revenue recognition.
We performed cutoff testing procedures covering a certain period before and after the balance sheet date and inspected relevant supporting documents to determine whether performance obligations had been satisfied, to ensure that revenue was recognized in the correct reporting period, as evidenced by sales terms.

Other Matter

The parent company only financial statements of some investees included in the parent company only financial statements were audited by other auditors. Our opinion, insofar as it relates to the amounts included in the accompanying parent company only 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 10% and 13%, 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 10%, respectively, of the profit before income tax.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Corporation'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 Corporation 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 Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only 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 parent company only 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 Corporation’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 Corporation’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 parent company only 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 Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only 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 Corporation to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the Corporation audit. We remain solely responsible for our audit opinion.
3 -

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 parent company only 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 parent company only financial statements are intended only to present the parent company only 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 parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying parent company only 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 parent company only financial statements shall prevail.

CHROMA ATE INC.

PARENT COMPANY ONLY 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)	$ 2,929,462	7	$ 809,780	2
Financial assets at fair value through profit or loss (Note 7)	1,049,480	2	-	-
Notes receivable	800	-	164	-
Notes receivable - related parties (Note 26)	-	-	252	-
Trade receivables (Note 9)	3,034,693	7	1,456,631	4
Trade receivables - related parties (Notes 9 and 26)	6,142,272	14	4,989,358	15
Other receivables - related parties (Note 26)	353,244	1	182,349	1
Inventories (Note 10)	5,549,073	13	3,861,769	11
Non-current assets held for sale (Note 14)	111,147	-	-	-
Other current assets	249,983	1	215,467	1
Total current assets	19,420,154	45	11,515,770	34
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)	1,151,829	3	1,209,291	4
Investments accounted for using the equity method (Notes 11 and 26)	10,652,697	25	10,033,926	29
Property, plant and equipment (Notes 12 and 26)	5,523,562	13	5,649,734	17
Right-of-use assets (Note 13)	56,221	-	83,013	-
Investment properties (Note 14)	1,712,338	4	2,478,333	7
Goodwill	94,424	-	94,424	-
Intangible assets	87,724	-	54,124	-
Deferred tax assets (Note 21)	392,414	1	284,036	1
Prepayments for equipment and construction (Notes 26 and 27)	4,079,517	9	2,589,771	8
Refundable deposits	11,149	-	11,206	-
Total non-current assets	23,842,093	55	22,568,388	66
TOTAL	$ 43,262,247	100	$ 34,084,158	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 15)	$ -	-	$ 1,329,507	4
Contract liabilities (Notes 19 and 26)	211,001	-	178,199	-
Trade payables	3,348,145	8	2,085,302	6
Trade payables - related parties (Note 26)	113,135	-	68,383	-
Other payables (Notes 16 and 26)	2,155,510	5	1,546,981	5
Current tax liabilities	693,931	2	605,160	2
Lease liabilities (Notes 13 and 26)	21,653	-	49,709	-
Other current liabilities	36,717	-	35,245	-
Total current liabilities	6,580,092	15	5,898,486	17
NON-CURRENT LIABILITIES
Long-term borrowings (Note 15)	3,140,000	7	2,000,000	6
Deferred tax liabilities (Note 21)	1,508,934	4	1,163,710	4
Lease liabilities (Notes 13 and 26)	37,645	-	45,095	-
Net defined benefit liabilities (Note 17)	77,241	-	79,587	-
Guarantee deposits received	20,603	-	20,601	-
Total non-current liabilities	4,784,423	11	3,308,993	10
Total liabilities	11,364,515	26	9,207,479	27
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 18)
Ordinary share capital	4,252,457	10	4,253,220	12
Capital surplus	4,212,580	10	4,597,402	14
Retained earnings
Legal reserve	4,655,502	11	4,142,360	12
Special reserve	86,888	-	86,888	-
Unappropriated earnings	18,082,744	42	10,934,111	32
Total retained earnings	22,825,134	53	15,163,359	44
Other equity	638,429	1	893,566	3
Treasury shares	(30,868)	-	(30,868)	-
Total equity	31,897,732	74	24,876,679	73
TOTAL	$ 43,262,247	100	$ 34,084,158	100

The accompanying notes are an integral part of the parent company only financial statements.

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

CHROMA ATE INC.

PARENT COMPANY ONLY 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 19 and 26)	$ 22,012,159	100	$ 15,652,069	100
OPERATING COSTS (Notes 10, 20 and 26)	9,841,493	45	6,950,372	45
GROSS PROFIT	12,170,666	55	8,701,697	55
UNREALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES AND ASSOCIATES	(578,205)	(2)	-	-
REALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES AND ASSOCIATES	-	-	5,780	-
REALIZED GROSS PROFIT	11,592,461	53	8,707,477	55
OPERATING EXPENSES (Notes 20 and 26)
Selling and marketing expenses	1,427,947	6	1,328,527	8
General and administrative expenses	1,047,890	5	866,224	6
Research and development expenses	2,362,664	11	1,924,168	12
(Reversal of) expected credit loss	(30,000)	-	1,000	-
Total operating expenses	4,808,501	22	4,119,919	26
PROFIT FROM OPERATIONS	6,783,960	31	4,587,558	29
NON-OPERATING INCOME AND EXPENSES
Finance costs	(11,050)	-	(29,494)	-
Share of profit of subsidiaries, associates and joint ventures (Note 11)	2,286,530	10	1,253,428	8
Interest income	20,493	-	21,218	-
Other income	158,820	1	163,251	1
Gain on disposal of property, plant and equipment (Note 20)	119,064	1	7,892	-
Gain on disposal of investments accounted for using the equity method	525,297	2	46,589	-
Gain on disposal of non-current assets held for sale (Note 14)	3,197,018	15	-	-
Foreign exchange gain	24,433	-	224,708	2
Gain on financial assets at fair value through profit or loss	36,829	-	12,521	-
Other expenses	(2)	-	(1,552)	-
Total non-operating income and expenses	6,357,432	29	1,698,561	11

(Continued)

CHROMA ATE INC.

PARENT COMPANY ONLY 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	$ 13,141,392	60	$ 6,286,119	40
INCOME TAX EXPENSE (Note 21)	1,449,340	7	1,021,868	6
NET PROFIT FOR THE YEAR	11,692,052	53	5,264,251	34
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 17)	(24,210)	-	48,451	-
Unrealized gain or loss on investments in equity investments designated as at fair value through other comprehensive income	(17,982)	-	55,933	-
Share of the other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using the equity method	(21,934)	-	(79,899)	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(39,826)	-	255,998	1
Share of the other comprehensive income (loss) of associates and joint ventures accounted for using the equity method	(181,931)	(1)	276,792	2
Total other comprehensive income (loss)	(285,883)	(1)	557,275	3
TOTAL COMPREHENSIVE INCOME	$ 11,406,169	52	$ 5,821,526	37
EARNINGS PER SHARE (NT$; Note 22)
Basic	$ 27.70		$ 12.49
Diluted	$ 27.51		$ 12.38

The accompanying notes are an integral part of the parent company only financial statements.

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

(Concluded)

CHROMA ATE INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Ordinary Share Capital	Capital Surplus	Retained Earnings				Other Equity				Treasury Shares	Total Equity
			Legal Reserve	Special Reserve	Unanticipated Earnings	Total	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Unearned Employee Benefit	Total
BALANCE AT JANUARY 1, 2024	$ 4,253,644	$ 4,544,870	$ 3,747,675	$ 86,888	$ 9,004,779	$ 12,039,342	$ (137,489)	$ 595,377	$ (109,000)	$ 348,888	$ (30,068)	$ 21,955,876
Appropriation of the 2023 earnings
Legal reserve	-	-	394,685	-	(394,685)	-	-	-	-	-	-	-
Cash dividends - NT$6.6 per share	-	-	-	-	(2,007,405)	(2,007,405)	-	-	-	-	-	(2,807,405)
Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method	-	42,676	-	-	-	-	-	-	-	-	-	42,676
Unclaimed dividends	(48)	353	-	-	-	-	-	-	-	-	-	305
Net profit for the year ended December 31, 2024	-	-	-	-	5,264,251	5,264,251	-	-	-	-	-	5,264,251
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	49,854	49,854	532,790	(25,369)	-	507,421	-	557,275
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	5,314,105	5,314,105	532,790	(25,369)	-	507,421	-	5,821,526
Adjustment of capital surplus for the Corporation's cash dividends received by subsidiary	-	10,920	-	-	-	-	-	-	-	-	-	10,920
Disposal of investments accounted for using the equity method	-	(3,417)	-	-	-	-	-	-	-	-	-	(3,417)
Difference between the consideration received and the carrying amount of the subsidiaries' net assets during acquisition or disposal	-	-	-	-	(206,011)	(206,011)	(1,407)	-	-	(1,407)	-	(207,418)
Changes in ownership interests in subsidiaries	-	1,624	-	-	-	-	-	-	-	-	-	1,624
Share-based payment	(376)	376	-	-	-	-	-	-	61,992	61,992	-	61,992
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 AT DECEMBER 31, 2024	4,253,220	4,597,402	4,142,360	86,888	10,934,111	15,163,359	393,894	546,680	(47,008)	893,566	(30,068)	24,876,679
Appropriation of the 2024 earnings
Legal reserve	-	-	513,142	-	(513,142)	-	-	-	-	-	-	-
Cash dividends - NT$9.0 per share	-	-	-	-	(3,027,898)	(3,027,898)	-	-	-	-	-	(3,827,898)
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)
Net profit for the year ended December 31, 2025	-	-	-	-	11,692,052	11,692,052	-	-	-	-	-	11,692,052
Other comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	(24,014)	(24,014)	(221,757)	(40,112)	-	(261,869)	-	(285,083)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	11,668,058	11,668,058	(221,757)	(40,112)	-	(261,869)	-	11,406,169
Adjustment of capital surplus for the Corporation's cash dividends received by subsidiary	-	14,891	-	-	-	-	-	-	-	-	-	14,891
Disposal of investments accounted for using the equity method	-	(51,138)	-	-	-	-	-	-	-	-	-	(51,138)
Difference between the consideration received and the carrying amount of the subsidiaries' net assets during acquisition or disposal	-	11,371	-	-	(153,464)	(153,464)	-	-	-	-	-	(142,093)
Share-based payment	(763)	38,651	-	-	-	-	-	-	8,038	8,038	-	45,926
Disposal of equity instruments at fair value through other comprehensive income	-	-	-	-	393	393	-	(393)	-	(393)	-	-
Others	-	68	-	-	913	913	-	(913)	-	(913)	-	64
BALANCE AT DECEMBER 31, 2025	$ 4,252,457	$ 4,212,500	$ 4,655,502	$ 86,888	$ 18,002,744	$ 22,025,134	$ 172,137	$ 505,262	$ (30,970)	$ 638,429	$ (30,068)	$ 31,897,732

The accompanying notes are an integral part of the parent company only financial statements.

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

CHROMA ATE INC.

PARENT COMPANY ONLY 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	$ 13,141,392	$ 6,286,119
Adjustments for:
Depreciation expenses	470,951	466,298
Amortization expenses	66,016	23,684
(Reversal of) expected credit loss recognized on trade receivables	(30,000)	1,000
Gain on financial assets at fair value through profit or loss	(36,829)	(12,521)
Finance costs	11,050	29,494
Interest income	(20,493)	(21,218)
Dividend income	(44,988)	(39,083)
Compensation costs of share-based payments	63,042	61,992
Share of profit of subsidiaries, associates and joint ventures accounted for using the equity method	(2,286,530)	(1,253,428)
Gain on disposal of property, plant and equipment	(119,064)	(7,892)
Gain on disposal of non-current assets held for sale	(3,197,018)	-
Gain on disposal of investments accounted for using the equity method	(525,297)	(46,589)
Reversal of write-downs of inventories	(36,316)	(23,000)
Unrealized (realized) gain on transactions with subsidiaries and associates	578,205	(5,780)
Net loss (gain) on foreign currency exchange	78,047	(180,476)
Net changes in operating assets and liabilities
Notes receivable	(384)	8,847
Trade receivables	(2,802,571)	(2,234,135)
Inventories	(1,811,225)	(685,045)
Prepayments	(44,455)	99,190
Other current assets	(34,141)	(56,112)
Contract liabilities	32,802	(12,333)
Trade payables	1,332,887	608,990
Other payables	572,153	303,339
Other current liabilities	1,472	(17,544)
Net defined benefit liabilities	(26,556)	(25,197)
Cash generated from operations	5,332,150	3,268,600
Income tax paid	(1,123,626)	(712,090)
Net cash generated from operating activities	4,208,524	2,556,510
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire financial assets at fair value through other comprehensive income	-	(47,580)
Proceeds from disposal of financial assets at fair value through other comprehensive income	602	-
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	5,758	7,198
Payments to acquire financial assets at fair value through profit or loss	(800,000)	(345,830)
		(Continued)

CHROMA ATE INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from disposal of financial assets at fair value through profit or loss	$ 581,182	$ 282,026
Increase in investments accounted for using the equity method	(150,000)	-
Proceeds from disposal of investments accounted for using the equity method	30,925	65,282
Proceeds from capital reduction of investments accounted for using the equity method	-	9,302
Increase in non-current assets for sale	(18,007)	-
Proceeds from disposal of non-current assets held for sale	3,884,140	-
Proceeds from disposal of property, plant and equipment	71	-
Decrease (increase) in refundable deposits	57	(831)
(Increase) decrease in other receivables - related parties	(105,526)	93,911
Payments to acquire intangible assets	(99,388)	(41,177)
Increase in prepayments for equipment and construction	(1,578,345)	(1,641,181)
Interest received	18,713	22,077
Dividends received	574,993	1,247,686
Net cash generated from (used in) investing activities	2,345,175	(349,117)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	3,400,000	12,578,847
Decrease in short-term borrowings	(4,728,847)	(13,250,000)
Proceeds from long-term borrowings	1,140,000	1,150,000
Increase (decrease) in guarantee deposits	2	(24)
Repayment of lease principal	(52,249)	(51,222)
Cash dividends paid	(3,827,898)	(2,807,405)
Acquisition of ownership interests in subsidiaries	(350,325)	(331,139)
Interest paid	(11,668)	(28,869)
Unclaimed dividends	-	305
Net cash used in financing activities	(4,430,985)	(2,739,507)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(3,032)	33,598
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,119,682	(498,516)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	809,780	1,308,296
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 2,929,462	$ 809,780

The accompanying notes are an integral part of the parent company only financial statements.

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

10 -

CHROMA ATE INC.

NOTES TO PARENT COMPANY ONLY 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 parent company only financial statements are presented in the Corporation's functional currency, the New Taiwan dollar (NT$).

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only 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 Corporation'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 parent company only financial statements were authorized for issue, the Corporation has assessed that the application of other standards and interpretations will not have a material impact on the Corporation'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 Corporation 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 Corporation 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 Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Corporation 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 Corporation as a whole, the Corporation 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.

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

The Corporation shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
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Interest and dividends received by the Corporation shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Corporation 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 parent company only financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation'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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The parent company only 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.

When preparing these parent company only financial statements, the Corporation used the equity method to account for its investments in subsidiaries, associates and joint ventures. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, associates and joint ventures, the share of other comprehensive income of subsidiaries, associates and joint ventures and the related equity items, as appropriate, in these parent company only financial statements.

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.

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 Corporation 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. Foreign currencies

In preparing the parent company only financial statements, 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.

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.

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

e. Inventories

Inventories consist of raw materials, work-in-process, semi-finished goods and finished goods, 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.

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f. Investments accounted for using the equity method

Investments in subsidiaries, associates and joint ventures are accounted for by equity method.

Under the equity method, investment in a subsidiary, associates and joint ventures are initially recognized at cost and adjusted thereafter to recognize the Corporation's share of the profit or loss and other comprehensive income of the subsidiary, associates and joint ventures. The Corporation recognizes the changes in the Corporation's share of equity of subsidiaries, associates and joint ventures.

1) Investment in subsidiaries

A subsidiary is an entity that is controlled by the Corporation.

Changes in the Corporation's ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation's share of loss of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation's net investment in the subsidiary), the Corporation continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Corporation's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business 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 Corporation loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Corporation directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

2) Investments in associates and joint ventures

An associate is an entity over which the Corporation 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 Corporation 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 Corporation'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.

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When the Corporation 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 Corporation’s proportionate interest in the associate and joint venture. The Corporation 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 Corporation’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.

The Corporation 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 Corporation 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 Corporation’s parent company only financial statements only to the extent of interests in the associate and the joint venture that are not related to the Corporation.

g. 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.

h. 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.

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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.

i. 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 Corporation’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.

If goodwill has been allocated to a cash-generating unit and the Corporation 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.

j. 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.

k. Financial instruments

Financial assets and financial liabilities are recognized when the Corporation 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 25.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. The Corporation 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.

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The Corporation’s financial assets are classified into the following categories:

a) Financial assets at FVTPL

The Corporation’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 Corporation, 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.

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 equity instruments at FVTOCI

On initial recognition, the Corporation 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 Corporation’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

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2) Equity instruments

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

The repurchase of the Corporation’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 Corporation’s own equity instruments.

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.

Assessment of asset impairment

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

At the end of each reporting period, the Corporation 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 Corporation 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 or assets related to contract costs 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 Corporation assesses its investment in subsidiaries for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Corporation recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

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.

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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.

4) Financial assets

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

The Corporation always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Corporation 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 Corporation 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 Corporation 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 Corporation 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.

m. Revenue recognition

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

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

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n. Leases

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

1) The Corporation 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 Corporation as lessee

The Corporation 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 parent company only 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 Corporation 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 Corporation 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 Corporation 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 Corporation 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.

o. 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.

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

p. 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 Corporation’s defined benefit plan.

q. Share-based payment arrangements

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 restricted shares for employees is expensed on a straight-line basis over the vesting period, based on the Corporation's best estimate of the number of shares or options that are expected to ultimately vest, with a corresponding increase in 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 Corporation revises its estimate of the number of employee share options and restricted shares for employees that are expected 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 - restricted shares for employees.

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r. 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 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 Corporation 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 Corporation 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 Corporation’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.

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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	$ 1,755	$ 2,313
Checking accounts and demand deposits	1,927,707	807,467
Cash equivalents - time deposits	1,000,000	-
	$ 2,929,462	$ 809,780

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Mandatorily at FVTPL - current
Domestic listed shares*	$ 649,143	$ -
Open-ended beneficiary certificates	400,337	-
	$ 1,049,480	$ -
Mandatorily at FVTPL - non-current
Open-end beneficiary certificates	$ 2,303	$ 2,102
Convertible bonds	77,915	78,428
	$ 80,218	$ 80,530

Refer to Note 11 for information in June 2025 relating to financial instruments transferred from investments accounted for using the equity method, amounting to 793,521 thousand.

25 -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Investments in equity instruments - non-current
Domestic listed shares and emerging market shares	$ 979,493	$ 961,131
Domestic unlisted shares	110,178	183,867
Foreign unlisted shares	62,158	64,293
	$ 1,151,829	$ 1,209,291

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 Corporation's strategy of holding these investments for long-term purposes.

9. TRADE RECEIVABLES

	December 31
	2025	2024
Trade receivables
Gross carrying amount at amortized cost
- unrelated parties	$ 3,066,170	$ 1,518,108
- related parties	6,142,272	4,989,358
Less: Allowance for impairment loss	(31,477)	(61,477)
	$ 9,176,965	$ 6,445,989

The average credit period for sales of goods is 60 to 120 days from the date. Before accepting any new customer, the Corporation 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 Corporation 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 Corporation'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 Corporation 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 Corporation 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	$ 2,433,247	$ 1,159,406
Past due 1-60 days	476,842	151,327
Past due 61-180 days	97,039	54,873
Past due 181-365 days	49,209	90,728
Past due over 365 days	10,633	61,938
	$ 3,066,970	$ 1,518,272

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	$ 61,477	$ 60,477
Add: Net remeasurement of loss allowance	-	1,000
Less: Net remeasurement of loss allowance	(30,000)	-
Balance on December 31	$ 31,477	$ 61,477

10. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 1,095,930	$ 570,014
Semi-finished products	573,825	490,520
Work in process	2,242,269	1,405,084
Raw materials	1,637,049	1,396,151
	$ 5,549,073	$ 3,861,769

The cost of goods sold for the years ended December 31, 2025 and 2024 included the reversal of inventory write-downs of $36,316 thousand and $23,000 thousand, respectively. The reversal of inventory write-downs was attributable to the disposal of certain slow-moving inventories.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 5,715,594	$ 5,157,921
Investments in associates	4,921,364	4,863,439
Investments in joint venture	15,739	12,566
	$ 10,652,697	$ 10,033,926

a. Investments in subsidiaries

	December 31
	2025		2024
	Amount	Percentage of Equity Interest (%)	Amount	Percentage of Equity Interest (%)
Unlisted company
Neworld Electronics Limited	$ 1,821,545	100.0	$ 1,845,854	100.0
Mas Automation Corp.	256,028	100.0	177,238	100.0
Chroma ATE Inc.	1,015,396	100.0	680,743	100.0
Chroma Systems Solutions, Inc.	156,524	35.0	10,705	30.0
Chroma ATE Europe B.V.	(49,973)	100.0	40,221	100.0
Chroma Germany GmbH	88,957	100.0	68,453	100.0
Chroma Japan Corp.	(98,259)	100.0	(188,498)	100.0
CHI Incorporation Ltd.	468,753	100.0	552,894	100.0
Chen Hwa Technology Inc.	90,572	100.0	88,317	100.0
San Eagle Development Corp.	725,921	100.0	825,812	100.0
Sensational Holdings Ltd.	65,316	100.0	65,320	100.0
Deep Red Holding Co., Ltd.	77,789	100.0	93,920	100.0
Testar Electronics Corporation	185,600	67.2	169,141	67.2
Adivic Technology Co., Ltd.	125,225	91.1	47,212	83.7
Chroma Investment Co., Ltd.	189,434	100.0	190,597	100.0
Quantel Private Ltd.	369,353	60.0	318,750	60.0
EVT Technology Co., Ltd.	-	-	(3,390)	85.6
Innovative Nanotech Incorporated	229,266	67.2	161,671	67.2
Touch IntelliConnect Inc.	(1,853)	83.1	12,961	83.1
Chroma Europe Holding B.V.	-	100.0	-	-
	$ 5,715,594		$ 5,157,921

Refer to Note 12 to the Corporation's consolidated financial statements for the year ended December 31, 2025 for disclosures on the establishment, acquisition and disposal of subsidiaries.

Refer to Tables 6 and 7 for the detail of the subsidiaries indirectly held by the Corporation.

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

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

	December 31
Name of Associate	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 Corporation 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 Company’s ownership	17.1%	17.2%
Equity attributable to the Company	$ 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 Corporation'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.

28 -

2) Aggregate information of associates that are not individually material

	For the Year Ended December 31
	2025	2024
The Corporation’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 Corporation was not elected as directors and consequently ceased to have significant influence over Adlink Technology Inc. since June 2025. The Corporation 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 20)	(115,487)
Others	21,229
Gain recognized	$ 514,135

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

Refer to Table 6, for the nature of activities, principal place of business and country of incorporation of the associates.

c. 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 Corporation’s share of:
Net profit 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 Corporation 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 Corporation invested for a 35% entity interest in Chih Ho Shun but did not have control over this investee.

Refer to Table 6, for the nature of activities, principal place of business and country of incorporation of the joint ventures.

12. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery	Miscellaneous Equipment	Total
Cost
Balance on January 1, 2024	$ 1,684,793	$ 4,655,184	$ 315,283	$ 1,202,604	$ 7,857,864
Disposals	-	(125)	(1,008)	(24,215)	(25,348)
Reclassification	-	8,763	25,246	113,049	147,058
Balance on December 31, 2024	$ 1,684,793	$ 4,663,822	$ 339,521	$ 1,291,438	$ 7,979,574
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 883,090	$ 249,458	$ 816,397	$ 1,948,945
Depreciation	-	226,803	44,268	152,386	423,457
Disposals	-	(125)	(1,008)	(24,215)	(25,348)
Reclassification	-	-	(2)	(17,212)	(17,214)
Balance on December 31, 2024	$ -	$ 1,109,768	$ 292,716	$ 927,356	$ 2,329,840
Carrying amount at December 31, 2024	$ 1,684,793	$ 3,554,054	$ 46,805	$ 364,082	$ 5,649,734
Cost
Balance on January 1, 2025	$ 1,684,793	$ 4,663,822	$ 339,521	$ 1,291,438	$ 7,979,574
Disposals	-	-	(4,024)	(40,152)	(44,176)
Reclassification	12,034	128,391	34,397	114,605	289,427
Balance on December 31, 2025	$ 1,696,827	$ 4,792,213	$ 369,894	$ 1,365,891	$ 8,224,825
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 1,109,768	$ 292,716	$ 927,356	$ 2,329,840
Depreciation	-	233,369	32,320	161,727	427,416
Disposals	-	-	(4,024)	(40,152)	(44,176)
Reclassification	-	-	22	(11,839)	(11,817)
Balance on December 31, 2025	$ -	$ 1,343,137	$ 321,034	$ 1,037,092	$ 2,701,263
Carrying amount at December 31, 2025	$ 1,696,827	$ 3,449,076	$ 48,860	$ 328,799	$ 5,523,562

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 2-5 years

Office equipment 1-5 years

31 -

13. LEASE ARRANGEMENTS

The Corporation'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 Corporation does not have bargain purchase options to acquire lease items at the end of lease terms. Refer to the parent company only 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	$ 18,642	$ 30,730
Depreciation charge for right-of-use assets	$ 43,535	$ 42,841
Total cash outflow for leases	$ 69,133	$ 97,047

14. INVESTMENT PROPERTIES

The investment properties of land held for a currently undetermined use by the Corporation 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 Corporation 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 Corporation provided the land, and Fu-Yu Construction provided fund to construct. Upon completion, the building will be distributed to the Corporation 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 Corporation 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 Corporation 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

15. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured bank loans	$ -	$ 1,329,507
Interest rate (%)	-	1.72%-5.47%

b. Long-term borrowings

	December 31
	2025	2024
Unsecured bank loans	$ 3,140,000	$ 2,000,000
Final maturity date	January 2030	April 2029
Interest rate (%)	1.34%-1.54%	1.34%-1.53%

16. OTHER PAYABLES

	December 31
	2025	2024
Compensation of employees	$ 1,237,318	$ 814,752
Salaries and bonuses	563,769	$ 484,115
Others	354,423	248,114
	$ 2,155,510	$ 1,546,981

17. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation 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.

b. Defined benefit plans

The defined benefit plan adopted by the Corporation in accordance with the Labor Standards Act is operated by the government. Pension benefits are calculated on the basis of length of service and average monthly salaries of the 6 months before retirement. The Corporation contributes 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 assesses the balances 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 is 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 Corporation has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Corporation'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)	(482,725)
Net defined benefit liabilities	$ 77,241	$ 79,587

Movements in net defined benefit liability 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	$ 594,597	$ (441,362)	$ 153,235
Current service cost	3,161	-	3,161
Net interest expense (income)	7,209	(5,567)	1,642
Recognized in profit or loss	10,370	(5,567)	4,803
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(38,042)	(38,042)
Actuarial loss (gain)
Changes in financial assumptions	(13,353)	-	(13,353)
Experience adjustments	2,944	-	2,944
Recognized in other comprehensive income	(10,409)	(38,042)	(48,451)
Contributions from employer	-	(30,000)	(30,000)
Benefits paid	(32,246)	32,246	-
Balance on December 31, 2024	562,312	(482,725)	79,587
			(Continued)

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Current service cost	$ 2,529	$ -	$ 2,529
Net interest expense (income)	8,341	(7,426)	915
Recognized in profit or loss	10,870	(7,426)	3,444
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(33,938)	(33,938)
Actuarial loss
Changes in financial assumptions	19,012	-	19,012
Experience adjustments	39,136	-	39,136
Recognized in other comprehensive income	58,148	(33,938)	24,210
Contributions from employer	-	(30,000)	(30,000)
Benefits paid	(23,740)	23,740	-
Balance on December 31, 2025	$ 607,590	$ (530,349)	$ 77,241
			(Concluded)

Through the defined benefit plans under the Labor Standards Act, the Corporation 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 plan for the next year	$ 30,000	$ 30,000
Average duration of the defined benefit obligation	9.3 years	9.6 years

18. 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 20 (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		Dividends 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 23 for the issuance of restricted shares for employees by the Corporation.

	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:

	December 31
	2025	2024
Number of shares held (in thousands of 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

Contract revenue of the Corporation comes from sale of goods.

a. Contract balances

Contract liabilities arise from the sales of goods. The changes in the balance of contract liabilities primarily result from the timing difference between the Corporation’s satisfaction of performance obligations and the respective customer’s payment. The Corporation recognized revenue from the contract liabilities outstanding balance at the beginning of the year in the amount of $162,281 thousand and $173,209 thousand for the year ended December 31, 2025 and 2024, respectively. Refer to the parent company’s balance sheet for the balance of contract liabilities as of balance sheet date.

b. Disaggregation of revenue

Refer to Table 7 for the information on disaggregation of revenue.

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 11)	115,487	-
Gain on disposal of property, plant and equipment	71	-
	$ 119,064	$ 7,892

b. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 175,631	$ 173,081
Operating expenses	295,320	293,217
	$ 470,951	$ 466,298
An analysis of amortization by function
Operating costs	$ 176	$ 94
Operating expenses	65,840	23,590
	$ 66,016	$ 23,684

c. Employee benefits expense

	For the Year Ended December 31
	2025			2024
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Short-term benefits
Salary expenses	$ 542,767	$ 2,967,864	$ 3,510,631	$ 447,735	$ 2,393,618	$ 2,841,353
Insurance expenses	55,948	164,471	220,419	46,906	148,855	195,761
Remuneration of directors	-	15,675	15,675	-	15,540	15,540
	598,715	3,148,010	3,746,725	494,641	2,558,013	3,052,654
Share-based payments	-	63,042	63,042	-	61,992	61,992
Post-employment benefits
Defined contribution plans	14,440	84,204	98,644	13,305	78,590	91,895
Defined benefit plans	446	2,998	3,444	684	4,119	4,803
	14,886	87,202	102,088	13,989	82,709	96,698
Other employee benefits	38,803	42,192	80,995	33,363	35,945	69,308
Total employee benefits expense	$ 652,404	$ 3,340,446	$ 3,992,850	$ 541,993	$ 2,738,659	$ 3,280,652

1) As of December 31, 2025 and 2024, the Corporation's average number of employees were 2,155 and 2,050 employees, respectively, among which 5 directors not concurrently holding positions in the Corporation in both years. The basis of the above calculations was the same as the basis used in the calculation of employee benefits expense.

2) As of December 31, 2025 and 2024, the average employee benefit expenses were $1,850 thousand and $1,597 thousand, respectively; average salary expenses were $1,633 thousand and $1,389 thousand, respectively. The change in average salary expense was 17.57%.

3) The Corporation set up an audit committee in accordance with Article 14-4 of Securities and Exchange Act and did not set up supervisory duties.

4) The Corporation’s compensation policy is determined by considering the operating performance and future development of the current year and the remuneration of directors and managers and employees are as follows:

Directors

The remuneration paid by the Corporation comprises bonus for directors. When the board of directors is held, the Corporation will also pay the directors’ attendance.

According to Article 34 of the Corporation’s Articles of Incorporation, bonus distributed to directors shall not be greater than 1.5% of the Corporation's net profit before income tax, employees’ compensation, and remuneration of directors.

The fixed amount of directors’ remuneration for 2025 and 2024 were both $15,000 thousand which accounts for 0.10% and 0.21% of the net profit before tax for each year, respectively. The director attendance expenses for 2025 and 2024 were $675 thousand and $540 thousand, respectively.

Managers

The Corporation has established the “Regulations Governing Compensation for Senior Executives”, which stipulates that when a manager is appointed, he/she shall be paid a fixed monthly salary based on the pay standards for similar positions in the industry. Any proposal to change employee bonus shall be made according to the Corporation's operational performance for the current year and by taking into individual performance appraisal. Such proposal shall first be submitted to the Remuneration Committee for review before it is delivered to the Board of Directors for resolution.

Staff

The Corporation’s remuneration policy takes into account the salary levels of benchmark companies in the market, and provide differentiated and competitive salaries for employees based on the achievement of performance indicators to reflect the ability of employees and to measure salary and bonus levels. The salary composition includes salaries, bonuses and employee remuneration, benefits, etc.; benefits are superior to the legal provisions as prerequisites are designed to improve talent attraction, motivation, and retention effects.

d. Compensation of employees and remuneration of directors

According to the Corporation’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.

40 -

The compensation of employees (including non-executive employees) and the remuneration of directors and supervisors for the years ended December 31, 2025 and 2024, which were approved by the Corporation'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 parent company only financial statements were authorized for issue, the differences are recorded as a change in accounting estimate.

There is no difference between the actual amounts of the compensation of employee and remuneration of directors paid and the amounts recognized in the parent company only 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.

21. 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	$ 1,255,648	$ 984,244
Land value increment tax	29,351	-
Adjustments for prior years	(72,505)	-
	1,212,494	984,244
Deferred tax
In respect of the current year	236,846	37,624
Income tax expense recognized in profit or loss	$ 1,449,340	$ 1,021,868

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

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 13,141,392	$ 6,286,119
Income tax expense calculated at the statutory rate	$ 2,628,278	$ 1,257,224
Adjustment items in determining taxable income
Tax-exempt income	(736,335)	(30,242)
Deductible temporary differences	(100,556)	-
Realized investment loss	(53,075)	-
Other	6,279	(7,854)
		(Continued)

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	For the Year Ended December 31
	2025	2024
Land value increment tax	$ 29,351	$ -
Investment credits	(252,097)	(197,260)
Adjustments for prior years	(72,505)	-
Income tax expense recognized in profit or loss	$ 1,449,340	$ 1,021,868
		(Concluded)

b. Deferred tax assets and liabilities

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unrealized intercompany gain	$ 231,295	$ 115,641	$ 346,936
Inventory reserve	51,581	(7,263)	44,318
Others	1,160	-	1,160
	$ 284,036	$ 108,378	$ 392,414
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unappropriated earnings of subsidiaries	$ 1,098,697	$ 308,427	$ 1,407,124
Goodwill	39,083	-	39,083
Unrealized exchange gain	10,071	31,486	41,557
Others	15,859	5,311	21,170
	$ 1,163,710	$ 345,224	$ 1,508,934
For the year ended December 31, 2024
Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unrealized intercompany gain	$ 232,451	$ (1,156)	$ 231,295
Inventory reserve	56,181	(4,600)	51,581
Unrealized exchange loss	12,517	(12,517)	-
Allowance for impairment loss	3,891	(3,891)	-
Others	1,160	-	1,160
	$ 306,200	$ (22,164)	$ 284,036

43 -

Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unappropriated earnings of subsidiaries	$ 1,098,347	$ 350	$ 1,098,697
Goodwill	39,083	-	39,083
Unrealized exchange gain	-	10,071	10,071
Others	10,820	5,039	15,859
	$ 1,148,250	$ 15,460	$ 1,163,710

c. Income tax assessments

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

22. 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
Shares	(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 Corporation offered to settle compensation paid to employees in cash or shares, the Corporation 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.

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23. 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 Corporation 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.

45 -

24. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that it will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The Corporation'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.

25. FINANCIAL INSTRUMENTS

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

Management believes the carrying amount of financial assets and financial liabilities not measured at fair value recognized in the parent company only financial statements approximates their fair values.

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	$ 649,143	$ -	$ -	$ 649,143
Convertible bonds	-	-	77,915	77,915
Opened beneficiary certificates	400,337	-	2,303	402,640
	$ 1,049,480	$ -	$ 80,218	$ 1,129,698
Financial assets at FVTOCI
Domestic listed shares and emerging markets shares	$ 796,843	$ -	$ 182,650	$ 979,493
Domestic unlisted equity securities	-	-	110,178	110,178
Foreign unlisted equity securities	-	-	62,158	62,158
	$ 796,843	$ -	$ 354,986	$ 1,151,829
December 31, 2024
Financial assets at FVTPL
Convertible bonds	$ -	$ -	$ 78,428	$ 78,428
Opened beneficiary certificates	-	-	2,102	2,102
	$ -	$ -	$ 80,530	$ 80,530
				(Continued)

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Domestic listed shares and emerging markets shares	$ 670,344	$ -	$ 290,787	$ 961,131
Domestic unlisted equity securities	-	-	183,867	183,867
Foreign unlisted equity securities	-	-	64,293	64,293
	$ 670,344	$ -	$ 538,947	$ 1,209,291

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	$ 80,530	$ 538,947	$ 619,477
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	(312)	-	(312)
Recognized in other comprehensive income		(145,083)	(145,083)
Balance on December 31, 2025	$ 80,218	$ 354,986	$ 435,204

For the year ended December 31, 2024

Financial Assets	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
Balance on January 1, 2024	$ 4,205	$ 701,453	$ 705,658
Purchases	95,830	47,580	143,410
Sales	(31,610)	-	(31,610)
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	12,105	-	12,105
Recognized in other comprehensive income	-	(137,202)	(137,202)
Balance on December 31, 2024	$ 80,530	$ 538,947	$ 619,477

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	$ 1,129,698	$ 80,530
Financial assets at amortized cost (1)	12,614,759	7,554,917
Financial assets at FVTOCI
Equity instruments	1,151,829	1,209,291
Financial liabilities
Financial liabilities at amortized cost (2)	8,777,393	7,050,774

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

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

d. Financial risk management objectives and policies

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

The Corporation 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 Corporation actively observes the exchange rate information to fully control the foreign currency hedge.

47 -

48 -

1) Market risk

The Corporation’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 Corporation’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 Corporation’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 28.

Sensitivity analysis

The Corporation was mainly exposed to USD and RMB.

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. Had the NTD strengthened by 5% against the relevant currency, the pre-tax profit would have decreased by $291,923 thousand and $224,922 thousand for the years ended December 31, 2025 and 2024, respectively.

b) Interest rate risk

The Corporation is exposed to interest rate risk because it borrows funds both at fixed and floated interest rates. The Corporation 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 liabilities	$ 59,298	94,804
Cash flow interest rate risk
Financial assets	1,927,707	807,467
Financial liabilities	3,140,000	3,329,507

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 Corporation’s pre-tax profit for the years ended December 31, 2025 and 2024 would decrease by $6,061 thousand and $12,610 thousand, respectively.

c) Price risk

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

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

ii. Financial assets at FVTPL (mainly investments in convertible bonds).

The Corporation manages risk through holding various investment portfolios and having each equity investment to get prior approval from the Corporation’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 $56,485 thousand and $4,027 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 $57,591 thousand and $60,465 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 Corporation. At the end of the year, the Corporation’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 Corporation 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 Corporation 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 Corporation 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 Corporation 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 Corporation’s credit risk was significantly reduced. The Corporation 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 Corporation continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

49 -

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

3) Liquidity risk

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

The Corporation relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Corporation's available unutilized bank loan facilities were $7,250,000 thousand and $7,060,494 thousand, respectively.

Liquidity and interest risk tables for non-derivative financial liabilities

The following tables detail the Corporation'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 Corporation 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-interest bearing	$ 5,616,790	$ -	$ -
Floating interest rate instruments	44,468	3,210,291	-
Lease liabilities	22,367	26,610	13,776
	$ 5,683,625	$ 3,236,901	$ 13,776
	December 31, 2024
	Within 1 Year	1-5 Years	More Than 5 Years
Non-interest bearing	$ 3,700,666	$ -	$ -
Floating interest rate instruments	1,360,693	2,062,560	-
Lease liabilities	50,594	32,630	15,433
	$ 5,111,953	$ 2,095,190	$ 15,433

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

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

50 -

51 -

26. TRANSACTIONS WITH RELATED PARTIES

a. Related parties and relationships

In addition to the related parties and its subsidiaries disclosed in Note 11, the other related parties are as follows:

Related Party	Relationship with the Corporation
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

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

The related-party transactions were as follows:

b. Sales

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Subsidiaries
Chroma ATE Inc.	$ 5,297,887	$ 3,783,734
Neworld Electronics Limited	3,881,015	3,128,017
Others	5,062,388	3,175,782
Associates	38,024	34,814
Other related parties	9,633	2,322
	$ 14,288,947	$ 10,124,669

To raise market share and expand its market in the America and mainland China, the Corporation set up Chroma ATE Inc. and Neworld Electronics Limited. The selling prices for subsidiaries were determined after taking the selling and post-sale service expenses into consideration.

c. Purchases

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Subsidiaries	$ 176,239	$ 278,241
Associates	10,191	17,469
Other related parties	2,037	2,137
	$ 188,467	$ 297,847

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

Line Item	Related Party Category/Name	December 31
		2025	2024
Notes receivable	Subsidiaries
- related party	Mas Automation Corp.	$ -	$ 252
Trade receivables	Subsidiaries
- related party	Chroma ATE Inc.	$ 2,368,214	$ 2,722,725
	Neworld Electronics Limited	1,484,370	899,374
	Others	2,282,776	1,357,625
	Associates	6,777	9,499
	Other related parties	135	135
		$ 6,142,272	$ 4,989,358

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
Trade payables	Subsidiaries	$ 112,427	$ 59,903
- related party	Associates	180	7,590
	Other related parties	528	890
		$ 113,135	$ 68,383
Other payables	Subsidiaries	$ 53,678	$ 15,676
- related party	Associates	36	2,471
	Other related parties	-	19
		$ 53,714	$ 18,166

f. Acquisitions of property, plant and equipment

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Subsidiaries	$ 4,931	$ 2,395
Associates	333	-
	$ 5,264	$ 2,395

g. Lease arrangements

		December 31
Line Item	Related Party Category/Name	2025	2024
Lease liabilities	Associates
	Adlink Technology Inc.	$ -	$ 43,313
		For the Year Ended December 31
Line Item	Related Party Category/Name	2025	2024
Depreciation expense	Associates
	Adlink Technology Inc.	$ 12,880	$ 25,759

h. Acquisitions of ownership interests in subsidiary

Related Party Category/Name	Purchase Price
	For the Year Ended December 31
	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. Loans to related parties

Line Item	Related Party Category/Name	December 31
		2025	2024
Other receivable	Subsidiaries
- related party	Chroma Japan Corp.	$ 156,350	$ 103,665
	Chroma Germany GmbH	130,892	-
		$ 287,242	$ 103,665

Refer to Table 1 for other information related to financing provided to others.

j. Endorsement guarantees provided

Refer to Table 2 for other information related to endorsement guarantees provided.

k. Others

1) Commission expense

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Subsidiaries
Quantel Private Ltd.	$ 94,659	$ 36,627
Neworld Electronics Limited	7,301	21,112
Chroma ATE (Suzhou) Co., Ltd.	2,649	24,013
Chroma Electronics (Shanghai) Co., Ltd.	-	28,089
Chroma Electronics (Shenzhen) Co., Ltd.	-	18,842
Others	5,367	2,855
	$ 109,976	$ 131,538

Commission expense refers to the disbursements made for business introduction activities.

2) Other receivables - dividend receivable

	December 31
Related Party Category/Name	2025	2024
Subsidiaries
Chroma Systems Solutions, Inc.	$ 66,002	$ 78,684

3) Prepayments for equipment and construction

	December 31
Related Party Category/Name	2025	2024
Subsidiaries	$ 64,120	$ 11,800

4) Contract liabilities

	December 31
Related Party Category/Name	2025	2024
Subsidiaries	$ -	$ 12,520

Compensation of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 348,042	$ 256,776
Post-employment benefits	3,749	2,983
Share-based payment transaction	30,243	27,645
	$ 382,034	$ 287,404

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

55 -

27. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. As of December 31, 2025 and 2024, the Corporation engaged financial institutions to issue performance guarantee letters for import and export of goods, lease agreements, and R&D subsidies, amounting to $85,861 thousand and $78,339 thousand, respectively.

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

c. As of December 31, 2025 and 2024, the Corporation engaged financial institutions to issue warranty guarantee letters to fulfill contractual warranty obligations, amounting to $1,730 thousand and $0 thousand, respectively.

d. In response to future production and research and development requirements, the Corporation 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

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’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	$ 143,341	31.430 (USD:NTD)	$ 4,505,208
RMB	474,487	4.496 (RMB:NTD)	2,133,294
			$ 6,638,502
Non-monetary items
Investments accounted for using the equity method
USD	224,770	31.430 (USD:NTD)	$ 7,064,537
HKD	575,211	4.038 (HKD:NTD)	2,322,703
			$ 9,387,240
			(Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial liabilities
Monetary items
USD	$ 25,455	31.430 (USD:NTD)	$ 800,051 (Concluded)
December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 119,833	32.785 (USD:NTD)	$ 3,928,725
RMB	224,181	4.478 (RMB:NTD)	1,003,883
			$ 4,932,608
Non-monetary items
Investments accounted for using the equity method
USD	180,034	32.785 (USD:NTD)	$ 5,902,408
HKD	503,173	4.222 (HKD:NTD)	2,124,396
			$ 8,026,804
Financial liabilities
Monetary items
USD	13,243	32.785 (USD:NTD)	$ 434,172

Realized and unrealized net foreign exchange gains were $24,433 thousand and $224,708 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 Corporation.

29. 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.

b. Information on investees: Table 6.

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 period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 7.

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 period: Table 4.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: 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 period and the purposes: Table 2.

e) The highest Balance on the end of period Balance on the interest rate range, and total current period interest with respect to 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 receiving of services: Note 11.

57 -

TABLE 1

CHROMA ATE INC.

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.

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.

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		〃	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	-	〃	-	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.	-	〃	412	53,816	-	53,816	-
	China Communications Media Group Co., Ltd.	-	〃	10	-	-	-	-
	Tian Zheng International Precision Machinery Co., Ltd.	-	〃	2,681	227,855	6.5	227,855	-
	Twoway Catv Service Inc.	-	〃	3,556	271,647	3.7	271,647	-
	Taiwan Advanced Nanotech Inc.	-	〃	3,475	70,189	11.3	70,189	-
	TFBS Bioscience, Inc.	-	〃	2,675	112,461	7.7	112,461	-
	WK Technology Fund IX Ltd.	-	〃	2,303	38,880	4.6	38,880	-
	WK Technology Fund IX II Ltd.	-	〃	6,000	50,358	5.3	50,358	-
	Gaius Automotive Inc.	-	〃	1,800	20,940	2.2	20,940	-
Enteligent Inc.	-	〃	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	-	〃	-	233,161	-	233,161	-

(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
Chroma Investment Co., Ltd.	Fund
	Hua Nan Kirin Money Market Fund	-	Financial assets at fair value through profit or loss - current	499	$ 6,301	-	$ 6,301	-
	Taishin 1699 Money Market Fund	-	〃	1,793	25,767	-	25,767	-
	Taishin Ta-Chong Money Market Fund		〃	1,003	15,088	-	15,088
	Shares
	Greatek Electronics Inc.	-	〃	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
	Mega Diamond Money Market Fund	-	Financial assets at fair value through profit or loss - current	1,527	20,270	-	20,270	-
Testar Electronics Corporation	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 11.

(Concluded)

TABLE 4

CHROMA ATE INC.

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.

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.

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investor	Investee	Location	Main Businesses and Products	Investment Amount	Balance as of December 31, 2025	Net Income (Loss) of the Investee	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
Testar 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	-	117,311	-	-	-	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)
Canttek 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.	Testar 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 11.

TABLE 7

CHROMA ATE INC.

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	-
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)

(Continued)

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_89663d57-94cc-4a8a-8079-6412408facd4.pdf

Chroma ATE Inc.

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Appropriateness of the Revenue cutoff

Other Matter

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

CHROMA ATE INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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. TRADE RECEIVABLES

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

14. INVESTMENT PROPERTIES

15. BORROWINGS

16. OTHER PAYABLES

17. RETIREMENT BENEFIT PLANS

18. EQUITY

Directors

Managers

Staff

21. INCOME TAXES

22. EARNINGS PER SHARE

Net Profit for the Year

23. SHARE-BASED PAYMENT ARRANGEMENTS

Restricted Shares for Employees

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

26. TRANSACTIONS WITH RELATED PARTIES

27. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

29. SEPARATELY DISCLOSED ITEMS

CHROMA ATE INC.

FINANCING PROVIDED TO OTHERS

CHROMA ATE INC.

ENDORSEMENTS/GUARANTEES PROVIDED

CHROMA ATE INC.

CHROMA ATE INC.

CHROMA ATE INC.

CHROMA ATE INC.

CHROMA ATE INC.

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CHROMA Audit Report / Information 2025