CHROMA - Interim / Quarterly Report 2021

Chroma ATE Inc. and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020 and Independent Auditors’ Review Report

勤業眾信聯合會計師事務所 110016 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 110016, Taiwan Tel : + 886 (2) 2725 - 9988 Fax: + 886 (2) 4051 - 6888 www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Chroma ATE Inc.

Introduction

We have reviewed the accompanying consolidated balance sheets of Chroma ATE Inc. (the “Corporation”) and its subsidiaries (collectively, the “Group”) as of September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

The financial statements of some non-significant subsidiaries included in the consolidated financial statements were not reviewed. As of September 30, 2021 and 2020, the combined total assets of these non-significant subsidiaries were NT$5,488,154 thousand and NT$5,714,215 thousand, respectively, representing 19.29% and 21.23%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$2,226,834 thousand and NT$2,535,478 thousand, respectively, representing 21.65% and 21.84%, respectively, of the consolidated total liabilities. The amounts of unreviewed comprehensive income (loss) for the three months ended September 30, 2021 and 2020 were NT$186,739 thousand and NT$(104,557) thousand, respectively, representing 28.56% and (16.50%), respectively, of the consolidated total comprehensive income; and the amounts of unreviewed comprehensive income for the nine months ended September 30, 2021 and 2020 were NT$279,735 thousand and NT$82,287 thousand, respectively, representing 7.71% and 5.00%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 13 to the consolidated financial statements, the carrying values of investments accounted for using the equity method were NT$3,035,355 thousand and

NT$2,930,931 thousand, representing 10.67% and 10.89% of the consolidated total assets as of September 30, 2021 and 2020, respectively; the related shares of comprehensive income of associates and joint ventures for the three months ended September 30, 2021 and 2020 were NT$77,913 thousand and NT$50,658 thousand, respectively, representing 11.92% and 7,99%, respectively, of the consolidated total comprehensive income; and the related shares of comprehensive income of associates and joint ventures for the nine months ended September 30, 2021 and 2020 were NT$149,775 thousand and NT$65,055 thousand, respectively, representing 4.13% and 3.95%, respectively, of the consolidated total comprehensive income. These investment amounts were calculated and disclosed on the basis of the unreviewed financial statements of the investees as of and for the same reporting periods as those of the Corporation. Further, as disclosed in Note 34 to the consolidated financial statements, other information on the Corporation’s non-significant subsidiaries and other investees accounted for using the equity method was disclosed on the basis of the unreviewed financial statements as of and for the same reporting periods as those of the Corporation.

Qualified Conclusion

Based on our reviews, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Wen-Chin Lin and Chien-Liang Liu

Deloitte & Touche Taipei, Taiwan Republic of China

October 28, 2021

Notice to Readers

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

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

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at amortized cost - current (Notes 9 and 30) Contract assets - current (Note 22) Notes receivable (Note 10) Trade receivables (Note 10) Trade receivables - related parties (Notes 10 and 29) Inventories (Note 11) Prepayments Other current assets (Note 29) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) Financial assets at fair value through other comprehensive income - non-current (Note 8) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Notes 14, 29 and 30) Right-of-use assets (Note 15) Investment properties (Note 16) Goodwill (Note 17) Other intangible assets Deferred tax assets Prepayments for land and equipment Refundable deposits Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 18 and 30) Contract liabilities - current (Notes 22 and 29) Notes payable Notes payable - related parties (Note 29) Trade payables Trade payables - related parties (Note 29) Other payables (Notes 19 and 29) Current tax liabilities Lease liabilities - current (Notes 15 and 29) Current portion of long-term borrowings (Notes 18 and 30) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 18 and 30) Deferred tax liabilities Lease liabilities - non-current (Notes 15 and 29) Net defined benefit liabilities (Note 20) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 21) Ordinary share capital Advance receipts for share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS Total equity TOTAL		September 30, 2021 (Reviewed) Amount % $ 2,850,276 10 518,024 2 1,300,176 4 793,694 3 113,835 - 4,211,126 15 22,512 - 3,755,306 13 259,182 1 166,567 1 13,990,698 49 4,603 - 1,053,887 4 3,035,355 11 6,067,480 21 287,036 1 3,137,187 11 226,185 1 88,780 - 337,857 1 127,272 1 21,273 - 79,939 - 14,466,854 51 $ 28,457,552 100 $ 2,527,456 9 480,474 2 80,625 - 3,955 - 2,605,749 9 3,637 - 1,062,131 4 341,032 1 90,812 - 213,429 1 147,810 - 7,557,110 26 1,596,094 6 711,638 3 236,801 1 141,533 - 43,050 - 2,729,116 10 10,286,226 36 4,216,315 15 7,163 - 4,062,302 14 2,824,310 10 86,888 - 6,638,423 24 9,549,621 34 (35,030) - (33,686) - 17,766,685 63 404,641 1 18,171,326 64 $ 28,457,552 100		December 31, 2020 (Audited) Amount % $ 2,896,645 10 509,015 2 1,036,691 4 1,278,936 4 127,042 - 4,247,500 15 19,340 - 3,028,457 11 197,038 1 187,175 1 13,527,839 48 4,646 - 862,898 3 3,139,227 11 3,156,634 11 144,921 1 3,137,187 11 228,002 1 55,578 - 314,987 1 3,463,185 13 13,693 - 80,086 - 14,601,044 52 $ 28,128,883 100 $ 2,554,260 9 765,682 3 35,933 - 4,570 - 2,637,070 10 11,353 - 1,225,623 4 348,441 1 55,247 - 633,456 2 153,317 1 8,424,952 30 2,404,616 9 621,111 2 92,345 - 156,280 1 40,886 - 3,315,238 12 11,740,190 42 4,212,945 15 - - 4,036,875 14 2,592,487 9 176,128 1 5,160,575 18 7,929,190 28 (82,101) - (33,686) - 16,063,223 57 325,470 1 16,388,693 58 $ 28,128,883 100		September 30, 2020 (Reviewed)
						Amount % $ 2,663,601 10 447,541 2 960,587 4 1,267,740 5 43,015 - 4,316,825 16 28,055 - 3,033,664 11 332,988 1 151,118 - 13,245,134 49 4,649 - 657,079 2 2,930,931 11 3,138,387 12 155,192 1 3,137,187 12 223,644 1 54,008 - 315,829 1 2,941,607 11 13,422 - 101,663 - 13,673,598 51 $ 26,918,732 100 $ 3,148,520 12 641,356 3 13,716 - 201 - 2,359,010 9 3,206 - 1,116,060 4 273,596 1 60,477 - 13,880 - 73,324 - 7,703,346 29 3,075,963 11 561,034 2 97,326 - 153,936 1 20,000 - 3,908,259 14 11,611,605 43 4,207,484 16 20,662 - 3,735,931 14 2,592,487 9 176,128 1 4,479,585 17 7,248,200 27 (192,211) (1) (33,745) - 14,986,321 56 320,806 1 15,307,127 57 $ 26,918,732 100

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

(With Deloitte & Touche auditors’ review report dated October 28, 2021)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

NET OPERATING REVENUE (Notes 22 and 29) OPERATING COSTS (Notes 11, 23 and 29) GROSS PROFIT UNREALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES REALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 10, 23 and 29) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Finance costs (Note 23) Share of profit of associates and joint ventures (Note 13) Interest income Dividend income Other income (Note 29) Gain on disposal of property, plant and equipment, net Gain on disposal of equity investments Gain on rights transferred of sale and leaseback Gain on lease modification Net foreign exchange (loss) gain (Note 33) Gain (loss) on financial assets at fair value through profit or loss, net Other expenses Total non-operating income and expenses		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ 4,275,744 100 2,131,562 50 2,144,182 50 - - 13 - 2,144,195 50 568,997 13 339,506 8 357,378 9 13,427 - 1,279,308 30 864,887 20 (11,567 ) - 81,632 2 7,210 - 17,930 - 37,234 1 1,936 - - - - - 579 - 21,858 1 (4,155 ) - (4,503) - 148,154 4		Amount % $ 4,155,091 100 2,151,414 52 2,003,677 48 (37 ) - - - 2,003,640 48 507,730 12 294,279 7 345,694 8 146,698 4 1,294,401 31 709,239 17 (12,574 ) - 34,592 1 3,265 - 15,232 - 25,006 1 439 - - - - - - - (20,870 ) (1 ) (6,919 ) - (873) - 37,298 1		Amount % $ 12,994,408 100 6,678,045 51 6,316,363 49 - - 149 - 6,316,512 49 1,693,671 13 899,713 7 1,103,778 9 275,552 2 3,972,714 31 2,343,798 18 (33,961 ) - 209,511 2 14,896 - 71,771 - 98,532 1 1,583,061 12 - - 154,510 1 586 - (45,880 ) - 36 - (6,909) - 2,046,153 16		Amount % $ 11,354,608 100 5,742,102 51 5,612,506 49 - - 3 - 5,612,509 49 1,519,826 14 831,475 7 989,721 9 243,688 2 3,584,710 32 2,027,799 17 (43,900 ) - 84,675 1 10,290 - 19,402 - 89,414 1 4,819 - 480 - - - - - (52,644 ) (1 ) (7,522 ) - (2,276) - 102,738 1 (Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2021	2020	2021	2020
Amount % $ 1,013,041 24 190,689 5 822,352 19 (155,028 ) (4 ) (3,695 ) - (9,785 ) - (24) - (168,532) (4) $ 653,820 15 $ 792,835 18 29,517 1 $ 822,352 19 $ 625,931 14 27,889 1 $ 653,820 15 $ 1.89 $ 1.87	Amount % $ 746,537 18 157,869 4 588,668 14 (4,247 ) - - - 33,143 1 16,066 - 44,962 1 $ 633,630 15 $ 582,959 14 5,709 - $ 588,668 14 $ 629,887 15 3,743 - $ 633,630 15 $ 1.39 $ 1.38	Amount % $ 4,389,951 34 799,992 6 3,589,959 28 185,079 1 (4,062 ) - (87,297 ) (1 ) (55,674) - 38,046 - $ 3,628,005 28 $ 3,521,435 27 68,524 1 $ 3,589,959 28 $ 3,567,587 27 60,418 1 $ 3,628,005 28 $ 8.39 $ 8.34	Amount % $ 2,130,537 18 460,509 4 1,670,028 15 45,144 1 (7 ) - (49,415 ) (1 ) (19,613) - (23,891) - $ 1,646,137 14 $ 1,637,230 15 32,798 - $ 1,670,028 15 $ 1,622,030 14 24,107 - $ 1,646,137 14 $ 3.92 $ 3.89



$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$

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

(With Deloitte & Touche auditors’ review report dated October 28, 2021)

(Concluded)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	Equity Attributab	le to Owners of the	Corporation	Corporation
Advance Ordinary Share Capital Receipts for Share Capital Capital Surplus $ 4,192,961 $ 13,724 $ 3,629,471 - - - - - - - - - - - (1,027 ) - - - - - - - - - - - - (1,176 ) - - - - 16,629 - - 5,760 - - (22 ) 15,699 6,938 78,181 - - 6,939 $ 4,207,484 $ 20,662 $ 3,735,931 $ 4,212,945 $ - $ 4,036,875 - - - - - - - - - - - - - - - - - - - - 8,124 - - - 3,370 7,163 16,413 - - 890 - - - $ 4,216,315 $ 7,163 $ 4,062,302	Retained Earnings	Total $ 6,875,970 - - (1,265,000 ) - 1,637,230 - 1,637,230 - - - - - - - $ 7,248,200 $ 7,929,190 - - (1,897,175 ) 3,521,435 (367) 3,521,068 - (3,462 ) - - - $ 9,549,621	Other Equity		Total Treasury Shares $ (187,651 ) $ (35,714 ) - - - - - - - - - - (15,200) - (15,200) - - (1,235 ) - 1,176 - 2,028 - - - - - - 10,640 - $ (192,211) $ (33,745) $ (82,101 ) $ (33,686 ) - - - - - - - - 46,519 - 46,519 - - - - - - - 552 - - - $ (35,030) $ (33,686)
			Exchange Differences on Translating the Unrealized Gain on Financial Assets at Fair Value Financial Through Other Statements of Foreign Operations Comprehensive Income Un $ (331,073 ) $ 154,946 - - - - - - - - - - (60,337) 45,137 (60,337) 45,137 - - - - - - - - - - - - - - $ (391,410) $ 200,083 $ (466,042 ) $ 384,493 - - - - - - - - (134,865) 181,384 (134,865) 181,384 - - - - - - - - - - $ (600,907) $ 565,877	earned Employee Benefit $ (11,524 ) - - - - - - - - - - - - - 10,640 $ (884) $ (552 ) - - - - - - - - - 552 - $ -
	Legal Reserve Special Reserve Unappropriated Earnings $ 2,407,039 $ 86,888 $ 4,382,043 185,448 - (185,448 ) - 89,240 (89,240 ) - - (1,265,000 ) - - - - - 1,637,230 - - - - - 1,637,230 - - - - - - - - - - - - - - - - - - - - - $ 2,592,487 $ 176,128 $ 4,479,585 $ 2,592,487 $ 176,128 $ 5,160,575 231,823 - (231,823 ) - (89,240 ) 89,240 - - (1,897,175 ) - - 3,521,435 - - (367) - - 3,521,068 - - - - - (3,462 ) - - - - - - - - - $ 2,824,310 $ 86,888 $ 6,638,423

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

(With Deloitte & Touche auditors’ review report dated October 28, 2021)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss recognized on trade receivables Net (gain) loss on financial assets at fair value through profit or loss Finance costs Interest income Dividend income Compensation costs of share-based payments Share of profit of associates and joint ventures accounted for using the equity method Gain on disposal of property, plant and equipment Gain on disposal of investments accounted for using the equity method Write-downs of inventories Realized gain on transactions with associates and joint ventures Net loss on foreign currency exchange Gain on lease modification Gain on sale and leaseback transactions Net changes in operating assets and liabilities Contract assets Notes receivable Trade receivables Inventories Prepayments Other current assets Contract liabilities Notes payable Trade payables Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Income tax paid Net cash generated from operating activities		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 4,389,951 399,562 14,624 275,552 (36) 33,961 (14,896) (71,771) 1,415 (209,511) (1,583,061) - 51,739 (149) 52,659 (586) (154,510) 120,589 13,207 (313,793) (865,865) (39,122) 30,240 (285,208) 44,077 335,466 (151,085) (5,507) (14,747) 2,053,195 (749,776) 1,303,419	2020 $ 2,130,537 317,804 8,042 243,688 7,522 43,900 (10,290) (19,402) 17,115 (84,675) (4,819) (480) 44,680 (3) 20,111 - - (9,694) 131,906 (10,351) (461,044) (84,405) 94,742 (373,501) (27,168) (223,884) (206,735) 44,722 (9,153) 1,579,165 (475,787) 1,103,378

(Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM INVESTING ACTIVITIES Payments to acquire financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Increase in financial assets at amortized cost Decrease in financial assets at amortized cost Payments to acquire financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Net cash inflow on disposal of investments accounted for using the equity method Increase in prepayments for investments Increase in advance real estate receipts Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment (Increase) decrease in refundable deposits Payments to acquire intangible assets (Increase) decrease in other non-current assets Increase in prepayments for equipment Interest received Dividends received Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits Repayment of the principal portion of lease liabilities Dividends paid by cash Exercise of employee share options Payments for buy-back of ordinary shares Proceeds from reissuance of treasury stock Acquisition of additional interests in subsidiaries Interest paid Net cash (used in) generated from financing activities		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (15,750) 9,660 (319,186) 49,394 (850,888) 841,148 - - - (78,893) 3,120,817 (7,580) (18,234) (1,365) (929,851) 15,296 106,105 1,920,673 - (23,604) 77,572 (1,300,956) 2,164 (79,671) (1,900,068) 26,946 - - 18,184 (34,880) (3,214,313)	2020 $ - - (362,754) 102,505 (430,792) 500,601 688 (21,157) 308,000 (116,612) 35,286 9,991 - 2,517 (928,424) 10,680 63,510 (825,961) 800,000 - 1,068,874 (422,316) - (82,657) (1,271,232) 100,818 (1,235) 18,657 - (44,007) 166,902 (Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (56,148) (46,369) 2,896,645 $ 2,850,276	2020 $ (42,249) 402,070 2,261,531 $ 2,663,601

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

(With Deloitte & Touche auditors’ review report dated October 28, 2021) (Concluded)

CHROMA ATE INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

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

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation’s board of directors on October 28, 2021.

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 “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

b. The IFRSs endorsed by the FSC for application starting from 2022

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
10 -
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

Except for the above impacts, the Group is continuously assessing the possible impacts that the application of other standards and interpretations will have on the Group’s financial position and financial performance, and will disclose the relevant impacts when the assessment is completed.

c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between An Investor and Its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”

Amendments to IAS 1 “Disclosure of Accounting Policies”

Amendments to IAS 8 “Definition of Accounting Estimates”

Amendments to IAS 12 “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”

Effective Date
Announced by IASB (Note 1)

To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except that deferred taxes will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” endorsed and issued into effect by the FSC. Disclosure information included in the consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

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

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

The basis of preparing the consolidated financial statements is consistent with the consolidated financial statements for the year ended December 31, 2020.

Refer to Note 12, Table 8 and Table 9 for the detailed information of subsidiaries, including the percentage of ownership and main business.

d. Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2020.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Taxation

Income tax expense represent the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

12 -

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Group considers the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. 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 revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

The same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2020.

6. CASH AND CASH EQUIVALENTS

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Cash on hand	$	4,003	$	3,282	$	3,062
Checking accounts and demand deposits		2,796,973		2,753,550		2,517,683
Cash equivalents - time deposits		49,300		139,813		142,856
	$	2,850,276	$	2,896,645	$	2,663,601

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Mandatorily at FVTPL-current
Domestic listed shares	$	6,923	$	4,763	$	4,176
Domestic unlisted shares		56,569		58,830		44,138
Open-end beneficiary certificates		454,532		445,422		399,227
	$	518,024	$	509,015	$	447,541
Mandatorily at FVTPL-non-current
Open-end beneficiary certificates	$	4,603	$	4,646	$	4,649

13 -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Investments in equity instruments-non-current
Domestic listed ordinary shares and emerging
market shares	$	897,227	$	723,973	$	554,967
Domestic unlisted ordinary shares		134,921		131,196		94,756
Foreign unlisted ordinary shares		21,739		7,729		7,356
	$	1,053,887	$	862,898	$	657,079

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Refer to Table 3 for the detailed information. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST - CURRENT

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Time deposits with original maturities of more
than 3 months	$	572,740	$	307,298	$	207,022
Pledged deposits (Notes 30 and 31)		727,436		729,393		753,565
	$	1,300,176	$	1,036,691	$	960,587

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

	September 30,	December 31,	September 30,
	2021	2020	2020
Gross carrying amount at amortized cost -
unrelated parties	$ 5,031,592	$ 4,807,675	$ 4,791,249
Less: Allowance for impairment loss	(706,631)	(433,133)	(431,409)
	4,324,961	4,374,542	4,359,840
Gross carrying amount at amortized cost - related
parties	22,512	19,340	28,055
	$ 4,347,473	$ 4,393,882	$ 4,387,895

The average credit period for sales of goods is 60 to 120 days from the date when the goods were inspected and accepted by customers. Before accepting any new customer, the Group uses an external credit scoring system to assess the potential customer’s credit quality and defines credit limits by customer. Customers’ limits and scores are reviewed regularly every year. Most of the trade receivables that are neither past due nor impaired have the best credit score under the external credit scoring system used by the Group.

14 -

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

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

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

September 30, 2021 December 31, 2020 September 30, 2020 Not past due $ 3,523,821 $ 3,369,032 $ 3,298,993 Past due 1- 60 days 428,064 401,344 417,884 Past due 61-180 days 202,691 226,113 222,479 Past due 181-365 days 155,768 107,423 202,470 Past due over 365 days 721,248 703,763 649,423 $ 5,031,592 $ 4,807,675 $ 4,791,249 The movements of the loss allowance of notes receivable and trade receivables were as follows: For the Nine Months Ended September 30 2021 2020 Balance at January 1 $ 433,133 $ 188,067 Add: Impairment loss 275,552 243,688 Less: Amounts written off (378) (44) Foreign exchange gains and losses (1,676) (302) Balance at September 30 $ 706,631 $ 431,409	September 30, 2021 December 31, 2020 September 30, 2020 Not past due $ 3,523,821 $ 3,369,032 $ 3,298,993 Past due 1- 60 days 428,064 401,344 417,884 Past due 61-180 days 202,691 226,113 222,479 Past due 181-365 days 155,768 107,423 202,470 Past due over 365 days 721,248 703,763 649,423 $ 5,031,592 $ 4,807,675 $ 4,791,249 The movements of the loss allowance of notes receivable and trade receivables were as follows: For the Nine Months Ended September 30 2021 2020 Balance at January 1 $ 433,133 $ 188,067 Add: Impairment loss 275,552 243,688 Less: Amounts written off (378) (44) Foreign exchange gains and losses (1,676) (302) Balance at September 30 $ 706,631 $ 431,409	September 30, 2021 December 31, 2020 September 30, 2020 Not past due $ 3,523,821 $ 3,369,032 $ 3,298,993 Past due 1- 60 days 428,064 401,344 417,884 Past due 61-180 days 202,691 226,113 222,479 Past due 181-365 days 155,768 107,423 202,470 Past due over 365 days 721,248 703,763 649,423 $ 5,031,592 $ 4,807,675 $ 4,791,249 The movements of the loss allowance of notes receivable and trade receivables were as follows: For the Nine Months Ended September 30 2021 2020 Balance at January 1 $ 433,133 $ 188,067 Add: Impairment loss 275,552 243,688 Less: Amounts written off (378) (44) Foreign exchange gains and losses (1,676) (302) Balance at September 30 $ 706,631 $ 431,409	September 30, 2021 December 31, 2020 September 30, 2020 Not past due $ 3,523,821 $ 3,369,032 $ 3,298,993 Past due 1- 60 days 428,064 401,344 417,884 Past due 61-180 days 202,691 226,113 222,479 Past due 181-365 days 155,768 107,423 202,470 Past due over 365 days 721,248 703,763 649,423 $ 5,031,592 $ 4,807,675 $ 4,791,249 The movements of the loss allowance of notes receivable and trade receivables were as follows: For the Nine Months Ended September 30 2021 2020 Balance at January 1 $ 433,133 $ 188,067 Add: Impairment loss 275,552 243,688 Less: Amounts written off (378) (44) Foreign exchange gains and losses (1,676) (302) Balance at September 30 $ 706,631 $ 431,409
		2021 $ 433,133 275,552 (378) (1,676) $ 706,631	2020 $ 188,067 243,688 (44) (302) $ 431,409

11. INVENTORIES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Finished goods	$	822,824	$	744,981	$	748,092
Semi-finished products		484,832		463,934		564,625
Work in process		871,664		687,087		380,502
Raw materials		1,572,314		1,126,671		1,340,445
Inventory in transit		3,672		5,784		-
	$	3,755,306	$	3,028,457	$	3,033,664

The cost of inventories recognized as cost of goods sold for the three months and the nine months ended September 30, 2021 was $1,946,096 thousand and $6,031,101 thousand, respectively, which included the inventory write-downs of $14,197 thousand and $51,739 thousand, respectively.

15 -

The cost of inventories recognized as cost of goods sold for the three months and the nine months ended September 30, 2020 was $1,828,217 thousand, $5,191,071 thousand, respectively, which included the inventory write-downs of $22,768 thousand and $44,680 thousand, respectively.

12. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor
Investee
Business
The Corporation
Neworld Electronics Limited
Sale and maintenance of electronic test
instruments, etc.
Chroma New Material Corporation
Processing and sale of gold wire
Mas Automation Corp.
Design, manufacturing, installment and
testing of automated factory conveyor
systems
Chroma ATE Inc. (“Chroma USA”)
Sale and maintenance of electronic test
instruments, etc.
Chroma Systems Solutions, Inc.
Sale and maintenance of electronic test
instruments, etc.
Chroma ATE Europe B.V.
Sale and maintenance of electronic test
instruments, etc.
Chroma Japan Corp.
Sale and maintenance of electronic test
instruments, etc.
CHI Incorporation Ltd.
Test of inductance, capacitance and
resistance equipment and sale of parts
Chen Hwa Technology Inc.
Test of inductance, capacitance and
resistance equipment and sale of parts
San Eagle Development Corp.
Investment
Sensational Holding Ltd.
Investment
Deep Red Holding Co., Ltd.
Investment
Testar Electronics Corporation
Testing of LED
Adivic Technology Co., Ltd.
Sale and research of RF device
Chroma Investment Co., Ltd.
Investment
Quantel Private Ltd.
Sale and maintenance of test instruments, etc.
EVT Technology Co., Ltd.
Manufacturing of motorcycles and its parts
Innovative Nanotech Incorporated
Monitoring instruments of nanoparticles
Touch Cloud Inc.
Development of cloud platform and Internet
of Things systems
Neworld Electronics Limited
Chroma Electronics (Shenzhen) Co.,
Ltd.
Sale of computerized automatic test systems,
peripherals and electronic test instruments
Chroma Electronics (Shanghai) Co.,
Ltd.
Sale of computerized automatic test systems,
peripherals and electronic test instruments
Chroma ATE Inc. (“Chroma
USA”)
Chroma Systems Solutions, Inc.
Sale and maintenance of electronic test
instruments, etc.
Chen Hwa Technology Inc.
Chroma (Shanghai) Trading Co., Ltd.
International and transit trading, simple
commercial processing, commercial
consulting services, etc.
CHI Incorporation Ltd.
Chroma ATE (Suzhou) Co., Ltd.
Sale of computerized automatic test systems,
peripherals and electronic test instruments
San Eagle Development Corp.
Wei Kuang Mech. Eng. Inc.
Investment
Wei Kuang Mech. Eng. Inc.
Mou Kuan Technologies (Nanjin) Co.,
Ltd.
Assembly, sale and maintenance of factory
conveyors and related systems and
rendering after-sales services
Wei Kuang Automatic Equipment
(Nanjin) Co., Ltd.
Sale and maintenance of electronic
equipment and factory conveyor systems
Wei Kuang Automatic Equipment
(Xiamen) Co., Ltd.
Sale and maintenance of electronic
equipment and factory conveyor systems
Deep Red Holding Co., Ltd.
Saject System Technology (Suzhou)
Co., Ltd.
Research, development and design of
computer network security systems and
information management
EVT Technology Co., Ltd.
Wei Da Electric Vehicle Co., Ltd.
Sale and lease of motorcycles
Adivic Technology Co., Ltd.
Adivic Holding Corporation
Sale and research of RF device
Quantel Private Ltd.
Quantel Technologies India Private
Ltd.
Sale and maintenance of test instruments, etc.
Quantel Global Vietnam Co., Ltd.
Sale and maintenance of test instruments, etc.
Quantel Global Sdn. Bhd.
Sale and maintenance of test instruments, etc.
Quantel Global Philippines Corporation Sale and maintenance of test instruments, etc.
Quantel Global Company Limited
Sale and maintenance of test instruments, etc.
Chroma ATE Europe B.V.
Chroma Germany GmbH
Sale and maintenance of electronic test
instruments, etc.
Chroma Investment Co., Ltd.
Testar Electronics Corporation
Testing of LED

Percentage of Ownership as of
September 30,
2021
December 31,
2020
September 30,
2020
Remark
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
25.0
25.0
25.0
Note 1
100.0
100.0
100.0
100.0
100.0
100.0
Note 2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
67.2
67.2
67.2
74.1
74.1
74.1
100.0
100.0
100.0
60.0
60.0
60.0
85.6
85.6
85.6
67.2
71.1
71.1
Note 3
83.1
78.1
78.1
Note 4
100.0
100.0
100.0
100.0
100.0
100.0
50.0
50.0
50.0
Note 1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
-
75.0
Note 5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.9
-
-
Note 6
100.0
100.0
100.0
15.0
15.0
15.0

Note 1: The Corporation and the Corporation’s subsidiary, Chroma USA, jointly held 75% equity interest in Chroma Systems Solutions, Inc.

Note 2: To improve financial structure and enrich working capital, the Corporation’s subsidiary, Chroma Japan Corp., increased its capital by $54,626 thousand in April 2020. The Corporation’s board of directors resolved to participate in the capital injection. After the cash injection, the Group’s equity remained the same.
16 -
Note 3: To meet business needs, the Corporation’s subsidiary, Innovative Nanotech Incorporated, increased its capital reserved for employees by $11,640 thousand in April 2021. The Corporation did not participate in the capital injection and its equity interest in Innovative Nanotech Incorporated decreased to 67.2%.
Note 4: For operational needs, the Corporation’s subsidiary, Touch Cloud Inc., increased its working capital by $60,000 thousand in May 2021. The Corporation’s board of directors resolved to participate in the capital injection and its equity interest in Touch Cloud Inc. increased from 78.1% to 83.1% after the cash injection.
Note 5: The Corporation’s subsidiary, Wei Da Electric Vehicle Co., Ltd., had completed its liquidation procedures on October 15, 2020.
Note 6: To expand its sales network in Southeast Asia, the Corporation’s subsidiary Quantel Private Ltd. resolved to set up Quantel Global Company Limited. in 2021, which engaged in the sale of test instruments.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	September 30,	December 31,	September 30,
	2021	2020	2020
Investments in associates	$ 3,019,102	$ 3,122,336	$ 2,913,801
Investments in joint ventures	16,253	16,891	17,130
	$ 3,035,355	$ 3,139,227	$ 2,930,931

a. Investments in associates

Associates that are not individually material Adlink Technology Inc. Dynascan Technology Corp. Camtek Ltd.		September 30, 2021 Amount Percentage of Equity Interest (%) $ 270,883 11.3 145,740 27.3 2,602,479 18.1 $ 3,019,102		December 31, 2020 Amount Percentage of Equity Interest (%) $ 514,751 11.3 141,439 27.3 2,466,146 18.1 $ 3,122,336		September 30, 2020
						Amount Percentage of Equity Interest (%) $ 508,612 11.3 135,172 27.3 2,270,017 20.2 $ 2,913,801

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

	September 30,	December 31,	September 30,
Name of Associate	2021	2020	2020
Adlink Technology Inc.	$ 1,552,809	$ 1,552,809	$ 1,614,039
Camtek Ltd.	$ 8,819,663	$ 4,878,058	$ 3,498,758

In view of future development strategy and improvement of operating performance, the Corporation’s board of directors resolved on February 11, 2019, to subscribe for equity interest of Camtek Ltd. for US$9.5 per share. Included in the cost of investment in associates was goodwill of $658,931 thousand recognized from the acquisition of Camtek Ltd. Although the Corporation’s equity interest in Camtek Ltd. fell below 20% in 2020, after assessing the Corporation’s number of directors in Camtek, it still has a significant influence; therefore Camtek Ltd is still regarded as an associate.

17 -

The Group is able to exercise significant influence over Adlink Technology Inc. although the percentage of shares held is less than 20%. Therefore, the Group recognizes the gain and loss under the equity method.

The investments in associate accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the nine months ended September 30, 2021 and 2020 was based on the associate’s financial statements that have not been reviewed.

b. Investments in joint ventures

Joint ventures that are not individually material Chih Ho Shun Development Co., Ltd.		September 30, 2021 Amount Percentage of Equity Interest (%) $ 16,253 35.0		December 31, 2020 Amount Percentage of Equity Interest (%) $ 16,891 35.0		September 30, 2020
						Amount Percentage of Equity Interest (%) $ 17,130 35.0

For the investment and development plan, “The Action Plan for Developing Land Surrounding the MRT Airport Station to Improve Civilians’ Life,” the Board of Directors decided to invest jointly with Dynapack International Corporation and Heran Co., Ltd. to set up Chih Ho Shun Development Co., Ltd. (“Chih Ho Shun”). The Corporation held 35% entity interest in Chih Ho Shun but did not have control over this investee.

The investments in joint ventures accounted for using the equity method and the share of profit or loss and other comprehensive income of the investments for the nine months ended September 30, 2021 and 2020 were based on the joint ventures’ financial statements that have not been reviewed.

14. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2020 Additions Disposals Reclassification Exchange differences Balance at September 30, 2020 Accumulated depreciation Balance at January 1, 2020 Depreciation Disposals Reclassification Exchange differences Balance at September 30, 2020 Carrying amount at September 30, 2020 Carrying amount at December 31, 2020 and January 1, 2021	Land $ 1,209,760 - - - (1,622) $ 1,208,138 $ - - - - - $ - $ 1,208,138 $ 1,206,995	Buildings $ 2,568,672 13,909 (22) 3,195 (9,729) $ 2,576,025 $ 1,245,717 67,912 - 2,512 (1,894) $ 1,314,247 $ 1,261,778 $ 1,243,836	Machinery $ 803,326 20,259 (2,405) (10,093) (2,813) $ 808,274 $ 654,099 45,922 (2,356) (19,027) (1,666) $ 676,972 $ 131,302 $ 137,904	Office Equipment $ 1,834,589 82,444 (97,215) 79,988 (3,161) $ 1,896,645 $ 1,295,100 127,713 (66,819) 5,444 (1,962) $ 1,359,476 $ 537,169 $ 567,899	Total $ 6,416,347 116,612 (99,642) 73,090 (17,325) $ 6,489,082 $ 3,194,916 241,547 (69,175) (11,071) (5,522) $ 3,350,695 $ 3,138,387 $ 3,156,634 (Continued)

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Cost Balance at January 1, 2021 Additions Disposals Reclassification Exchange differences Balance at September 30, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation Disposals Reclassification Exchange differences Balance at September 30, 2021 Carrying amount at September 30, 2021	Land $ 1,206,995 - (425,071) 2,519 (2,685) $ 781,758 $ - - - - - $ - $ 781,758	Buildings $ 2,581,375 3,460 (1,603,436) 4,032,767 (14,697) $ 4,999,469 $ 1,337,539 135,068 (940,272) 18,620 (3,071) $ 547,884 $ 4,451,585	Machinery $ 800,328 25,943 (55,239) 49,171 (2,281) $ 817,922 $ 662,424 48,595 (49,115) 1,084 (1,804) $ 659,016 $ 158,906	Office Equipment Total $ 1,876,098 $ 6,464,796 49,490 78,893 (202,599) (2,286,345) (15,211) 4,069,246 (17,081) (36,744) $ 1,690,697 $ 8,289,846 $ 1,308,199 $ 3,308,162 139,568 323,231 (175,076) (1,164,463) (246,931) (229,395) (10,294) (15,169) $ 1,015,466 $ 2,222,366 $ 675,231 $ 6,067,480 (Concluded)

The Corporation’s board of directors resolved to sell the land and plant in Hwa Ya Technology Park to its related party, Adlink Technology, on July 3, 2020. The transaction price, which amounted to $3.08 billion, was determined with reference to the appraisal results of independent real estate appraisers. The transaction was settled on the first quarter of 2021. In addition, the Corporation sold and leased back a portion of assets for 5 years for operational needs. The transaction resulted in a total acquisitions of right-of-use assets of $128,797 thousand and lease liabilities of $170,699 thousand, refer to Note 29 for related information.

The Corporation completed the relocation of its A7 office building in the first quarter of 2021, which was constructed by the Corporation and transferred the related buildings from prepaid land and equipment to property, plant and equipment.

Except for depreciation recognized, the Group had no significant addition, disposal, and impairment of property, plant and equipment for the nine months ended September 30, 2021 and 2020. The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings Primary buildings 15-55 years Mechanical and electrical equipment 5-20 years Clean room equipment 5-10 years Others 2-50 years Machinery 2-12 years Office equipment 2-16 years

Refer to Note 30 for property, plant and equipment that have been pledged to secure borrowings of the Group.

19 -

15. LEASE ARRANGEMENTS

The Group’s important lease projects include lease land from other companies and government department for the use of the plants, warehouses and parking spaces, as well as leases of information systems cloud services, etc. The lease terms are from 2 to 10 years. The Group does not have bargain purchase options to acquire lease items at the end of lease terms.

For the nine months ended September 30, 2021 and 2020, the right-of-use assets increased by $248,233 thousand and $90,388 thousand, the depreciation was $76,331 thousand and $76,257 thousand, and the total cash out flow for leases was $210,593 thousand and $55,362 thousand, respectively.

Refer to the consolidated balance sheets for the right-of-use assets and lease liabilities. Refer to Notes 14 and 29 for the information that the Group’s acquired right-of-use assets and lease liabilities since the lease back transaction of selling the land and plant in Hwa Ya Technology Park

16. INVESTMENT PROPERTIES

	September 30,	December 31,	September 30,
	2021	2020	2020
Land	$ 3,137,187	$ 3,137,187	$ 3,137,187

The Group acquired the land ownership certificates of 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 2018, part of the land was co-constructed with Fu Yu Construction to build a joint building project, and part of it has not yet been decided, both of the above land were classified as investment properties. The determination of fair value was performed by independent qualified professional valuers, and the fair value was measured by using Level 3 inputs. The valuation was arrived at by reference to market evidence of transaction prices for similar properties. The significant unobservable inputs used include discount rates and the fair value as appraised.

September 30, 2021 Fair value $ 11,754,551	December 31, 2020 September 30, 2020 $ 11,754,551 $ 13,727,067

In the third quarter of 2019, the Group entered into a joint building contract with Fu Yu Construction Co., Ltd. (Fu Yu Construction) to jointly build a building located at No. 61-0 and No. 61-1, Lejie section, Guishan District, Taoyuan City. The construction project adopts a jointly constructed manner. The Group provided the lands and Fu Yu Construction provided fund to construct. The area will be distributed to the Group and Fu Yu Construction for 47% and 53%, respectively. According to the joint building contract, Fu Yu Construction should pay $20,000 thousand (recognized as guarantee deposit received) and two guaranteed notes with a denomination of $120,000 thousand to the Group when signing the contract. Additional $20,000 thousand guarantee deposit should be paid within five business days after the building construction registration is approved and within five business days after the approval of underground bottom plate inspection. The joint building project started in the fourth quarter of 2020, based on the agreement, the Group received $20,000 thousand guarantee deposit within five business days after the approval of underground bottom plate inspection.

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17. GOODWILL

Cost Balance, beginning of the period Net effect of exchange differences Balance, end of the period		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 228,002 (1,817) $ 226,185	2020 $ 225,996 (2,352) $ 223,644

Refer to Note 17 to the consolidated financial statements for the year ended December 31, 2020 for goodwill impairment assessment. There was no significant evidence indicating impairment of goodwill as of September 30, 2021.

18. BORROWINGS

a. Short-term borrowings

	September 30,	December 31,	September 30,
	2021	2020	2020
Unsecured bank loans	$ 2,527,456	$ 2,554,260	$ 3,148,520

As of September 30, 2021, December 31, 2020 and September 30, 2020, the interest rate on the bank loans was 0.52%-1.93%, 0.52%-4.75% and 0.52%-4.75% per annum, respectively.

b. Long-term borrowings

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Secured bank loans (1) (Note 30)	$	213,475	$	488,072	$	494,026
Unsecured bank loans (2)		1,550,000		2,550,000		2,550,000
Unsecured government loans (3)		46,048		-		45,817
		1,809,523		3,038,072		3,089,843
Less: Current portions		213,429		633,456		13,880
Long-term borrowings	$	1,596,094	$	2,404,616	$	3,075,963

1) Secured by the Group’s financial assets at amortized cost and property, plant and equipment. The final repayment period of those bank loans will be due in April 2022 to June 2031. As of September 30, 2021, December 31, 2020 and September 30, 2020, the effective interest rates on the bank loans were 2.25%-3.50%, 0.85%-4.99% and 0.85%-4.99% per annum, respectively.
2) The bank loans are for the purpose of general operation with due date in March 2023 to June 2026. As of September 30, 2021, December 31, 2020 and September 30, 2020, the interest rates on the bank loans were 0.68%-0.83%, 0.69%-0.89% and 0.76%-0.89% per annum, respectively.
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3) Due to the impact of Coronavirus pandemic, the U.S. federal government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and established a Paycheck Protection Program (PPP) to support small businesses, so as to ensure that they would be able to continue as a going concern, and their workers would remain on the payroll during the period of pandemic and economic crisis.

The Group’s subsidiary, Chroma Systems Solutions, Inc., obtained loans of US$1,653 thousand and US$1,574 thousand which were approved by the authorized bank of Small Business Administration (SBA) in 2021 and 2020, respectively. The loans were mainly used to pay salaries and relevant expenses. Loan forgiveness could be applied if certain conditions are met. The unforgiven portion of principal of the loan must be repaid within 2 years with a fixed interest of 1%.

The government loan in 2020 was fully forgiven in the fourth quarter of 2020; however, the exemption conditions could be amended at any time in 2021. Chroma Systems Solutions, Inc. has submitted the loan forgiveness application but it has not yet been approved, thus, the forgiveness amount cannot be reasonably estimated.

19. OTHER PAYABLES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Salaries and bonus		439,577		477,324		402,899
Compensation of employee’s		380,233		416,569		312,770
Remuneration of directors		7,800		10,670		7,200
Others		234,521		321,060		393,191
	$ 1,062,131		$ 1,225,623		$ 1,116,060

20. RETIREMENT BENEFIT PLANS

Employee benefits expense in respect of the Group’s defined benefit retirement plans were calculated using the actuarially determined pension cost discount rate as of December 31, 2020 and 2019. The amounts were $343 thousand, $1,187 thousand, $3,144 thousand and $3,570 thousand for the three months and the nine months ended September 30, 2021 and 2020, respectively.

21. EQUITY

a. Ordinary share capital

	September 30,	December 31,	September 30,
	2021	2020	2020
Number of shares authorized (in thousands)	500,000	500,000	500,000
Shares authorized	$ 5,000,000	$ 5,000,000	$ 5,000,000
Number of shares issued and fully received
(in thousands)	421,632	421,295	420,748
Shares issued	$ 4,216,315	$ 4,212,945	$ 4,207,484

The authorized shares include 30,000 thousand shares allocated for the exercise of employee share options. The change in the Corporation’s share capital is mainly due to the exercise of employee share options and the cancel of employee restricted shares.

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b. Capital surplus

	September 30,	December 31,	September 30,
	2021	2020	2020
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital (Note)
Additional paid-in capital	$ 2,919,560	$ 2,919,560	$ 2,892,674
Treasury share transactions	218,317	210,193	210,193
Consolidation excess	146,976	146,976	146,976
May be used to offset a deficit only
Additional paid-in capital
Employee share options exercised	222,860	200,452	196,877
Employee restricted shares vested	202,797	197,133	197,133
Employee share options expired	13,859	13,859	13,751
Share of changes in capital surplus of
associates or joint ventures	327,868	327,868	53,311
May not be used for any purpose
Employee share options	10,065	16,060	19,743
Employee restricted shares	-	4,774	5,273
	$ 4,062,302	$ 4,036,875	$ 3,735,931

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

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, 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 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 23.

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.

An appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. 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.

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Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Corporation. However, the Corporation is in compliance with Rule No. 1090150022, which was issued by the FSC on March 31, 2021. Rule No. 1010047490 was annulled on March 31, 2021 and Rule No. 1010012865 will be annulled on December 31,2021.

The appropriations of earnings for 2020 and 2019, which have been approved in the annual shareholders’ meetings on August 18, 2021 and on June 10, 2020, respectively, were as follows:

Legal reserve Special reserve Reversal of special reserve Cash dividends	Appropriation of Earnings For Fiscal Year 2020 For Fiscal Year 2019 $ 231,823 $ 185,448 - 89,240 (89,240) - 1,897,175 1,265,000	Dividends Per Share (NT$)
		For Fiscal Year 2020 For Fiscal Year 2019 $4.5 $3.0

The above 2020 and 2019 appropriations for cash dividends had been resolved by the Company’s board of directors on February 25, 2021 and February 26, 2020, respectively; the other proposed appropriations had been resolved by the shareholders in their meetings on August 18, 2021 and June 10, 2020, respectively.

d. Special reserve

If a special reserve appropriated on the first-time adoption of IFRSs relates to exchange differences on translation of the financial statements of foreign operations (including the subsidiaries of the Corporation), the special reserve 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 IFRSs. Any special reserve appropriated may be reversed to the extent to the reversal of other equity items and may be thereafter distributed.

e. Other equity items

	Exchange
	Differences on	Unrealized
	Translating	Gain (Loss) on	Unearned
	Foreign	Financial Assets	Employee
	Operations	at FVTOCI		Benefit
For the nine months ended
September 30, 2021
Balance at January 1, 2021	$ (466,042)	$ 384,493	$	(552)
Exchange differences on translating foreign
operations	(79,191)	-		-
Unrealized gain arising from equity
investment	-	185,079		-
				(Continued)

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f.	Exchange Differences on Translating Foreign Operations Share of other comprehensive loss of associates accounted for using the equity method $ (55,674) Share-based payment transaction - Balance at September 30, 2021 $ (600,907) For the nine months ended September 30, 2020 Balance at January 1, 2020 $ (331,073) Exchange differences on translating foreign operations (40,637) Unrealized gain arising from equity investment - Share of other comprehensive loss of associates accounted for using the equity method (19,613) Share-based payment transaction - Disposal investments accounted for using the equity method (87) Balance at September 30, 2020 $ (391,410) Non-controlling interests Balance, beginning of the period Share of non-controlling interests Net profit Exchange differences on translating the financial statements of foreign entities Change in equity from issuance of ordinary shares by subsidiaries Cash dividends distributed by subsidiaries Balance, end of the period	Unrealized Gain (Loss) on Financial Assets at FVTOCI Unearned Employee Benefit $ (3,695) $ - - 552 $ 565,877 $ - $ 154,946 $ (11,524) - - 45,144 - (7) - - 10,640 - - $ 200,083 $ (884) (Concluded) For the Nine Months Ended September 30	Unrealized Gain (Loss) on Financial Assets at FVTOCI Unearned Employee Benefit $ (3,695) $ - - 552 $ 565,877 $ - $ 154,946 $ (11,524) - - 45,144 - (7) - - 10,640 - - $ 200,083 $ (884) (Concluded) For the Nine Months Ended September 30	Unrealized Gain (Loss) on Financial Assets at FVTOCI Unearned Employee Benefit $ (3,695) $ - - 552 $ 565,877 $ - $ 154,946 $ (11,524) - - 45,144 - (7) - - 10,640 - - $ 200,083 $ (884) (Concluded) For the Nine Months Ended September 30
			2021 $ 325,470 68,524 (8,106) 21,646 (2,893) $ 404,641	2020 $ 296,699 32,798 (8,691) - - $ 320,806

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g. Treasury shares

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Number of shares held (in thousands of
shares)		1,806		1,806		1,806
Carrying amount	$	33,686	$	33,686	$	33,288
Market price	$	317,782	$	303,337	$	276,254

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.

22. REVENUE

Revenue from contracts with customers Revenue from sale of goods Construction contract revenue Other revenue		For the Three Months Ended September 30 2021 2020 $ 3,996,354 $ 3,726,795 144,978 202,758 134,412 225,538 $ 4,275,744 $ 4,155,091		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,996,354 144,978 134,412 $ 4,275,744		2021 $ 12,158,915 509,318 326,175 $ 12,994,408	2020 $ 10,619,675 508,805 226,128 $ 11,354,608

a. Contract balances

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Contract assets - construction contract (1)	$	793,694	$	1,278,936	$	1,267,740
Contract liabilities - construction contract (1)	$	30,134	$	27,643	$	21,666
Contract liabilities - sale of goods (1)		450,340		430,039		311,690
Contract liabilities - advance receipts for real
estate (2)		-		308,000		308,000
	$	480,474	$	765,682	$	641,356

1) The changes in the balance of contract liabilities primarily result from the timing difference between the Group’s performance and respective customer’s payment.

2) Refer to Notes 14 and 29 for related information.
b. Disaggregation of revenue

Refer to Note 35 for the information on disaggregation of revenue.

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23. ADDITIONAL INFORMATION ON EXPENSES

a. Finance costs

Interest on borrowings Interest on lease liabilities Depreciation and amortization An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating expenses	For the Three Months Ended September 30 2021 2020 $ 10,322 $ 10,695 1,245 1,879 $ 11,567 $ 12,574 For the Three Months Ended September 30 2021 2020 $ 12,364 $ 19,934 132,915 84,843 $ 145,279 $ 104,777 $ 7,553 $ 3,924	For the Three Months Ended September 30 2021 2020 $ 10,322 $ 10,695 1,245 1,879 $ 11,567 $ 12,574 For the Three Months Ended September 30 2021 2020 $ 12,364 $ 19,934 132,915 84,843 $ 145,279 $ 104,777 $ 7,553 $ 3,924	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 2020 $ 29,601 $ 39,297 4,360 4,603 $ 33,961 $ 43,900 For the Nine Months Ended September 30
		2021 $ 12,364 132,915 $ 145,279 $ 7,553		2021 $ 71,148 328,414 $ 399,562 $ 14,624	2020 $ 60,473 257,331 $ 317,804 $ 8,042

b. Depreciation and amortization

c. Employee benefits expense

Short-term benefits Share-based payments (Note 26) Post-employment benefits Defined contribution plans Defined benefit plans (Note 20) Other employee benefits Summarized by function Operating costs Operating expenses		For the Three Months Ended September 30 2021 2020 $ 1,032,888 $ 822,479 - 4,840 26,366 24,337 343 1,187 21,719 18,212 $ 1,081,316 $ 871,055 $ 167,072 $ 130,115 914,244 740,940 $ 1,081,316 $ 871,055		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,032,888 - 26,366 343 21,719 $ 1,081,316 $ 167,072 914,244 $ 1,081,316		2021 $ 2,861,716 1,415 71,301 3,144 60,066 $ 2,997,642 $ 485,486 2,512,156 $ 2,997,642	2020 $ 2,549,592 17,115 70,617 3,570 49,643 $ 2,690,537 $ 413,383 2,277,154 $ 2,690,537

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d. Employees’ compensation and remuneration of directors

According to the Articles, the Corporation accrued employees’ compensation and remuneration of directors at the rates of 5%-20% and no higher than 1.5%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. For the three months and nine months ended September 30, 2021 and 2020, the employees’ compensation and remuneration of directors are as follows:

Compensation of employees Remuneration of directors		For the Three Months Ended September 30 2021 2020 Amount Amount $ 102,047 $ 100,845 $ 2,400 $ 2,400	For the Three Months Ended September 30 2021 2020 Amount Amount $ 102,047 $ 100,845 $ 2,400 $ 2,400		For the Nine Months	Ended September 30	Ended September 30
		2021 Amount $ 102,047 $ 2,400			2021 Amount Rate % $ 337,047 7.45 $ 7,200 0.16		2020
							Amount Rate % $ 287,845 12.67 $ 7,200 0.32

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

The appropriations for compensation of employees and remuneration of directors for 2020 and 2019 that were resolved by the board of directors on February 25, 2021 and February 26, 2020, respectively, are as shown below:

Compensation of employees - cash Remuneration of directors - cash	For the Year Ended December 31
	2020 2019 $ 383,845 $ 290,000 9,600 9,600

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2020 and 2019.

Information on the employees’ compensation 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.

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24. INCOME TAXES

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

Current tax In respect of the current period Land value incremental tax Income tax on unappropriated earnings Adjustments for prior year Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended September 30 2021 2020 $ 178,149 $ 155,029 - - - - (18) (35,004) 178,131 120,025 12,558 37,844 $ 190,689 $ 157,869	For the Three Months Ended September 30 2021 2020 $ 178,149 $ 155,029 - - - - (18) (35,004) 178,131 120,025 12,558 37,844 $ 190,689 $ 157,869	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 178,149 - - (18) 178,131 12,558 $ 190,689		2021 $ 507,853 200,196 14,307 4,800 727,156 72,836 $ 799,992	2020 $ 403,843 - 14,990 (34,613) 384,220 76,289 $ 460,509

b. Income tax assessments

The Corporation’s income tax returns through 2018 have been assessed by the tax authorities.

The income tax returns through 2019 of the Corporation’s subsidiaries - Mas Automation Corp., Testar Electronics Corp., Adivic Technology Co., Ltd., Innovative Nanotech Inc., Chroma Investment Co., Touch Cloud Inc. and EVT Technology Co., Ltd. have been assessed by the tax authorities.

The income tax returns through 2018 of the Corporation’s subsidiary - Chroma New Material Corp., have been assessed by the tax authorities.

25. 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 Period

Earnings used in the computation of basic and diluted earnings per share		For the Three Months Ended September 30 2021 2020 $ 792,835 $ 582,959		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 792,835		2021 $ 3,521,435	2020 $ 1,637,230

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(In Thousands of Shares)

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Employee share options Employee restricted shares Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended September 30 2021 2020 419,826 418,889 1,806 1,881 580 948 - 45 422,212 421,763	For the Three Months Ended September 30 2021 2020 419,826 418,889 1,806 1,881 580 948 - 45 422,212 421,763	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 419,826 1,806 580 - 422,212		2021 419,610 2,167 660 - 422,437	2020 417,247 2,269 1,391 44 420,951

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

26. SHARE-BASED PAYMENT ARRANGEMENTS

a. Employee share option plan

The Corporation had not granted employee share options for the nine months ended September 30, 2021 and 2020. Information on employee share options is as follows:

Balance at January 1 Options exercised Balance at September 30 Options exercisable, end of the period	For the Nine Months	Ended September 30
	2021	2020
	Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) 1,238 $ 58.7 (462) 58.3 776 57.3 776	Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) 3,136 $ 59.8 (1,692) 59.6 1,444 58.7 1,444

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b. Employee share option plan of subsidiaries

Adivic Technology Co. granted its employees share options of 1,360 thousand units on March 12, 2014, with each option eligible to subscribe for one common share of Adivic Technology Co. when exercised. The options are valid for 8 years and exercisable at certain percentages subsequent to the second year of the grant date.

The outstanding employee share options were 625 thousand and 785 thousand units, respectively, and the weighted-average exercise price was $10 per share, there was no change for the nine months ended September 30, 2021 and 2020.

The qualified employees of Touch Cloud Inc. were granted 470 thousand units of share options in April 2020, each option entitled the holders to subscribe for one common share of Touch Cloud Inc. upon exercised. The options granted are valid for 5 years and exercisable at certain percentages from the second anniversary of the grant date. The exercise price is $10 per share according to the terms of the employee share option plan.

Balance at January 1 Options granted Options expired Balance at September 30 Options exercisable, end of the period	For the Nine Months	Ended September 30
	2021 Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) 470 $ 10.0 - - (22) 10.0 448 10.0 -	2020
		Number of Options (In Thousands of Units) Weighted- average Exercise Price (NT$) - $ - 470 10.0 - - 470 10.0 -

The above-mentioned employee share options used Black-Scholes model to determine the fair value of the options. The valuation assumptions on the grant date were as follows:

	April 2020
Grant-date share price	$3.71
Exercise price	$10
Expected volatility	36.64%-38.24%
Expected life (in years)	3.5-4.5
Expected dividend yield	-
Risk-free interest rate	0.39%-0.42%

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c. Restricted shares for employees

In the shareholders’ meeting on June 7, 2016, the shareholders approved a Restricted Share Unit Plan (“RSU” Plan) for employees with a total amount of $36,000 thousand, consisting of 3,600 thousand shares with issuance price of $10 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. 1050024381 issued by the FSC on June 27, 2016. The Group issued 3,100 thousand and 185 thousand shares on July 8, 2016 and June 20, 2017, the subscription date. The details of RSU Plan are as follows:

1) 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.
2) The restrictions on the rights of the employees who are granted RSUs but have not met the vesting conditions are as follows:
a) The employees are not eligible to sell, pledge, transfer, donate or to dispose any RSUs in any form.
b) 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.
c) 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.
d) 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.
3) 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 relating to outstanding employee restricted shares is as follows:

Restricted shares at the beginning of the period Shares vested Shares canceled Restricted shares at the end of the period	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 52 (52) - -	2020 1,285 (1,110) (123) 52

27. CAPITAL MANAGEMENT

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

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28. FINANCIAL INSTRUMENTS

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

Management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximates their fair values.

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

September 30, 2021 Financial assets at FVTPL Domestic listed equity securities Domestic unlisted equity securities Open-end beneficiary certificates Financial assets at FVTOCI Domestic listed ordinary shares and emerging markets shares Domestic unlisted equity securities Foreign unlisted equity securities December 31, 2020 Financial assets at FVTPL Domestic listed equity securities Domestic unlisted equity securities Open-end beneficiary certificates	Level 1 $ 6,923 - 454,532 $ 461,455 $ 478,853 - - $ 478,853 $ 4,763 - 445,422 $ 450,185	Level 2 $ - - - $ - $ - - - $ - $ - - - $ -	Level 3 $ - 56,569 4,603 $ 61,172 $ 418,374 134,921 21,739 $ 575,034 $ - 58,830 4,646 $ 63,476	Total $ 6,923 56,569 459,135 $ 522,627 $ 897,227 134,921 21,739 $1,053,887 $ 4,763 58,830 450,068 $ 513,661 (Continued)

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Financial assets at FVTOCI Domestic listed ordinary shares and emerging markets shares Domestic unlisted equity securities Foreign unlisted equity securities September 30, 2020 Financial assets at FVTPL Domestic listed equity securities Domestic unlisted equity securities Open-end beneficiary certificates Financial assets at FVTOCI Domestic listed ordinary shares and emerging markets shares Domestic unlisted equity securities Foreign unlisted equity securities	Level 1 $ 376,499 - - $ 376,499 $ 4,176 - 399,227 $ 403,403 $ 356,050 - - $ 356,050	Level 2 $ - - - $ - $ - - - $ - $ - - - $ -	Level 3 $ 347,474 131,196 7,729 $ 486,399 $ - 44,138 4,649 $ 48,787 $ 198,917 94,756 7,356 $ 301,029	Total $ 723,973 131,196 7,729 $ 862,898 $ 4,176 44,138 403,876 $ 452,190 $ 554,967 94,756 7,356 $ 657,079 (Concluded)

There were no transfers between Levels 1 and 2 for the nine months ended September 30, 2021 and 2020.

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

The fair values of domestic unlisted equity securities, emerging market equity securities and open-end beneficiary certificates are determined by 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.

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c. Categories of financial instruments

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Financial assets
Financial assets at FVTPL
Mandatorily at FVTPL	$	522,627	$	513,661	$	452,190
Financial assets at amortized cost (1)		8,606,692		8,439,251		8,115,458
Financial assets at FVTOCI
Equity instruments		1,053,887		862,898		657,079
Financial liabilities
Financial liabilities at amortized cost (2)		8,136,126		9,547,767		9,750,556

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets measured at amortized cost, notes receivable, trade receivables, other receivables (classified as other current assets) and refundable deposits.
2) The balances include financial liabilities measured at amortized cost, which comprise short-term loans, notes payable, trade payables, other payables, long-term loans (including current portion of long-term borrowings) and guarantee deposits received.
d. Financial risk management objectives and policies

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

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

1) Market risk

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

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

a) Foreign currency risk

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period are set out in Note 33.

Sensitivity analysis

The Group was mainly exposed to USD and RMB.

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Had the NTD strengthened/weakened by 5% against the relevant currency, the pre-tax profit would have decreased/increased by $161,014 thousand and $226,843 thousand for the nine months ended September 30, 2021 and 2020, respectively. The 5% sensitivity rate is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency-denominated monetary items and their translation at period-end is adjusted for a 5% change in foreign-currency rates.

b) Interest rate risk

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

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

	September 30,	December 31,	September 30,
	2021	2020	2020
Fair value interest rate risk
Financial assets	$ 1,349,476	$ 1,176,504	$ 1,103,443
Financial liabilities	959,278	1,537,030	1,890,139
Cash flow interest rate risk
Financial assets	2,359,751	2,753,550	2,517,683
Financial liabilities	3,705,314	4,202,894	4,506,027

Sensitivity analysis

The sensitivity analysis below has been determined on the basis of the exposure to interest rates for both derivative and 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 entire period. 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/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2021 and 2020 would decrease/increase by $5,046 thousand and decrease/increase by $7,456 thousand, respectively, which was mainly a result of the Group’s exposure to cash flow risk from variable-rate deposits and bank loans.

c) Price risk

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

i. Investments in financial assets at FVTOCI (mainly investments in domestic and foreign stocks), which are held for strategic rather than trading purposes. The Group does not actively trade these investments.
ii. Financial assets at FVTPL (mainly investments in domestic and foreign open-end beneficiary certificates and listed stocks in Taiwan)

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

36 -

Sensitivity analysis

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

If equity prices had been 5% higher/lower, the pre-tax profit for the nine months ended September 30, 2021 and 2020 would have increased/decreased by $26,131 thousand and $22,610 thousand as a result of the changes in fair values of financial assets at FVTPL, respectively, and the pre-tax other comprehensive income for the nine months ended September 30, 2021 and 2020 would have increased/decreased by $52,694 thousand and $32,854 thousand as a result of the changes in fair values of financial assets at FVTOCI, respectively.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, could arise from:

a) The carrying amount of trade receivables from operating activities; and
b) The amount of bank deposits, fixed-income and other financial instruments from investing activities.

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Trade receivables involve a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of trade receivables, including the evaluation of internal credits, historical transaction records, present economic circumstances, etc. which affect the customers’ payment ability.

The credit risk of the Group’s trade receivables is mainly concentrated on specific customers in mainland China. The Group had properly assessed the expected credit loss of relevant trade receivables. As of September 30, 2021, December 31, 2020 and September 30, 2020, the above trade receivables accounted for 11.84%, 12.48% and 12.39%, respectively, of the total trade receivables.

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

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group’s available unutilized bank loan facilities were $4,215,290 thousand, $3,244,091 thousand and $3,798,420 thousand, respectively.

37 -

Liquidity and interest risk tables for non-derivative financial liabilities

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay.

Bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

Non-interest bearing Fixed interest rate instruments Floating interest rate instruments Lease liabilities Non-interest bearing Fixed interest rate instruments Floating interest rate instruments Lease liabilities Non-interest bearing Fixed interest rate instruments Floating interest rate instruments Lease liabilities	September 30, 2021	September 30, 2021
	Within 1 Year 1 to 5 Years More Than 5 Years $ 3,756,097 $ - $ - 531,350 28,468 103,055 2,279,582 1,409,812 64,634 104,477 225,445 12,062 $ 6,671,506 $ 1,663,725 $ 179,751 December 31, 2020
	Within 1 Year 1 to 5 Years More Than 5 Years $ 3,914,549 $ - $ - 1,314,065 32,551 83,505 1,908,542 2,182,924 176,862 59,308 89,946 5,224 $ 7,196,464 $ 2,305,421 $ 265,591 September 30, 2020
	Within 1 Year $ 3,492,193 1,608,445 1,593,444 65,868 $ 6,759,950	1 to 5 Years More Than 5 Years $ - $ - 79,801 87,987 2,693,322 296,085 94,122 5,224 $ 2,867,245 $ 389,296

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

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

38 -

29. TRANSACTIONS WITH RELATED PARTIES

a. The related parties and relationships with the Group were as follows:

Related Party Dynascan Technology Corp. (“Dynascan Technology”) Adlink Technology Inc. (“Adlink”) DynaScan Technology Inc. (“Dynascan USA”) Mou Kuan Industry Co., Ltd. (“Mou Kuan”) Quantel Co., Ltd. (“Quantel Thailand”) Quantel Electronics (India) Private Limited (“Quantel India”) PT Quantel (“Quantel Indonesia”) Taiwan Advanced Nanotech Inc. (“TAN Bead”)	Relationship with the Group
	Associate Associate Other related party (a subsidiary of associate) Other related party Other related party Other related party Other related party Other related party

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

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

b. Sales

Related Party Categories Associates Other related parties	For the Three Months Ended September 30 2021 2020 $ 5,580 $ 4,889 9,862 7,177 $ 15,442 $ 12,066	For the Three Months Ended September 30 2021 2020 $ 5,580 $ 4,889 9,862 7,177 $ 15,442 $ 12,066	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 5,580 9,862 $ 15,442		2021 $ 15,418 28,438 $ 43,856	2020 $ 13,622 31,902 $ 45,524

c. Purchases

	For	the	Three Months	Three Months	Three Months	Ended	For the Nine	For the Nine	Months Ended	Months Ended
			September		30			September		30
Related Party Categories		2021			2020			2021		2020
Associates	$	7,447		$		3,573	$	17,882	$	15,453
Other related parties		2,443				5,151		8,811		12,239
	$	9,890		$		8,724	$	26,693	$	27,692
Contract liabilities
Related Party			September 30,				December 31,		September 30,
Categories	Related Party			2021			2020			2020
Associates	Adlink Technology		$			-	$ 308,000		$	308,000
	Inc.

d. Contract liabilities

It is advance receipt for selling the land and plant in Hwa Ya Technology park, refer to Note 14 for the detailed information.

39 -

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

	Related Party	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Line Item	Categories		2021		2020		2020
Trade receivables -	Associates	$	6,640	$	5,041	$	6,329
related parties	Other related parties		15,872		14,299		21,726
		$	22,512	$	19,340	$	28,055

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

	Related Party	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Line Item	Categories		2021		2020		2020
Notes payable -	Associates	$	91	$	-	$	-
related parties	Other related parties		3,864		4,570		201
		$	3,955	$	4,570	$	201
Trade payables -	Associates	$	3,193	$	6,613	$	3,206
related parties	Other related parties		444		4,740		-
		$	3,637	$	11,353	$	3,206

g. Acquisition of property, plant and equipment

Related Party Category Associates		Purchase For the Three Months Ended September 30 2021 2020 $ 24,176 $ -	Purchase For the Three Months Ended September 30 2021 2020 $ 24,176 $ -	Price	Price
				For the Nine Months Ended September 30
		2021 $ 24,176		2021 $ 24,176	2020 $ -

h. Disposal of property, plant and equipment

Related Party Category Associates Adlink Technology Inc.		Proceeds For the Nine Months Ended September 30 2021 2020 $ 3,080,000 $ -		Gain on Disposal	Gain on Disposal
				For the Nine Months Ended September 30
		2021 $ 3,080,000		2021 $ 1,575,072	2020 $ -

The transfer rights recognized as a result of sale and leaseback transactions amounted to $154,510 thousand for the nine months ended September 30, 2021. Refer to Note 14 for the detailed information.

40 -

i. Lease arrangements

For the Three Months Ended September 30 For the Nine Months Ended September 30 Related Party Categories 2021 2020 2021 2020 Acquisitions of right-of-use assets Associates Adlink Technology Inc. $ - $ - $ 180,053 $ - Line Item Related Party Categories September 30, 2021 December 31, 2020 September 30, 2020 Lease liabilities Associates Adlink Technology Inc. $ 200,180 $ - $ -		For the Nine Months Ended September 30

Refer to Note 14 for the related transaction.

j. Others

			For	the Three	Months Ended	For	the Nine Months Ended	the Nine Months Ended	the Nine Months Ended
		Related Party		September 30			September		30
Line Items		Categories		2021	2020		2021		2020
Rental income	Associates		$	1,653	$ 315	$	4,958	$	945
Rental expense	Associates		$	130	$ -	$	259	$	-
	Other related			-	3,150		-		9,450
		parties
			$	130	$ 3,150	$	259	$	9,450
Administration	Associates		$	2,906	$ 154	$	3,827	$	217
expense	Other related			766	1,117		2,218		3,236
		parties
			$	3,672	$ 1,271	$	6,045	$	3,453
		Related Party		September 30, December 31, September 30,
Line Item		Categories			2021	2020		2020
Other current assets		Associates		$	2,116 $		523 $		3,174
		Other related parties			708	1,264			15
				$	2,824 $	1,787 $			3,189
Other payables		Associates		$	4,195 $		75 $		119

41 -

k. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30 2021 2020 $ 37,642 $ 37,998 657 608 $ 38,299 $ 38,606	For the Three Months Ended September 30 2021 2020 $ 37,642 $ 37,998 657 608 $ 38,299 $ 38,606	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 37,642 657 $ 38,299		2021 $ 132,931 2,070 $ 135,001	2020 $ 110,301 1,827 $ 112,128

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

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Property, plant and equipment, net	$	236,080	$	815,553	$	925,546
Pledge deposits (classified as financial assets
measured at amortized cost)		727,436		729,393		753,565
	$	963,516	$	1,544,946	$	1,679,111

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Chroma’s subsidiary, MAS Automation Corporation (“MAS”), entered into an Equipment Purchase Agreement (“Agreement”) with LINCO Technology Co., Ltd (“LINCO”) in 2017, in which MAS entrusted LINCO to manufacture automation equipment. However, LINCO failed to deliver a considerable number of important parts of the equipment to MAS; furthermore, LINCO rejected to perform its installation services under the Agreement. Hence, MAS claimed for a delay penalty of $2,503,659 thousand (around US$83,455 thousand) against LINCO, of which MAS filed a civil lawsuit on November 12, 2018 for $440,000 thousand, and the remaining penalty was reserved for the right to claim in the future. In addition, MAS submitted a petition to the court for provisional attachment against LINCO to secure its right, and offered a deposit in an amount of $440,000 thousand to the court. Whereas, LINCO conversely alleged that MAS breached its payment obligation under the Agreement. LINCO raised a counterclaim against MAS in the Taiwan Taoyuan District Court on October 30, 2019, claiming for the payment of $255,640 thousand (around US$8,240 thousand) along with the interest. On the other hand, LINCO asserted that it suffered from the provisional attachment which was submitted by MAS, and brought another civil lawsuit against MAS in the Taiwan Taichung High Court, claiming for the damage compensation of $505,521 thousand. The case had been pronounced by the court on May 12, 2021. The court rejected the compensatory damage and the request for claim of provisional execution by LINCO. As such, LINCO made an appeal to the Taiwan Supreme Court on June 9, 2021. As of September 30, 2021, the lawsuit has yet to be settled, and the outcome of the judgment cannot be reliably estimated.

42 -

32. SIGNIFICANT EVENTS

a. The global economic and financial development are facing significant uncertainty due to the outbreak of COVID-19 pandemic. Recently, Taiwan has been affected by the epidemic. As of the date the consolidated financial statements were authorized for issue, the Group assessed that the pandemic did not have material impact on its ability to continue as a going concern, impairment of assets and risks arising from financing activities. The Group continuously observes and assesses the impact of the pandemic on the aforementioned aspects.
b. The Group considers the future strategy of the product and the improvement of product competitiveness, and the Corporation’s board of directors resolved to invest US$1.5 million for a 100% equity in Environmental Stress Systems, Inc. Upon completion of the investment procedures, the Group will increase its capital by US$500,000.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group entities’ 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:

September 30, 2021

Foreign Currencies Exchange Rate Financial assets Monetary items USD $ 94,670 27.850 (USD:NTD) USD 16,062 7.788 (USD:HKD) USD 10,872 6.469 (USD:RMB) USD 8,712 1.361 (USD:SGD) RMB 158,035 4.305 (RMB:NTD) RMB 102,120 1.204 (RMB:HKD) RMB 35,191 0.155 (RMB:USD)	Carrying Amount $ 2,636,566 447,319 302,776 242,619 680,341 439,627 151,497 $ 4,900,745

Non-monetary items

Investments accounted for using the equity method USD 93,446 27.850 (USD:NTD) Financial liabilities Monetary items USD 41,942 27.850 (USD:NTD) USD 12,784 7.788 (USD:HKD) RMB 36,320 1.204 (RMB:HKD)	$ 2,602,479 $ 1,168,083 356,028 156,358 $ 1,680,469

43 -

December 31, 2020

Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 113,578
28.480 (USD:NTD)
USD

20,512
7.754 (USD:HKD)
USD

9,108
6.507 (USD:RMB)
USD

8,315
0.813 (USD:EUR)
USD

7,437
1.321 (USD:SGD)
RMB

135,694
4.377 (RMB:NTD)
RMB

132,021
1.192 (RMB:HKD)
RMB

34,682
0.154 (RMB:USD)

Non-monetary items

Investments accounted for using the equity
method

USD

86,592
28.480 (USD:NTD)
Financial liabilities

Monetary items

USD

31,401
28.480 (USD:NTD)
USD

13,355
7.754 (USD:HKD)
USD

8,208
0.813 (RMB:USD)

September 30, 2020
Foreign
Currencies
Exchange Rate
Financial assets
Monetary items
USD
$ 114,985
29.100 (USD:NTD)
USD

34,516
7.752 (USD:HKD)
USD

8,880
6.810 (USD:RMB)
USD

6,300
1.369 (USD:SGD)
RMB

167,420
1.137 (RMB:HKD)
RMB

150,962
4.269 (RMB:NTD)
RMB

34,445
0.147 (RMB:USD)

Carrying
Amount
$ 3,234,710

584,178

259,401

236,801

211,797

593,933

577,856

151,803
$ 5,850,479
$ 2,466,146
$ 894,301

380,346

233,763
$ 1,508,410
Carrying
Amount
$ 3,346,067

1,004,405

258,397

183,317

714,717

644,457

147,088
$ 6,298,448
(Continued)

44 -

Foreign Currencies Exchange Rate Non-monetary items Investments accounted for using the equity method USD $ 76,664 29.100 (USD:NTD) Financial liabilities Monetary items USD 30,795 29.100 (USD:NTD) USD 21,424 7.752 (USD:HKD) RMB 56,689 1.137 (RMB:HKD)	Carrying Amount $ 2,230,035 $ 896,137 623,443 242,007 $ 1,761,587 (Concluded)

For the three months ended September 30, 2021 and 2020, (realized and unrealized) net foreign exchange gains (losses) were $21,858 thousand and $(20,870) thousand, respectively. For the nine months ended September 30, 2021 and 2020, (realized and unrealized) net foreign exchange losses were $45,880 thousand and $52,644 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

34. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others: Table 1 (attached)
2) Endorsements/guarantees provided: Table 2 (attached)
3) Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Table 3 (attached)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None.
5) Acquisitions of individual real estate at costs of at least NT $300 million or 20% of the paid-in capital: None.
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: Table 4 (attached)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5 (attached)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 6 (attached)
9) Trading in derivative instruments: None.
45 -

10) Others: Intercompany relationships and significant intercompany transactions: Table 7 (attached)

11) Information on investees: Table 8 (attached)
b. 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 9 (attached)
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 5 (attached)
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Table 5 (attached)
- 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 (attached)
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: Table 1 (attached)
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: None.
c. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder: None.

35. SEGMENT INFORMATION

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

a. Special materials department.
b. Test instrument department.
c. Automatic equipment department.
46 -

d. Other

1) Segment revenue and results

For the nine months ended September 30, 2021 Revenue from external customers Inter-segment revenue Segment revenue Consolidated revenue Segment income Non-operating income and expenses Profit before tax For the nine months ended September 30, 2020 Revenue from external customers Inter-segment revenue Segment revenue Consolidated revenue Segment income Non-operating income and expenses Profit before tax	Special Materials Department $ 2,139,009 15 $ 2,139,024 $ 45,461 $ 1,785,087 7 $ 1,785,094 $ 29,814	Test Instrument Department $ 10,019,906 6,689,196 $ 16,709,102 $ 2,418,089 $ 8,834,899 6,475,993 $ 15,310,892 $ 2,127,278	Automatic Equipment Department $ 509,318 239,362 $ 748,680 $ (216,206) $ 508,805 133,463 $ 642,268 $ (176,876)	Other $ 326,175 - $ 326,175 $ 72,059 $ 225,817 579 $ 226,396 $ (6,836)	Elimination $ - (6,928,573) $ (6,928,573) $ 26,451 $ - (6,610,042) $ (6,610,042) $ 54,419	Total $ 12,994,408 -
						12,994,408
						$ 12,994,408
						$ 2,345,854 2,044,097
						$ 4,389,951
						$ 11,354,608 -
						11,354,608
						$ 11,354,608
						$ 2,027,799 102,738
						$ 2,130,537

The sales between segments are based on market prices.

The above segment revenue were generated through transactions with external customers and among segments. The inter-segment revenue for the nine months ended September 30, 2021 and 2020 had been adjusted and eliminated from the consolidated financial statements.

Segment profit represents the profit earned by each segment, excluding remuneration of directors, share of profits or loss of associates and joint ventures, rental income, interest income, gain (loss) on disposal of property, plant and equipment, gain (loss) on disposal of investments, foreign exchange gain (loss), valuation gain (loss) on financial instruments, finance costs and income tax expense. This was the measure reported to the Group’s chief operating decision maker to allocate resources to each segment and evaluate its performance.

2) Segment assets and liabilities

September 30, 2021 Segment assets Special materials department $ 1,039,895 Test instrument department 22,878,659 Automatic equipment department 1,709,803 Other 476,006 Adjustments and eliminations (3,896,713) Total segment assets 22,207,650 Investments and other unallocated assets 6,249,902 Consolidated total assets $ 28,457,552	December 31, 2020 September 30, 2020 $ 1,063,918 $ 1,000,612 22,569,260 22,558,805 2,330,813 2,727,301 274,843 283,112 (3,977,415) (4,988,871) 22,261,419 21,580,959 5,867,464 5,337,773 $ 28,128,883 $ 26,918,732 (Continued)

47 -

September 30, 2021 Segment liabilities Special materials department $ 804,780 Test instrument department 6,570,157 Automatic equipment department 987,414 Others 131,405 Adjustments and eliminations (3,256,147) Total segment liabilities 5,237,609 Borrowings and other unallocated liabilities 5,048,617 Consolidated total liabilities $ 10,286,226	December 31, 2020 September 30, 2020 $ 834,982 $ 696,902 6,262,348 6,318,004 1,410,681 1,392,751 86,490 84,997 (3,067,754) (3,680,446) 5,526,747 4,812,208 6,213,443 6,799,397 $ 11,740,190 $ 11,611,605 (Concluded)

For the purpose of monitoring segment performance and allocating resources between segments:

a) All assets were allocated to reportable segments other than interests in associates accounted for using the equity method, investments in financial instruments and deferred tax assets. Goodwill was allocated to reportable segments.
b) All liabilities were allocated to reportable segments other than borrowings and deferred tax liabilities.
48 -

TABLE 1

CHROMA ATE INC. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing (Note 4)	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
0	The Corporation	Chroma Japan Corp. Chroma Systems Solutions, Inc.	Other receivables Other receivables	Y Y	$ 127,905 103,784	$ 127,905 101,556	$ 57,505 101,556	1.30% 3.25%	a a	$ 219,572 422,386	- -	$ - -	- -	$ - -	$ 1,776,669 (Note 1) 1,776,669 (Note 1)	$ 3,553,337 (Note 2) 3,553,337 (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 columns were translated into New Taiwan dollars at the exchange rate of US$1=NT$27.850, JPY1=NT$0.249, as of September 30, 2021.

Note 4: Financing provided:

a. For transactions.

b. For short-term financing.

49 -

TABLE 2

CHROMA ATE INC. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars or Foreign Currency, Unless Stated Otherwise)

No.	Endorser/ Guarantor	Endorsee/Guarantee	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 Borrowing Amount	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 Japan Corp. Chroma ATE Europe B.V. Chroma ATE Inc. Sajet System Technology (Suzhou) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Mas Automation Corp.	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	$ 2,665,003 2,665,003 2,665,003 2,665,003 2,665,003 2,665,003 2,665,003	$ 49,800 48,480 222,800 21,525 43,050 86,100 200,000	$ 49,800 48,480 222,800 21,525 43,050 86,100 200,000	$ 37,350 25,856 139,520 - 13,561 1,825 150,000	$ - - - - - - -	0.28% 0.27% 1.25% 0.12% 0.24% 0.48% 1.13%	$ 5,330,006 5,330,006 5,330,006 5,330,006 5,330,006 5,330,006 5,330,006	Y Y Y Y Y Y Y	- - - - - - -	- - - Y Y 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 (a) within 15% of the net value of the Corporation and (b) the capital issued of the entity endorsed/guaranteed, but 100% held subsidiary is not limited by the regulation.

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$27.850, JPY1=NT$0.249, RMB1=NT$4.305, EUR1=NT$32.320 as of September 30, 2021.

50 -

TABLE 3

CHROMA ATE INC. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT CONTROLLED ENTITIES) SEPTEMBER 30, 2021

(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		September 30, 2021	September 30, 2021		Note
				Shares/Units (Thousands)	Carrying Amount	Percentage of Ownership	Fair Value
The Corporation Chroma New Material Corp. Chroma Systems Solutions Inc. Chroma Investment Co., Ltd.	Fund WI Harper INC Fund VII LP Shares DynaColor, Inc. Chunghwa Telecom Co., Ltd. China Communications Media Group Co., Ltd. Tian Zheng International Precision Machinery Co., Ltd. Twoway Catv Service Inc. Taiwan Advanced Nanotech Inc. WK Technology Fund IX Ltd. WK Technology Fund IV Ltd. WK Technology Fund VI Ltd. TFBS Bioscience Inc. Fund Mega Diamond Money Market Fund Fund Franklin California Tax Free Income FD Inc. Fund Hua Nan Kirin Money Market Fund Shares Greatek Electronics Inc. Hephas Energy co., ltd. Chroma ATE Inc. Taiwan Advanced Nanotech INC. Cosmactive Broadband Networks Co., Ltd. Prance System Technology Co., Ltd.	- - - - - - - - - - - - - - - - The Corporation - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - non-current `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current `〃` `〃` `〃` Financial assets at fair value through other comprehensive income - non-current `〃` `〃` `〃`	- 6,050 412 26 2,681 3,561 2,673 4,614 202 361 4,330 16,335 424 3,597 85 1,042 1,806 607 4 111	$ 4,603 203,896 45,568 194 229,195 49,635 300,454 58,561 300 285 75,775 207,000 91,076 43,464 6,923 56,569 317,782 68,285 - -	- 6.1 - - 7.3 4.4 11.5 4.6 1.9 1.4 14.3 - - - - 6.8 0.4 2.6 0.6 5.1	$ 4,603 203,896 45,568 194 229,195 49,635 300,454 58,561 300 285 75,775 207,000 91,076 43,464 6,923 56,569 317,782 68,285 - -	- - - - - - - - - - - - - - - - - - - -
								(Continued)

51 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2021	September 30, 2021		Note
				Shares/Units (Thousands)	Carrying Amount	Percentage of Ownership	Fair Value
Chen Hwa Technology Inc. Adivic Technology Co. Innovative Nanotech Incorporated EVT Technology Co., Ltd.	Stocks Hangzhou New Material Chroma Co., Ltd. Fund Cathay Taiwan Money Market Fund Fund Mega Diamond Money Market Fund Fund Mega Diamond Money Market Fund	- - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current `〃` `〃`	- 1,200 6,211 1,517	$ 21,739 15,064 78,705 19,223	19.0 - - -	$ 21,739 15,064 78,705 19,223	- - - -

Note: The fair value of open-end beneficiary certificates and listed market securities was calculated based on the net asset value and closing price as of balance sheet date.

(Concluded)

52 -

TABLE 4

CHROMA ATE INC. AND SUBSIDIARIES

DISPOSAL OF INDIVIDUAL REAL ESTATE AT PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

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

Seller	Property	Event Date	Original Acquisition Date	Carrying Amount	Transaction Amount	Collection	Gain (Loss) on Disposal	Counterparty	Relationship	Purpose of Disposal	Price Reference	Other Terms
The Corporation	Land and buildings	2020.07.03	1999-2004	$ 1,089,054	$ 3,080,000	The full amount has been collected	$ 1,575,072 (Note)	Adlink Technology Inc.	Association	In order to revitalize assets, increase working capital and repay debts.	Real estate appraisal reports of Cushman & Wakefield and CCIS Real Estate Joint Appraisers Firm	Sell and leaseback partial square feet of factory in Hua Ya technology park for the use of factory and employees’ dormitory, and promise to lease for 5 years.

Note: The Group recognized the transfer rights and interests of $154,510 thousand in accordance with the sale and leaseback transaction.

53 -

TABLE 5

CHROMA ATE INC. AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

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

Company Name	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase (Sale)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Corporation Neworld Electronics Limited The Corporation Chroma ATE Inc. The Corporation Chroma Electronics (Shanghai) Co., Ltd. The Corporation Chroma Systems Solutions, Inc. The Corporation Chroma Electronics (Shenzhen) Co., Ltd. The Corporation Chroma ATE (Suzhou) Co., Ltd. The Corporation Chroma ATE Europe B.V. The Corporation Chroma Japan Corp.	Neworld Electronics Limited The Corporation Chroma ATE Inc. The Coporation Chroma Electronics (Shanghai) Co., Ltd. The Corporation Chroma Systems Solutions, Inc. The Corporation Chroma Electronics (Shenzhen) Co., Ltd. The Corporation Chroma ATE (Suzhou) Co., Ltd. The Corporation Chroma ATE Europe B.V. The Corporation Chroma Japan Corp. The Corporation	Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company	(Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase	$ (1,881,418) 1,881,418 (1,024,826) 1,024,826 (500,033) 500,033 (422,386) 422,386 (321,336) 321,336 (262,875) 262,875 (253,981) 253,981 (219,572 ) 219,572	(24) 100 (13) 100 (6) 100 (5) 100 (4) 100 (3) 100 (3) 100 (3) 100	Net 365 days after monthly closing Net 90 days after delivery Net 365 days after monthly closing Net 180 days after delivery Net 365 days after monthly closing Net 120 days after delivery Net 90 days after delivery Net 90 days after delivery Net 365 days after monthly closing Net 90 days after monthly closing Net 365 days after monthly closing Net 120 days after monthly closing Net 365 days after monthly closing Net 90 days after delivery Net 365 days after monthly closing Net 90 days after delivery	- - - - - - - - - - - - - - - -	- - Note Note - - - - - - - - - - Note Note	$ 558,383 (558,383) 422,318 (422,318) 159,683 (159,683) 162,327 (162,327) 126,919 (126,919) 188,990 (188,990) 71,557 (71,557) 321,313 (321,313)	18 (100) 14 (100) 5 (100) 5 (100) 4 (100) 6 (100) 2 (100) 10 (100)	- - - - - - - - - - - - - - - -
										(Continued)

54 -

Company Name	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase (Sale)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Corporation Quantel Private Ltd. Neworld Electronics Limited Chroma Electronics (Shenzhen) Co., Ltd. Chroma ATE Europe B.V. Chroma Germany GmbH Neworld Electronics Limited Chroma ATE (Suzhou) Co., Ltd.	Quantel Private Ltd. The Corporation Chroma Electronics (Shenzhen) Co., Ltd. Neworld Electronics Limited Chroma Germany GmbH Chroma ATE Europe B.V. Chroma ATE (Suzhou) Co., Ltd. Neworld Electronics Limited	Subsidiary Parent company Subsidiary Parent company Subsidiary Parent company Same parent company Same parent company	(Sale) Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase	$ (183,669) 183,669 (790,637) 790,637 (109,989) 109,989 (201,553) 201,553	(2) 100 (39) 69 (29) 80 (10) 30	Net 90 days after delivery Net 90 days after delivery Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days	- - - - - - - -	- - - - - - - -	$ 64,732 (64,732) 247,591 (247,591) 67,045 (67,045) 172,941 (172,941)	2 (100) 28 (76) 50 (99) 20 (40)	- - - - - - - -

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

(Concluded)

55 -

TABLE 6

CHROMA ATE INC. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2021

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period (Note)	Allowance for Impairment Loss
					Amount	Action Taken
The Corporation Neworld Electronics Limited	Neworld Electronics Limited Chroma ATE Inc. Chroma Japan Corp. Mas Automatiom Corp. Chroma ATE (Suzhou) Co., Ltd. Chroma Systems Solutions, Inc. Chroma Electronics (Shanghai) Co., Ltd. Chroma Electronics (Shenzhen) Co, Ltd. Chroma Systems Solutions, Inc. Chroma Electronics (Shenzhen) Co, Ltd. Chroma ATE (Suzhou) Co., Ltd.	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Same parent company	Trade receivables $ 558,383 Trade receivables 422,318 Trade receivables 321,313 Dividends receivable 300,000 Trade receivables 188,990 Trade receivables 162,327 Trade receivables 159,683 Trade receivables 126,919 Other receivables - financing provided 101,556 Trade receivables 247,591 Trade receivables 172,941	4.59 2.76 1.11 - 1.95 4.17 7.27 3.22 - 5.36 1.45	$ - - - - - - - - - - -	- - - - - - - - - - -	$ 222,119 3,027 - - 39,507 49,287 159,683 65,189 304 99,754 25,987	$ - - - - - - - - - - -

Note: As of October 28, 2021.

56 -

TABLE 7

CHROMA ATE INC. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Company Name	Counterparty	Flow of Transactions (Note 1)	Transaction Details	Transaction Details		Percentage to Consolidated Total Operating Revenue or Total Assets
				Account	Amount	Transaction Terms
0	The Corporation	Neworld Electronics Limited Chroma ATE Inc. Chroma Electronics (Shanghai) Co., Ltd. Chroma Systems Solutions, Inc. Chroma Electronics (Shenzhen) Co, Ltd. Chroma ATE (Suzhou) Co., Ltd. Chroma ATE Europe B.V. Chroma Japan Corp. Quantel Private Ltd. Testar Electronics Co. Adivic Technology Co. Chroma ATE Inc. Chroma Electronics (Shanghai) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Quantel Private Ltd. Mas Automatiom Corp. Neworld Electronics Limited Chroma ATE Inc. Chroma Japan Corp. Chroma ATE (Suzhou) Co., Ltd. Chroma Systems Solutions, Inc. Chroma Electronics (Shanghai) Co., Ltd. Chroma Electronics (Shenzhen) Co., Ltd. Chroma ATE Europe B.V. Quantel Private Ltd. Testar Electronics Co. Chroma Systems Solutions, Inc. Chroma Japan Corp. Mas Automatiom Corp. Adivic Technology Co.	a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a	Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Operating revenue Purchase Purchase Commission expense Commission expense Commission expense Operating expense Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Trade receivables Other receivables - financing provided Other receivables - financing provided Dividends receivable Trade payables	$ 1,881,418 1,024,826 500,033 422,386 321,336 262,875 253,981 219,572 183,669 45,551 54,755 26,990 23,080 13,635 10,974 13,376 558,383 422,318 321,313 188,990 162,327 159,683 126,919 71,557 64,732 16,725 101,556 57,505 300,000 14,863	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Note 3 Based on regular terms Based on regular terms Based on regular terms Based on regular terms	14 8 4 3 2 2 2 2 1 - - - - - - - 2 1 1 1 1 1 - - - - - - 1 -
1	Mas Automatiom Corp.	Chroma Japan Corp. Wei Kuang Automatic Equipment (Nanjing) Co., Ltd. Wei Kuang Automatic Equipment (Xiamen) Co., Ltd.	b b b	Operating revenue Operating revenue Purchase	73,529 21,098 41,707	Based on regular terms Based on regular terms Based on regular terms	1 - -

(Continued)

57 -

No.	Company Name	Counterparty	Flow of Transactions (Note 1)	Transaction Details	Transaction Details		Percentage to Consolidated Total Operating Revenue or Total Assets
				Account	Amount	Transaction Terms
2	Neworld Electronics Limited	Chroma Electronics (Shenzhen) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd. Chroma Electronics (Shenzhen) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Chroma Electronics (Shenzhen) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd.	a b a a a b a b a	Operating revenue Operating revenue Operating revenue Commission expense Commission expense Commission expense Trade receivables Trade receivables Trade receivables	$ 790,637 201,553 42,015 47,197 27,756 15,363 247,591 172,941 18,083	Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms	6 2 - - - - 1 1 -
3	Chroma Electronics (Shenzhen) Co., Ltd.	Chroma ATE (Suzhou) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd. Sajet System Technology (Suzhou) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd.	b b b b	Operating revenue Operating revenue Purchase Trade receivables	27,152 10,842 10,202 18,092	Based on regular terms Based on regular terms Based on regular terms Based on regular terms	- - - -
4	Chroma ATE (Suzhou) Co., Ltd.	Chroma Electronics (Shanghai) Co., Ltd. Chroma Electronics(Shenzhen) Co.,Ltd.	b b	Operating revenue Operatingrevenue	12,933 10,101	Based on regular terms Based on regular terms	- -
5	Wei Kuang Automatic Equipment (Xiamen) Co., Ltd.	Wei Kuang Automatic Equipment (Nanjing) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Wei Kuang Automatic Equipment (Nanjing) Co., Ltd. Chroma ATE (Suzhou) Co., Ltd.	b b b b	Operating revenue Operating revenue Trade receivables Trade receivables	40,135 33,345 35,765 21,735	Based on regular terms Based on regular terms Based on regular terms Based on regular terms	- - - -
6	Chroma ATE Europe B.V.	Chroma Germany GmbH Chroma Germany GmbH Chroma Germany GmbH	a a a	Operating revenue Trade receivables Other receivables	109,989 67,045 12,953	Based on regular terms Based on regular terms Based on regular terms	1 - -
7	Quantel Private Ltd.	Quantel Global Sdn. Bhd. Quantel Global Vietnam Co., Ltd. Quantel Philippines Inc	a a a	Operating revenue Operating revenue Operating expense	43,017 25,778 12,726	Based on regular terms Based on regular terms Based on regular terms	- - -

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

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

Note 3: The collection periods of about 12 months were longer than those for third parties.

(Concluded)

58 -

TABLE 8

CHROMA ATE INC. AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance	as of September 30, 2021	as of September 30, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				September 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Amount
The Corporation Chroma ATE Inc. Chroma ATE Europe B.V. San Eagle Development Corp. Adivic Technology Co., Ltd. Quantel Private Ltd. Chroma Investment Co., Ltd.	Neworld Electronics Limited Chroma New Material Corporation Mas Automatiom Corp. Chroma ATE Inc. Chroma Systems Solutions, Inc. Chroma ATE Europe B.V. Chroma Japan Corp. CHI Incorporation Ltd. Chen Hwa Technology Inc. San Eagle Development Corp. Sensational Holding Ltd. Deep Red Holding Co., Ltd. Testar Electronics Corporation Adivic Technology Co. Chroma Investment Co., Ltd. Quantel Private Ltd. EVT Technology Co., Ltd. Innovative Nanotech Incorporated Touch Cloud Incorporation Adlink Technology Inc. DynaScan Technology Corp. Camtek Ltd. Chih Ho Shun Development Co., Ltd. Chroma Systems Solutions, Inc. Chroma Germany GmbH Wei Kuang Mech. Eng. Inc. Adivic Holding Corporation Quantel Technologies India Private Ltd. Quantel Global Vietnam Co., Ltd. Quantel Global Sdn. Bhd. Quantel Global Philippines Corporation Quantel Global Company Limited Testar Electronics Corporation	Hong Kong Taoyuan, Taiwan Hsinchu, Taiwan USA USA The Netherlands Japan British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Islands Mauritius Taoyuan, Taiwan Taoyuan, Taiwan Taoyuan, Taiwan Singapore Taoyuan, Taiwan Hsinchu, Taiwan Taipei, Taiwan New Taipei, Taiwan Taoyuan, Taiwan Israel Taoyuan, Taiwan USA Germany Mauritius Samoa India Vietnam Malaysia Philippines Thailand Taoyuan, Taiwan	Sale and maintenance of electronic test instruments, etc. Sale and processing of gold wire Design, manufacturing, installment and testing of automated factory conveyor systems Sale and maintenance of electronic test instruments, etc. Sale and maintenance of electronic test instruments, etc. Sale and maintenance of electronic test instruments etc. Sale and maintenance of electronic test instruments, etc. Test of inductance, capacitance and resistance, and sale of parts Test of inductance, capacitance and resistance, and sale of parts Investment Investment Investment Testing of LED Sale and research of RF device Investment Sale and maintenance of test instruments, etc. Manufacturing of motorcycles and its parts Monitoring instruments of nanoparticles Development of cloud platform and Internet of Things systems Manufacturing, processing and retailing of software/hardware of computers and peripherals Research and manufacture of LED generators Automatic optical inspection equipment Construction and development of residence, buildings and specialized field; construction and investment of public works Sale and maintenance of electronic test instruments, etc. Sale and maintenance of electronic test instruments, etc. Investments Sale and research of RF device Sale and maintenance of test instruments, etc. Sale and maintenance of test instruments, etc. Sale and maintenance of test instruments, etc. Sale and maintenance of test instruments, etc. Sale and maintenance of test instruments, etc. Testing of LED	$ 271,873 480,715 533,000 29,895 29,628 54,026 201,750 122,884 98,217 186,514 38,301 12,217 247,096 273,800 80,000 112,328 117,311 142,140 110,457 165,079 238,746 2,342,340 17,500 64 1,073 185,686 42,245 3,056 6,219 4,199 610 675 11,250	$ 271,873 480,715 533,000 29,895 29,628 54,026 201,750 122,884 98,217 186,514 38,301 12,217 247,096 273,800 80,000 112,328 117,311 142,140 57,000 165,079 238,746 2,342,340 17,500 64 1,073 185,686 42,245 3,056 6,219 4,199 610 - 11,250	64,012,815 25,000,000 10,000,000 1,000,000 120,000 1,000 9,975 3,830,000 3,085,000 2,050,000 1,200,000 215,000 20,159,600 12,590,000 14,000,000 1,914,000 9,412,412 14,214,000 11,045,667 24,492,253 9,841,112 7,817,440 1,750,000 240,000 30,000 4,475,000 1,000,000 64,999 - 600,000 99,095 29,997 4,500,000	100.0 100.0 100.0 100.0 25.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 67.2 74.1 100.0 60.0 85.6 67.2 83.1 11.3 27.3 18.1 35.0 50.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.9 15.0	$ 1,439,004 441,281 48,469 187,525 3,686 144,117 (132,586) 249,391 125,452 867,167 49,541 151,791 90,714 66,502 207,870 187,911 33,739 148 984 61,009 270,883 145,740 2,602,479 16,253 279,235 5,050 942,506 9,062 5,939 7,935 19,682 8,240 90 25,421	$ 158,302 33,040 (221,948) 49,760 135,818 11,766 (18,859) 27,431 6,898 36,784 (101) 12,222 91,692 1,881 21,569 49,249 (7,979) 5,568 (13,033) 17,484 51,810 1,333,660 (1,822) 135,818 5,101 36,782 (30) 1,403 (533) 10,687 4,391 (577) 91,692	$ 158,303 33,042 (221,798) 49,728 33,954 11,777 (18,858) 27,431 6,898 37,453 (101) 12,222 61,641 (7,097) 21,569 29,283 (6,816) 3,758 (10,439) 4,346 14,144 191,659 (638) NA NA NA NA NA NA NA NA NA NA	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Associate Joint venture Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Note: 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 nine months ended September 30, 2021. Other amounts were translated into New Taiwan dollars at the spot exchange rate on September 30, 2021.

59 -

TABLE 9

CHROMA ATE INC. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars or Foreign Currencies, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital (Note 2)	Method of Investment (Note 1)	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021 (Note 3)	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2021 (Note 3)	Net (Loss) Income of the Investee	Percentage of Ownership in Investment	Investment Gain (Loss) (Notes 4 and 5)	Carrying Amount as of September 30, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of September 30, 2021
							Outward	Inward
Chroma Electronics (Shenzhen) Co., Ltd. Chroma Electronics (Shanghai) Co., Ltd. Chroma (Shanghai) Trading Co., Ltd. Hangzhou New Material Chroma Co., Ltd. Chroma ATE (Suzhou) Co., Ltd. Wei Kuang Automatic Equipment (Nanjin) Co., Ltd. Wei Kuang Automatic Equipment (Xiamen) Co., Ltd. Mou Kuan Technologies (Nanjin) Co., Ltd. Sajet System Technology (Suzhou) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments Sale of computerized automatic test systems, peripherals and electronic test instruments International and transit trading, commercial simple processing and commercial consulting service and etc. Production and sale of semiconductor connecting materials Sale of computerized automatic test systems, peripherals and electronic test instruments Sale and maintenance of electronic equipment and factory conveyor systems Sale and maintenance of electronic equipment and factory conveyor systems Assembly, sale and maintenance of factory conveyors and related systems and renders related after-sales services Research, development and design of computer network security systems and information management		$ 107,280 (HK$ 30,000) 83,550 (US$ 3,000) 75,195 (US$ 2,700) 41,775 (US$ 1,500) 105,830 (US$ 3,800) 51,105 (RMB 11,871) 49,150 (RMB 11,417) 7,478 (RMB 1,737) 36,050 (RMB 8,374)	b. Subsidiary of Neworld Electronics Limited b. Subsidiary of Neworld Electronics Limited b. Subsidiary of Chen Hwa Technology Inc. b. Subsidiary of Chen Hwa Technology Inc. b. Subsidiary of CHI Incorporation Ltd. b. Subsidiary of Wei Kuang Mech. Eng. Inc. b. Subsidiary of Wei Kuang Mech. Eng. Inc. b. Subsidiary of Wei Kuang Mech. Eng. Inc. b. Subsidiary of Deep Red Holding Co., Ltd.		$ 132,178 (HK$ 1,200 US$ 3,853) 101,993 (US$ 3,000) 84,988 (US$ 2,700) 9,091 (US$ 285) 121,115 (US$ 3,800) 43,751 (US$ 1,338) 49,935 (US$ 1,500) 92,000 (US$ 2,836) (Note 9)	$ - - - - - - - - -	$ - - - - - - - - -	$ 132,178 (HK$ 1,200 US$ 3,853) 101,993 (US$ 3,000) 84,988 (US$ 2,700) 9,091 (US$ 285) 121,115 (US$ 3,800) 43,751 (US$ 1,338) 49,935 (US$ 1,500) 92,000 (US$ 2,836) (Note 9)	$ 82,099 81,404 (56) 62,323 27,431 31,761 2,760 562 13,917	100 100 100 19 100 100 100 100 100	$ 82,099 81,404 (56) - 27,431 31,761 2,760 562 13,917	$ 1,042,396 302,534 79,496 21,739 305,162 237,905 503,654 19,156 137,402	$ 91,226 (RMB 21,156) - - 12,065 (US$ 368) - - - 47,504 (US$ 1,552) -

Accumulated Outward Remittance for Investments in Mainland China as of September 30, 2021		Investment Amounts Authorized by the Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$635,051 (HK$1,200, US$19,312)		$725,060 (HK$1,400, US$22,076) (Note 6)			$10,660,011 (Note 7)

(Continued)

60 -

Note 1: Methods of investment have following type:

a. Direct investment in mainland China.
b. Indirect investment in the company of mainland China through a third place. 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$3.576, US$1=NT$27.850, RMB1=NT$4.305 prevailing on September 30, 2021.

Note 3: The amounts of accumulated outflow of investment from Taiwan as of January 1, 2021 and September 30, 2021 were translated into New Taiwan dollars on the original outflow day.

Note 4: Based on unreviewed financial statements.

Note 5: Investment income (loss) was translated into New Taiwan dollars at the average rate of HK$1=NT$3.613, US$1=NT$28.067 and RMB1=NT$4.337 for the six months ended September 30, 2021.

Note 6:

	Approval Letter		Approved Amount	Approved Amount	Approved Amount
a.	Letter (1998) II-87710585 of Investment Commission of MOEA	NT$	5,852	(HK$	1,400)
b.	Letter (2000) II-89014726 and 89037430 of Investment Commission of MOEA	NT$	63,180	(US$	2,000)
c.	Letter (2001) II-89037430 of Investment Commission of MOEA	NT$	33,160	(US$	1,000)
d.	Letter II-91048640 of Investment Commission of MOEA	NT$	63,984	(US$	1,853) (Note 8)
e.	Letter II-90025170 of Investment Commission of MOEA	NT$	60,240	(US$	1,750)
f.	Letter II-092020235 of Investment Commission of MOEA	NT$	19,230	(US$	560)
g.	Letter II-092043358 of Investment Commission of MOEA	NT$	6,748	(US$	200)
h.	Letter II-093004076 of Investment Commission of MOEA	NT$	3,158	(US$	95)
i.	Letter II-094006092 of Investment Commission of MOEA	NT$	6,896	(US$	219)
j.	Letter II-09500052120 of Investment Commission of MOEA	NT$	81,528	(US$	2,500)
k.	Letter II-09600175700 of Investment Commission of MOEA	NT$	120,000	(US$	3,699)
l.	Letter II-096000006020 of Investment Commission of MOEA	NT$	66,580	(US$	2,000)
m.	Letter II-09600310110 of Investment Commission of MOEA	NT$	33,160	(US$	1,000)
n.	Letter II-09700186010 of Investment Commission of MOEA	NT$	46,110	(US$	1,500)
o.	Letter II-09700403210 of Investment Commission of MOEA	NT$	7,096	(US$	210) (Note 9)
p.	Letter II-10400042770 of Investment Commission of MOEA	NT$	78,240	(US$	2,500)
q.	Letter II-10600164500 of Investment Commission of MOEA	NT$	29,898	(US$	990)

Note 7: 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 8: The Corporation invested accounts receivable amounting to US$853 thousand in Chroma Electronics (Shenzhen) Co., Ltd. through Neworld Electronics Limited

Note 9: The investment in Sajet Technology Inc. (liquidated on September 15, 2008) was authorized by the Investment Commission in 2004.

(Concluded)

61 -

AI assistant

CHROMA — Interim / Quarterly Report 2021

52029_rns_2021-12-03_0120525a-b15a-4e1d-bfe1-6e34f54518a0.pdf

Chroma ATE Inc. and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHROMA ATE INC. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS MEASURED AT AMORTIZED COST - CURRENT

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

11. INVENTORIES

12. SUBSIDIARIES

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

16. INVESTMENT PROPERTIES

17. GOODWILL

18. BORROWINGS

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

21. EQUITY

b. Capital surplus

c. Retained earnings and dividends policy

d. Special reserve

e. Other equity items

g. Treasury shares

22. REVENUE

23. ADDITIONAL INFORMATION ON EXPENSES

a. Finance costs

c. Employee benefits expense

24. INCOME TAXES

25. EARNINGS PER SHARE

Net Profit for the Period

Shares

(In Thousands of Shares)

26. SHARE-BASED PAYMENT ARRANGEMENTS

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

c. Categories of financial instruments

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Liquidity and interest risk tables for non-derivative financial liabilities

29. TRANSACTIONS WITH RELATED PARTIES

d. Contract liabilities

i. Lease arrangements

j. Others

k. Compensation of key management personnel

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

32. SIGNIFICANT EVENTS

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

CHROMA Interim / Quarterly Report 2021