2025 Q2 Financial Report (August 29, 2025)

Chroma ATE Inc. and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2025 and 2024 and Independent Auditors' Review Report

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders Chroma ATE Inc.

Deloitte & Touche

20F, Taipei Nan Shan Plaza No. 100, Songren Rd.,

Xinyi Dist., Taipei 1 J 0421, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051 6888

https://www.deloitte.com.tw

We have reviewed the accompanying consolidated balance sheets of Chroma ATE Inc. and its subsidiaries (collectively, the "Group") as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income, for the three months ended June 30, 2025 and 2024 and for the six months ended June 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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 the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

The financial statements of some non-significant subsidiaries included in the consolidated financial statements were not reviewed. As of June 30, 2025 and 2024, the combined total assets of these non-significant subsidiaries were NT$3,946,302 thousand and NT$6,725,066 thousand, respectively, representing 10% and 19% of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$1,092,932 thousand and NT$1,838,383 thousand, respectively, representing 7% and 13%, respectively, of the consolidated total liabilities. The amounts of unreviewed comprehensive income (loss) for the three months ended June 30, 2025 and 2024 were NT$(652,222) thousand and NT$420,101 thousand, respectively, representing (108%) and 27%, respectively, of the consolidated total comprehensive income; the amounts of unreviewed comprehensive income for the six months ended June 30, 2025 and 2024 were NT$24,850 thousand and NT$801,941 thousand, respectively, representing 1% and 29%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 13 to the consolidated financial statements, 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. The carrying values of investments accounted for using the equity method were NT$4,596,165 thousand and NT$4,454,611 thousand, respectively, representing 11% and 12% of the consolidated total assets as of June 30, 2025 and 2024; the related shares of comprehensive income of associates and joint ventures for the three months ended June 30, 2025 and 2024 were NT$(341,344) thousand and NT$199,924 thousand, respectively, representing (57%) and 13%, respectively, of the consolidated total comprehensive income; the related shares of comprehensive income of associates and joint ventures for the six months ended June 30, 2025 and 2024 were NT$(83,624) thousand and NT$504,297 thousand, respectively, representing (3%) and 18%, respectively, of the consolidated total comprehensive income.

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 June 30, 2025 and 2024, its consolidated financial performance for the three months ended June 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche Taipei, Taiwan Republic of China

July 31, 2025

Notice to Readers

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

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

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

June 30, 2025 December 31, 2024 June 30, 2024

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2025)

- 3 -

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

For the Three Months Ended June 30 For the Six Months Ended June 30

2025 2024 2025 2024

(Continued)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

For the Three Months Ended June 30 For the Six Months Ended June 30

2025 2024 2025 2024

Amount % Amount % Amount % Amount %

OTHER COMPREHENSIVE INCOME (LOSS)

Items that will not be reclassified subsequently to profit or loss:

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

(With Deloitte & Touche review report dated July 31, 2025) (Concluded)

CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Corporation

Other Equity Exchange

Differences on

Translating the Financial

Unrealized Gain

(Loss) on Financial Assets at Fair Value

Retained Earnings Statements of Through Other

Ordinary Share

Unappropriated

Foreign

Comprehensive

Unearned Employee

Non-controlling

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated July 31, 2025)

- 6 -

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

For the Six Months Ended

June 30

Purchase of financial assets at fair value through other comprehensive

income (199,840) (229,468)

Proceeds from disposal of financial assets at fair value through other

comprehensive income 102,931 107,862

Increase in financial assets at amortized cost (299,367) (270,877) (Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

For the Six Months Ended

June 30

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

(With Deloitte & Touche review report dated July 31, 2025) (Concluded)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

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

1. GENERAL INFORMATION

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

   The consolidated financial statements of the Corporation and its subsidiaries 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 July 31, 2025.

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

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

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

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

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

      Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

      January 1, 2026

      January 1, 2026

      Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026 IFRS 17 "Insurance Contracts" January 1, 2023

      Amendments to IFRS 17 January 1, 2023

      Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - January 1, 2023 Comparative Information"

      As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impacts of the application of the amendments on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB (Note)

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

      To be determined by IASB

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 IFRS 19 "Subsidiaries without Public Accountability: Disclosures" January 1, 2027

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

      IFRS 18 "Presentation and Disclosure in Financial Statements"

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

      • Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.

      • The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

      • Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

      • Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

   1. 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" as 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 IFRS Accounting Standards.

   2. 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.

   3. Basis of consolidation

      The basis of preparing the consolidated financial statements is consistent with the consolidated financial statements for the year ended December 31, 2024.

      Refer to Note 12, Table 7 and Table 8 for the detailed information of subsidiaries, including the percentages of ownership and main businesses.

   4. Other material accounting policies

      Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.

      1. Non-current assets held for sale

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

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

      2. 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.

      3. Income tax expense

         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.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

   The same material 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, 2024.

6. CASH AND CASH EQUIVALENTS

   June 30,

   2025

   December 31,

   2024

   June 30,

   2024

   Cash on hand $ 3,250 $ 3,203 $ 3,455

   Checking accounts and demand deposits 4,397,974 3,547,992 4,435,079 Cash equivalents - time deposits 608,880 548,028 858,019

   $ 5,010,104 $ 4,099,223 $ 5,296,553

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

   	June 30, 2025	December 31, 2024	June 30, 2024
   Mandatorily at FVTPL - current
   Derivative instruments - foreign exchange forward contracts (a)	$ 12,498	$ -	$ -
   Domestic listed shares (b)	798,429	4,993	5,350
   Domestic unlisted shares	83,769	71,584	116,265
   Open-ended beneficiary certificates	729,482	385,164	385,419
   	$ 1,624,178	$ 461,741	$ 507,034
   Mandatorily at FVTPL - non-current
   Open-ended beneficiary certificates	$ 1,912	$ 2,102	$ 2,752
   Convertible bonds	78,428	78,428	-
   	$ 80,340	$ 80,530	$ 2,752
   a. At the end of the reporting period, outstanding accounting were as follows:	foreign exchange	forward contracts	not under hedge

   June 30, 2025

   Currency Maturity Date

   Notional Amount (In Thousands)

   Sell USD/NTD July 2025 to September 2025 USD13,230/NTD 395,494

   The Group entered into forward exchange contracts to manage exposures to exchange rate fluctuations of foreign currency-denominated assets and liabilities. Therefore, the Group elected not to be accounted for using hedge accounting.

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

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   	June 30, 2025	December 31, 2024	June 30, 2024
   Investments in debt instruments - current
   Foreign government bonds	$ 172,383	$ 73,778	$ 183,507
   Investments in equity instruments - non-current
   Domestic listed shares and emerging market shares	$ 1,051,423	$ 999,100	$ 974,771
   Domestic unlisted shares	154,195	183,867	158,583
   Foreign unlisted shares	64,293	64,293	55,110
   	$ 1,269,911	$ 1,247,260	$ 1,188,464

   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

   	June 30, 2025	December 31, 2024	June 30, 2024
   Current
   Time deposits with maturities of more than 3 months	$ 456,291	$ 246,879	$ 287,274
   Pledged deposits (Note 29)	23,133	118	2
   Repurchase agreements collateralized by bills	169,424	158,563	119,722
   	$ 648,848	$ 405,560	$ 406,998
   Non-current
   Time deposits with maturities of more than 3 months	$ 53,209	$ 213,438	$ 204,506
   Pledged deposits (Note 29)	6,170	5,988	5,970
   Restricted accounts	14,651	16,393	16,225
   	$ 74,030	$ 235,819	$ 226,701

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

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

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

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

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

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

For the Six Months Ended

June 30

The cost of inventories recognized as cost of goods sold was $2,107,007 thousand and $1,913,052 thousand for the three months ended June 30, 2025 and 2024, respectively, and $4,457,687 thousand and $3,526,036 thousand for the six months ended June 30, 2025 and 2024, respectively. These amounts include inventory write-downs of $13,039 thousand and a reversal of inventory write-downs of $1,697 thousand for the three months ended June 30, 2025 and 2024, respectively, and inventory write-downs of $25,345 thousand and

$11,459 thousand for the six months ended June 30, 2025 and 2024, respectively.

1. SUBSIDIARIES

   Subsidiaries included in the consolidated financial statements:

   Percentage of Ownership as of

   Investor	Investee	Business	June 30, 2025	December 31, 2024	June 30, 2024	Remark
   The Corporation	Neworld Electronics Limited	Sale and maintenance of electronic test instruments, etc.	100.0	100.0	100.0
   	Mas Automation Corp.	Design, manufacturing, installment and testing of automated factory conveyor systems	100.0	100.0	100.0
   Chroma ATE Inc.		Sale and maintenance of electronic test instruments, etc.	100.0	100.0	100.0
   Chroma Systems Solutions, Inc.		Sale and maintenance of electronic test instruments, etc.	35.0	30.0	30.0	Note 1
   Chroma ATE Europe B.V.		Sale and maintenance of electronic test instruments, etc.	100.0	100.0	100.0
   Chroma Germany GmbH		Sale and maintenance of electronic test instruments, etc.	100.0	100.0	100.0	Note 2
   Chroma Japan Corp.		Sale and maintenance of electronic test instruments, etc.	100.0	100.0	100.0
   CHI Incorporation Ltd.		Test of inductance, capacitance and resistance and sale of	100.0	100.0	100.0
   		parts
   Chen Hwa Technology Inc.		Test of inductance, capacitance and resistance and sale of	100.0	100.0	100.0
   San Eagle Development Corp.		parts Investment	100.0	100.0	100.0
   Sensational Holdings Ltd.		Investment	100.0	100.0	100.0
   Deep Red Holding Co., Ltd.		Investment	100.0	100.0	100.0
   Testar Electronics Corporation		Testing of LED	67.2	67.2	67.2
   Adivic Technology Co., Ltd.		Sale and research of RF device	91.1	83.7	83.7	Note 3
   Chroma Investment Co., Ltd.		Investment	100.0	100.0	100.0
   Quantel Private Ltd.		Sale of test instruments, etc.	60.0	60.0	60.0
   EVT Technology Co., Ltd.		Manufacturing of motorcycles and its parts	-	85.6	85.6	Note 4
   Innovative Nanotech Incorporated		Monitoring instruments of nanoparticles	67.2	67.2	67.2
   Touch IntelliConnect Inc.		Intelligent data IoT device integration, platform design,	83.1	83.1	83.1	Note 5
   		and system solutions
   Environmental Stress Systems, Inc.		Sale of thermal platform systems	-	-	100.0	Note 6

   (Continued)

   Percentage of Ownership as of

   Investor	Investee	Business	June 30, 2025	December 31, 2024	June 30, 2024	Remark
   Neworld Electronics	Chroma Electronics (Shenzhen) Co.,	Sale of computerized automatic test systems, peripherals	100.0	100.0	100.0
   Limited	Ltd. Chroma Electronics (Shanghai) Co.,	and electronic test instruments Sale of computerized automatic test systems, peripherals	100.0	100.0	100.0
   Chroma ATE Inc.	Ltd. Chroma Systems Solutions, Inc.	and electronic test instruments Sale and maintenance of electronic test instruments, etc.	50.0	50.0	50.0	Note 1
   Chen Hwa Technology Inc.	Chroma (Shanghai) Trading Co., Ltd.	International and transit trading, commercial simple processing and commercial consulting services, etc.	100.0	100.0	100.0
   CHI Incorporation Ltd.	Chroma ATE (Suzhou) Co., Ltd.	Sale of computerized automatic test systems, peripherals and electronic test instruments	100.0	100.0	100.0
   San Eagle	Wei Kuang Mech. Eng. Inc.	Investment	100.0	100.0	100.0
   Development Corp.
   Wei Kuang Mech. Eng. Inc.	Wei Kuang Automatic Equipment (Nanjing) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	100.0	100.0	100.0
   	Wei Kuang Automatic Equipment (Xiamen) Co., Ltd.	Sale and maintenance of electronic equipment and factory conveyor systems	100.0	100.0	100.0
   Deep Red Holding Co., Ltd.	Sajet System Technology (Suzhou) Co., Ltd.	Research, development and design of computer network security systems and information management	100.0	100.0	100.0
   Quantel Private Ltd.	Quantel Technologies India Private	Sale of test instruments, etc.	100.0	100.0	100.0
   	Ltd. Quantel Global Vietnam Co., Ltd.	Sale of test instruments, etc.	100.0	100.0	100.0
   	Quantel Global Sdn. Bhd.	Sale of test instruments, etc.	100.0	100.0	100.0
   	Quantel Global Philippines Corporation	Sale of test instruments, etc.	100.0	100.0	100.0
   	Quantel Global Company Limited	Sale of test instruments, etc.	100.0	100.0	99.9
   	PT Quantel	Sale of test instruments, etc.	100.0	100.0	-	Note 25
   Chroma Investment	Testar Electronics Corporation	Testing of LED	15.0	15.0	15.0

   Co., Ltd.

   Chroma Electronics (Shenzhen) Co., Ltd.

   Chroma ATE (Dongguan) Co., Ltd. Sale of computerized automatic test systems, peripherals

   and electronic test instruments

   100.0 100.0 100.0

   Chroma Electronics (Shanghai) Co., Ltd.

   Smartrise Semiconductor (Shanghai) Co., Ltd.

   Sales of semiconductor equipment 100.0 100.0 - Note 7

   Chroma ATE (Suzhou) Co., Ltd.

   Chroma ATE (Xiamen) Co., Ltd. Sale of computerized automatic test systems, peripherals

   and electronic test instruments

   100.0 100.0 - Note 7

   (Concluded)

   Note 1: The Corporation acquired 5% equity interests in Chroma Systems Solutions, Inc. in May 2025 and June 2024, respectively, for US$6,936 thousand and US$8,095 thousand. As a result, the Corporation and Chroma ATE Inc. jointly increased their equity interest in Chroma Systems Solutions, Inc.

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

   Note 3: Adivic Technology Co., Ltd. decreased its capital by $150,000 thousand to make up for losses and subsequently increased its capital by $100,000 thousand in May 2025. The Corporation's board of directors decided to participate in the capital injection. The Corporation's equity interest in Adivic increased to 91.1% after the cash injection.

   Note 4: EVT Technology Co., Ltd. was dissolved in May 2025.

   Note 5: Touch Cloud Inc. was officially renamed Touch IntelliConnect Inc. in April 2025. Note 6: Environmental Stress Systems, Inc. was liquidated in December 2024.

   Note 7: Considering the future strategy of products and the enhancement of product competitiveness, the Group established Smartrise Semiconductor (Shanghai) Co., Ltd., and Chroma ATE (Xiamen) Co., Ltd. in September 2024.

2. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

   June 30,

   2025

   December 31,

   2024

   June 30,

   2024

   Investments in associates $ 4,581,890 $ 4,863,439 $ 4,441,382

   Investments in joint ventures 14,275 12,566 13,229

   $ 4,596,165 $ 4,876,005 $ 4,454,611

   1. Investments in associates

      June 30, 2025 December 31, 2024 June 30, 2024

      Percentage of Equity Interest

      Percentage of Equity Interest

      Percentage of Equity Interest

      Amount (%)			Amount	(%)	Amount	(%)
      Associates that are not individually material Adlink Technology Inc.	$ -	-	$ 218,572	6.2	$ 208,402	6.4
      Dynascan Technology Corp.	300,376	27.3	258,894	27.3	262,891	27.3
      Camtek Ltd.	4,281,514	17.1	4,385,973	17.2	3,970,089	17.4
      	$ 4,581,890		$ 4,863,439		$ 4,441,382

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

      Name of Associate	June 30, 2025	December 31, 2024	June 30, 2024
      Adlink Technology Inc.	$ -	$ 1,037,047	$ 1,147,194
      Camtek Ltd.	$ 19,368,552	$ 20,700,929	$ 31,770,373

      The Group was not elected as directors and consequently ceased to have significant influence over Adlink Technology Inc. since June 2025. The Group reclassified the remaining 6.0% interest as a financial asset at FVTPL at the date of loss of significant influence. Please refer to Note 7. This change resulted in the recognition of a gain in profit or loss, and calculated as follows:

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

      Although the Group's equity interest in Camtek Ltd. is less than 20%, after assessing the Corporation's number of seats in the board of directors of Camtek Ltd., it still has a significant influence; therefore, Camtek Ltd. is accounted for as an associate.

   2. Investments in joint ventures

June 30, 2025 December 31, 2024 June 30, 2024

Amount

Percentage of Equity Interest

(%) Amount

Percentage of Equity Interest

(%) Amount

Percentage of Equity Interest (%)

Joint ventures that are not individually material

Chih Ho Shun Development

Co., Ltd. $ 14,275 35.0 $ 12,566 35.0 $ 13,229 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 resolved to invest jointly with Dynapack International Corporation and Heran Co., Ltd. to set up Chih Ho Shun Development Co., Ltd. ("Chih Ho Shun") in February 2012. The Group invested for a 35% entity interest in Chih Ho Shun but did not have control over this investee.

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 six months ended June 30, 2025 and 2024 were based on the joint ventures' financial statements that have not been reviewed.

Except for depreciation recognized, the Group did not have significant addition, disposal, or impairment of property, plant and equipment during the six months ended June 30, 2025 and 2024. The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings 1-51 years

Machinery 2-10 years

Office equipment 1-10 years

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

1. LEASE ARRANGEMENTS

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

   Other significant lease related information are as follows:

   For the Three Months Ended

   June 30

   For the Six Months Ended

   June 30

   2025	2024	2025	2024
   		$ 89,494	$ 81,866
   $ 44,777	$ 42,214	$ 90,494	$ 83,405
   		$ 158,983	$ 148,425

   Additions to right-of-use assets Depreciation charge for

   right-of-use assets

   Total cash outflow for leases

2. INVESTMENT PROPERTIES

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

   For the Six Months Ended

   June 30

   	2025	2024
   Balance on January 1	$ 2,478,333	$ 2,478,333
   Reclassified as non-current assets held for sale	(740,452)	-
   Reclassified as property, plant and equipment	(25,543)	-
   Balance on June 30	$ 1,712,338	$ 2,478,333

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

   In the third quarter of 2019, part of the land was entered into a joint building agreement 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 Group provided the land, and Fu Yu Construction provided fund to construct. Upon completion, the building will be distributed to the Group and Fu Yu Construction for 47% and 53%, respectively.

   The construction project was completed and obtained its usage license in the first quarter of 2025; however, the transfer of legal title is still in progress.

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

   The Group entered into a sale agreement of real estate with employees of the Corporation. As of June 30, 2025, the consideration of $1,113,855 thousand received was recognized as advance received (classified as other current liabilities). The anticipated total sale price was $4.07 billion including tax and disposal gain of

   $3.05 billion (after deducting estimated related taxes).

   Except for the aforementioned reclassifications, the Group did not recognize any significant additions, disposals, or impairment losses of investment properties for the six months ended June 30, 2025 and 2024.

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

   		June 30, 2025	December 31, 2024	June 30, 2024
   	Fair value	$ 7,196,217	$ 10,742,472	$ 10,558,298
   17.	BORROWINGS
   	a. Short-term borrowings
   		June 30, 2025	December 31, 2024	June 30, 2024
   	Secured bank loans (Note 29)	$ 30,510	$ 76,100	$ 80,300
   	Unsecured bank loans	301,913	1,337,507	858,626
   		$ 332,423	$ 1,413,607	$ 938,926
   	Interest rates (%)	1.70%-3.60%	0.50%-5.47%	1.69%-3.05%
   	b. Long-term borrowings
   		June 30, 2025	December 31, 2024	June 30, 2024
   	Secured bank loans (Note 29)	$ 98,164	$ 111,906	$ 112,934
   	Unsecured bank loan	2,230,000	2,000,000	1,361,668
   		2,328,164	2,111,906	1,474,602
   	Less: Current portions	3,207	3,828	10,983
   	Long-term borrowings	$ 2,324,957	$ 2,108,078	$ 1,463,619
   	Secured bank loans Final repayment period	June 2031	April 2025 to	April 2025 to
   	Interest rate (%)	3.50%	June 2031 2.43%-3.50%	June 2031 2.35%-3.50%
   	Unsecured bank loans Final maturity date	January 2030	April 2029	April 2029
   	Interest rate (%)	1.34%-1.54%	1.34%-1.53%	1.34%-2.22%

   18. OTHER PAYABLES
   	June 30,	December 31,	June 30,
   	2025	2024	2024
   Cash dividends	$ 3,813,007	$ -	$ 2,796,485
   Compensation of employees	1,450,000	828,252	893,503
   Salaries and bonuses	631,227	774,612	541,174
   Remuneration of directors	24,170	17,200	21,185
   Others	457,473	416,790	508,757
   	$ 6,375,877	$ 2,036,854	$ 4,761,104
   19. EQUITY
   a. Ordinary share capital
   	June 30,	December 31,	June 30,
   	2025	2024	2024
   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 paid (in thousands)	425,274	425,322	425,327
   Shares issued	$ 4,252,737	$ 4,253,220	$ 4,253,268

   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 cancellation of employee restricted shares.

   1. Capital surplus

      May be used to offset a deficit, distributed as cash dividends, or transferred to share

      June 30,

      2025

      December 31,

      2024

      June 30,

      2024

      capital (Note 1)
      Additional paid-in capital	$ 3,594,445	$ 3,535,055	$ 3,535,055
      Treasury share transactions	291,262	276,371	276,371
      Consolidation excess	146,976	146,976	146,976
      May be used to offset a deficit only
      Share of changes in capital surplus of
      associates or joint ventures	423,709	440,039	434,133
      Changes in percentage of ownership interests
      in subsidiaries (Note 2)	1,879	1,624	-
      Unclaimed dividends	353	353	305
      May not be used for any purpose
      Employee restricted shares	138,077	196,984	196,984
      	$ 4,596,701	$ 4,597,402	$ 4,589,824

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

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

   2. Retained earnings and dividends policy

      Under the dividends policy as set forth in the Corporation's Articles of Incorporation (the "Articles"), where the Corporation made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, the Corporation is not required to set aside legal reserve where the legal reserve amounts to the total authorized capital and setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for distribution of dividends and bonus to shareholders. For the abovementioned distribution of earnings, the board of directors was authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders' meeting. For the policies on distribution of employees' compensation of employees and remuneration to directors, refer to employees' compensation of employees and remuneration of directors in Note 21 (c).

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

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

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

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

      Appropriation of Earnings Dividends Per Share (NT$)

      For Fiscal Year 2024

      For Fiscal Year 2023

      For Fiscal Year 2024

      For Fiscal Year 2023

      Legal reserve	$ 513,142	$ 394,685
      Cash dividends	3,827,898	2,807,405	$9.0	$6.6

   3. Special reserves

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

   4. Treasury shares

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

June 30,

2025

December 31,

2024

June 30,

2024

Number of shares held (in thousand shares) 1,655 1,655 1,655 Carrying amount $ 30,868 $ 30,868 $ 30,868

Market price $ 732,151 $ 676,723 $ 526,156

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.

1. REVENUE

   For the Three Months Ended

   June 30

   For the Six Months Ended

   June 30

   	2025	2024	2025	2024
   Revenue from contracts with customers Revenue from sale of goods	$ 6,292,284	$ 5,234,184	$ 12,748,173	$ 9,493,423
   Construction contract revenue	94,172	191,355	442,680	277,567
   Other revenue	68,939	89,322	129,593	161,948
   	$ 6,455,395	$ 5,514,861	$ 13,320,446	$ 9,932,938
   a. Contract balances
   		June 30, 2025	December 31, 2024	June 30, 2024
   Contract assets - construction contract		$ 138,786	$ 272,090	$ 471,960
   Contract liabilities - sale of goods		$ 676,332	$ 698,054	$ 631,620
   Contract liabilities - construction contract		44,661	79,853	121,844
   		$ 720,993	$ 777,907	$ 753,464

   The changes in the balance of contract liabilities primarily result from the timing difference between the Group's satisfaction of performance obligations and the respective customer's payment. The Group recognized revenue from the contract liabilities outstanding balance at the beginning of the year in the amount of $72,146 thousand and $628,332 thousand for the three months ended June 30, 2025 and 2024, respectively, and $593,786 thousand and $1,069,356 thousand for the six months ended June 30, 2025 and 2024, respectively.

   b. Disaggregation of revenue

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

2. ADDITIONAL INFORMATION ON EXPENSES

   1. Depreciation and amortization

      For the Three Months Ended

      June 30

      For the Six Months Ended

      June 30

      An analysis of depreciation by	2025	2024	2025	2024
      function Operating costs	$ 63,409	$ 63,392	$ 126,460	$ 123,420
      Operating expenses	124,752	121,214	251,439	244,346
      	$ 188,161	$ 184,606	$ 377,899	$ 367,766
      An analysis of amortization by function Operating costs	$ 1,282	$ 793	$ 2,119	$ 1,592
      Operating expenses	18,412	4,936	32,958	9,820
      	$ 19,694	$ 5,729	$ 35,077	$ 11,412

   2. Employee benefits expense

      For the Three Months Ended

      June 30

      For the Six Months Ended

      June 30

      2025		2024	2025	2024
      Short-term benefits	$ 1,551,843	$ 1,365,720	$ 3,179,003	$ 2,645,539
      Share-based payments
      (Note 24)	12,035	18,960	24,071	37,920
      Post-employment benefits
      Defined contribution plans	31,636	29,345	64,652	58,554
      Defined benefit plans	861	1,201	1,722	2,402
      Other employee benefits 30,269		27,582	61,323	55,214
      $ 1,626,644		$ 1,442,808	$ 3,330,771	$ 2,799,629
      Summarized by function
      Operating costs	$ 221,092	$ 194,972	$ 434,446	$ 382,514
      Operating expenses	1,405,552	1,247,836	2,896,325	2,417,115
      	$ 1,626,644	$ 1,442,808	$ 3,330,771	$ 2,799,629

   3. Compensation of employees and remuneration of directors

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

      The compensation of employees and the remuneration of directors for the three months and six months ended June 30, 2025 and 2024, which were calculated by estimated annual profit and loss, as follows:

      For the Three Months

      Ended June 30 For the Six Months Ended June 30

      2025 2024 2025 2024

      Amount Amount Amount Rate % Amount Rate %

      Compensation of

      employees $ 300,000 $ 204,000 $ 660,000 12.17 $ 348,000 10.82

      Remuneration of

      directors $ 3,750 $ 3,750 $ 7,500 0.14 $ 7,500 0.23

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

      The appropriations of compensation of employees and remuneration of directors for 2024 and 2023 are as shown below:

      For the Year Ended December 31

      	2024	2023
      Compensation of employees	$ 790,000	$ 336,427
      Remuneration of directors	$ 15,000	$ 13,685

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

      Information on the compensation of employees 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.

3. INCOME TAXES

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

      For the Three Months Ended For the Six Months Ended

      June 30 June 30

      2025 2024 2025 2024

      Current tax

      In respect of the current
      period	$ 386,946	$ 376,039	$ 762,254	$ 578,264
      Land value increment tax	14,258	-	14,258	-
      Adjustments for prior years	(2,177)	(2,644)	(74,682)	(2,644)
      	399,027	373,395	701,830	575,620
      Deferred tax
      In respect of the current
      period	31,523	(5,445)	170,209	35,270
      Income tax expense recognized in profit or loss	$ 430,550	$ 367,950	$ 872,039	$ 610,890

   2. Income tax assessments

      The Corporation's income tax returns have been assessed by the tax authorities through 2022.

      Except for the income tax returns of Mas Automation Corp., which have been assessed by the tax authorities through 2022, the income tax returns of other domestic subsidiaries have been assessed by the tax authorities through 2023.

4. 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

   For the Three Months Ended For the Six Months Ended

   June 30 June 30

   2025 2024 2025 2024

   Earnings used in the computation of basic and diluted earnings per

   share $ 1,953,304 $ 1,407,118 $ 4,075,783 $ 2,362,181

   Shares

   (In Thousands of Shares)

   For the Three Months Ended For the Six Months Ended

   June 30 June 30

   2025 2024 2025 2024

   Weighted average number of ordinary shares used in the computation of basic earnings

   per share 421,668 421,130 421,660 421,124

   Effect of potentially dilutive ordinary shares:

   Compensation of employees 1,492 1,855 2,157 1,512 Employee restricted shares 1,664 1,941 1,670 1,886

   Weighted average number of ordinary shares used in the computation of diluted earnings

   per share 424,824 424,926 425,487 424,522

   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.

5. SHARE-BASED PAYMENT ARRANGEMENTS

   1. Employee share option plan of subsidiaries

      The qualified employees of Touch IntelliConnect 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 IntelliConnect 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.

      For the Six Months Ended June 30

      	2025	2024
      	Weighted-average Number of Exercise Options (In Price Thousands) (NT$)	Weighted-average Number of Exercise Options (In Price Thousands) (NT$)
      Balance at January 1	285 $ 10.00	285 $ 10.00
      Options forfeited	(285) 10.00	- -
      Balance at June 30	- -	285 10.00
      Options exercisable, end of the period	-	285

   2. Restricted shares for employees

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

      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:

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

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

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

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

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

      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 on outstanding employee restricted shares was as follows:

         For the Six Months Ended

         June 30

         	2025	2024
         Balance on January 1	2,016	2,592
         Shares canceled	(48)	(38)
         Balance on June 30	1,968	2,554

         Compensation costs recognized were $12,035 thousand and $18,960 thousand for the three months ended June 30, 2025 and 2024, respectively, and $24,071 thousand and $37,920 thousand for the six months ended June 30, 2025 and 2024, respectively.

6. BUSINESS COMBINATIONS

   1. Subsidiaries acquired

      In November 2024, the Group subscribed for all additional new shares of PT Quantel through participating in issuance for cash of $18,193 thousand, and acquired control over it. Therefore, it has been included in the consolidated entity starting from the date of acquiring control.

   2. Assets acquired and liabilities assumed at the date of acquisition

      PT Quantel

      Current assets

      Cash $ 18,877

      Trade receivables 69

      Other current assets 13

      Non-current assets

      Property, plant and equipment, net 114

      Current liabilities

      Account payable (60)

      Other payables (99)

      $ 18,914

   3. Gain from bargain purchases on acquisition

      PT Quantel

      Consideration transferred $ 18,193

      Less: Fair value of identifiable net assets acquired (18,914)

      Gain from bargain purchases on acquisition (classified as other income) $ (721)

   4. Net cash inflow on the acquisition of subsidiaries

      PT Quantel

      Consideration paid in cash $ (18,193)

      Less: Cash and cash equivalent balances acquired 18,877

      Net cash inflow $ 684

7. 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.