Stakeholder
Competent authorities

Significance to Chroma
Abide by laws and regulations, cooperate with the government on policies, and address the stakeholder expectations from Chroma.

Approach and Frequency of Engagement

[Irregular]

• Market Observation Post System (MOPS)
• Government documents
• Policy outreaches
• Onsite audits

Stakeholder
Customer

Significance to Chroma
Each customer feedback item is an important nutrient for development and CRM optimization. Analyze and review the comprehensive needs and opinions of customers to gain an in-depth understanding of them to facilitate subsequent improvements.

Approach and Frequency of Engagement

[Regular]

• Internal quality and review meetings
• Customer satisfaction survey

[Irregular]

• Business visits
• various sales meetings and technology review meetings

Suppliers
Customer

Significance to Chroma
We have built a reciprocal value chain with our business partners that emphasizes balanced ESG collaboration to create a new business model and enhance competitiveness.

Approach and Frequency of Engagement

[Regular]

• Supplier conferences and guidance meetings are regularly held
• Suppliers are audited and rated periodically

[Irregular]

• Supplier grievance channels
• Supplier technology seminars

Suppliers
Employee

Significance to Chroma
We care about the needs of employees and have built a friendly workplace environment. Hazard identification and risk assessment have been implemented to reduce potential accidents and encourage organizational coherence and commitment in our employees. Our health checkup system is being continuously optimized and steps have been taken to improve gender equality measures. We care for the health and protect the human rights of our employees.

Approach and Frequency of Engagement

[Regular]

• Labor-management meeting
• Monthly/weekly/labor representative meetings at each plant

[Irregular]

• Immediate supervisors
• HRD responsible personnel
• A corporate bulletin board
• An employee suggestion box
• Employee seminars
• Employee grievance channels
• Training courses
• Policy outreach meetings

Material topic
Occupational Health and Safety Management

Positive Actual and Potential Impact on Chroma
Maintaining workplace health and safety and establishing employee health management programs are the Company’s first line of protection for employees.

Negative Actual and Potential Impact on Chroma

If an occupational injury occurs, the Company may face both direct and indirect losses. Direct losses include manpower loss, injury compensation, and medical expenses. Indirect losses include production interruption, injury-related losses, wage losses, associated losses, or other impacts such as damage to corporate image, product quality, labor skills, labor relations, work efficiency, and employee morale.

Material topic
Diversity and Equal Opportunities

Positive Actual and Potential Impact on Chroma
A diverse and inclusive cultur e can have a positive impact on the organization. Upholding a people-oriented core value, the Company recruits diverse global talent, actively promotes gender equality, and hires local talent in management roles to implement localized talent management.

Negative Actual and Potential Impact on Chroma

• International brands (such as U.S. and European enterprises) have incorporated DEI (Diversity, Equity, and Inclusion) performance into supplier review criteria. For example, the RBA Code of Conduct has strict requirements regarding discrimination and forced labor.
• More and more sustainable investment funds require investee companies to have gender diversity and equality policies. Poor performance in this area may result in Chroma being excluded from investment portfolios.
• If the Company has internal incidents of discrimination based on gender, age, ethnicity, or disability, it may trigger labor disputes, litigation, or even compensation, damaging the Company’s finances and reputation.

Material topic
Talent Development and Training

Positive Actual and Potential Impact on Chroma
With the long-term development of talented persons as an ultimate goal, we cultivate talent in new employees from scratch. Chroma has a comprehensive supporting mechanism and cultivation plan that accelerates the growth of talented vision and ability.

Negative Actual and Potential Impact on Chroma

Talent is the foundation of the Company’s operational competitiveness. Losing talent not only affects morale and job performance but also incurs tangible costs in recruitment and training, and intangible costs such as difficulty in replacing experienced personnel (e.g., maintaining customer relationships, work efficiency, etc.).

Material topic
Labor Relations

Positive Actual and Potential Impact on Chroma
Employees are Chroma’s most important partners and we attach great importance to their working environment, development and care. Chroma has established diversified communication channels within the Company and continues to implement various employee relations programs in the hope of creating a good working environment for our employees.

Negative Actual and Potential Impact on Chroma

• Labor disputes and litigation: if employees file complaints or labor lawsuits due to excessive working hours, unpaid overtime pay, or disputes over termination, this may result in legal expenses and damage to the Company’s reputation.
• Production line strikes or union protests: if labor negotiations break down, especially in high-pressure production line departments, strikes or collective protests may erupt, directly paralyzing production, delaying deliveries, and undermining customer trust.
• Rising turnover rate impacts operations: poor labor conditions or a rigid management culture will lead to high turnover, exposing the Company to tangible risks such as increased training costs and declining production efficiency.

Material topic
Social Engagement

Positive Actual and Potential Impact on Chroma
Chroma ATE Inc. and the Chroma Foundation work hand in hand under four core pillars—“science education,”“ arts and humanities,”“ environmental sustainability,” and “caring and sharing”—to fulfill corporate social responsibility.

Negative Actual and Potential Impact on Chroma

• If social engagement (such as charitable donations or sponsorship of local infrastructure) lacks a clear strategy or performance evaluation, it may result in inefficient use of Company funds and could be questioned internally or externally as“ extravagant.”
• If sponsorship and donation activities are not properly disclosed and audited, they may be suspected of involving commercial bribery or the transfer of benefits, which could trigger regulatory scrutiny or criminal liability.

Material topic
Operational Risk, Risk Management

Positive Actual and Potential Impact on Chroma
Our business is based on the principles of sound operation, honesty and integrity, while at the same time, we build a sound corporate governance structure and promote related work to protect the interests of all stakeholders.

Material topic
Supply Chain Management

Positive Actual and Potential Impact on Chroma
We view our suppliers as important partners for sustainable growth and implement sustainable supply chain management to reduce operational risks and costs and to provide responsible and quality services to our customers.

Negative Actual and Potential Impact on Chroma

Poor supply chain management may lead to supplier failures or delivery delays, thereby affecting the Company’s shipments and services. Supply chain risks may result in production interruptions, increased costs, reduced quality, and loss of reputation for the Company.

Material topic
Economic Performance

Positive Actual and Potential Impact on Chroma
Chroma's commitment to all stakeholders is the maintenance of stable financial performance.

Negative Actual and Potential Impact on Chroma

• When profitability declines, Chroma will first reduce capital expenditures and R&D investment, which for a technology company means a gradual decline in product competitiveness, leading to loss of market leadership.
• When performance deteriorates, companies often cut costs by layoffs or freezing salaries, which will directly undermine employee morale and erode internal trust.
• Customers pay close attention to a company’s financial soundness. If financial reports are poor, international brand customers may shift orders to competitors with stronger financial standing to reduce supply chain risk, ultimately causing a loss of international orders.

Material topic
Customer Privacy and Information Security

Positive Actual and Potential Impact on Chroma
As a leading developer of precision measurement instrumentation and equipment, Chroma is committed to deepening its information security architecture through innovative technology and close collaboration with key partners to protect the Company’s critical information assets and customer data security. In the face of increasingly severe cybersecurity threats, the Company implements ISO 27001 information security certification, using the Plan-Do-Check-Act (PDCA) model to achieve a cycle of continuous improvement.

Negative Actual and Potential Impact on Chroma

Poor information security and personal data protection have multifaceted negative impacts on business operations, including the leakage of confidential information, damage to reputation and image, loss of customers, and legal risks.