In response to international trends in tax governance, Chroma upholds a proactive, responsible, and innovative spirit to pursue better technology, quality, and service, while committing to sustainable development and information transparency. The Company complies with tax regulations and fulfills its corporate social responsibility by bearing reasonable tax obligations in countries where it operates.

The Board of Directors serves as the highest oversight and approval body for Chroma's tax strategy, ensuring that tax policies align with the Company's long-term development goals. In terms of daily implementation and operations, the CFO serves as the highest administrative officer responsible for tax management, leading the relevant tax management units in reviewing tax compliance procedures and related decision-making. Through clear authorization and reporting lines, the Company ensures that all material tax decisions undergo professional review and oversight by management.

Legal Compliance

• Comply with international tax standards and tax regulations in countries of operation, honestly filing and paying taxes on time.
• Interpret tax laws considering both the text and legislative intent, avoiding artificial profit shifting to low-tax jurisdictions.

Routine Transactions

• Related party transactions follow the OECD Transfer Pricing Guidelines and transfer pricing rules of each country of operation, ensuring tax obligations are fulfilled where value is created.

Business Substance

• Do not use tax structures without substantial operations or tax havens for tax avoidance purposes.

Risk Management

• For major transactions and decisions, consider both optimal overall tax burden and potential impacts on global reputation and sustainable value. Carefully assess tax risks and corresponding response measures.

Information Transparency

• Regularly disclose tax information to stakeholders through public channels such as financial reports, annual reports, and corporate social responsibility reports to ensure transparency.

Honest Communication

• Establish trust-based and respectful communication with tax authorities in countries of operation, engaging in timely discussions and clarifications on tax matters, and maintaining harmonious relationships.

Talent Development

• Through ongoing training, strengthen the professional knowledge of the tax management team and enhance its ability to address various tax issues, managing related matters with integrity and prudence to effectively control tax risks.

Establish a flexible and rigorous tax review system to implement tax compliance in daily operations. In addition to regular compliance inspections and filings conducted by the tax management unit in accordance with tax filing cycles under applicable local tax laws, the internal audit unit regularly reported its audit results to the Board of Directors in line with the annual audit plan. The Company implements a dynamic alert and project evaluation mechanism for material changes in tax laws and regulations, cross-border transactions, or tax issues with potential risks. When such issues arise, risk assessments are initiated immediately, with reporting to management, to ensure a high level of compliance and agility in a changing tax environment.

• Tax risk policy: Guided by the core principles of ethical management and tax compliance, the Company integrates tax risk control into its daily financial operations.
• Tax risk identification: For risk identification, the tax management unit proactively monitors amendments to domestic and international tax laws and changes in the business environment. It conducts pre-assessments of cross-border transactions, organizational adjustments, or new tax law requirements to identify potential compliance risks.
• Management and execution: Regarding management and execution, the tax management unit formulates tax compliance strategies for identified risks through internal professional evaluation or by engaging external tax experts for project consultations, ensuring tax arrangements have legitimate commercial substance.
• Implementation of the supervision mechanism: A rigorous levels of authority system is in place, with the CFO reviewing material tax filings and tax planning. Independent reviews of tax matters are conducted by CPAs during the annual external audit of financial statements. The cycle of "pre-identification, in-process control, and postreview" ensures the transparency and stability of tax operations.

Tax regulation awareness activities were established as an important means of tracking regulatory trends. In 2025, the Company participated in relevant seminars organized by the competent authority to ensure tax practices aligned with the latest policy developments. Upholding the principle of ethical communication, the Company facilitates tax-related professional exchanges through timely tax filing and responses to inquiries from the competent authorities, ensuring compliance with tax procedures.