From the Chairman

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In 2024, the global economy continued to face mounting challenges due to the volatile and unpredictable international landscape shaped by geopolitical tensions. At the same time, the intensifying effects of extreme weather such as heatwaves, floods, and wildfires have caused widespread disruptions around the world. Amid this atypical economic cycle, despite the instability, new opportunities have emerged. Chroma Group continued to deliver strong financial results, with both revenue and profit reaching record highs. For the full year of 2024, the Group’s consolidated revenue totaled NTD 21.6 billion, representing a 16 percent increase compared to 2023. Among these results, the continuous momentum and discussions surrounding artificial intelligence (AI) have driven growing demand for high-performance computing and related peripheral system components, leading to strong growth in Chroma’s semiconductor and AI-related testing segment. Chroma, our proprietary brand built over four decades, has been recognized as one of Taiwan’s Top 40 International Brands for six consecutive years from 2019 to 2024. Chroma once again gained market recognition in international sustainability evaluations. In the FTSE Russell assessment, the Company achieved an impressive overall score of 4.1 (out of 5), representing a 0.8-point improvement compared to 2023. Notably, Chroma received a perfect score of 5 in the area of corporate governance.

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Leo Huang

Chroma Chairman

“GO GREEN, POWER ON” Driving a Low-Carbon Ecosystem with Carbon Handprints

Behind these outstanding achievements, Chroma has adopted the sustainability vision “POWER” as its core framework to shape its own sustainability strategy blueprint. Through a top-down and inside-out approach, the Company sets clear goals and ensures effective execution, driving sustainable growth across the organization. As a leading manufacturer of high-tech, low-pollution, and energy-efficient test and measurement instruments, Chroma is dedicated to helping its customers achieve energy conservation and carbon reduction through its products and services, positioning itself as a “carbon handprint” contributor within the industry value chain. Our efforts to reduce carbon emissions have continued to expand year by year. Throughout the full product life cycle, approximately 134 metric tons of CO2e were reduced in the manufacturing process in 2024. From 2020 to 2024, the use phase of our sold energy recovery testing equipment helped customers reduce a cumulative total of 321,490 metric tons of carbon emissions, which is equivalent to the carbon absorption of 994 Daan Forest Parks or approximately 219 Central Parks in New York City. In recent years, Chroma's revenue has continued to grow steadily, while its greenhouse gas emissions, calculated in accordance with the ISO 14064-1:2018 standard, have shown a year-on-year decline. The Company’s carbon intensity stands at approximately 0.39 metric tons per NTD one million in revenue. In 2024, Chroma was also recognized as one of the Top 100 Companies in Carbon Competitiveness by Business Weekly. According to the FTSE Russell Green Revenues Classification System, green revenue accounted for 48.3% of Chroma’s parent company revenue in 2024, representing a year-on-year increase of 0.3%. While increasing green revenue, Chroma also raised its local procurement ratio to 89% to ensure a highly efficient and resilient supply chain. In 2024, the first supply chain ESG promotion meeting was held, and more supply chain partners were invited to join in creating a low-carbon ecosystem.

Environmental Commitment and Action in Parallel

The year 2024 officially became the hottest year on record, with the global average temperature exceeding 1.5 ° C above pre-industrial levels for the first time, setting a new record. As a global corporate citizen, we place greater emphasis on the impacts of climate change, recognizing the growing importance of corporate risk management. In 2024, Chroma participated in the CDP evaluation for the first time and received a “B” management level rating in both “Climate Change” and “Water Security” categories. This recognition reflects Chroma’s demonstrated capability to manage the impacts of climate change. At the same time, we have continued to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to analyze the risks posed by climate change and Chroma’s corresponding responses, while formulating relevant strategies and plans. We also pay close attention to the issue of biodiversity, striving to protect and minimize impacts on biodiversity throughout our production processes, with the goal of achieving No Net Loss (NPI). In the same year, we announced and signed our Biodiversity and Zero Deforestation Policy.. To achieve its goals of “reaching net-zero emissions at all office sites by 2030 and at all facilities by 2050,” Chroma accelerated its adoption of renewable energy. By the end of 2024, the Company signed a green power wheeling agreement with a renewable energy provider. In the first year, the agreement is expected to supply 900 thousand kWh of green electricity, accounting for 5% of total power consumption. Starting in 2025, Chroma plans to increase the proportion of green electricity by an average of 5% each year, aiming to achieve RE30 by 2030. In terms of resource recycling, the recycling rate reached 80.43% in 2024, marking a 7.1% increase compared to 2023. We hope that every step we take will effectively reduce our environmental impact.

An Inclusive, Equitable, and Happy Workplace

Chroma has reached its 40th year of development, and it is through the collective innovation and contributions of every member of the Chroma team that such remarkable achievements have been made possible. We firmly believe that putting people first is the most important cornerstone for a company on the path to sustainability. Chroma strictly complies with the legal regulations of all regions where it operates, while respecting and supporting internationally recognized human rights standards and principles. The Company has established management measures for key human rights issues and built diverse internal communication channels to better listen to and understand employees’ real experiences, fostering an inclusive and equitable workplace. Chroma also actively promotes gender diversity and workplace equality by assigning roles based on merit and adhering to the principles of equal pay for equal work and performance-based compensation. In STEM positions (Science / Technology / Engineering / Mathematics), female employees accounted for 5.74% of the total workforce. Furthermore, the Chroma Board of Directors appointed one female director, demonstrating the Company’s commitment to board diversity.

In terms of corporate governance, integrity and legal compliance have always been the Company’s primary codes of conduct and core values. There were no incidents of unethical conduct or corruption in 2024, and all employee behavior was in strict compliance with relevant ethical regulations. Amid today’s global wave of digitalization, establishing a robust information security management system represents Chroma’s commitment and responsibility to its employees, customers, and supply chain partners. Chroma follows the ISO 27001 information security certification to implement and enforce various information security management measures. In 2024, the scope of certification was expanded to include the subsidiary ADIVIC Technology and Chroma’s branch office in the Netherlands, further enhancing the Group’s information security management.

Shared Prosperity, Sustainable Future

In 2015, the United Nations adopted the 2030 Agenda for Sustainable Development and announced 17 core Sustainable Development Goals (SDGs) aimed at guiding the world toward a more sustainable future. More than ten years ago, in 2014, Chroma began publishing its CSR reports, keeping pace with global trends and demonstrating its commitment to sustainable development. Looking ahead, Chroma will continue to strengthen its expertise in test technology, driving industry development and enabling innovation in emerging markets. At the same time, Chroma is not only committed to fulfilling its own social responsibilities but also actively promotes ESG values across the organization, encouraging every employee to be an advocate and practitioner of ESG. The Company also aims to extend this influence to its overseas subsidiaries and affiliated companies, working together with industry partners, customers, and the supply chain to create sustainable value and foster shared prosperity.

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