Chroma ATE : 2023 Q1 Financial Report (May 31st, 2023)

Chroma ATE Inc. and Subsidiaries

Consolidated Financial Statements for the

Three Months Ended March 31, 2023 and 2022 and Independent Auditors' Review Report

NT$96,445 thousand, respectively, representing 6% and 8%, 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 March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 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

May 5, 2023

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.

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CHROMA ATE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

																			March 31, 2022
			March 31, 2023						December 31, 2022				(Reviewed after Measurement
ASSETS			(Reviewed)						(Audited)						Period Adjustment)
		Amount	%					Amount	%					Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	4,263,238		13		$	5,941,512		18		$	3,874,062	12
Financial assets at fair value through profit or loss (Note 7)			603,460			2					394,823			1					503,871	2
Financial assets at amortized cost (Notes 9 and 31)			341,373			1					348,304			1					744,075		2
Contract assets (Note 22)			1,140,521		3					1,084,012		3					859,435		3
Notes receivable (Note 10)			275,994			1					315,547		1					186,992		1
Trade receivables (Note 10)			4,085,176		12					4,382,943		13					4,492,937	14
Trade receivables - related parties (Notes 10 and 30)			52,415		-					64,746		-					39,122	-
Inventories (Note 11)			5,096,395		16					4,752,967		14					4,293,947	14
Prepayments			320,709			1					270,143			1					564,179		2
Other current assets			240,080			1					213,379			1					272,017		1
Total current assets			16,419,361			50					17,768,376			53					15,830,637		51
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)			4,122			-					4,513			-					5,766		-
Financial assets at fair value through other comprehensive income (Note 8)			1,190,750		4					1,204,438		4					1,301,461	4
Financial assets at amortized cost (Notes 9 and 31)			235,363			1					205,541			1					183,579		1
Investments accounted for using the equity method (Note 13)			3,912,224		12					3,860,769		11					3,224,429	11
Property, plant and equipment (Notes 14, 30 and 31)			6,933,171		21					7,018,188		21					6,129,266	20
Right-of-use assets (Note 15)			379,118			1					359,887			1					340,645		1
Investment properties (Note 16)			2,478,333		8					2,478,333		7					3,140,112	10
Goodwill (Notes 17 and 27)			230,190			1					231,589			1					239,510		1
Intangible assets			73,988		-					79,542		-					95,612	-
Deferred tax assets			361,052			1					355,298			1					353,445		1
Prepayments for equipment			363,415			1					149,860			-					107,670		-
Refundable deposits			24,141		-					24,779		-					23,622	-
Other non-current assets			84,589		-					87,707		-					79,501	-
Total non-current assets			16,270,456			50					16,060,444			47					15,224,618		49
TOTAL	$	32,689,817			100		$	33,828,820			100		$	31,055,255		100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 18)	$	776,070			2		$	1,819,080		5		$	1,529,235	5
Contract liabilities (Note 22)			1,610,725		5					1,656,656		5					1,458,528	5
Notes payable			36,191		-					39,113		-					18,107	-
Notes payable - related parties (Note 30)			4,289			-					2,559			-					4,898		-
Trade payables			2,555,476		8					2,890,681		8					2,913,134	9
Trade payables - related parties (Note 30)			4,835			-					5,399			-					5,253		-
Other payables (Note 19)			4,759,623		15					1,645,259		5					4,246,025	14
Current tax liabilities			841,358			3					697,668			2					551,732		2
Lease liabilities (Notes 15 and 30)			152,876			-					134,237			-					121,634		-
Current portion of long-term borrowings (Notes 18 and 31)			204,320			1					205,260			1					308,153		1
Other current liabilities			172,770			-					188,155			1					89,952	-
Total current liabilities			11,118,533			34					9,284,067		27					11,246,651		36
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 18 and 31)			607,263			2					1,164,625		3					1,351,365	4
Deferred tax liabilities			1,080,794		3					1,025,287		3					804,698		3
Lease liabilities (Notes 15 and 30)			257,346			1					258,447			1					256,585		1
Net defined benefit liabilities			149,355			1					155,619		1					168,405		1
Guarantee deposits received			60,918		-					60,923		-					61,098	-
Other non-current liabilities			7,171			-					7,171			-					9,721		-
Total non-current liabilities			2,162,847		7					2,672,072		8					2,651,872	9
Total liabilities			13,281,380			41					11,956,139			35					13,898,523		45
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 21)
Ordinary share capital			4,253,670		13					4,253,970		13					4,218,745	14
Advance receipts for share capital			-			-					-			-					35,096		-
Capital surplus			4,516,010			14					4,502,473			13					4,108,637		13
Retained earnings
Legal reserve			3,237,808		10					3,237,808		10					2,824,310	9
Special reserve			86,888		-					86,888		-					86,888	-
Unappropriated earnings			6,504,201		20					8,970,974		26					5,137,791	17
Total retained earnings			9,828,897		30					12,295,670			36					8,048,989		26
Other equity			331,814			1					339,463			1					353,592		1
Treasury shares			(30,868)		-					(30,868)			-					(33,686)		-
Total equity attributable to owners of the Corporation			18,899,523			58					21,360,708			63					16,731,373	54
NON-CONTROLLING INTERESTS			508,914			1					511,973			2					425,359	1
Total equity			19,408,437			59					21,872,681		65					17,156,732		55
TOTAL		$	32,689,817			100			$	33,828,820			100			$	31,055,255		100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated May 5, 2023)

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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 March 31
								2022 (Measurement
	2023					Period Adjustment)
		Amount	%				Amount	%
NET OPERATING REVENUE (Notes 22 and 30)	$ 4,388,140		100		$ 4,398,002	100
OPERATING COSTS (Notes 11, 23 and 30)		1,721,898		39			2,214,106	50
GROSS PROFIT		2,666,242		61			2,183,896	50
(UNREALIZED) REALIZED GAIN ON
TRANSACTIONS WITH ASSOCIATES AND
JOINT VENTURES		(13)	-		113		-
REALIZED GROSS PROFIT		2,666,229		61			2,184,009	50
OPERATING EXPENSES (Notes 10, 23 and 30)
Selling and marketing expenses	708,733		16		625,470	14
General and administrative expenses	331,144		8		319,858	8
Research and development expenses	437,469		10		400,237	9
Expected credit impairment loss		1,767		-			1,184	-
Total operating expenses		1,479,113		34			1,346,749	31
PROFIT FROM OPERATIONS		1,187,116		27			837,260	19
NON-OPERATING INCOME AND EXPENSES
Finance costs	(13,030)	-		(9,607)	-
Share of profits of associates and joint ventures	80,157		2		87,553	2
Interest income	15,649		-		4,016	-
Dividend income	760		-		1,173	-
Other income	22,059		-		26,640	1
Gain on disposal of property, plant and equipment,
net	715		-		94		-
Other expenses	(906)	-		(1,956)	-
Foreign exchange (loss) gain	(9,227)	-		76,347	2
Loss on disposal of investments	-		-		(18,800)	(1)
(Loss) gain on financial assets at fair value through
profit or loss		(37,749)	(1)	1,391	-
Total non-operating income and expenses		58,428		1			166,851	4
PROFIT BEFORE INCOME TAX		1,245,544		28			1,004,111	23
INCOME TAX EXPENSE (Note 24)		282,864		6			146,497	4
NET PROFIT FOR THE PERIOD		962,680		22			857,614	19
									(Continued)

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