Thank you, Jason. Welcome, everyone.

This is Paul Ying from Chroma ATE, and this is the fourth quarter of 2025 financial release. I expect everyone, you see the presentation material at the website we have already posted.

On the page number 5, you can see that the bar chart on the right-hand side. You can see in 5 years span, and for the past 3 years starting from 2023, we grow the top line from NT$18.6 billion all the way to NT$28.3 billion for the consolidated sales.

For the 2025, the net income comes to the NT$11.7 billion and grow again from the 2023. The total headcount for Chroma globally is somewhere over 3,800 employees.

If we turn to the slide number 6, you can see the financial performance for the consolidated sales and the gross margin. On this page, you also can see in 5 years span, you can see the growth of the gross margin from 58% all the way to the 61% on the 2025.

For the parent-only, the sales and gross margin is similarly grows in the past 3 years from 54% to somewhere like 55% to 53%. The top line again is also grows from the NT$12.5 billion all the way to NT$22 billion with the investment in the R&D expense, the ratio is somewhere between 11% to 13%, but the absolute numbers amount for the investment over the R&D expenses has already exceeding NT$2.3 billion.

This is for the financial performance. Next page, on the slide number 7, you also can see that return on equity, it's a double-digit, again, growth in the 3-years period from 18% to 29% at the 2025.

As to the dividend, you also can see that our dividend policy normally we pay out like 70%. For the EPS, for the year of '25, it's reaching NT$27.7.

Our dividend for this year just passed, approved by the board members this morning, reached to NT$19.5. It's 70%, again.

As to the condensed consolidated income statement for the fourth quarter of 2025, in this page, you also can see that we have made a record high on the fourth quarter of 2025 on the top line, which is approximately NT$8.58 billion. This is a 34% growth in a Q-over-Q base and 42% growth on a year-over-year base.

Majorly, it's coming from the sales of the test and equipment business, which is occupied most of that at 96%. As to their gross margin, again, the fourth-quarter gross margin is 61% and reaching NT$5.2 billion.

This is a 36% growth in a Q-over-Q base and 45% growth on a year-over-year base. As to the opex, I think the growth of the opex on a quarter-by-quarter base, I think it's a 17% on general administration and another 3% on the R&D.

Totally, you can see that the operating income reached somewhere approximately NT$3 billion and reaching 35% of the top line. This is a growth of a 62% growth on Q-over-Q base and another 92% growth on a year-over-year base.

As to the net income, we are reaching NT$2.6 billion, occupies 31% of the top line. On a Q-over-Q base, it's a 48% decrease simply because on the third quarter we have the capital gain reaching somewhere approximately NT$3.2 billion on the real estate.

If we compare to the fourth quarter of last year, it's a 72% growth on the net income. Here, we have enjoyed a NT$6.03 as the fourth-quarter earning per share.

For total, again, this is, well, a drop compared to Q-over-Q, but 73% on a year-over-year base. As to the annual numbers, you can see from this page, slide number 10, in '25, the net sales reaching NT$28.3 billion.

Compared to last year, this is a 31% growth, again, majorly contributed from the test and equipment business, which occupied like 96%. For the gross margin, well, we are reaching 61%, which is pretty high.

Compared to last year, it's a 37% growth. For the operating income, we are reaching approximately NT$9.2 billion, occupy like 32%.

Compared to last year, this is a 68% growth. For the nonoperating items, here you also can see that we approximately nearly tripled the size of the year of '24 to NT$4.7 billion.

For the net income, here you can see that we over 1 over NT$10 billion, reaching nearly NT$12 billion, occupied 42% of the top line and another 121% growth compared to last year. This is a very good year for Chroma, and our earning per share for 2025 reaching NT$27.7, and again, this is a 122% growth compared to last year.

This is for the income statement. Then we turn to the balance sheet highlights.

In this page, you also can see that well, due to the operation results, you can see that our cash grows like a 65%, and inventory grows like a 45%. The major reason for the growth for the inventory is preparing for the shipment and also the backlog orders for the '26.

You also can see that our short-term debt is decreased, and the long-term debt is increased due to our expansion for the second phase of our headquarters constructions. Here, you also can see that we maintain pretty much the same inventory turnovers and also accounts receivable turnovers.

For the return on equity and return on asset is also improved from the 22% last year to 29% for the return over equity. For the 15% of the return over assets at '24, it's grows to 20% at the year of '25.

For the cash positions, you also can see that our free cash flow is nearly NT$6.6 billion. Compared to last year, it's a 131% growth.

This is for a very short briefing on the financial side. Next, Jennifer will give you the presentation for the product mix and also for the highlights for the '26.

Oh,

hi, good afternoon, everyone. This is Jennifer.

I will go through the product mix. Please refer to slide 13.

Let's start with the fourth quarter. In the fourth quarter, Chroma generated NT$8.6 billion consolidated sales, and the biggest growth was coming from the semiconductors and photonics testing solutions, which is increased by 37% quarter-over-quarter and the same 37% year-on-year.

This quarter was mainly due to the metrology delivered. The testing instruments and ATS was lower than third quarter, but year-on-year still grew by 56%.

In year 2025, the outstanding growth was coming from the power business. The testing instrument ATS present a strong growth of 55% compared to year 2024.

This year, we expect another year of the growth for these sectors, mainly coming from AI server power include HVDC adoptions and the demand from ESS markets, which is battery cell. The semiconductor and photonic sectors in year 2025 was growing by 40% compared to 2024.

It has consecutively grow for the second years and reach almost same weight as the power business. In 2026, we expect another year of a good growth from the semiconductor sectors, mainly contribute from the three major drivers: first one, the system-level tester, particularly the demand come from AI, HPC, and ASIC; and the second, the metrology for advanced package capacity ramp; and the third, photonics from CPO adoptions.

Now we are open for the Q&A sections.

Hi, Kevin.

Hi, Kevin.

Hey, hello, hello. Thanks for taking my question.

Congratulations on your Q4 very strong Q4 results. The first question is regarding your revenue growth this year.

I think you should still deliver very strong growth this year, but do you have any quantified numbers for your revenue growth this year? Also, could you also share a growth outlook for test instruments and also semiconductor respectively this year?

As you mentioned, a good growth, but if you can give any rough idea for the quantified number, that would be great. Thank you.

Hi, Kevin. We couldn't provide any forecast based on the regulations in Taiwan, but basically we do have very outstanding order on hand.

Let me give you some color regarding to our ATS, which is a power business. As you know that last year we were mainly grew by these kind of AI power and not from HVDC.

If you look at our power sectors, I think roughly close to 50% actually come from those AI powers. We expecting we will have another year of growth from this sector and due to HVDC adoptions.

Plus, this year we do receive a strong demand come from ESS markets. The best hint I could provide is you could refer to the good year we had for '22, '23, those battery cell booming.

Got it. Okay.

My follow-up question is for your gross margin. Q4 gross margin looks very good, and it keeps at 60% or higher for every quarter in 2025.

How should we think about and also expect the gross margin this year? In addition, the Q4 there's a very high revenue contribution from overseas subsidiaries.

What's the major reason for this kind of high revenue? Also, how should we think about the gross margin impact from overseas subsidiary?

Thank you.

As as a practice, we don't discuss gross margins, but however, our target is always try our best to maintain the gross margins, okay? Overseas, sometimes, I would say every year, maybe between a quarter, there was some changes.

I think that's due to the shipping timing and also could be the customs issues. However, I think the markup to overseas, I think it's around 15% to 20%.

Cannot be very precise, exactly markup the same for every quarter due to the factor which is I just mentioned.

Got it. Thank you.

Very clear. Thank you.

Thank you.

Hi, Alex. Please.

Hey, Paul and Jennifer. Happy New Year.

Congrats on the great result. You include some CPO testers in the presentation.

I'm wondering, have you secured the order for this testers, as well as I think you also have FAU assembly equipment that you showed last year? When do you expect volume shipment will start for this CPO equipment?

You may refer to our slide regarding to the CPO. Basically, this slide actually show you the four major stage for making this so-called CPO.

I think we already have order, and customers planning to pilot run this year. We cover stage 3 and 4, which is we're particularly blocked out.

As you could see, light engine and CPO automation testing solutions. Yeah.

Yes.

The

FAU, yeah, we changed a little bit of our strategies. We are very much focused on this kind of manufacturing process instead of focus on FAU, because FAU could become with several models.

Yeah.

I see. I see.

Then maybe a broader question. In the beginning of last year, the surge of AI power demand was a pleasant surprise to the company.

Now, based on your observations of the market trends this year and your order book, anything that surprise management so far this year?

You mean semiconductor sector?

Whichever segment that surprise the management team.

I would say every sectors.

Okay. Okay.

Business is too good. Okay.

Then so for the power testers, may I know what's the order visibility looks like and your shipment lead time?

Who would say surprise? Yeah.

I already guide, HVDC will be whole years. Then on top of that, you can consider, as I already give a very clear hints, which is

please

refer back to what we had before regarding to the battery booming back to '22 and '23. I think that's the best at least I could give.

Yes.

I see. I see.

That's very clear. Thank you.

Thank you.

Thank you.

Hi, Paul and Jennifer. Can you hear me?

Yeah.

Yes. Yep.

Congratulations on a very good quarter,

and

also Happy New Year, of course. Just a few quick confirmation.

First one, on the ESS, what category is it placed under? Is it ATS, or is it turnkey, or maybe the overseas operations?

The ESS market ramp is mostly contributed from I think you may refer to the reasons the Chinese government would like to build the infrastructures mostly focus on the power. That's why it brought out this kind of I would say huge ESS batteries demand.

Then I think in order to generate more margins and cost concerns, we will repeatedly like last times, do those assembling in China.

It could be recognized under overseas.

Then

would you say the margin would be comparable to the previous cycle back in 2022?

I would not go through the margin, but we always try our best to maintain the gross margins.

Sure, sure. Understand that.

Just curious for this particular project, would it be like 2-year like multiyear type of duration or, yeah?

I don't give a time frame guidance in case of speculations.

Sure, no problem. Okay.

However,

if

we brought up this to that means this is already order on hand. I'm not talking about expecting order.

Look, now

it's February. We still continue receiving the order.

We don't stop as today, right?

Okay. Sure.

Understand. Okay.

Just also, I was scrolling through the slides, there's some interesting kind of products you're showing. First one, naturally, is that you actually show a FT handler.

Just wondering, is this something new, or something you previously had the capability of doing that, or is this something you expect to generate a meaningful contribution in the coming year or so? Yeah.

Everything we list here, of course, is definitely something we about to present or customers is trial at the moment. I think this is sort of the guidance I could provide.

Like I before I ever mentioned, every products we list here mostly it's in progress or we already have order. There's no point to present here without the significant orders.

I see. Would you say how you maybe have some differentiation in terms of performance or the kind of like a targeted market for this type of FT handler?

Yeah.

We try to bring up the customer satisfactions. As we list here, first, we able to process dual side, which is more better throughput, more efficient.

Seconds, we able to reach out to 3,000 watts, okay,

which is

very good at it,

and

it's mostly for AI.

Okay. I see.

I see. Right.

That makes a lot of sense. Okay.

Also, maybe quickly, interesting tool I noticed is the 79 799X series, which is supposed to be for the co-packaged, right? Would you have some kind of timing and also you expected kind of market share in the main customers?

Would you have some kind of comments about timing and those stuff? Yeah.

I think we all focus on one customers, right?

Sure. Sure.

Very big one.

Yeah.

We already have a PO,

Jerry Tsai (JPMorgan): Oh, great. Great.

Great.

Yeah. Okay.

Timing of shipment would be

This is a confidential between Chroma and that big customers.

I see. I see.

Okay. Also, one last question.

Sorry about just quite a few in here. Sure.

I'm just wondering about there's quite a few of testers you list out for the CPO. Some of them is going to the PIC, some of them is for I guess the EIC parts.

Just how do you think about the kind of like the capex intensity of this kind of testing tool, i.e., is it possible to kind of give us some idea like how big this kind of capex could be in terms of tester investment among the customers, how is it compared to like a traditional transceiver type of investment? Yeah.

Yeah. Okay.

Customers should already structure out of the four major post manufacturing process for this CPO. The base indication is you may refer to NVIDIA's Spectrum-X switch.

Yeah.

The first stage is scale-out. In order to fulfill so-called scale-out, which is the communication between rack to rack,

then

to make this CPO, they already list out this four major stage. We already have the stage 3 and 4.

Okay. I see.

Okay.

Yeah.

Then

I think from the diagram, you already probably could figure out each process.

Okay. I see.

Okay. Yeah.

Maybe just one little quick follow-up. In terms of this optical fiber or optical transceiver

type of

kind of business, in 2025, can you give us some idea of how big the growth was back in last year, roughly speaking?

Last year was increased by 26%. Yeah.

This year will be outstanding. Far sort of the hints is, okay, our photonics business, current order on hand is already exceed metrology.

You can

That's very big.

Yeah.

Doesn't mean

our metrology is declining. It's actually continue to have a strong growth, but besides that, our CPO is even today's order on hand is more than metrology.

In a way you can say this order on hand could be shipped within the next 12 months?

Because the customer is planning to pilot run second half.

Okay. That's very, very impressive.

Okay. Thank you so much.

I'll get back to the queue. Appreciate it.

Thank you. Okay.

Hi, sorry. Just have a follow-up question.

I just want to confirm. Did you just say this year photonics order has exceed your order for metrology this year, or your metrology revenue last year?

I think our order on hand for photonics, we also have order on hand for metrology. Currently photonics is more than metrology.

I see. I assume your metrology this year will also expand quite significantly versus last year, right?

Oh,

if you want to look for really big volume should be next year. Yeah.

Oh, okay. Large volume on metrology revenue will coming from next year.

Sorry, this metrology is the foundry, the RDL CoWoS metrology that we talk about?

Yeah. I'm not saying metrology will be decline, I just say today's order on hand.

Oh, I see. Cool.

Thanks.

Thank you.