Press Center

Issued by: Chang Wah Electromaterials Inc.
Issued on: December 18, 2025

Chang Wah Electromaterials Inc. (Chang Wah*, 8070) announced today that, in response to its investee JMC Electronics Co., Ltd. (JMC) planning to recognize an asset impairment loss in the fourth quarter of 2025, the Company will concurrently recognize a corresponding impairment loss on its investment and related goodwill in accordance with International Accounting Standards (IAS). The estimated impairment loss amounts to NT$655 million and was approved by the Board of Directors today.

Chang Wah emphasized that the impairment loss reflects the operating performance of the investee as required by accounting standards and does not arise from its core operations. Accordingly, it will have no material impact on operating cash flow or day-to-day business activities, nor will it affect the Company's dividend policy.

Due to prolonged weakness and unfavorable market conditions in the display panel industry, JMC has recently incurred consecutive losses. In compliance with IAS, JMC's Board of Directors today approved the recognition of an asset impairment loss of NT$725 million. As Chang Wah holds a 42.81% equity interest in JMC, the Company will, under the same accounting standards, recognize a corresponding loss of NT$655 million, including NT$344 million attributable to goodwill impairment. The loss will be recognized in the current fiscal year and is estimated to reduce earnings per share by approximately NT$0.93. The aforementioned amounts have not yet been audited, and the final figures will be subject to adjustment upon completion of the audit.

Chang Wah stated that the recognized impairment loss is a non-cash accounting item and does not result in any cash outflow, nor does it affect the Company's overall financial soundness. Upholding its principles of integrity and transparency, the Company has recognized the impairment in strict accordance with IAS to faithfully reflect its financial position and to safeguard investor interests.

In addition, Chang Wah's core business has maintained consistent profitability, supported by ample accumulated undistributed earnings and a sound financial foundation, providing the Company with sufficient capacity for dividend distributions. Leveraging its strong cash flow and long-standing commitment to returning value to shareholders, the Company will continue to implement a stable dividend distribution policy going forward.

【About Chang Wah Electromaterials Inc.】
Chang Wah* (8070.TW) specializes in the sales and technical services of semiconductor packaging materials and advanced packaging equipment, including lead frames, EME, silver paste, and IC substrates. The Company is also dedicated to strengthening its presence in the packaging materials market for key components of electric vehicles and automotive electronics. Furthermore, it partners with manufacturers to advance the IC substrate market for Micro LED and Mini LED packaging. Looking ahead, CWE will drive operational growth through its three primary business focuses: 3Cs (computers, communications, and consumer electronics), automotive, and industrial applications. Additionally, through strategic investments, the Company has expanded into the semiconductor front-end process materials, enabling CWE Group to build a comprehensive semiconductor material ecosystem and strengthen its influence within the industry. For more information, please visit the CWE official website: https://www.cwei.com.tw/