Share-based Payment Arrangement

12 Months Ended

Dec. 31, 2024

Disclosure of terms and conditions of share-based payment arrangement [abstract]

35.

SHARE-BASED PAYMENT ARRANGEMENT

CHIEF share-based compensation plan (“CHIEF Plan”) described as follows:

The Board of Directors of CHIEF resolved to issue 950, 50 and 200 stock options on December 19, 2017, October 31, 2018 and November 13, 2020. Each option is eligible to subscribe for one thousand

common stocks when exercisable and the exercise price is $147.00, $147.00 and $206.00 per share, respectively. The options are granted to specific employees that meet the vesting conditions. The CHIEF Plan has an exercise price adjustment formula upon the changes in common stocks or distribution of cash dividends. The options of the CHIEF Plan are valid for five years and the graded vesting schedule will vest two years after the grant date.

The compensation costs for stock options for the years ended December 31, 2022, 2023 and 2024 were $8.8 million, $5.0 million and $2.7 million, respectively.

CHIEF modified the plan terms of stock options granted on December 19, 2017 in July 2022; therefore, the exercise price changed from $128.70 to 124.70 per share. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on October 31, 2018 in July 2022; therefore, the exercise price changed from $134.50 to $130.30 per share. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on November 13, 2020 in July 2022, August 2023 and July 2024; therefore, the exercise price changed from $199.70 to $193.50, $171.70 and $166.50 per share, respectively. The modification did not cause any incremental fair value granted.

Information about CHIEF’s outstanding stock options for the years ended December 31, 2022, 2023 and 2024 was as follows:


	Year Ended December 31, 2022
	Granted on December 19, 2017					Granted on October 31, 2018					Granted on November 13, 2020
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		213.25		$	128.70		10.50		$	134.50		194.00		$	199.70
Options exercised		(213.25	)		124.70		(10.50	)		130.30		(51.00	)		193.50
Options forfeited		—			—		—			—		(0.75	)		—
Options outstanding at end of the year		—			—		—			—		142.25			193.50
Options exercisable at end of the year		—			—		—			—		0.50			193.50
Weighted average remaining contractual life (years)		—					0.83					2.87


	Year Ended December 31, 2023					Year Ended December 31, 2024
	Granted on November 13, 2020					Granted on November 13, 2020
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		142.25		$	193.50		93		$	171.70
Options exercised		(47.00	)		171.70		(85	)		166.50
Options forfeited		(2.25	)		—		(1	)		—
Options outstanding at end of the year		93.00			171.70		7			166.50
Options exercisable at end of the year		—			—		7			166.50
Weighted average remaining contractual life (years)		1.87					0.87

CHIEF used the fair value method to evaluate the options using the Black-Scholes model and binomial option pricing model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on December 19, 2017			Stock Options Granted on October 31, 2018			Stock Options Granted on November 13, 2020
Grant-date share price (NT$)	$	95.92		$	166.00		$	356.00
Exercise price (NT$)	$	147.00		$	147.00		$	206.00
Dividend yield		—			—			—
Risk-free interest rate		0.62	%		0.72	%		0.18	%
Expected life	5 years			5 years			5 years
Expected volatility		17.35	%		16.60	%		34.61	%
Weighted average fair value of grants (NT$)	$	2,318		$	33,540		$	173,893

The expected volatility for the options granted in 2020 was based on CHIEF’s average annualized historical share price volatility from June 5, 2018, CHIEF’s listing date on Taipei Exchange, to the grant date. The expected volatilities for the options granted from 2017 to 2018 were based on the average annualized historical share price volatility of CHIEF’s comparable companies before the grant date.

CHTSC share-based compensation plan (“CHTSC Plan”) described as follows:

The Board of Directors of CHTSC resolved to issue 4,500 and 3,500 stock options on December 20, 2019 and February 20, 2021, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise prices are both $19.085 per share. The options are granted to specific employees that meet the vesting conditions. The CHTSC Plan has an exercise price adjustment formula upon the changes in common stocks. The options of the CHTSC Plan are valid for five years and the graded vesting schedule will vest one year after the grant date.

The compensation costs for stock options for the years ended December 31, 2022, 2023 and 2024 were $5.1 million, $0.5 million and $0.2 million, respectively.

Information about CHTSC’s outstanding stock options for the years ended December 31, 2022, 2023 and 2024 was as follows:


	Year Ended December 31, 2022
	Granted on December 20, 2019					Granted on February 20, 2021
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		3,174		$	19.085		3,324		$	19.085
Options exercised		(2,049	)		19.085		(815	)		19.085
Options forfeited		(42	)		—		(166	)		—
Options outstanding at end of the year		1,083			19.085		2,343			19.085
Options exercisable at end of the year		31			19.085		7			19.085
Weighted average remaining contractual life (years)		1.97					3.14


	Year Ended December 31, 2023
	Granted on December 20, 2019					Granted on February 20, 2021
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		1,083		$	19.085		2,343		$	19.085
Options exercised		(1,002	)		19.085		(778	)		19.085
Options forfeited		(41	)		—		(46	)		—
Options outstanding at end of the year		40			19.085		1,519			19.085
Options exercisable at end of the year		5			19.085		7			19.085
Weighted average remaining contractual life (years)		0.97					2.14


	Year Ended December 31, 2024
	Granted on December 20, 2019					Granted on February 20, 2021
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		40		$	19.085		1,519		$	19.085
Options exercised		(20	)		19.085		(699	)		19.085
Options forfeited		(20	)		—		(165	)		—
Options outstanding at end of the year		—			—		655			19.085
Options exercisable at end of the year		—			—		5			19.085
Weighted average remaining contractual life (years)		—					1.14

CHTSC used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on December 20, 2019			Stock Options Granted on February 20, 2021
Grant-date share price (NT$)	$	20.17		$	23.76
Exercise price (NT$)	$	19.085		$	19.085
Dividend yield		12.49	%		15.18	%
Risk-free interest rate		0.54	%		0.25	%
Expected life	5 years			5 years
Expected volatility		42.41	%		47.35	%
Weighted average fair value of grants (NT$)	$	2,470		$	3,350

Expected volatility was based on the average annualized historical share price volatility of CHTSC’s comparable companies before the grant date.

CLPT share-based compensation plan (“CLPT Plan”) described as follows:

The Board of Directors of CLPT resolved to issue 690, 600 and 755 stock options on February 26, 2021, May 31, 2022 and September 26, 2023, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise prices are all $16.87 per share. The options are granted to specific employees that meet the vesting conditions. The CLPT Plan has an exercise price adjustment formula upon the changes in common stocks or distribution of cash dividends. The options of the CLPT Plan are valid for four years and the graded vesting schedule will vest two years after the grant date.

The compensation costs for stock options for the years ended December 31, 2022, 2023 and 2024 were $1.5 million, $2.9 million and $4.9 million, respectively.

CLPT modified the plan terms of stock options granted on February 26, 2021 in September 2023 and October 2024; therefore, the exercise price changed from $15.90 to $14.40 and $13.30 per share, respectively. The modification did not cause any incremental fair value granted.

CLPT modified the plan terms of stock options granted on May 31, 2022 in September 2023 and October 2024; therefore, the exercise price changed from $16.87 to $15.30 and $14.10 per share, respectively. The modification did not cause any incremental fair value granted.

CLPT modified the plan terms of stock options granted on September 26, 2023 in September 2023 and October 2024; therefore, the exercise price changed from $16.87 to $15.30 and 14.10 per share, respectively. The modification did not cause any incremental fair value granted.

Information about CLPT’s outstanding stock options for the year ended December 31, 2022, 2023 and 2024 was as follows:


	Year Ended December 31, 2022
	Granted on February 26, 2021					Granted on May 31, 2022
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		550		$	15.90		—		$	—
Options granted		—			—		600			16.87
Options forfeited		(40	)		—		(160	)		—
Options outstanding at end of the year		510			15.90		440			16.87
Options exercisable at end of the year		—			—		—			—
Weighted average remaining contractual life (years)		2.16					3.41


	Year Ended December 31, 2023
	Granted on February 26, 2021					Granted on May 31, 2022				Granted on September 26, 2023
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		510		$	15.90		440	$	16.87		—	$	—
Options granted		—			—		—		—		755		16.87
Options exercised		(55	)		15.90		—		—		—		—
Options forfeited		(15	)		—		—		—		—		—
Options outstanding at end of the year		440			14.40		440		15.30		755		15.30
Options exercisable at end of the year		192			14.40		—		—		—		—
Weighted average remaining contractual life (years)		1.16					2.41				3.74


	Year Ended December 31, 2024
	Granted on February 26, 2021					Granted on May 31, 2022					Granted on September 26, 2023
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year		440		$	14.40		440		$	15.30		755		$	15.30
Options exercised		(415	)		14.40		(220	)		15.30		—			—
Options forfeited		—			—		—			—		(5	)		—
Options outstanding at end of the year		25			13.30		220			14.10		750			14.10
Options exercisable at end of the year		25			13.30		—			—		—			—
Weighted average remaining contractual life (years)		0.16					1.41					2.74

CLPT used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on February 26, 2021			Stock Options Granted on May 31, 2022			Stock Options Granted on September 26, 2023
Grant-date share price (NT$)	$	17.63		$	18.66		$	28.43
Exercise price (NT$)	$	16.87		$	16.87		$	16.87
Dividend yield		—			—			—
Risk-free interest rate		0.31	%		0.98	%		1.10	%
Expected life	4 years			4 years			4 years
Expected volatility		35.22	%		35.76	%		31.99	%
Weighted average fair value of grants (NT$)	$	4,750		$	5,665		$	13,225

Expected volatility was based on the average annualized historical share price volatility of CLPT’s comparable companies before the grant date.