Hello. Good afternoon, my dearest investors and potential investors. This is Paul Ying, CFO of Chroma. Here, Jennifer Chien with me. Welcome to the 2021 first quarter investors web conference. Well, today, we're going to conduct this presentation in English, and afterwards for the Q&A, according to your language, we are going to make the answer by Mandarin or English. Well, let's start from the Skip a few pages and go to the slide number five. You can see that the first quarter consolidated income statement. You can see here that the net sales for the first quarter of 2021 is somewhere around TWD 4.27 billion. Compared to last year first quarter, this is a 27% growth. If we go to the detail, you can see that consolidated sales of our test equipment business, which is the mainstream of the Chroma operation, is approximately TWD 3.34 billion.
Compared to last year first quarter, this is a 31% growth. As to the sales amount of the MAS is TWD 143 million and close to a 19% drop compared to last year. As to the new material sales numbers, close to TWD 692 million, and this is a 24% growth. Overall, it gives us a 27% growth on the top line. As to the gross margin, you can see that for the first quarter, the consolidated gross margin approximately to TWD 2.1 billion and close to 49% of the gross margin rate. Compared to last year, this is a 21% growth as well. For the OPEX, we maintained approximately the same level, a little bit over, and give us the operating income close to TWD 890 million. Compared to last year, this is a 62% growth as well.
If you look at the operating margins give us 21% compared to the sales revenue, which is this is a new height. Compared to the last year, if you look at the non-operating sections, you can see that they're sitting approximately TWD 1.8 billion. This is almost a big chunk of percentage of growth compared to last year. I don't give the numbers to you. If you look at the income before tax, it's close to TWD 2.69 billion compared to last year, TWD 607 million, and this is a 343% growth already. Net income, it went back like TWD 2.25 billion compared to last year. Again, another 365% growth. That give us the first quarter, the EPS close to TWD 5.36.
I think, well, if you look at this as big numbers and thought, "Well, it's all coming from the non-operating." Yes, we enjoy a capital gain for sales of our original headquarters back to the Hwa-Ya Technology Park. If we exclude that sections out, if you look at the slide number six, we give you a comparison or a pro forma income statement. If you look at the blue column, you can see that the operating income, well, again, it's TWD 889 million. Compared to last year, it's a 62% growth. If we take the capital gain out of the non-operating, then the net income is close to TWD 729 million, and this is a 50% growth. We still enjoy somewhere like TWD 1.74 of EPS. That compared to last year, it's a 54% growth.
For the mainstream, all the core business of Chroma, we're still doing a very good at the first quarter. Okay. If we go to the balance sheet for those highlights, if you look at here, I think I want to highlight to you is for those good numbers from the income statement, you can see that for the turnover days for inventory, for accounts receivable, or even for the accounts payable, I think they are improving and also in a very healthy status. For the consolidated for our financial status, you look at this is net cash at the first quarter, and for the return on equity, it's 17%, which is excluding all the capital gains already, which is the fair numbers. It's pretty good numbers to us. Return on assets is 10%. It's a double digit.
Free cash flow for the first quarter is somewhere TWD 3 billion, a little bit close to TWD 3.1 billion. As for the first quarter of the parent company highlights, if you look at here, you can see that the sales revenue is close to TWD 2.66 million, up to TWD 2.66 billion and up to 10% on a Q-over-Q base and 30% on a year-over-year base. The gross margin still maintaining at the over 50%, close to 53%. Operating margin close to 26%, which is approximately at the high end for the past few quarters. Net income, we are making TWD 2,248 million and up to, this is a Q-over-Q, 228% growth and a 377% growth on a year-over-year base. The major growth in the first quarter is contributed from the semiconductor and photonic sectors.
This represents a 53% growth on either quarter-over-quarter or year-over-year respectively. If we look at the income statement for the first quarter, again, if you look at the slide number nine, you can easily see that, again, operating margin is close to TWD 700 million. This is a 28% growth on a quarter-over-quarter and a 38% growth on year-over-year. A big chunk of the capital gain sitting in the non-operating and for the first quarter, close to TWD 1.9 billion. That gave us the first quarter net income, TWD 2.24 billion and close to TWD 5.36 on the earnings per share.
If we look at the next page on the financial ratio and the balance sheet highlights, again, if you look at here, you also can see that the improvement on the turnover days of the inventory turnover, accounts receivable turnover, and also the accounts payable turnover. Return on equity also sitting on the high end on the 18%. Free cash flow close to TWD 3 billion. All right. One extra slide I would like to show you is on the capacity expansion. I think maybe you know or you don't know, we have been moved from our original headquarter in Hwa-Ya Technology Park to our new A7 headquarters. The basic highlights for these floor space, approximately, the new headquarters almost double the size of the original one.
The original headquarters was sold and recognize the capital gain at the first quarter of this year on the gross approximately TWD 1.99 billion, close to TWD 2 billion. If we break it down, you can see that the net gain of this transaction will be approximately TWD 1.73 billion. That will be excluding at least that certain portion of our original headquarters due to the production we still maintain on the old site. We have to deduct it by TWD 42 million. Also due to the counterpart that we're selling to is the ADLINK, and we're holding ADLINK around 11.26%. That portion of the capital gain will be deferred in the future. You also can see that the new site, here we are staying in the station, Taoyuan A7 headquarters.
Land utilization is approximately 18% of that. We still have a lot of space for the future expansions. As to the cash flow for the first quarter, you can see that the first quarter, our free cash flow approximately is TWD 3.1 billion. Our cash dividends for the last year, 2020, is approximately TWD 1.88 billion. Also our ordinary CapEx spending for each of the year is approximately TWD 400 million. We still have the balance of the extra cash inflow, around TWD 800 million for the possible M&A project or the future capacity expansions. I think this is the cash flow for our capacity, and also the sales of the original headquarters in Hsinchu Industrial Park. If we look at the operation side, you can see from the slide number 13.
For this page, you can see that for the first quarter of this year, for the product mix, you can easily see that the test and instrument and the automatic testing systems for the ATS sections. Well, it's a bit of a flat to last quarter, and also the first quarter of last year. For the semiconductor and the photonics testing solutions, you also can see from here that both Q-over-Q and year over year is a 53% growth and which is the growth driver for the first quarter. In turn key, again, if you look at the numbers, well, for the first quarters Q-over-Q, this is a 33% drop. Compared to last year first quarter, it's nearly triple the size due to the projects that we delivered to our customers.
Again, service and others still have slightly grown compared to last quarter and a big chunk of growth rate on 82% on year-over-year base. Overall, we still can see that for the first quarter, the Chroma consolidated testing equipment business growing like a 4% compared to last quarter and 31% growth on a year-over-year base. For the MAS, again, this is a 19% drop. For the new material, contributed from the semiconductor business booming. The utilization of the special material I think is growing. We are looking at the 24% growth on a year-over-year base, 10% drop on a Q-over-Q base. Okay, this basically is my presentation. For the year 2021, for the guidance, we didn't make any change right now.
Well, probably until next financial release and the conference, we are going to have a new one. Thank you. Now, let's go to the Q&A. Any questions?
Hi, everyone. If you have any questions, can you type on the question sections? Then we will answer the question once we receive the questions. We have received two questions. I'll start with Andy from PAG. The question is regarding to what will be the strongest growth in 2021, which occasion? Based on our current order on hand, I think the semiconductor and photonic sectors remain strong, and I think our order visibility can probably over the quarters. I think that for the first quarters, we generate over TWD 1 billion from the semiconductor and photonic sectors. I would say about 85% will come from IC testers, and then remaining will come from the photonic sectors. As you know, we don't cover any memory IC testers, so our major contributions mainly come from, first one, SLT system-level testers. The drivers come from HPC markets.
Another part of business actually comes from the logic IC markets, which is we provide the low frequency testers. The next questions come from Mizuho , Kevin. What is second quarter sales guidance and outlook by segment? Regarding to these questions, I think our guidance, we do give overall 20 and 2021st is overall guidance. For example, the stronger growth will come from the semiconductor and photonic sectors. We expect at least it should be over a 20% growth, and this kind of a guidance will not be changed, as you may have noticed from the results on first quarters. Regarding to the second quarter, I think the best answer will be, if there is no component shortage influence factors, I think we're supposed to be doing better than first quarter.
We still need to say that currently this quarter, we still have some influence factors from this, as some components are still under shortage. Our delivery time or the lead time to our customer will be slightly longer than previous, or compared to normal practice. Next question actually still comes from Andy. It's in Chinese.
Sure.
IC testers. Regarding to IC tester, reliability testing like burn-in, the product cycles. He's asking about the customer's product cycles and also the customers. For system level testers, we mainly cover HPC market at the moment, and only partial for the 5G mobiles. Regarding to the burn-in system, I think the majorities come from high power related HPC type of chips. For example, especially graphic GPU, AI sensor, and some of related to auto IC. Regarding to system level testers, we have three major features. First one, compatibility testing, which is how your chips interact with other chips, which is so-called functional testing. Second one, thermal control. Third, sort of burn-in system. If customers need to have a burn-in system or burn-in functions, mostly because these chips are related to high power.
For example, some of the NVIDIA customers, they say their new type of GPU already starts from 600 watts. If compared to other customers, some of the customers even over 600 watts. Our customer base for HPC, this year, I think the major comes from, if talk about GPU, NVIDIA, we have partial, a little bit from AMD. Then, we do continue to penetrate new customers, for example, Skyworks and Xilinx. For mobiles and other related wireless, we do have Qualcomm as long customers before. From last year we also have, not from last year, from last two years, we do cover some of Asia customer, include MediaTek, Realtek, HiSilicon. HiSilicon is not the big portions. Very little. These are our major customers. Next question is from a surname called Wiener. Okay. I don't quite understand this question regarding to auto IC.
Normally, for auto IC today, we mostly provide temperature simulations, and not really cover the CPU. I don't quite understand this question. It's whether this, for auto purpose, it's whether it includes a sensor or not. I'm expecting this investor could give a more clear questions. Okay. The next questions is come from Kolia. Can you share more on the outlook for power testing equipment for EV industry? Can you share more about the company's perspectives and target for your metrology category? Okay. As with our power testing in the first quarter, as you may notice, we also deliver another EV battery cell projects. Honestly, let's start it from last year. Our power testing breakdown is still 25%-30% related to EV industry, and 35% is related to consumer electronic goods, including passive components.
It is very hard for us to really divide up the past components, how much it goes to consumer electronic goods, others, or EV purpose. Remaining the percentage, majority go to 5G related, including infrastructure, data center, server power. Okay. Honestly, last year, the EV investment, I mean, for the overall industry, we did not see a very strong growth. I mean, for last year. Maybe could be a reason because of COVID's influence or impact. This year, we do see the coming up, the picking up from the EV investment, no matter on the EV battery cell or particularly mostly come from the EV battery pack and the charging station. EV battery cell projects need to contain. Every time we deal with this kind of project, we need to include or integrate automation parts. As you know, we are a testing equipment company. We do not manufacture automation parts.
Sometimes we tend to be very selective on the project we select, because if we need to bring a lot of automation parts, then we probably face some kind of price pressures, especially from China's system integrators. For some projects, we tend to building some projects that deal with European car battery cell manufacturing phases instead of China local EV battery cell for the China local car. Okay. Our talents or our main focus mostly on battery pack, battery module, and also charging stations. We do see this part of business, I mean, the customer's investments continue or start to picking up from second quarter. The first quarter, I think you already read from the markets, I think I reviewed our power testing sectors, the testing measurement, that product sectors in the first quarter. I think pretty much in line with the market expectation.
I think some of the testers upgrade or investment is coming from the panel industry. I think we do start to see some are picking up on, especially from battery pack and battery module investment, and we believe this kind of momentum will continue for the rest of the three quarters. Regarding for metrology category, okay, metrology, it's simply they do have a general terms in the overall market, it's called optical inspection. How is different to the general kind of optical inspections? Okay, metrology is to measure, is mostly related to measurement, and mostly is using for foundry process. In a foundry process, not the back-end so-called cosmetics inspections. This is the product sector that we have been developed for several years. Our core technology, which is homegrown technology, is white light interferometry.
As you notice that two years ago, we also acquired a company called Camtek, which is they have core technologies, is white light triangulation. All about this is related to metrology, because you need to measure because of due to stack-up process or new process of foundry process. Doing this kind of, you can say, new process, so they need to add several testers called metrology to measure the die size during the foundry process. This is nothing to deal with cosmetic, which is very back end. We believe this kind of technology In the past one years, maybe we have some influence or slow down the project in exchange of technology between Chroma and Camtek. I think we continue to develop the new tester, which is to cover metrology.
Last year, we do have a sales contribution, this year also, we already have some backlog on hand. We believe this kind of metrology testers, by adding foundry to these customers, will help us, the semiconductor and photonic sectors, I think maybe in the earlier time, the next two or three years, these sectors will be reached close to or over 50% of testing equipment business. As you know, because the semiconductor, the ASP is relatively higher compared to general power industry. This is all for these questions. Apparently there is no more questions, I think we will wrap up this investor conference.
Okay. Unless you have any questions right now, otherwise, we're going to, well, terminate this conference. Again, thanks for your attention and also for your ongoing support to Chroma. We believe, well the second quarter and onwards, we are going to making our best efforts and to make the contributions to our investors. Thank you. Bye-bye.