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Product Maintenance

LED plant efforts over the winter, the majority of corporate strategy adjustment

Because of the recent LED market by the impact of low-priced products, LED backlight and LED lighting market conditions are not clear, LED Taiwan factory in the performance and operation on the performance, but has made corresponding adjustments, such as product design cost-effective strengthen electricity, and add more high value-added products to expand access to the sea, and adjust the new machine is on-line time, and reduce the Lunda capital expenditures, billion light new factory before we reported, the production schedule postponed. These measures should be able to allow the LED plant to spend the winter period of this industry, the market is expected to improve each year in 2016.

Although the day before the Japanese manufacturers Nichia in Taiwan said publicly that the next two years, LED industry is grim, but the company will continue to strengthen the investment of LED and R & D, and declare themselves still have investment decision-making ability rather quickly, propaganda of confidence on the market focus is still optimistic about the future of the market. The LED plant in the quality of products and the development of new applications, has been very hard to develop, focused on automotive LED, LED LED, UVLED and other niche market.

At present, Lunda capital expenditures in 2015 was NT $1 billion 500 million (about RMB 295 million), has been recently downgraded to 1 billion 200 million yuan to 1 billion 300 million yuan (about NT $236 million to 255 million yuan), in market development, orders for the overseas market has shown signs of improvement, and contact with more international companies, cut the supply chain.

The light is billion to maintain 2 billion yuan for the year 2015 (about RMB 393 million) capital expenditure, but the new plant in Miaoli Causeway, finishing equipment and production process, to determine from the end of 2015, the appropriate time delay to 2016.

EPISTAR's gross profit in 2015 Q3 turned negative, and there is considerable losses, have recently in the adjustment operation, try to improve the capacity utilization rate, and the development of the market and the promotion of new products, still need some time to reflect the effect.

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