Fucai announced that its subsidiary Epistar and Lonta Electronics have merged to form Fucai Optoelectronics.

Ennostar Corporation today (21st) announced its financial statements for the fourth quarter and full year of 2024, and announced a major merger plan. Following a board resolution, its subsidiaries Epistar Corporation (hereinafter referred to as Epistar) and Lextar Electronics (hereinafter referred to as Lextar) will merge into a single subsidiary, tentatively named Ennostar Corporation. This merger aims to accelerate the development of new optoelectronic fields and value-added solutions, strengthen the company's foundation, and enhance its future prospects. This merger plan is an organizational optimization and adjustment for Ennostar Corporation and will not affect the company's shareholders' equity. The merger base date is tentatively set for October 1, 2025.

In response to increasingly fierce competition in the LED optoelectronics industry and the impact of price wars in a red ocean market, Epistar and Lextar Electronics jointly established Fu-Cai Holdings on January 6, 2021, to enhance the international competitiveness of Taiwan's industry. The aim was to leverage the combined technological advantages and resources of both companies to achieve synergistic effects across the upstream and downstream sectors. Through phased adjustments, the company aimed to optimize its operations and organizational collaboration. Following the formal inauguration of the second board of directors in June 2023, the group further studied the management thinking and operating models of international benchmark companies, accelerating the integration and consolidation of the group with the "One Ennostar" concept. This promoted a unified vision and values ​​across the company, standardized operating procedures, and streamlined processes. The group also reviewed its global production bases and invested companies to improve asset revitalization and operational efficiency. In July 2024, the chairmen of Epistar and Lextar Electronics were swapped, further strengthening the group's integration capabilities.

In June 2023, Fu-Cai began actively promoting the "dual value-added engine" strategy, transforming and upgrading from two major directions: field value-added and solution value-added. It focuses on developing high-value-added "3+1" applications, including new fields such as automotive, advanced display, smart sensing, optical communication, and high-conversion-efficiency III-V solar cells, in order to strengthen Fu-Cai's competitive advantage in the optoelectronic semiconductor industry.

Looking back at 2024, the company's annual revenue increased by 9.3% year-on-year to NT$24.39 billion. Revenue from value-added applications maintained steady growth throughout the year. The gross profit margin improved by 8.4% in 2024, resulting in a reduction in the net loss attributable to the parent company to NT$1.39 billion. The company's overall financial structure was sound, and inventory levels remained healthy.

Looking ahead, facing a highly challenging operating environment, the establishment of Fu-Cai Optoelectronics will more effectively integrate upstream and downstream resources, accelerate the research and development and promotion of high-value-added products in new optoelectronic fields, and make Fu-Cai more than just an LED company. It will be an optoelectronic integrated solution provider with the vision of "walking with light, driving innovation; intelligent sustainability, illuminating the future." With the mission of "leading product and technology innovation, building an optoelectronic field service ecosystem, and creating the best value experience for customers," it is committed to improving the return on equity (ROE) and profitability, and moving towards becoming a respected international optoelectronic enterprise model.

Fucai's Fourth Quarter Financial Report 2024
Consolidated financial statements for the fourth quarter of 2024. Total consolidated revenue for the fourth quarter of 2024 was NT$5.51 billion, a decrease of 17.7% compared to the third quarter of 2024. Net loss attributable to owners of the parent company for the fourth quarter of 2024 was NT$620 million, with a basic loss per share of NT$0.85.

Total consolidated revenue for the full year 2024 was NT$24.39 billion, an increase of 9.3% compared to 2023. Net loss attributable to owners of the parent company for the full year was NT$1.39 billion, with a basic loss per share of NT$1.87.

Summary of Fucai's Consolidated Financial Statements for the Fourth Quarter of 2024:

• Revenue was NT$5.51 billion.
• The net operating loss was NT$710 million.
• The net loss attributable to the parent company was NT$620 million.
• The basic loss per share was NT$0.85.
• The gross profit margin was 9.4%.
• The operating loss ratio was 13.0%.
• EBITDA(1) profitability is 6.0%
  

Summary of Fucai's Consolidated Financial Statements for the Full Year of 2024:

• The turnover was NT$243.9.
• The net operating loss was NT$1.62 billion.
• The net loss attributable to the parent company was NT$1.39 billion.
• The basic loss per share was NT$1.87.
• The gross profit margin was 13.6%.
• The net operating loss ratio was 6.7%.
• EBITDA(1) profitability is 11.5%

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