Lextar upstream new production capacity increased by 40% in the Q4 package

Listed companies for Longda tight capacity building expansions has been started, is expected in the fourth quarter has been installed into next year production capacity; the company said production bottleneck breakthrough in June, in the third quarter, cost reduction, productivity and product mix optimization driven, optimistic outlook.

Lextar optimistic about the future of LED lighting market booming demand, start planning the next phase of capacity expansion plan. The company said that at this stage upstream epitaxial film, chip and downstream packaging capacity has been loaded, since the beginning of the second quarter has been put into the expansion of packaging capacity, capacity increase of about 40%.

Lextar planning of upstream products production capacity but limited space is limited, has decided to buy bamboo plants to cope with future capacity expansion needs, the fourth quarter is expected to have been installed, the first half of next year to complete the first phase of the production line expansion. Ronda in the second quarter revenue growth capacity expansion, single quarter consolidated revenue of NT $3 billion 792 million (equivalent to approximately RMB 777 million yuan), quarter by 17.69%, the 14.5% quarter gross margin increased 2 percentage points, second quarter net income of 163 million yuan (about 33 million 330 thousand yuan).

Lextar spokesman Zhang Boyi said, the second quarter revenue growth of two from the backlight and lighting applications market back to temperature, active customer orders, orders demand is greater than capacity supply is expected in the third quarter; optimistic view of productivity improvement, optimize product portfolio, reduce the material cost and enhance profit driven management strategy etc..

The third season for the traditional TV backlighting season, in addition to the direct type aircraft Lunda continued shipments, new wide color gamut technology products also began shipping, delivery date is the brand of high-end models; in addition to the handheld device applications will also be new customers, lighting applications can continue the growth momentum this year, new products such as flip chip integrated lighting element package (Flip Chip COB), the grain package (White Chip) in the third quarter.

Ronda is expected in the second half of the operation of new customers to join the full capacity, and to the upstream product line expansion planning and production costs decline, revenue and gross margin is expected to maintain upward trend.

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