Epistar and Lextar Electronics, two major LED companies owned by Fucai, announced their merger

Ficai held an online press conference on the 21st to announce last year's financial report. It also announced a board of directors resolution that its subsidiaries Epistar Optoelectronics and Lextar Electronics will be merged into a single subsidiary. The company name is tentatively named Fucai Optoelectronics to accelerate the business promotion of new areas of optoelectronics and value-added solutions. The merger plan is for the organizational optimization and adjustment of Fucai Holdings and will not affect the company's shareholders' rights. The merger base date is tentatively set as October 1, 2025.

Fucai Chairman Peng Shuanglang said that in response to the increasingly fierce competition in the LED optoelectronics industry and the impact of the price war in the Red Sea market, in order to enhance the international competitiveness of Taiwan's industry, Epistar and Lextar joined hands to establish Fucai Holdings on January 6, 2021. They hope to integrate the technical advantages and resources of both parties to bring into play the synergy of upstream and downstream cooperation, and achieve collective operation and organizational cooperation optimization through phased adjustments.

After the second board of directors of Fucai Holdings officially took office in June 2023, the group will further learn the management thinking and operating model of international benchmark companies, accelerate the integration and integration of the group with the "OneEnnostar" concept, and promote the common vision and values of the entire company , as well as standardization of operating principles and process efficiency, and inventory of global production bases and reinvested companies to improve asset activation and operational efficiency. In July 2024, the chairman of the two subsidiaries of Epistar and Lextar will be swapped to strengthen the group's integration efficiency.

Fucai will actively promote the "dual value-added engine" strategy in June 2023, transforming and upgrading from two major directions: field value-added and solution value-added, focusing on the development of "3+1" applications with high added value, including new fields such as automotive, advanced displays, intelligent sensing, optical communications, and high conversion efficiency III-V solar cells, in order to strengthen Fucai's competitive advantage in the optoelectronic semiconductor industry.

Looking to the future, in the face of a highly challenging operating environment, the establishment of Fucai Optoelectronics will more effectively integrate upstream and downstream resources, accelerate the research and development and promotion of high value-added products in new fields of optoelectronics, and make Fucai not only an LED company, but also a provider of integrated optoelectronic solutions. It will lead product technology innovation, build an optoelectronic field service ecological chain, and strive to increase the return on shareholders' equity and improve profitability.

Fucai also announced its 2024 financial report. The full-year revenue in 2024 was 24.387 billion yuan, an annual increase of 9.3%; the gross profit margin was 13.6%, an annual increase of 8.4 percentage points; the operating profit rate was -6.7%, 11.2% lower than the previous year; the after-tax net loss was 1.385 billion yuan, which was significantly lower than the loss in 2023. Condensed, the loss per share was 1.87 yuan. Among them, the net loss after tax in the fourth quarter was 623 million yuan, which was also significantly narrower than the same period last year, with a loss per share of 0.85 yuan.