Innolux Corporation Announces Unaudited 2017 Second Quarter

Net Income NT$ 12.1 Billion

Continue to Hit New Highs Since The Merger

News provided by

Jul 26, 2017, 03:30 ET

JHUNAN, Taiwan, July 26, 2017 /PRNewswire-FirstCall/ -- Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its 2Q 2017 consolidated revenues. Consolidated net sales for 2Q 2017 amounted to NT$ 84.5 billion, gross profit was NT$ 21 billion, for a gross margin of 24.9%. Operating profit totaled NT$ 15.8 billion with an operating profit of 18.7%. Net profit amounted to NT$ 12.1 billion, for a net profit margin of 14.3%. EBITDA margin of 28.4%, with a basic EPS of NT$ 1.22. Innolux continue to hit new highs since the merger.

In finance, the company's total debt came down to NT$ 36.4 billion, equal to the previous quarter. Net debt to equity ratio of -8%.

The Company shipped 6.96 million square meters of panel in the second quarter 2017, an increase of 2.1% over the previous quarter. Blended area ASP for TFT-LCD panels averaged US$ 395 per square meter. Small and medium-sized panel revenue amounted to NT$ 16.6 billion in the second quarter 2017, a decrease of 1.7% over the previous quarter. The company shipped 532.4 thousand square meter area of small and medium-sized during the second quarter 2017, a decrease of 6.6% over the previous quarter.

In terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 22%, 16%, 11% and 51% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 40-inch-and -above panels accounted for 21%, 19%, 14%, and 45% of our net sales, respectively.

Statements of Comprehensive Income
Units: NTD million except per share data	2Q 2017		1Q 2017		*QoQ%*	2Q 2016
Net Sales	84,509	100.0%	86,026	100.0%	-1.8%	66,805	100.0%
Cost of Goods Sold	63,464	75.1%	65,681	76.4%	-3.4%	65,251	97.7%
Gross Profit (Loss)	21,045	24.9%	20,345	23.6%	3.4%	1,554	2.3%
Operating Expense	5,222	6.2%	5,713	6.6%	-8.6%	4,592	6.9%
Operating Income (Loss)	15,823	18.7%	14,632	17.0%	8.1%	(3,039)	-4.5%
Net Non-operating Income(Exp.)	361	0.4%	722	0.8%	-50.0%	168	0.3%
Income before Tax	16,184	19.2%	15,354	17.8%	5.4%	(2,871)	-4.3%
Net Income (Loss)	12,118	14.3%	11,858	13.8%	2.2%	(3,476)	-5.2%
Basic EPS ⁽²⁾	1.22		1.19			(0.35)
EBITDA⁽¹⁾	24,006	28.4%	23,108	26.9%	3.9%	7,408	11.1%

Notes: (1) Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares (2) Capital Stock (common): NT$99.5billion as of July 26, 2017 (3) EBITDA = Operation Income + Depreciation & Amortization (4) All figures are unaudited, prepared by INX in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS). (5) Combined figures presented refer to results from other TFT-LCD related subsidiaries in which INX has 50% or more ownership. Inter-company transactions between INX and these companies have been eliminated to avoid double-counting.

Combined Balance Sheet Highlights
Units: NT$ million	2017.6.30	2017.3.31	2016.6.30
Cash & Short Term Investment	56,220	35,881	39,599
Inventory	29,661	24,878	25,395
Total Assets	383,083	359,566	349,288
Short Term Debt ⁽¹⁾	35,531	35,498	21,612
Long Term Debt ⁽²⁾	843	835	35,468
Shareholders' Equity⁽³⁾	249,031	235,547	214,685
Net Debt to Shareholders' Equity	-8%	0%	8%

Depreciation & Amortization	8,183	8,476	10,446
Capital Expenditure	4,355	5,804	6,858
Notes: (1) Short term debt = (short-term bank loan + current portion of long term loan) (2) Capital Stock (common): NT$99.5billion; Book value per common stock: NT$ 25.02 as of June 30, 2017 (3) Net debt to shareholders' equity = (short term debt + long term debt - cash & short term investment) / shareholders' equity (4) All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS) (5) Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.