Innolux Corporation Announces Unaudited 2015 First Quarter Net Income NT$8.65 Billion and EPS NT$0.87

Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its 1Q 2015 consolidated revenues. Combined net sales for 1Q 2015 amounted to NT$ 100.2 billion, gross profit was NT$ 17.8 billion, for a gross margin of 17.7%. Operating profit totaled NT$ 11.2 billion with an operating margin of 11.2%. Net profit attributable to the shareholders of the parent company amounted to NT$ 8.65 billion, for a net profit margin of 8.6%. EBITDA margin of 25.3%, EPS equaled NT$ 0.87. Both gross margin and EBITDA margin have reached record highs since the merger.

In finance, the company's total debt came down to NT$79.5 billion, a significant decrease of NT$51.5 billion. Net debt to equity ratio came down from 27.2% in the previous quarter to 17.2%. As for liquidity, not only has cash surpassed short term debt, but also current assets have transcended current liabilities. Current ratio is greater than one. It is a true testament to Innolux great improvement on financial restructuring since the merger.

The inventory turnover day was 37 days as the end of the first quarter. The Company shipped 7.0 million square meters of panel in the first quarter 2015, a decrease of 12.8% over the previous quarter. Blended area ASP for TFT-LCD panels averaged US$ 450 per square meter. Small and medium-sized panel revenue amounted to NT$ 18.7 billion in the first quarter 2015, a decrease of 17.6% over the previous quarter. The Company shipped 62 million small and medium-sized units during the first quarter 2015.

In terms of product application, Small & Medium, Mobile PC & Tablet, Desktop monitor, LCD TV panels accounted for 18%, 15%, 12% and 54% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 19%, 19%, 21%, 2%, and 39% of our net sales, respectively

1Q 2015 Result Highlights

Units: NTD million except per share data

1Q 2015 4Q 2014 QoQ% 1Q 2014
Net Sale 100,158 114,947 -12.9% 89,559
Gross Profit (Loss) 17,754 17.7% 18,500 16.1% -4.0% 5,729 6.4%
Operating Income (Loss) 11,231 11.2% 11,683 10.2% -3.9% 1,302 1.5%
Net Income 8,651 8.6% 11,154 9.7% -22.4% 153 0.2%
　Net Income (Loss)-Parent 8,651 8.6% 11,154 9.7% -22.4% 153 0.2%
　Basic EPS(1)(2) 0.87 1.13 0.02
EBITDA(3) 25,381 25.3% 26,023 22.6% -2.5% 17,844 19.9%


Notes:
(1)Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
(2)Capital Stock (common): NT$99.54 billion as of March 31, 2015
(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)INX 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.

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