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Lextar Electronics Corp (“Lextar” or the “Company”) (TAIEX: 3698) reported consolidated revenue for the second quarter of 2017 of NT$ 3.0 billion, a slight QoQ decline of 3.4%. Consolidated gross margin was 15.5%, a QoQ increase of 1.6 percent point, yet an ideal YoY increase of 7.9 percent point. Net profit for 2Q 2017 was NT$ 49 million. For the first half of 2017, revenue reported 6.2 billion, and gross margin 14.7%, a YoY increase of 6.7 percent point. Net profit for the first half of 2017 was 4.9 million; a basic EPS for 1H 2017 NT$ 0.09.

1H 2017 financial result highlights：

• 	Revenues were NT$ 6.2 billion, down by 11.7% YoY

• 	Net gross was NT$ 49 million
  	Basic EPS were NT$ 0.09

After experiencing the pressure from the LED lighting market price decline, the Company continued to adjust the product portfolio, improve the constitution, and has reached the break-even point in the first quarter and realized profits in the second quarter. At present, Lextar's backlighting and lighting products maintain a proportion of six to four, the company remains competitive in the backlighting market through cultivating high-end products, while adjusting the product portfolio for lighting applications, terminating the intense price competition in the bulb market, continuing the development of value added customized modules and integrated lighting fixtures, and introducing intelligent control technology. It also continues to cultivate the automotive, invisible light and other new applications that will be able to increase the proportion of revenues gradually.

In addition, in order to optimize the layout of the Mainland China market, Lextar Electronics Corporation announced the establishment of the Chu-Zhou manufacturing site in An Hui province in April. It will introduce a complete supply chain in the site, to implement the Company's one continuous line of upstream and downstream vertically integrated manufacturing, while strengthening the capability of manufacturing key lighting components on its own. In addition, taking future operations planning into consideration and to optimize the assets utilization efficiency, it is planned to sell the land of the Mainland China subsidiary Lextar Electronics (Suzhou) manufacturing site and retain part of the production line. In the future, Lextar Electronics will expand the locations in Mainland China to three manufacturing sites of Chu-Zhou, Suzhou and Xiamen, to strengthen the manufacturing efficiency in order to maintain the company's competitiveness.