Fucai Holdings announced financial results and announced major merger plans in an all-out effort to

On February 21, Fucai Holdings officially released its financial statements for the fourth quarter and full year of 2024, and also announced a high-profile major merger plan. After a prudent resolution by the board of directors, its Jingyuan Optoelectronics (hereinafter referred to as Jingyuan) and Londa Electronics (hereinafter referred to as Londa) will merge into a new single subsidiary, tentatively named Ennostar Corporation. The merger aims to accelerate the development of new fields of optoelectronic and the implementation of value-added solutions, thereby consolidating the foundation of the company and strengthening future development prospects.
This merger plan is an important measure for Fucai Holdings to optimize and adjust its organization and will not affect the rights and interests of the company's shareholders. Currently, the consolidation base date is initially planned to be October 1, 2025.
In view of the increasingly fierce competition in the LED optoelectronic industry and the huge impact of the market price war, in order to enhance their competitiveness in the international market, Jingyuan and Longda reached a cooperation as early as January 6, 2021 and jointly established Fucai Holdings. The two sides hope to achieve synergy in upstream and downstream cooperation by integrating each other's technological advantages and resources. After phased adjustments, the optimization of collective operations and organizational cooperation has been gradually achieved.
Since the second session of the Board of Directors officially took office in June 2023, the Group has further borrowed from the management philosophy and operation mode of international benchmark enterprises, adhered to the" One Ennostar" concept, and accelerated the internal integration and integration of the Group. Promote a common vision and values across the company, while standardizing operating guidelines and streamlining processes. A comprehensive inventory of global production bases and re-investment companies was conducted to enhance asset activation and operational efficiency. In July 2024, the exchange of chairman of Jingyuan and Longda subsidiaries was implemented to strengthen the integration efficiency of the Group.
It is understood that Fucai has been actively promoting the" dual value-added engine" strategy since June 2023, realizing transformation and upgrading from both field value-added and scheme value-added, focusing on the development of high value-added" 3+1" application areas, covering emerging fields such as vehicles, advanced displays, intelligent sensing and optical communications, in order to enhance Fucai's competitive advantage in the optoelectronic semiconductor industry.
Looking back at 2024, Fucai's full-year revenue increased by 9.3% compared with the previous year, reaching NT$24.39 billion. Value-added application revenue achieved steady growth throughout the year, and operating gross margin increased by 8.4% in 2024, reducing the net loss attributable to the parent company for the year to NT$1.39 billion. The company's overall financial structure remained stable and inventory levels were also in a healthy state.
Looking to the future, in the face of a very challenging operating environment, the establishment of Fucai Optoelectronics will more efficiently integrate upstream and downstream resources and accelerate the research and development and promotion of high value-added products in new fields of optoelectronic. This will prompt Fucai to no longer be limited to the traditional LED company category, but to transform into a optoelectronic integrated solution provider who is shouldering the task of walking with light, driving innovation, being intelligent and sustainable, and illuminating the future vision. With the mission of leading product technology innovation, building an optoelectronic field service ecosystem, and creating the best value experience for customers, we are committed to improving Return On Equity (ROE), achieving the goal of improving profits, and moving towards being respected. A model of international optoelectronic companies.

Fucai's fourth quarter 2024 financial report

The consolidated financial statements for the fourth quarter of 2024 show that consolidated turnover for the quarter totaled NT$5.51 billion, a decrease of 17.7% compared with the third quarter of 2024. The net loss attributable to owners of the parent company in the fourth quarter of 2024 was NT$620 million, and the basic loss per share was NT$0.85.
Consolidated turnover for the entire year of 2024 reached NT $24.39 billion, an increase of 9.3% compared with 2023. The net loss attributable to owners of the parent company for the year was NT$1.39 billion, and the basic loss per share was NT$1.87.

Summary of Fucai's consolidated financial statements for the fourth quarter of 2024

• Turnover: NT$5.51 billion

• Net operating loss: NT$710 million

• Net loss attributable to parent company: NT$620 million

• Basic loss per share: NT$0.85

• Gross profit margin: 9.4%

• Net operating loss ratio: 13.0%

• EBITDA (1) Profitability: 6.0%

Summary of Fucai's 2024 full-year consolidated financial statements

• Turnover: NT$24.39 billion

• Net operating loss: NT$1.62 billion

• Net loss attributable to parent company: NT$1.39 billion

• Basic loss per share: NT$1.87

• Gross profit margin: 13.6%

• Net operating loss ratio: 6.7%

• EBITDA (1) Profit Margin: 11.5%

Note (1): EBITDA = Operating Profit + D A is net operating profit before depreciation and amortization.