Wed, Jul 03, 2019 - Page 12 News List

Luminescence adding new production line

IPO TOMORROW:The Hsinchu-based OLED material maker, founded in 2001, is to debut on Taipei Exchange’s Emerging Stock Board, with an initial share price of NT$25

By Kwan Shin-han  /  Staff reporter

Luminescence Technology Corp (機光科技) plans to expand its output in the fourth quarter of this year on expectations about the automotive lighting market.

The organic LED (OLED) material maker plans to add a new production line in the second half of the year, which is expected to raise its monthly output from 150,000 units to 600,000 units, Luminescence president Yen Feng-wen (顏豐文) told an investors’ conference in Taipei yesterday.

The utilization rate is expected to reach 100 percent this quarter due to growing demand for its automotive lighting products, Yen added.

Five companies have been asking samples for its OLED lighting products, and it expects to deliver the products next year, Luminescence said.

Major luxury brands have been increasingly using OLED lighting products to woo consumers, it said, citing the Audi A8 car with OLED tail lights.

OLED lighting products have non-glare characteristics and customized designs not found in traditional tail lights, it said.

The company, which specializes in making materials for OLED and organic photovoltaics, hopes to obtain orders for high-margin products and expand its aftermarket business this year, corporate officials said.

The Hsinchu-based company, founded in 2001, has a paid-in capital of NT$251.61 million (US$8.1 million) and plans to raise NT$180 million in the fourth quarter to fund expansion.

The company’s product portfolio includes energy-saving, environmentally friendly and low blue-light emitting lighting products with uses in commercial, household and automotive sectors, and it supplies display manufacturers in 71 countries, a corporate news release said.

It says it is the sole OLED material manufacturer and supplier in Taiwan, possessing more than 200 patents for OLED materials and automotive lighting products.

Luminescence is to debut on the Taipei Exchange’s Emerging Stock Board tomorrow, with an initial public offering price of NT$25.

The company reported that net income last year fell 58.2 percent year-on-year to NT$3.9 million from NT$9.33 million.

Earnings per share fell from NT$0.41 to NT$0.15, due to research spending and equipment purchases, while its gross margin fell 4.52 percentage points to 56.42 percent,the company said.

Cumulative revenue in the first five months of this year decreased 14.4 percent year-on-year to NT$35.89 million from NT$41.93 million, company data showed.

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