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Innolux reports growth of 24% of revenue in Q2, issues more shares

TAIPEI, Taiwan -- Display panel maker Innolux Co. (群創) yesterday reported stellar second-quarter performance results that saw a 24-percent improvement over the previous period while announcing that its board of directors has approved of a move to raise NT$10.625 billion in capital through an issue of common shares.

Over the course of the second quarter the company accumulated consolidated revenues of NT$111.1 billion, improving markedly by 24 percent quarter-on-quarter, but declined by 0.4 percent year-on-year. Reports indicate that Innolux's stellar second-quarter performance has propelled the company to the leading position among Taiwanese panel makers, while surpassing results posted by competitor AU Optronics (AUO, 友達) for the first time in four quarters.

Sales figures in June for the company reached NT$36.6 billion, growing by 0.6 percent month-on-month, and 10.3 percent year-on-year.

The company stated that in June shipments of large-sized display panels reached 12.31 million units, down by 2.1 percent month-on-month. Shipments of medium- to small-sized display panels over June was tallied at 28.04 million units, down 7.1 percent compared to figures recorded in May, the company said.

Throughout the second quarter, shipments of large-sized panels were tallied at 37.14 million units, an 18-percent improvement over the previous quarter, while shipments of small- to medium-sized panels rose by 11.6 percent quarter-on-quarter to reach 86.9 million units.

Re-capitalization Proposal Approved

The company announced that its board of directors yesterday approved a move to raise NT$10.625 billion in cash by issuing 850 million common shares priced at NT$12.5 each. The new issue of shares will be allocated to bolster the company's operating capital, as well as to repay bank loans.

Specifically, the cash injection is scheduled to take effect on July 22, with payments from new shareholders expected between July 29 and Aug. 4.

In accordance of corporate policies, 10 percent of the new issue, or 85 million shares, will be reserved for Innolux employees, said the company, while 80 percent of the new issue will be reserved for existing shareholders, who are eligible to purchase 75.13906 shares per 1,000 Innolux shares held. The remaining 10 percent, or 85 million shares, will be sold to investors over a public subscription.

Meanwhile, AUO reported June revenues of NT$34.096 billion, down by 2.6 month-on-month, and 7.9 percent year-on-year, while accumulating revenues of NT$10.242 billion, up by 8.8 percent quarter-on-quarter, and declined by 9.2 percent year-on-year.

Under the impacts of 3G handset subsidy reduction policies enacted in the China market which had hampered shipping volume of smartphone display panels, second-quarter revenues for Chunghwa Picture Tube Ltd. (華映) receded from the previous period's NT$14.971 billion to NT$13.87 billion. HannStar (彩晶) weathered the policy shift in the China market, and posted a 9.1-percent gain to accumulate second-quarter revenues of NT$6.136 billion.

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