Ennostar Announces Merger of EPISTAR and Lextar into Ennostar

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Ennostar Inc. announced its financial results of the fourth quarter of 2024 today (21st), along with a substantial restructuring plan. The Company’s Board of Directors has approved the merger of EPISTAR and Lextar into a single entity tentatively named Ennostar Corporation to accelerate the business expansion in high-value-added optoelectronic applications and to intensify its long-term growth prospects. As part of Ennostar’s organizational optimization strategy, the merger will not affect the shareholders’ equity of Ennostar Inc. The reference date of the merger is tentatively set on October 1, 2025.

Amid intense competition in the LED industry and ongoing price pressures in the red ocean market, Ennostar Inc. was established on January 6th, 2021, by EPISTAR and Lextar to generate synergy of vertical integration leveraging both technological advantages and resources. Over the past few years, Ennostar Group has taken a phased approach to optimizing integrated operations.

After the second term of the Board of Directors was assembled in June 2023, the group has further learned the management philosophies and operational models from international benchmark enterprises and accelerated integration from the perspective of One Ennostar. This initiative has sculptured a unified corporate vision and value, standardized operations and streamlined processes; meanwhile, the group assessed global production bases and reinvestment portfolio to escalate activation of assets and operation efficiency. In July 2024, a leadership rotation between the chairmen of EPISTAR and Lextar was implemented, further enhancing the group’s efficacy of integration.

Since June 2023, Ennostar has been actively advancing its Dual-Strategy Approach strategy and emphasizing Field Value-added Approach and Solution Value-added Approach to drive transformation and growth. The company is focusing on developing a high-value-added 3+1 development strategy, which includes automotive, advanced displays, and smart sensing applications, as well as new fields such as optical communication and high-conversion-efficiency III-V solar cells, to strengthen Ennostar’s competitive advantage in the optoelectronic semiconductor industry.

Compared to the consolidated revenue of last year, the revenue of 2024 was NTD 24.39 billion, increasing by 9.3%. The gross margin rose by 8.4% thanks to the steady growth in the revenue from premium application; therefore, net loss attributable to equity holders of the parent company shrank to NTD1.39 billion. Overall, Ennostar Inc. possesses a robust financial structure and maintains healthy inventory level.

Confronting a highly challenging operating environment, Ennostar Corporation could further streamline resources, enhance operational efficiency, and accelerate the research and development of high-value-added optoelectronic products. This strategic transformation enables Ennostar to evolve beyond an LED company into a comprehensive optoelectronic solutions provider, driven by the vision of Bright Innovation, Sustainable Future. We are dedicated to leading in product and technology innovation, building an ecosystem of optoelectronic services, and creating the best experiences for our customers. With a strong focus on improving Return on Equity (ROE) and profitability, Ennostar aims to become a globally respected leader in the optoelectronics industry.