Taiflex Scientific Co.’s Q1 gross margin grew to 20%, despite the impact of NT＄86 million foreign exchange loss. Embracing Q2, which is the high season of FCCL, Taiflex anticipates a seasonal income increase of 20%, while Q3 will reach the climax of the year. The company will not go after solar back sheet in the market, which will remain its availability/uptime, depending on the market. In all, Taiflex remains optimistic about its sales of FCCL products, thanks to the growth of Chinese mobile phones and functional upgrade of new American mobile phone models. 

 

Looking forward to Q2, when Taiflex will embrace the high season of FCCL and the demand of Chinese smart phones will be on the rise, Taiflex estimates that it will grow by 20% throughout Q2 and soar to the annual peak in Q3. As for solar back sheets, the upper half of 2017 witnessed a quick yet short-lived bursting demand. In addition, the demand will expect to drop from the end of June, the subsidies will be cut, leading to a passive stance of maintaining the availaibility/uptime and not going after proactively for orders. Generally, its Q2 will take 10 to 15%, while its gross margin is expected to maintain 20% of Q1’s apex or slightly better.

As an outlook for 2017, Taiflex’s clientele is marked by a surpass of Chinese customers over their American counterparts, due to significant rise of global market share of Chinese smart phone suppliers, which in turn stimulates the demand for Taiflex’s FCCL. In all, FCCL production anticipates an annual growth of 5 to 10% owing to the following factors: 1) The sales of American new models is expected to pick up this year; 2) The market penetration rate of Taiwanese FCCL customers will be slightly on the rise; and 3) There will be upgrade of functions in new smartphone models.