Moving forward, Yageo expects gradually stable demand of passive components from end market, mainly driven by the increasing penetration of tablet PCs, 4G LTE smart phones, LED lightening, and automotive electronics components. Meanwhile, Yageo will continue to focus on

its core business and devote efforts in R&D, operational efficiency, global resources integration, and expansions of European and US markets to continue enhancing its competitive advantages.

While the fourth quarter is the typical low season of electronic components industry among the year, gross margin dropped 2.3 percentage points sequentially to 23.6 percent but improved 4.7 percentage points y-o-y. The operating expenses was NT$ 782 million and the operating income reached NT$ 593 million with 10.2 percent of operating profit margin.

Non-operating items posted a net gain of NT$ 51 million, mainly including net gains on financial assets NT$ 148 million, investment income under equity method NT$ 125 million, net interest income NT$ 26 million, and PP&E impairment losses NT$ 299 million. Net consolidated profit after tax attribute to parent company in the fourth quarter reported NT$ 425 million or NT$ 0.27 earnings per share.