NSP Announced 2016 August Revenue of NT$ 632 million

Neo Solar Power Corporation (“NSP”, or “the Company”, publicly listed on Taiwan Stock Exchange, Ticker: 3576 TT), a world-class leading producer of high quality solar cells and Modules in Hsinchu, Taiwan, announced August 2016 revenue of NT$ 632 million, representing a MoM decline of -51.65%.

The decline of NSP’s August revenue was mainly due to weak product ASP and some customers adopted DAP (Delivered At Place) payment term in August. Under DAP, seller’s revenue cannot be recognized until the goods be delivered to customer site and will defer revenue to next month. Year-to-Date cumulative revenues reached NT$ 12,350 million as of August 2016, a -7.22% decrease in YoY terms as compared with 13,311 million last year.

Although fourth quarter is usually the traditional peak season for solar industry, we should still be cautious considering the uncertain outlook of current solar market. NSP will control operating expenses and resources allocation more efficiently in a prudent way for the second-half of this year. In addition, the NSP relocation capacity will be completed by the end of third quarter, plus some of the solar system projects of NSP & GES will gradually be COD and sold in the second-half of this year; it is expected to improve sales revenue and profit of NSP.