Major producer of liquid crystal display (LCD) panels and flat-panel TVs, with advanced technology Severe operating environment of LCD business due to rapid market saturation and intensifying competition with other types of display panels than LCD panels: and such business' high capital intensity High reliance of EBITDA on volatile LCD and device businesses Steady benefits from becoming a subsidiary of Hon Hai Precision Industry Co. Ltd. (A-/Positive/--), mainly in the form of lower costs Relatively stable profits from non-LCD businesses despite their small scale Weaker-than-industry-average and highly volatile profitability Weak cash flow generation, which is also susceptible to external environment Heavy debt burden Expected negative free operating cash flow over the next one to two years because of substantially increasing
