Lelon purchases all production equipment of Matsuki Polymer

2016-10-31

Lelon and Matsuki Polymer both announced on Oct. 18^th that Lelon would purchase all production
equipment of polymer capacitors from Matsuki Polymer. After this purchase, Lelon will be the major
supplier of can-type SMD polymer capacitors among non-Japanese manufacturers.

Matsuki Polymer specializes in can-type SMD polymer capacitors with ultra-low profile and good
performance. It has been the major supplier of can-type SMD polymer capacitors for ODMs of
notebook and network for years. The capacity of Matsuki Polymer is 60Mpcs per month. The related
technology and customer transfer are also included in the purchase.

Can-type polymer capacitors have been widely used in server, lap-top/desk-top computer, telecom,
network and power supply. Recently, the market of mobile devices like smart phones and tablets
featuring quick-charge function has grown very fast, leading the demand for can-type polymer
capacitors, used in the quick-charge charger of the device, to increase significantly.

Current capacity of can-type polymer capacitors of Lelon is 35Mpcs per month. Lelon will expand the
capacity of polymer capacitors to 50Mpcs per month with Matsuki Polymer’s machines.  Due to the
fact that the machine capability for producing SMD polymer capacitors is better than normal machines
for general through-hole type capacitors, Lelon will also use Matsuki Polymer's machines in the
production of aluminum electrolytic capacitors, especially for high grade SMD aluminum electrolytic
capacitors for automotive and telecom applications.

Lelon has been working with customers in the field of high-end electronic equipment and providing
complete solution of electrolytic capacitors to customers. Lelon’s efforts have received recognition in
the markets. The most important benefit of this purchase is that Lelon will complete the already-planned
capacity expansion and improvements on machine capability earlier and at a relatively low cost, which
will in turn enhance the competitive strength of Lelon in the market.