Everlight Chairman Robert Yeh issued a statement clarifying a recently misleading Taiwan media report that claimed the company was abandoning the LED tube and bulb market.

The CNA report published on Yahoo Taiwan on Jan. 29, 2015 claimed Everlight will gradually abandon its own brand of LED tube and bulbs, and will be focusing on outdoor and commercial lighting applications.

Yeh refuted his comment had been taken out of context, since he was referring to “Taiwan’s residential lighting market”. The report should not be interpreted as Everlight’s decision to abandon the global lighting market including the Chinese market.

Everlight decided to leave Taiwan’s residential lighting market because of the local market’s special universal voltage and standard certification process. The company’s residential lighting products in Taiwan, which refers to the LED tubes and bulbs mentioned in the CNA report have high production costs. The company faces intense competition from Taiwanese LED manufacturers and large international manufacturers in the Taiwan market. These were the main factors which led to Everlight’s decision to terminate LED tube and bulb production in Taiwan. Instead, the company will be shifting production to its arm in China, and manufacturing general lighting products there to improve its market competitiveness in Taiwan.

Yeh also emphasized the company’s decision to develop the Chinese lighting market is a well-established business strategy and company policy. Everlight will continue to invest in a reasonable and competitive manner, and is determined to develop its lighting brand in the Chinese market.

The company also noted it will retain the right to take legal action against local or Internet media for spreading untrue rumors that may have damaged its reputation.

Everlight has issued several statements recently to clarify misleading Taiwanese media reports. In early January, Everlight issued a statement to clarify market rumors circulating since late December 2014 that pointed to a rumored massive order the company received from international lighting conglomerate Philips Lighting. The company stated it implements a confidential policy in regards to client orders, and any information on the market are mere rumors or media speculation.