Largan Precision Co., a leading supplier in the optical lens market, announced its second-quarter financial results, revealing a net profit after tax of NT$4.498 billion. This marks a quarterly decrease of 26.4% but an annual increase of 21.7%. Earnings per share stood at NT$33.7. The drop in quarterly profit is attributed primarily to a less favorable product mix, leading to a reduction in gross profit margin by 0.8 percentage points to 48.39%.
In the first half of the year, Largan’s net profit after tax reached NT$10.69 billion, up 52% year-over-year, with earnings per share at NT$79.49. The company’s non-operating income in Q2 was NT$1.916 billion, significantly lower than the NT$2.34 billion reported in the first quarter. Exchange income also saw a decline, coming in at NT$750 million compared to NT$2.34 billion in the previous quarter.
Looking ahead, Chairman Lin Enping noted that the gross profit margin for the second half of the year will depend heavily on product mix quality and capacity utilization. Largan continues to face challenges with integrating plastic lenses into their product line, as plastic’s performance lags behind glass in certain areas, despite being lighter and more resistant to drops.
The company’s expansion plans are progressing, with new factories in Taichung’s Xitun District slated for completion by next year. This expansion will double the original factory’s size, further aligning production capabilities with anticipated customer demand.
As Largan navigates these financial and operational adjustments, the company remains poised to adapt to market changes and maintain its competitive edge in the high-end mobile phone lens market.
