micronet news (Text/Ye Zi), according to Taiwan media Economic Daily, Taiwan’s optical giant Largan has recently announced that it will repatriate US$276 million in overseas funds, which will be used for investment in equipment, factories and other equipment needed to expand production. This is the second time Largan has repatriated overseas funds after repatriating US$365 million in December last year.
Source: Economic Daily
Largan's 2020 Q2 financial report shows that the company achieved operating income of NT$12.65 billion (the same below), a 4% decrease from the first quarter and a 10% decrease from the same period last year. Regarding the outlook for the third quarter, Largan CEO Lin Enping recently released a disappointing operating outlook for this quarter. He bluntly stated that the overall demand is currently poor and customers are generally conservative. Most of them have placed revised orders. It is estimated that 6, 7, 8 The momentum of monthly shipments is about the same. However, he emphasized that the company's expansion plans have not changed.
According to reports, Largan currently has three pieces of land in Taichung, one of which has been under construction for several months, another piece of land is expected to start construction at the end of this year, and another piece of land will have to wait until next year. The construction of the three factories is expected to be completed in 2023.
Largan is the global leader in mobile phone lenses, taking orders from both Apple and non-Apple camps. The outlook released by Largan Light is also regarded as an indicator of the prosperity and decline of the global mobile phone industry. Due to the severe impact of the epidemic this year, most mobile phone brand manufacturers responded conservatively. Most research institutions estimate that the global smartphone market will not escape the fate of recession, and may not regain growth momentum until next year at the earliest.
Although the peak season is slow, Lin Enping said recently that the new model (New Model) is still being developed and next year's model is being developed. However, the model developed does not represent the final shipment volume. Whether it sells well or not depends on how the sales are next year. . However, R&D and new development projects require hinterland. In recent years, Largan has been actively expanding production with an eye on future demand.
Industry insiders analyze that Largan has chosen to repatriate a large amount of overseas funds to Taiwan at this time. In addition to meeting the needs of expanding production and building factories, it can also enjoy local preferential tax rates.
(proofreading/zero-three)
