Largan distributed a cash dividend of 85.5 yuan last year, the second highest over the years.

(file photo)

Reporter Ou Yuxiang / special report

Optical lens manufacturer Largan (3008) had cash and equivalent cash on its books at the end of the third quarter of last year as high as 101.5 billion yuan, accounting for about 57% of its total assets, which is 76 times the company's capital of 1.341 billion yuan.

However, starting from 2020, Largan’s dividend rate has reached 50% each time, which is much higher than in the past.

Recently, it announced the distribution of a cash dividend of 46 yuan per share in the second half of 2022, with a dividend rate of about 50.49%, which is a new high since the semi-annual dividend distribution was changed.

Last year, a total of 85.5 yuan was distributed, which was also the second highest in history, with a total distribution of 6.139 billion yuan.

Last year's dividend was 85.5 yuan, the second highest in history

Largan's after-tax profit per share has exceeded 100 yuan for 9 consecutive years, which is equivalent to earning more than 10 share capital per year. However, because the previous dividend rate was often lower than 50%, it has accumulated considerable cash in the account.

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Before 2020, even if the profit and the amount of cash dividends are rising, the annual dividend distribution rate will be around 37%.

However, Largan's 2020 dividend payout has reached a new high of 91.5 yuan, and the dividend payout rate has also reached 50%, which can be called "transformation".

In 2021, Largan will amend the company's articles of association and adopt a semi-annual dividend distribution system, and then the dividend ratio will remain above 50%.

In the second half of last year, the profit climbed, and 46 yuan per share was issued. The distribution amount and dividend rate both reached a new high for half a year.

At the end of the third quarter of last year, Largan's cash and equivalent cash exceeded 100 billion, accounting for nearly half of its total assets.

Largan continues to move towards upgrading through investment and capital expenditure.

Last year, it announced that it would acquire a 75% stake in the heat dissipation company Sanshi Technology for 603 million yuan. Although it failed in the end, Largan has the silver bullet in hand, and there is room for expansion, investment or capital expenditure. Except for Sanshi Technology, Largan There are also Dagen Optics, an automotive subsidiary, and Dali Yunkang, a subsidiary of electrocardiographs, are moving towards the field of non-mobile optics.

Construction of 3 new factories to fill capacity capital expenditure continues to increase

In addition, Largan's capital expenditure has continued to increase in recent years, including three new factories built to expand production capacity.

Chairman Lin Enping once said that Tower 1 will be stationed in the machine as scheduled in the third quarter of this year and start construction in the fourth quarter, mainly for mobile phone products.

Last year, it also spent 1.227 billion yuan to order production machinery and equipment, and continued to expand production to meet production capacity and customer model lens upgrade requirements, adding momentum to operations.



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