LARGAN Precision was founded in 1987. It is a global leader in plastic aspherical lens design and production. Largan currently has 9 manufacturing facilities and 3 others that are under construction.

Not only does Largan develop various miniaturized optical components, but the Group also produces voice coil motors (Largan Digital), contact lenses (Largan Medical), sleep monitoring (Largan Health), and actively expands various product types to meet market demand.

In the past, the optical components industry had maintained stable growth due to the development of products such as cameras, telescopes, and microscopes. However, the development of digital cameras and mobile phones in recent years has now led to rapid growth of optical components and lenses. This mainly began with the global digital camera market which took off in 2000 and led a new wave of imaging revolution. Growth exceeded market expectations and caused a continuous shortage of supply for optical components such as lenses over many years. The introduction and popularity of camera phones further intensified the need for lenses, and the development of multiple lenses on handheld devices has escalated this demand. Besides this imaging market, the optical industry has also expanded to automobiles and drones and as such, the industry is expected to continue to expand in the next few years.

Financial Information( Unit: NT$ thousands)

Consolidated Statements of Comprehensive Income For the years ended December 31, 2020 and 2019	2020	2019
	Amount	Amount
Operating revenues	$55,944,489	60,745,008
Operating costs	18,476,853	18,823,588
	37,467,636	41,921,420
Realized profit from sales	4,598	19,200
Gross profit from operations	37,472,234	41,940,620
Operating expenses
Selling expenses	399,738	407,399
Administrative expenses	1,246,022	1,269,436
Research and development expenses	3,794,356	3,764,448
Total operating expenses	5,440,116	5,441,283
Operating income	32,032,118	36,499,337
Non-operating income and expenses:
Interest income	1,304,977	1,579,468
Other income	11,633	12,468
Other gains and losses	-1,693,226	-1,536,000
Finance costs	-2,323	-2,723
Share of profit (losses) of associates accounted for using equity method,
net	40,588	26,305
	-338,351	79,518
Profit before income tax	31,693,767	36,578,855
Less: Income tax expenses	7,159,636	8,315,773
Profit for the period	24,534,131	28,263,082

	Financial data for the last five years
Item/Year	2020	2019	2018	2017	2016
Operating revenue	55,944,489	60,745,008	49,952,158	53,127,510	48,351,791
Gross profit	37,472,234	41,940,620	34,351,475	36,855,930	32,421,250
Operating profit (loss)	32,032,118	36,499,337	29,611,940	32,093,302	27,913,957
Non-operating income and expenses	-338,351	79,518	1,583,931	-133,781	337,242
Profit before tax	31,693,767	36,578,855	31,195,871	31,959,521	28,251,199
Net profit from continuing operations for the period	24,534,131	28,263,082	24,369,534	25,975,623	22,733,025
Net profit for the period	24,534,131	28,263,082	24,369,534	25,975,623	22,733,025

Consolidated Financial Analysis	Financial analysis for the last five years
Item/Year	2020	2019	2018	2017	2016
Financial structure (%)	Debt ratio	17.79	17.83	18.88	20.28	20.84
Long-term funds to property, plant and equipment ratio	417.41	388.88	386.78	372.03	379.98
Solvency	Current ratio (%)	394.98	411.16	406.35	376.50	369.11
Quick ratio (%)	378.27	396.80	388.33	364.72	355.52
Interest coverage ratio	13644.46	13434.29	-	-	-
Operatingperformance	Receivables turnover rate (times)	4.24	4.55	3.75	3.50	3.62
Average collection days	86	80	97	104	101
Inventory turnover rate (times)	4.83	5.00	4.82	6.31	5.04
Payables turnover rate (times)	11.95	11.42	7.84	8.02	6.70
Average inventory turnover days	76	73	76	58	72
Property, plant and equipment turnover rate (times)	1.69	2.01	1.90	2.36	2.40
Total asset turnover (times)	0.34	0.42	0.40	0.50	0.53
Profitability	Return on assets (%)	15.09	19.73	19.61	24.39	25.11
Return on equity (%)	18.36	24.16	24.37	30.70	32.42
Pre-tax income to paid-in capital ratio (%)	2362.73	2726.91	2325.62	2382.55	2106.09
Net margin (%)	43.85	46.53	48.79	48.89	47.02
Earnings per share (NT$)	182.90	210.70	181.67	193.65	169.47
Cash flow (%)	Cash flow ratio	96.10	94.40	126.72	134.88	119.15
Cash flow adequacy ratio	176.51	189.77	206.52	214.64	204.29
Cash flow reinvestment ratio	11.31	11.27	17.60	21.71	17.49
Leverage	Operating leverage	1.43	1.36	1.42	1.32	1.35
Financial leverage	1	1	1	1	1

Degree of leverage:

(1) Operating leverage (DOL) = (net operating revenue - variable operating costs and expenses) / operation income.

(2) Financial leverage = operating income / (operating income - interest expenses).

Requires:

2. Perform a cost-volume-profit analysis for 2020, which includes:

1. Using the Operating leverage equation(Operating leverage for 2020 was 1.43), Calculate the contribution margin percentage, breakeven revenue for year 2020.