Optical lens supplier Genius Electronic Optical (GSEO) will likely enhance its cooperation with optical mold maker Best Precision Industrial to sharpen its production capability for high-end optical lenses, according to industry sources.
Since GSEO has acquired a 4% stake in Best Precision, the company said it will dispatch its president Lee Kuo to concurrently serve as a board member of the precision optical mold maker.
According to industry sources, as president of GSEO and a board member of Best Precision, Kuo will help promote collaborative efforts between the companies.
Furthermore, the sources added that enhanced collaboration between GSEO and Best Precision might serve as a crystallizer for a likely merger of the two companies.
GSEO and Best Precision both declined to comment on the market report.
In addition to GSEO, other optical lens makers, including Calin Technology and Kinko Optical, are also Best Precision's optical mold customers.
Best Precision chairman Chen Po-chi noted that as small-sized lenses become increasingly diverse in end products, there is potential to see increased adoption of precision optical lenses in big data, IoT, biometric identification, and machine vision applications, in addition to VR/AR devices, medical instruments and automotive products.
Meanwhile, GSEO has reported revenue of NT$3.327 billion (US$109.79 million) for the first quarter of 2023, decreasing 1.67% from a year earlier.
GSEO is conservative about the prospects for the second quarter, which is traditionally an off-peak season for the optical lens industry.
Best Precision saw its net profit jump 50.88% on year to NT$228 million in 2022, in which revenue totaled NT$989 million, up 1.08% from a year earlier.
Article translated by Steve Shen
