Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 583 million yuan for Q3 2024, a year-on-year increase of 3.61%, and a net profit attributable to shareholders of 137 million yuan, up 11.91% year-on-year [1] - The company focuses on product iteration and R&D, which supports a continuous upward trend in gross margin [1] - The company’s comprehensive gross margin was 59.3%, an increase of 1.39 percentage points year-on-year [1] - The company’s net profit margin for Q3 2024 was 21.17%, up 2.68 percentage points year-on-year [1] - The company’s strategy of focusing on major products has led to significant growth, with the PMC Ultra Bright series seeing a year-on-year increase of 50.62% [1] - The company is expected to achieve earnings per share of 0.89, 1.04, and 1.14 yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 29X, 25X, and 23X [1] Financial Performance Summary - For the first three quarters of 2024, the company’s revenue is projected to be 816.20 million yuan, with a growth rate of 9.01% [5] - The net profit for 2024 is estimated at 179.16 million yuan, reflecting a profit growth rate of 13.72% [5] - The gross margin is expected to be 58.62% in 2024, slightly improving over the previous year [5] - The diluted EPS is projected to be 0.89 yuan in 2024, with a PE ratio of 29.29 [5]

Investment Rating - Buy rating maintained for Mingyue Optical (301101 SZ) [1][4] Core Views - Revenue and earnings show steady growth with 2024Q1-Q3 revenue of RMB 580 million (+3 6%) and net profit of RMB 140 million (+11 9%) [4] - Gross margin improved to 59 3% (+1 4pct) in 2024Q1-Q3 with net profit margin at 24 8% (+1 2pct) [5] - Focus on key product strategy shows effectiveness with PMC Ultra-Bright series revenue up 50 6% YoY and 1 71 series up 16 5% [6] - Collaboration with global optical giant Leica to enter high-end market [6] Financial Performance - 2024Q3 revenue reached RMB 290 million (+0 6%) with net profit of RMB 50 million (+13 6%) [4] - 2024-2026 net profit forecast adjusted to RMB 175/210/242 million from previous RMB 201/243/289 million [4] - 2024Q3 gross margin slightly declined to 59 1% (-1 1pct) but net profit margin improved to 25 7% (+2 1pct) [5] Product Strategy - New product "Easy Control Pro" 2 0 launched with optimized optical design and imaging quality [6] - "Easy Control" series sales reached RMB 45 97 million in 2024Q3 (+2 4% YoY) [6] Market Position - Total market capitalization stands at RMB 5 247 billion with circulating market cap of RMB 1 861 billion [1] - Current stock price at RMB 26 04 with 52-week range of RMB 19 84-41 98 [1]

Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company achieved a revenue of 198 million yuan in Q3 2024, representing a year-on-year increase of 0.6%. The lens business generated 167 million yuan, up 3.9% year-on-year, excluding export business. The net profit attributable to shareholders was 48 million yuan, a 13.6% increase year-on-year, while the net profit after deducting non-recurring items was 42 million yuan, up 15.2% year-on-year [1] - The company launched the "Easy Control PRO2.0" series in Q3 2024, improving optical design and image quality, with an effective rate of 73.82%, a 13.82% increase compared to the previous version. The sales of the "Easy Control" series reached 46 million yuan, a 2.4% increase year-on-year [1] - The company is entering the high-end lens market through a partnership with Leica, focusing on optical technology sharing, joint product development, and market channel expansion [1] - The gross margin for Q3 2024 was 59.1%, with a net profit margin of 24.2%, reflecting a year-on-year increase of 2.8 percentage points. The company generated a net operating cash flow of 67 million yuan, an increase of 18 million yuan year-on-year [1] Financial Summary - The company forecasts net profits attributable to shareholders of 180 million yuan, 220 million yuan, and 260 million yuan for 2024, 2025, and 2026, respectively, corresponding to P/E ratios of 30X, 25X, and 21X [1][2] - Revenue is projected to grow from 749 million yuan in 2023 to 1,015 million yuan in 2026, with a compound annual growth rate of approximately 13.4% [2][10] - The latest diluted EPS is expected to increase from 0.78 yuan in 2023 to 1.29 yuan in 2026 [2][10]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 29.03 yuan [2][4][7]. Core Insights - The company reported a revenue of 583 million yuan for the first three quarters of 2024, representing a year-on-year growth of 3.61%, and a net profit attributable to the parent company of 137 million yuan, up 11.91% year-on-year [1]. - In Q3, the company achieved a revenue of 198 million yuan, a 0.64% increase year-on-year, and a net profit of 48 million yuan, growing 13.57% year-on-year [1]. - Domestic lens business showed steady growth, while raw material and export businesses faced pressure [1]. - The company adjusted its sales expense rhythm, leading to a continuous improvement in profitability, with a gross margin of 59.10% in Q3, a decrease of 1.1 percentage points year-on-year [1]. - The collaboration with Leica is expected to enhance the company's high-end brand image, with the launch of four categories of Leica lens products [1]. Financial Summary - The company’s revenue is projected to grow from 749 million yuan in 2023 to 1,036 million yuan in 2026, with a compound annual growth rate (CAGR) of 12.4% [3]. - The net profit attributable to the parent company is expected to increase from 158 million yuan in 2023 to 261 million yuan in 2026, reflecting a CAGR of 16.6% [3]. - The gross margin is anticipated to improve from 57.6% in 2023 to 62.3% in 2026 [3]. - The net profit margin is projected to rise from 21.0% in 2023 to 25.1% in 2026 [3]. - The earnings per share (EPS) is expected to grow from 0.78 yuan in 2023 to 1.29 yuan in 2026 [3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 29.03 yuan [2][4][7]. Core Insights - The company reported a revenue of 583 million yuan for the first three quarters of 2024, representing a year-on-year growth of 3.61%, and a net profit attributable to shareholders of 137 million yuan, up 11.91% year-on-year [1]. - In Q3, the company achieved a revenue of 198 million yuan, a 0.64% increase year-on-year, and a net profit of 48 million yuan, growing 13.57% year-on-year [1]. - Domestic lens business showed steady growth, while raw material and export businesses faced pressure [1]. - The company adjusted its sales expense rhythm, leading to a continuous improvement in profitability, with a gross margin of 59.10% in Q3, a decrease of 1.1 percentage points year-on-year [1]. - The partnership with Leica is expected to enhance the company's high-end brand image, with the launch of four categories of Leica lens products [1]. Financial Summary - The company’s revenue is projected to grow from 784 million yuan in 2024 to 1,036 million yuan in 2026, with corresponding net profits of 184 million yuan and 261 million yuan respectively [3][7]. - The gross margin is expected to improve from 60.0% in 2024 to 62.3% in 2026, while the net profit margin is projected to increase from 23.5% to 25.1% over the same period [3][7]. - Earnings per share (EPS) are forecasted to rise from 0.91 yuan in 2024 to 1.29 yuan in 2026 [3][7].

Summary of Conference Call Notes Company Overview - The conference was hosted by CICC and Guosheng Securities, with participation from Minsheng Securities, Zheshang Securities, and Dongfang Securities - The focus of the call was on Mingyue Optical, which reported its Q3 performance amidst a challenging domestic consumption environment Key Financial Highlights - **Revenue**: Total revenue for the first three quarters reached 583 million, a year-on-year increase of 3.6% [1] - **Gross Margin**: Cumulative gross margin was 59.3%, up 1.4 percentage points year-on-year [1] - **Q3 Revenue**: Q3 revenue was 198 million, a 0.6% increase year-on-year, with lens business revenue at 167 million, excluding exports, showing a 3.9% growth [1] - **Net Profit**: Cumulative net profit for the first nine months was 137 million, a 12% increase year-on-year, with Q3 net profit at 48.04 million, up 13.6% [1] - **Net Profit Margin**: Cumulative net profit margin was 23.5%, up 1.7 percentage points year-on-year, while Q3 net profit margin was 24.2%, up 2.8 percentage points [1] Expense Management - **Sales Expenses**: Cumulative sales expenses were 110 million, down 1.9% year-on-year, with Q3 sales expenses down 18.7% [2] - **Management Expenses**: Cumulative management expenses were 66.46 million, up 15.8% year-on-year, with Q3 management expenses down 3.1% [2] - **R&D Expenses**: Cumulative R&D expenses were 23.01 million, up 35.5% year-on-year, with Q3 R&D expenses up 45% [2] Business Strategy and Market Position - Mingyue aims to maintain its position as China's leading lens brand, focusing on customer-centric strategies and partnerships with well-known chains [3] - The company has established collaborations with major brands and is enhancing its market presence through various promotional activities [3] - The introduction of new products, such as the Lite Control Pro 2.0 series, has received positive feedback [3] Product Performance - The PMC Ultra series saw a revenue increase of 50.6% year-on-year for the first three quarters, with Q3 growth at 36.4% [3] - The company is transitioning from the Lite Control Pro 1.0 to 2.0, with a focus on improving product effectiveness and customer experience [12][13] Channel Management - Mingyue has streamlined its channels, focusing on top-tier retail partners and reducing the number of disruptive online channels [4][5] - The company is actively expanding its medical channel partnerships, particularly with Aier Eye Hospital [5] Strategic Partnerships - Mingyue has formed a strategic partnership with Leica, with plans for product launches and potential manufacturing in China [6][7][8] - The collaboration aims to enhance product offerings and expand into international markets [8] Future Outlook - The company anticipates a challenging environment in 2024 but expects improvements starting in Q4 2024 and into 2025 [17] - Mingyue is committed to maintaining its pricing strategy and product quality, avoiding price wars in the market [9][10] Additional Insights - The company is focused on educating both consumers and sales personnel about its products, particularly in the context of myopia prevention [15][16] - Mingyue's strategy includes a balance between brand advertising and performance marketing to enhance market penetration [15] This summary encapsulates the key points discussed during the conference call, highlighting the financial performance, strategic initiatives, and future outlook of Mingyue Optical.

Investment Rating - Maintains "Overweight" rating with a target price of 31.94 yuan [3] Core Views - Strong channel control and brand power support stable pricing and highlight operational resilience [3] - New customer and product collaborations are promising [2] - Performance meets expectations with 2024-2026 EPS forecasted at 0.90/1.16/1.41 yuan [3] - 2024 PE ratio set at 35.5x, reflecting brand momentum and channel advantages [3] Financial Performance - Q3 2024 revenue for lens business reached 167 million yuan, up 3.9% YoY excluding exports [3] - PMC Ultra-Bright series revenue increased by 50.62% YoY in the first three quarters [3] - Easy Control product revenue grew by 2.4% YoY in Q3 2024, with a 34.2% increase excluding recall impact [3] - Gross profit margin and net profit margin for Q3 2024 were 59.1% and 26.7%, respectively [3] - Sales/management/R&D/financial expense ratios improved YoY, with sales expense ratio down 4.4 pct [3] Product and Market Strategy - Focus on large-item strategy with significant results from PMC Ultra-Bright and 1.71 series [3] - Expansion into medical channels with over 700 ophthalmology institutions covered [3] - Strengthened offline retail channels through targeted brand marketing and customer service [3] - New product launches and Leica collaboration expected to drive growth, with 30-40 authorized stores by end of 2024 [3] Financial Forecasts - 2024-2026 revenue forecasted at 767/908/1,090 million yuan, with YoY growth of 2.5%/18.3%/20.1% [4] - Net profit (attributable to parent) expected to be 181/234/284 million yuan, with YoY growth of 15.1%/29.2%/21.2% [4] - ROE projected to increase from 10.8% in 2024 to 13.9% in 2026 [4] Valuation and Market Data - Current PE ratio (2024E) at 29.65x, with PB ratio at 3.19x [4] - 52-week stock price range: 20.18-41.86 yuan [5] - Market cap and share structure data not provided [5]

Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Insights - In Q3 2024, the company's net profit attributable to shareholders increased by 14% year-on-year, with total revenue reaching 583 million yuan, a 3.61% increase compared to the previous year [2] - The company has partnered with global optical giant Leica to enter the high-end lens market, focusing on shared optical technology, joint product development, and market channel expansion [3] - The company's focus on star products has led to significant revenue growth, with the PMC Ultra Bright series seeing a 50.62% increase in revenue year-on-year [2][3] Financial Performance Summary - For Q3 2024, the company achieved a gross margin of 59.10%, a slight decrease of 1.1 percentage points year-on-year, while the net profit margin improved by 2.13 percentage points to 25.66% [2] - The company's revenue forecast for 2024-2026 is 822 million yuan, 899 million yuan, and 969 million yuan respectively, with net profits projected at 176 million yuan, 195 million yuan, and 214 million yuan [1][3] - The latest closing price corresponds to a P/E ratio of 31, 28, and 25 for the years 2024, 2025, and 2026 respectively [3]

[Table_MainInfo] 公司研究/造纸轻工 证券研究报告 明月镜片（301101）公司季报点评 2024 年 10 月 24 日 [Table_InvestInfo] 投资评级 优于大市 维持 | --- | |-------------------------------------------------------------------------------------------------| | 股票数据 | | 10 [ Table_StockInfo 月 23 日收盘价（元） ] | | 52 周股价波动（元） | | 总股本 / 流通 A 股（百万股） | | 总市值 / 流通市值（百万元） | | 相关研究 | | [Table_ReportInfo] 《大单品延续增长趋势，"轻松控"系列产品 24H1 收入同增 39% 》 2024.08.25 | | 《 23 年"轻松控"产品同增 70% 持续优化》 2024.05.06 | | 《主营业务稳步增长，"轻松控"产品表现亮 眼》 2023.10.28 市场表现 | [Table_QuoteInfo] -38.27% -25. ...

[Main Financial Data](index=1&type=section&id=I.%20Main%20Financial%20Data) This section provides an overview of the company's key financial performance indicators and balance sheet items for the reporting period [Key Accounting Data and Financial Indicators](index=1&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved year-over-year growth in operating revenue and net profit attributable to shareholders for Q3 and YTD 2024, alongside steady increases in total assets and owner's equity | Indicator | Amount for Current Period (CNY) | YoY Change in Current Period | YTD Amount (CNY) | YTD YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 198,262,404.64 | 0.64% | 583,282,748.51 | 3.61% | | Net Profit Attributable to Shareholders of Listed Company | 48,041,102.63 | 13.57% | 137,007,833.30 | 11.91% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 41,981,589.43 | 15.22% | 117,479,581.19 | 9.88% | | Net Cash Flow from Operating Activities | -- | -- | 138,419,622.55 | -3.56% | | Basic Earnings Per Share (CNY/share) | 0.2384 | 13.58% | 0.6799 | 11.92% | | Diluted Earnings Per Share (CNY/share) | 0.2384 | 13.58% | 0.6799 | 11.92% | | Weighted Average Return on Net Assets | 2.99% | 0.23% | 8.57% | 0.48% | | **End of Current Period** | **End of Previous Year** | | **Change from End of Previous Year** | | | Total Assets (CNY) | 1,843,063,976.44 | 1,752,743,944.92 | | 5.15% | | Owner's Equity Attributable to Shareholders of Listed Company (CNY) | 1,633,315,398.36 | 1,556,526,892.00 | | 4.93% | [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses totaled CNY 6.06 million for the current period and CNY 19.53 million YTD, primarily from fair value changes of financial assets and government grants | Item | Amount for Current Period (CNY) | YTD Amount (CNY) | Notes | | :--- | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 66,562.95 | -229,250.18 | | | Government Grants Recognized in Current Profit/Loss | 1,109,493.68 | 4,936,957.24 | | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises, and from Disposal of Financial Assets and Liabilities | 5,955,594.68 | 17,175,611.90 | | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 239,032.43 | 646,142.79 | | | Other Non-Operating Income and Expenses Apart from the Above | 68,753.54 | 750,272.47 | | | Less: Income Tax Impact | 1,251,603.01 | 3,581,552.99 | | | Impact on Minority Interests (After Tax) | 128,321.07 | 169,929.12 | | | Total | 6,059,513.20 | 19,528,252.11 | -- | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=3&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Several financial indicators showed significant changes, including a 35.52% increase in R&D expenses, a 102.30% rise in financial expenses due to wealth management product adjustments, and substantial growth in investment and fair value change income Profit Statement Items | Item | YTD (CNY) | Prior Year Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | R&D Expenses | 23,006,274.11 | 16,976,361.63 | 35.52% | Primarily due to increased R&D investment in the current period | | Financial Expenses | 209,800.95 | -9,117,944.97 | 102.30% | Primarily due to adjustment of the term for proprietary wealth management products, recognized as investment income according to accounting standards | | Other Income | 6,874,919.88 | 2,839,488.23 | 142.12% | Primarily due to an increase in income-related government grants in the current period | | Investment Income | 5,970,483.04 | 2,496,771.49 | 139.13% | Primarily due to increased interest income from debt investments maturing in over 3 months | | Gains from Fair Value Changes | 15,500,390.17 | 11,704,736.35 | 32.43% | Primarily due to increased estimated unrealized gains from wealth management products | | Credit Impairment Losses | -967,456.45 | -2,295,759.74 | -57.86% | Primarily due to improved accounts receivable turnover in the current period, leading to a corresponding reduction in provisions | | Asset Impairment Losses | 73,241.81 | -5,017,063.97 | -101.46% | Primarily due to improved inventory turnover in the current period, leading to a corresponding reduction in asset impairment | | Gains from Asset Disposal | -47,648.67 | -291,393.48 | 83.65% | Primarily due to reduced disposal of fixed assets in the current period | | Non-Operating Income | 1,113,511.56 | 760,736.93 | 46.37% | Primarily due to increased non-operating intercompany income in the current period | | Non-Operating Expenses | 544,840.60 | 169,540.79 | 221.36% | Primarily due to increased non-operating intercompany expenses in the current period | Balance Sheet Items | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 149,546,496.52 | 953,307,795.82 | -84.31% | Primarily due to the use of idle funds to purchase wealth management products in the current period | | Financial Assets Held for Trading | 1,080,865,642.40 | 122,474,089.44 | 782.53% | Primarily due to the use of idle funds to purchase wealth management products in the current period | | Financing for Receivables | 91,800.00 | | 100.00% | Primarily due to the receipt of bank acceptance bills from customers | | Other Current Assets | 13,497,779.71 | 136,601,545.89 | -90.12% | Primarily due to the maturity of debt investments maturing in over 3 months | | Construction in Progress | 2,934,035.77 | 5,515,050.76 | -46.80% | Primarily due to the completion and transfer of expansion projects to fixed assets | | Investments in Other Equity Instruments | 6,000,000.00 | | 100.00% | Primarily due to the investment in Huhuhu Health Technology (Hangzhou) Co., Ltd. in the current period | | Long-Term Deferred Expenses | 8,550,167.83 | 16,230,882.46 | -47.32% | Primarily due to the amortization of endorsement fees and renovation projects | | Deferred Income Tax Assets | 13,513,980.79 | 2,101,241.07 | 543.14% | Primarily due to an increase in deductible temporary differences for income tax at the end of the current period | | Taxes Payable | 31,452,011.77 | 8,185,662.07 | 284.23% | Primarily due to increased company profit and corresponding increase in income tax payable in the current period | | Other Current Liabilities | 24,780,273.28 | 15,261,367.96 | 62.37% | Primarily due to an increase in estimated returns corresponding to increased revenue | | Lease Liabilities | 891,503.80 | 3,311,030.03 | -73.07% | Primarily due to a decrease in lease liabilities as house rent was paid in the current period | | Deferred Income Tax Liabilities | 199,629.86 | 1,006,990.84 | -80.18% | Primarily due to a decrease in taxable temporary differences for income tax at the end of the current period | Cash Flow Statement Items | Item | YTD (CNY) | Prior Year Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Financing Activities | -74,379,994.83 | -54,761,291.73 | 35.83% | Primarily due to higher dividend distributions in the current period | [Shareholder Information](index=3&type=section&id=II.%20Shareholder%20Information) This section details the total number of ordinary shareholders, the top ten shareholders' holdings, and information on restricted shares [Total Number of Ordinary Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings](index=4&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Total%20Number%20of%20Ordinary%20Shareholders%2C%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the reporting period end, the company had 13,896 ordinary shareholders, with Shanghai Mingyue Industrial Co., Ltd. holding the largest stake at 55.09% and all restricted shares - The total number of ordinary shareholders was **13,896** at the end of the reporting period[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares Held | | :--- | :--- | :--- | :--- | :--- | | Shanghai Mingyue Industrial Co., Ltd. | Domestic Non-State-Owned Legal Person | 55.09% | 111,004,500 | 111,004,500 | | Shanghai Nuoweiqi Positioning Investment Management Co., Ltd. - Ningbo Meishan Bonded Port Area Nuoweiqi Positioning Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.29% | 12,667,564 | 0 | | Xie Gongxing | Domestic Natural Person | 2.45% | 4,933,500 | 4,933,500 | | Xie Gongwan | Domestic Natural Person | 2.45% | 4,933,500 | 4,933,500 | | National Social Security Fund 504 Portfolio | Other | 1.85% | 3,729,830 | 0 | | Danyang Zhiming Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.74% | 3,510,000 | 3,510,000 | | Zeng Zhe | Domestic Natural Person | 1.62% | 3,274,500 | 2,455,875 | | Zeng Shaohua | Domestic Natural Person | 1.22% | 2,467,500 | 2,467,500 | | Danyang Zhiyuan Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.20% | 2,419,500 | 0 | | CSC Financial Co., Ltd. - China CITIC Bank - CSC Financial Mingyue Lens No. 1 Strategic Placement Collective Asset Management Plan | Other | 0.78% | 1,579,848 | 0 | - Xie Gongwan and Xie Gongxing are brothers, and Zeng Shaohua is the spouse of Xie Gongwan's sister; Xie Gongwan, Xie Gongxing, and Zeng Shaohua collectively hold **100%** of Shanghai Mingyue Industrial Co., Ltd.; Xie Gongxing is the executive partner of Danyang Zhiming Enterprise Management Center (Limited Partnership), thus Xie Gongwan, Xie Gongxing, Zeng Shaohua, Shanghai Mingyue Industrial Co., Ltd., and Danyang Zhiming Enterprise Management Center (Limited Partnership) are considered parties acting in concert[12](index=12&type=chunk) Zeng Zhe is the executive partner of Danyang Zhiyuan Enterprise Management Center (Limited Partnership), therefore Zeng Zhe and Danyang Zhiyuan Enterprise Management Center (Limited Partnership) are considered parties acting in concert[12](index=12&type=chunk) [Total Number of Preferred Shareholders and Top 10 Preferred Shareholders' Holdings](index=5&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Total%20Number%20of%20Preferred%20Shareholders%20and%20Top%2010%20Preferred%20Shareholders%27%20Holdings) The company has no preferred shareholders - The company has no preferred shareholders[13](index=13&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20Changes%20in%20Restricted%20Shares) No changes occurred in the company's restricted shares during the reporting period - The company's restricted share changes are not applicable, indicating no changes during the reporting period[13](index=13&type=chunk) [Other Significant Matters](index=5&type=section&id=III.%20Other%20Significant%20Matters) Despite a slow economic recovery, Mingyue Lens maintained resilient performance in Q3 with sustained main business growth, driven by successful product strategies, improved gross margins, new product launches, and strategic partnerships - Despite an unpronounced recovery in the macro economy and consumer market, the company maintained resilient performance with sustained growth in its main business during the reporting period[13](index=13&type=chunk) - Lens business revenue for the third quarter was **CNY 166.9054 million**, representing a **3.9% year-over-year increase** after excluding export business[13](index=13&type=chunk) - The company's focus on a "big single product" strategy yielded significant results, with PMC Super Bright series product revenue growing by **50.62%** and 1.71 series products by **16.5%** in the first three quarters[13](index=13&type=chunk) - The company's overall business gross margin for the first three quarters of 2024 was **59.30%**, an increase of **1.39 percentage points** compared to the same period last year[13](index=13&type=chunk) - The company launched its new generation Easy Control PRO2.0 series products, demonstrating a **73.82% effective rate** for equivalent spherical power after 12 months of wear, a significant improvement from PRO1.0's **60%**[13](index=13&type=chunk) - The company proactively recalled Easy Control PRO1.0 series products from channels to promote PRO2.0; excluding the impact of product upgrade and recall, third-quarter sales of the "Easy Control PRO" series products increased by **34.2% year-over-year**[13](index=13&type=chunk) - The company regularly conducted eye care public service campaigns on CCTV, organized summer promotions including Minions prize draws, movie screenings, and pop-up events, hosted expert science popularization courses, and expanded its presence on social media platforms like Douyin, Xiaohongshu, and Zhihu to empower and drive traffic to offline channels[14](index=14&type=chunk) - Mingyue and global optical giant Leica held the "New Vision Leica Eyecare China Launch Event," with future collaborations encompassing optical technology sharing, joint product R&D, and market channel expansion, aiming to enter the high-end lens market[14](index=14&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the reporting period, offering a detailed view of its financial position, operating results, and cash movements [Financial Statements](index=6&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Financial%20Statements) This section provides the company's consolidated balance sheet as of the end of the reporting period, and the consolidated income statement and cash flow statement from the beginning of the year to the end of the reporting period [Consolidated Balance Sheet](index=6&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of the reporting period end, total assets reached CNY 1.843 billion, a 5.15% increase from the beginning of the year, with a significant rise in financial assets held for trading and a corresponding decrease in cash and cash equivalents | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 149,546,496.52 | 953,307,795.82 | | Financial Assets Held for Trading | 1,080,865,642.40 | 122,474,089.44 | | Accounts Receivable | 154,754,576.80 | 123,942,521.94 | | Inventories | 86,051,719.51 | 75,882,367.79 | | Total Current Assets | 1,509,571,781.17 | 1,435,931,851.17 | | Fixed Assets | 232,178,620.07 | 227,166,151.35 | | Intangible Assets | 45,864,345.78 | 39,813,725.91 | | Deferred Income Tax Assets | 13,513,980.79 | 2,101,241.07 | | Total Non-Current Assets | 333,492,195.27 | 316,812,093.75 | | Total Assets | 1,843,063,976.44 | 1,752,743,944.92 | | Accounts Payable | 45,122,304.75 | 58,521,563.04 | | Taxes Payable | 31,452,011.77 | 8,185,662.07 | | Other Current Liabilities | 24,780,273.28 | 15,261,367.96 | | Total Current Liabilities | 153,055,877.19 | 132,254,092.93 | | Total Liabilities | 165,399,651.30 | 149,206,399.59 | | Total Owner's Equity Attributable to Parent Company | 1,633,315,398.36 | 1,556,526,892.00 | | Total Owner's Equity | 1,677,664,325.14 | 1,603,537,545.33 | [Consolidated Income Statement from Year-Beginning to End of Reporting Period](index=8&type=section&id=2.%20Consolidated%20Income%20Statement%20from%20Year-Beginning%20to%20End%20of%20Reporting%20Period) From the beginning of the year to the end of the reporting period, total operating revenue was CNY 583.28 million, up 3.61% year-over-year, with net profit attributable to parent company shareholders reaching CNY 137.01 million, an 11.91% increase | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 583,282,748.51 | 562,949,775.72 | | Total Operating Costs | 442,542,952.40 | 419,649,680.72 | | Operating Costs | 237,410,140.62 | 236,947,292.53 | | Selling Expenses | 110,413,909.02 | 112,497,467.78 | | Administrative Expenses | 64,655,835.53 | 55,813,475.72 | | R&D Expenses | 23,006,274.11 | 16,976,361.63 | | Financial Expenses | 209,800.95 | -9,117,944.97 | | Other Income | 6,874,919.88 | 2,839,488.23 | | Investment Income | 5,970,483.04 | 2,496,771.49 | | Gains from Fair Value Changes | 15,500,390.17 | 11,704,736.35 | | Operating Profit | 168,143,725.89 | 152,736,873.88 | | Total Profit | 168,712,396.85 | 153,328,070.02 | | Net Profit | 144,914,741.36 | 133,282,845.33 | | Net Profit Attributable to Parent Company Shareholders | 137,007,833.30 | 122,421,875.85 | | Basic Earnings Per Share | 0.6799 | 0.6075 | | Diluted Earnings Per Share | 0.6799 | 0.6075 | [Consolidated Cash Flow Statement from Year-Beginning to End of Reporting Period](index=10&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20End%20of%20Reporting%20Period) Net cash flow from operating activities was CNY 138.42 million YTD, a slight decrease year-over-year, while investment activities saw a significant increase in cash outflows, and financing activities were negative due to higher dividend distributions | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 138,419,622.55 | 143,534,071.82 | | Net Cash Flow from Investing Activities | -663,457,112.69 | -558,628,624.53 | | Net Cash Flow from Financing Activities | -74,379,994.83 | -54,761,291.73 | | Net Increase in Cash and Cash Equivalents | -599,465,807.42 | -469,576,768.79 | | Cash and Cash Equivalents at Period End | 88,705,526.20 | 464,429,321.13 | - Total cash outflow from investing activities was **CNY 2,747,246,387.10**, with cash paid for investments amounting to **CNY 2,697,000,000.00**, a substantial increase from the prior period[20](index=20&type=chunk) - Net cash flow from financing activities was negative, primarily due to higher dividend distributions in the current period, with cash paid for dividends, profits, or interest amounting to **CNY 70,788,765.86**[21](index=21&type=chunk) [Adjustments to Financial Statement Items at the Beginning of the First Year of New Accounting Standards Implementation from 2024](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20Adjustments%20to%20Financial%20Statement%20Items%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20New%20Accounting%20Standards%20Implementation%20from%202024) The company did not adjust any financial statement items at the beginning of the year due to the first-time adoption of new accounting standards - The company did not adjust any financial statement items at the beginning of the first year of implementation due to the first-time adoption of new accounting standards[21](index=21&type=chunk) [Audit Report](index=11&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20Audit%20Report) This quarterly report is unaudited - The company's third-quarter report is unaudited[21](index=21&type=chunk)