Company Overview - Company is a leading global manufacturer of optical lenses, specializing in resin eyewear lenses and providing a range of products including standardized, customized, and high-end lenses [1] - The company has three production bases and serves clients globally, covering over 90 countries, including major markets like China, the USA, Japan, and Germany [1] - In the first half of 2025, the company achieved a revenue of 1.084 billion yuan, representing a year-on-year growth of 9.9%, and a net profit of 273 million yuan, up 30.7% year-on-year [1] - The product revenue breakdown for the first half of 2025 includes standardized lenses (5.12 billion yuan, 47.27%), customized lenses (1.85 billion yuan, 17.05%), and functional lenses (3.82 billion yuan, 35.26%) [1] - The company's gross margin has increased from 30.6% in 2018 to an expected 38.6% in 2024, while net margin has risen from 9.1% to 20.8% during the same period, driven by product structure optimization and effective cost control [1] Industry Analysis - The global eyewear lens market has shown steady growth, with manufacturer sales increasing from $5.2 billion in 2019 to $6.2 billion in 2024, reflecting a compound annual growth rate (CAGR) of approximately 3.6% [2] - China is a significant player in the lens manufacturing sector, with sales growing from 15.48 billion yuan in 2019 to 20.72 billion yuan in 2024, achieving a CAGR of about 6.0% [2] - By 2024, China's lens manufacturing is expected to account for approximately 46.4% of the global market [2] - The retail sales of eyewear lenses in China are projected to rise from 29.84 billion yuan in 2019 to 38.15 billion yuan in 2024, with a CAGR of 5.0% [2] - The growth drivers for lens consumption in China include the increasing prevalence of myopia among younger populations and higher per capita consumption rates [2] Company Advantages - The company holds a first-mover advantage in high-refractive index 1.74 lenses, having established a deep partnership with Mitsui Chemicals since 2010, securing a strong supply chain for core raw materials [3] - The company's C2M (Customer-to-Manufacturer) model enhances profitability by allowing rapid responses to personalized demands from retail clients, facilitating low-inventory operations and increasing the share of functional and customized lenses [3] Future Opportunities - The rise of smart glasses is expected to create additional demand for lenses, with higher average selling prices compared to traditional frames [4] - The company is actively developing its XR (Extended Reality) business, having issued a private placement to a subsidiary of GoerTek, which has become the second-largest shareholder, indicating potential for closer collaboration in XR [4] - As of August 31, 2025, the company's XR business has generated approximately 10 million yuan in revenue, with expectations for further growth in the latter half of 2025 and into 2026 [4]