Core Viewpoint - Mingyue Lens, a leading lens brand in China, collaborates with Qianye Glasses to launch a campus public welfare campaign aimed at promoting vision health among children and adolescents, addressing the rising myopia rates in the country [1][5][8] Group 1: Campaign Overview - The campaign titled "Climbing to the Peak and Building Dreams for a Voyage" involves sharing learning experiences and myopia prevention knowledge with students in Chongqing [1] - Tsinghua University student leader Zhang Zhiyuan participated in the event, providing practical study techniques and encouraging students to adopt healthy eye care practices [1][3] Group 2: Myopia Statistics and Importance - According to the National Health Commission, the overall myopia rate among children and adolescents in China is projected to reach 52.7% by 2024, indicating that one in two students is affected [5] - The significance of myopia prevention is underscored by the alarming statistics, prompting initiatives like the public welfare campaign [5] Group 3: Product Offering - Mingyue Lens offers the "Mingyue Easy Control Lens," designed specifically for Chinese children's eye habits, balancing prevention effectiveness and comfort [5] - Clinical trials conducted by Zhongshan Ophthalmic Center and Tianjin Eye Hospital show that the lens has a myopia progression control effectiveness rate of 73.82%, with results published in the international journal "Ophthalmology" [5] Group 4: Social Responsibility - As a national brand, Mingyue Lens emphasizes its social responsibility by promoting myopia prevention awareness across the country, advocating for the protection of children's vision as a means to secure a brighter future [8]

Group 1 - The provincial market supervision bureau conducted quality supervision sampling on 24 types of products, including toys, adult diapers, prescription glasses, and reading glasses, with a total of 1204 batches [1] - Among the sampled products, 41 batches from 40 distribution units were found to be non-compliant, resulting in a non-compliance rate of 4.2%, while 4 batches from 4 manufacturing enterprises had a non-compliance rate of 1.7% [1] Group 2 - Specific non-compliance was noted in 3 batches of prescription glasses from companies such as Shenyang Dapeng Trading Co., Ltd., with a non-compliance rate of 10%, primarily due to issues with cylindrical axis deviation and spherical focal power deviation [1] - In the case of reading glasses, 5 batches from various retailers, including Benxi Chunfeng Trading Center and Panjin Zhongxing Glasses Co., Ltd., exhibited a non-compliance rate of 25%, with detected issues including spherical focal power deviation and optical center deviation [1]

Core Insights - Shanghai Zhongxia Glasses Co., Ltd. has been established with a registered capital of 100,000 RMB, and its legal representative is Wei Zhongxia [1] Company Overview - The company operates in various sectors including the sale of glasses (excluding contact lenses), optical instruments, cosmetics, hardware products, home appliances, clothing and accessories, footwear, daily necessities, arts and crafts, first and second-class medical devices, pre-packaged food, and wellness services (non-medical) [1] - The company is also involved in the operation of third-class medical devices, which requires approval from relevant authorities before commencing business activities [1]

Core Viewpoint - A new eyewear store, Leiyang City Aze Eyewear Store, has been established with a registered capital of 20,000 RMB, focusing on the sale of glasses and internet sales, while also engaging in the operation of Class III medical devices, pending necessary approvals [1] Company Summary - The legal representative of the newly established eyewear store is Li Ze [1] - The registered capital of the store is 20,000 RMB [1] - The business scope includes the sale of glasses (excluding contact lenses) and internet sales, along with the operation of Class III medical devices, which requires approval from relevant authorities [1]

Core Viewpoint - Shanghai Ningxiang Glasses Co., Ltd. has been established with a registered capital of 100,000 RMB, indicating a new player in the eyewear market [1] Company Summary - The legal representative of the company is Yang Liuqing [1] - The business scope includes general projects such as eyewear sales (excluding contact lenses), watch sales, jewelry retail and wholesale, photographic equipment and telescope retail, and stationery retail [1] - Additional activities include the sale of arts and crafts, computer hardware and software retail and wholesale, internet sales (excluding licensed goods), daily necessities sales, electronic components retail, data processing and storage support services, and various leasing services [1] - The company is also involved in conference and exhibition services, information consulting (excluding licensed consulting services), advertising design and agency, and various technical services and support [1] - The company is authorized to conduct business activities independently based on its business license, except for projects that require approval [1]

Financial Data and Key Metrics Changes - Net revenue increased by 7.9%, driven by adjusted comparable store sales growth of 7.7% and growth from new store sales [17][22] - Adjusted operating income rose to $19.8 million from $14.3 million in the prior year, with adjusted operating margin increasing by 90 basis points to 4.1% [19][20] - Adjusted EPS increased to $0.13 per share from $0.12 a year ago [20] Business Line Data and Key Metrics Changes - The managed care business showed strong performance with low teens comp store sales growth, while cash pay traffic remained flat [5][24] - Average ticket increased by 7.1%, reflecting price increases and a refreshed merchandising mix [18] - Sales gains were noted in premium add-ons like superior progressive lenses and anti-reflective coatings [13] Market Data and Key Metrics Changes - Traffic from managed care customers offset a decline in cash pay traffic, with overall traffic remaining flat [24] - The company is seeing a shift in customer mix towards higher-value segments, which is expected to lead to healthier business overall [6][24] Company Strategy and Development Direction - The company is focused on transforming its merchandising and pricing strategies, with plans to modernize pricing architecture and evolve product assortment [9][10] - A new marketing campaign, "Every Eye Deserves Better," has been launched, resulting in a significant increase in unaided brand awareness [11][60] - The company aims to enhance its market position through strategic investments and cost optimization efforts [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the multi-year growth opportunity ahead, citing strong performance and positive customer responses to recent initiatives [17][24] - The company anticipates continued operating margin expansion and is closely monitoring consumer response to pricing and merchandising changes [23][24] - Future pricing actions are expected to contribute similarly to 2026 as they did in 2025 [32] Other Important Information - The company ended the quarter with a cash balance of approximately $56 million and total liquidity of $349.6 million [21] - Capital expenditures guidance was reduced to $80-$85 million, primarily due to timing of investments [25][61] Q&A Session Summary Question: What signals are you looking for to know that you're not going too far with merchandising changes? - Management is monitoring NPS and conversion rates from exam to purchase, noting positive responses from cash pay consumers adopting higher price point items [28][30] Question: What would be the contribution from pricing as you look towards 2026? - Pricing actions in Q4 are expected to yield similar contributions in 2026 as in 2025, with a focus on modernizing price points [31][32] Question: Can you provide color on market share trends? - Management believes they are gaining share on both volume and dollar basis, outpacing category growth [44] Question: What is happening with the cash pay customer segment? - There is slight acceleration in the purchase cycle for cash pay consumers, with an increase in their adoption of premium products [46][47] Question: Can you elaborate on the lens pricing actions? - The company is taking surgical increases on lens pricing, focusing on coatings and materials, while being mindful of market positioning [64] Question: What are the trends observed throughout the quarter? - Sales trends were consistent throughout Q3, with no significant variations noted [84]

Core Insights - A new eyewear store named Kunming Linhao Eyewear has been established, with a registered capital of 500,000 RMB [1] - The legal representative of the store is Chen Haonan, indicating a personal ownership structure [1] - The business scope includes the sale of glasses (excluding contact lenses) and the processing of lenses and similar products [1] Business Scope - The store is authorized to operate in the third category of medical devices, which requires approval from relevant authorities before commencing operations [1] - The general business activities are conducted under the business license, allowing for independent operations without the need for further approvals, except for the licensed projects [1]

Core Viewpoint - Chongqing Yuntong Glasses Co., Ltd. has recently been established with a registered capital of 10,000 RMB, focusing on the sale of various optical and medical products [1] Company Overview - The legal representative of Chongqing Yuntong Glasses Co., Ltd. is Zou Xiaomei [1] - The company is engaged in the operation of Class III medical devices, which requires approval from relevant authorities before conducting business activities [1] Business Scope - The company’s business scope includes: - Sales of glasses (excluding contact lenses) - Sales of optical instruments - Internet sales (excluding goods that require permits) - Sales of daily chemical products - Retail of household appliances - Sales of sanitary products and disposable medical supplies - Sales of personal hygiene products - Sales of Class II medical devices - Retail of cosmetics - Sales of daily miscellaneous goods - Retail of kitchenware and daily miscellaneous goods - Sales of office supplies - Retail of stationery - Sales of daily necessities (excluding projects that require approval) [1]

Core Insights - The Shandong Provincial Market Supervision Administration recently released the results of the 2025 provincial quality supervision sampling for presbyopic lenses, indicating a focus on product quality in the optical industry [4]. Group 1: Sampling Results - A total of 150 batches of presbyopic lenses were sampled, with 130 from retail and 20 from online sales [4]. - The inspection was based on national standards including GB13511.1-2011 and GB/T13511.3-2019, assessing various quality parameters such as assembly quality and optical center deviations [4]. Group 2: Non-compliance Findings - 21 batches from 21 sellers were found to be non-compliant with relevant standards, with issues including deviations in lens focal power and assembly quality [5]. - The Shandong Provincial Market Supervision Administration has mandated corrective actions for the sellers of the non-compliant products, in accordance with the Product Quality Law of the People's Republic of China [5]. Group 3: Consumer Guidance - Consumers are advised to check their vision with an eye doctor before purchasing presbyopic lenses to rule out age-related eye diseases [6]. - Important purchasing tips include verifying product labels for essential information, trying on the glasses before finalizing the purchase, and keeping receipts for potential disputes [7].

Core Insights - A new company, Fengcheng Yuzhang Glasses Co., Ltd., has been established with a registered capital of 50,000 RMB [1] Company Overview - The legal representative of the company is Wang Shuting [1] - The business scope includes the sale of Class II medical devices, optical glass, and glasses (excluding contact lenses) [1] - The company is also involved in the sale of health food (pre-packaged), rehabilitation aids fitting services, office supplies, and daily necessities [1] Regulatory Compliance - The company is required to obtain necessary approvals for certain operations, particularly in the sale of third-class medical devices and food [1] - Specific business activities and their permitted duration will depend on the approvals from relevant authorities [1]