Summary of the Eyeglass Lens Industry Conference Call Industry Overview - The eyeglass lens manufacturing capacity in China is robust, accounting for nearly half of the global production, yet the retail market is predominantly controlled by foreign brands. Domestic brands primarily expand overseas through OEM, resulting in relatively weak brand recognition that needs improvement [1][4][11]. Key Points and Arguments - **High Refractive Index Resin Monomer**: This is a critical raw material for lens manufacturing, currently monopolized by Japan's Mitsui Chemicals. Although domestic companies have made breakthroughs, they still rely on imports for materials with a refractive index of 1.74 and above, indicating significant potential for domestic substitution [1][6][8]. - **Market Demand**: There is a strong demand for myopia prevention products, particularly among youth, with defocus lenses experiencing rapid growth due to their cost-effectiveness. The market potential is substantial, and the demand for progressive lenses for presbyopia is also expected to rise, especially among the population aged 45 and above [1][13][14]. - **AI Smart Glasses**: The increasing attention on AI smart glasses is expected to create new demand in the eyeglass lens industry. Both external and integrated lens solutions could potentially raise the price per lens, with companies like Conant Optical already engaging in R&D collaborations in this area [2][3][16]. - **Consumer Perception**: Domestic consumers have a low recognition of local eyeglass brands, influenced by traditional views and market dynamics. Significant marketing investment is required to change consumer perceptions and enhance brand value [1][11][12]. Additional Important Insights - **Manufacturing Gaps**: Domestic companies are still catching up with international giants in high refractive index lens manufacturing, particularly in terms of experience and process quality. For instance, the first 1.74 refractive index lens was developed by Mitsui Chemicals around 2000, while domestic companies only recently achieved similar certifications [9][10]. - **Export and Retail Dynamics**: Although Chinese companies account for approximately 46%-47% of global factory sales, their retail sales share remains low, indicating a need for improved market positioning [4]. - **Technological Advancements**: Domestic firms are gradually narrowing the technology gap with international leaders, particularly in low refractive index resin production, which is crucial for enhancing competitiveness [8][19]. - **Future Growth Drivers**: The future growth of the Chinese eyeglass industry will be driven by factors such as an aging population, increasing demand for AI smart glasses, rising consumer expectations for comfort, and the growing market share of functional products aimed at preventing myopia and correcting presbyopia [19]. This comprehensive overview highlights the current state and future potential of the eyeglass lens industry, emphasizing the need for domestic brands to enhance their market presence and technological capabilities.

Core Viewpoint - The domestic eyeglass lens industry in China has significant potential for growth, particularly in high-refractive resin monomer materials and high-refractive lenses, driven by the trend of "domestic substitution" [2][3] Group 1: Current Market Situation - Despite being the largest eyeglass lens manufacturing country globally, China's brand value remains low compared to foreign brands, which dominate the retail market [4][5] - The core competition in eyeglass lenses is primarily based on manufacturing technology, while eyeglass frames also consider fashion and design elements [4] - The demand for functional lenses, particularly for preventing myopia in children and adolescents, has seen significant growth, with retail share increasing [5] Group 2: Future Outlook - The demand for eyeglass lenses in China is expected to grow steadily due to factors such as rapid population aging, high myopia rates among children and adolescents, and the anticipated widespread adoption of AI smart glasses [3][11] - The market is projected to maintain a "stable volume and increasing price" trend, with domestic brands likely to benefit from the increasing localization of resin materials and the rising popularity of functional lenses [8][11] - Although the total population may decline, the aging population and the persistent high rates of myopia among children and adolescents will sustain demand for eyeglass lenses [11][9] Group 3: Competitive Landscape - Domestic eyeglass lens manufacturers are expected to improve their market share and brand value as the localization of high-refractive resin materials progresses and consumer awareness of functional lenses increases [11][12] - The price increase in eyeglass lenses will be driven by the rising share of functional lenses and thinner high-refractive lenses, supported by improvements in consumer income and comfort [11]

Group 1: Company Performance - 和誉-B (2256.HK) has a total market value of HKD 70 billion, with a price increase of 137.1% since its inclusion on November 1, 2024[2] - 宜明昂科-B (1541.HK) has a market value of HKD 49 billion, showing a price drop of 73.7% since its inclusion on April 2, 2025[2] - 康哲药业 (0867.HK) has a market value of HKD 293 billion, with a price increase of 54.6% since its inclusion on November 1, 2024[2] Group 2: Financial Metrics - 和誉-B's PE ratio is projected to be 236.60 for 2024, decreasing to 48.67 by 2026[2] - 宜明昂科-B's EPS is expected to be -0.91 in 2024, improving to -0.60 in 2025[2] - 康哲药业's PE ratio is 16.65 for 2024, with a slight decrease in profit expected in 2025[2] Group 3: Strategic Developments - 和誉-B signed a licensing agreement with Merck worth USD 605.5 million, granting exclusive commercialization rights in Greater China[2] - 美兰空港 (0357.HK) is expected to improve operational efficiency through the management of three airports in Hainan Free Trade Port[2] - 阅文集团 (0772.HK) has seen its IP derivative business grow, with a GMV exceeding HKD 500 million in 2024[2] Group 4: Market Outlook - 连连数字 (2598.HK) is positioned to potentially obtain a stablecoin issuance license, indicating significant future growth potential[2] - 蒙牛乳业 (2319.HK) is expected to maintain a high dividend yield, supported by a favorable competitive landscape in the education sector[3]