Financial Performance - In Q3 2025, the new generation of orthokeratology lenses accounted for 4.23% of total hard lens revenue for the first three quarters, increasing to 9.68% in Q3, indicating continuous growth [2] - The overall gross margin for hard lenses decreased by 0.23% year-on-year for the first three quarters and by 0.56% in Q3 [5] - The revenue from scleral lenses represented 1.21% of hard lens income in the first three quarters, slightly increasing to 1.22% in Q3 [3] Product Development and Market Strategy - The company is focusing on the development and promotion of new and specialty products to gain competitive advantages in the hard lens market [2] - The company has launched a range of soft contact lenses, including daily and monthly disposable colored lenses, with production quality reaching 85% [4] - The company plans to create a product matrix for myopia control, including orthokeratology lenses, multifocal soft lenses, and composite frame lenses [4] Sales and Marketing - The company has seen an 8.42% year-on-year increase in revenue from optical service centers, which now account for 57.4% of total revenue, up from 53.01% in the previous year [8] - The company is implementing a pricing strategy that balances competitiveness and brand value, avoiding price wars while promoting affordable options [7] - The company has developed a range of eye care products, including eye wash and nebulization solutions, to expand its product offerings [5] Research and Development - The company is actively developing a variety of products, including new lens types, pharmaceuticals, and eye health products, with several in clinical trials [9] - The company has registered new products such as low-concentration atropine and other eye drops targeting myopia and presbyopia [6] - The company is also exploring smart glasses in collaboration with technology partners, focusing initially on audio-enabled models [7]

Group 1: Industry Overview - The medical device market in China is experiencing rapid growth, with the market size projected to increase from 440.3 billion yuan in 2017 to 1,154.4 billion yuan by 2024, representing a compound annual growth rate (CAGR) of 14.76%, significantly higher than the global CAGR of 4.82% during the same period [2] - By 2025, the market size is expected to reach 1.24 trillion yuan, and by 2030, it is anticipated to exceed 1.66 trillion yuan, driven by government support and increasing per capita medical spending [2] - The establishment of the Anhui Medical Device Innovation Alliance aims to enhance collaboration within the industry and promote the development of high-end medical imaging equipment [2] Group 2: Company Developments - Companies in the medical device sector are focusing on high-end product development, with significant investments in research and development [4] - Opcon Vision has successfully developed a high-permeability oxygen material, DK185, which exceeds industry standards, leading to the launch of new products such as corneal reshaping lenses [4] - Anhui Zhongke Ion Medical Technology Equipment Co., Ltd. has created China's first and the world's most compact superconducting proton therapy system, with a domestic production rate of over 95%, currently in clinical trial [4] - Anhui Tongling Bionic Technology Co., Ltd. has completed clinical trial enrollment for its "interventional ventricular assist system," which has been approved for expedited review by the National Medical Products Administration [5]

Core Insights - The company participated in an online investor meeting on September 15, 2025, discussing business adjustments and new product developments [1][2]. Group 1: Business Adjustments - The decline in revenue from nursing products was attributed to the restructuring of online business and the cessation of partnerships with certain clients, leading to decreased distribution income [3]. - The company is exploring entry into the CPO, smart glasses, and brain-machine interface sectors through equity participation, having already established a partnership with Raytheon and Huiding for smart glasses, with the joint venture registered [3]. Group 2: New Products - Inquiries regarding the launch timeline for new products such as AI glasses and atropine eye drops were addressed, indicating that AI glasses are in preliminary preparation while atropine is still in phase III clinical trials, with disclosures to follow regulatory requirements [3]. - The company has launched scleral lenses in the first half of the year, aiming to capture a portion of the high-end frame market, although specific pricing strategies were not disclosed [3]. Group 3: Stock Repurchase - The company stated that any matters related to stock repurchase and cancellation would be disclosed in accordance with regulations, emphasizing that the meeting did not involve any undisclosed significant information [3].

Group 1: Financial Performance and Business Adjustments - The company's subsidiary adjusted its online business structure, leading to a decline in nursing product revenue due to the cessation of cooperation with certain clients [1] - The scleral lens was launched in the first half of the year, aiming to capture part of the high-end frame market [2] Group 2: Product Development and Future Plans - The joint venture with Thunder and Huiding has completed business registration, but products have not yet been officially launched [2] - The atropine eye drops are still in phase three clinical trials [2] Group 3: Strategic Initiatives and Market Positioning - The company is exploring acquisition or investment opportunities in high-tech firms producing CPO or smart glasses [1] - There is no public discussion on specific pricing strategies for scleral lenses, including potential reductions to 3900 yuan per pair [2] Group 4: Shareholder Engagement and Stock Management - Any stock repurchase plans will be disclosed according to regulations [2] - The activity did not involve any undisclosed significant information [2]

Core Viewpoint - The company held an online earnings briefing on September 2, 2025, to discuss its business development and engage with investors [1] Business Development Disclosure - The company started selling scleral lenses in March, which accounted for 0.6% of lens orders in the first half of the year, primarily targeting adult users and is in the initial promotion phase [1] - The ordinary soft lenses from Multi-vision Medical did not have sales in the first half but are set to be launched in the second half of the year [1] - The company completed industrial changes for Shangyue Qicheng in mid-August and will officially consolidate its financials in September, with current operations reported as good [1] Business Expansion - The company is expanding its service terminal business by enhancing both the content and scale, including the introduction of functional vision correction products, dry eye and visual fatigue solutions, and visual function training [2] - The sales department is being optimized with additional technical support and sales personnel in various regions, and a second distribution center has been established for hard lens sales [2] Collaboration and Capacity Planning - The company has partnered with numerous optical professional universities for talent development and technical research, allowing students to gain practical experience [3] - New production capacity for BFS sterile instruments and clean rooms has been established, with BFS production lines already producing disposable rinsing solutions and eye wash solutions [3] Other Key Points - In the first half of the year, revenue from rigid contact lens products accounted for 57.77% of total revenue, down from 62.06% in the same period last year [4] - The company has different management approaches for subsidiaries based on direct operations and minority shareholder operations [4] - Revenue from medical institutions has declined due to the cessation of atropine sales at the headquarters hospital, with some medical institution business downturns requiring further monitoring [4]

Core Viewpoint - The company is actively addressing intensified competition through various strategies, including new product development and promotional activities [2] Group 1: Company Strategies - The company has outlined measures to cope with increased competition in its annual and semi-annual reports [2] - New product development includes the DK185 orthokeratology lens and scleral lenses [2] - Promotional activities involve offering free care products with lens purchases [2] - The company is promoting other optical products such as functional frame glasses, functional soft lenses, and vision training [2] - Expansion of controlled optical service terminals and online marketing efforts are also underway [2] - These initiatives have already yielded certain positive results [2]

Sales Performance - Scleral lens sales started in March 2025, accounting for 0.6% of lens orders in the first half of the year, primarily targeting adults [1] - Sales data for July and August will be disclosed in the regular report [2] - Medical institution revenue declined due to the cessation of atropine sales, which previously generated approximately 9 million in sales during the same period last year [3] Market Expansion Strategies - The company is expanding service terminal construction by diversifying product offerings beyond myopia prevention and hard lenses to include functional vision correction products and other optical services [2] - Focus on acquiring and investing in established optical service institutions with user resources to enhance service terminal scale [2] - Efforts to increase sales force and invest in optical terminals to boost business scale outside of East China, where sales revenue accounted for 57.77% of total revenue, down from 62.06% in the same period last year [3] Collaboration and Talent Development - Established partnerships with numerous universities for training optical service personnel and collaborative research projects [2] - Continuous enhancement of cooperation with educational institutions to strengthen talent reserves and technical research collaboration [2] Production Capacity and Market Demand - BFS production line is currently producing disposable rinsing solutions and eye wash liquids, with plans to fully produce disposable care products upon obtaining necessary approvals [2] - Development of eye health products suitable for disposable packaging is underway [2] Customer Accessibility - Customers can locate nearby OPUKANG optical stores through the "OPUKANG Optical Member" WeChat mini-program or by contacting local sales representatives for partner store information [3]

Financial Performance - The company reported a 15.91% decrease in revenue from distributors, accounting for 28.62% of total revenue, down from 33.56% in the same period last year [6] - Direct sales revenue increased by 6.68%, representing 14.60% of total revenue, compared to 13.49% last year [6] - Revenue from controlled terminals grew by 5.70%, making up 56.78% of total revenue, up from 52.95% last year [6] Product Promotion and Market Trends - The new DK185 corneal shaping lens has seen a user acceptance rate with a market share increase from 0.6% in June to 7% currently [2] - The scleral lens, launched in March, currently holds a market share of approximately 0.6% [2] - The company is focusing on promoting the scleral lens to adults, particularly those with dry eyes, indicating significant market potential [2] Strategic Developments - The company added 30 optical terminals in the first half of 2025, bringing the total to over 520, while hospital partnerships increased to about 30 [2] - The company is cautious about new optical terminal investments, prioritizing those with substantial feasibility and growth potential [2] Industry Dynamics - The trend of separating product and service pricing in public hospitals is influencing overall product pricing, leading to a general decrease [3][4] - The company has introduced affordable products in response to market demands, aiming to make corneal shaping lenses accessible to more families [4] Research and Development - The company has multiple products in development, including advanced corneal and scleral lenses, cleaning solutions, and new medical devices expected to launch within 1-3 years [5] - The AAV research by the invested ophthalmic innovation company, Xingmou, has entered phase II clinical trials [5] E-commerce Growth - E-commerce sales, primarily for care products, are experiencing rapid growth, with plans to expand product offerings and improve online sales channels [6]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to insufficient consumer spending [1] Financial Performance - Revenue for 1H25 was 870 million yuan, a year-on-year decrease of 1.42% - Net profit attributable to shareholders was 250 million yuan, down 29.97%, with diluted earnings per share at 0.28 yuan - Non-recurring net profit was 216 million yuan, a decline of 23.60%, slightly below expectations due to overall weak consumer sentiment [1] Product Segment Performance - The growth in product segments was slightly below expectations, with hopes for recovery in 2H25 - Rigid contact lenses generated 360 million yuan in revenue, down 4.58% year-on-year, affected by overall consumer sentiment and increased market share of lower-priced myopia prevention products - Care products revenue was 110 million yuan, down 6.89%, due to promotional activities impacting sales - Revenue from ordinary frames and other optical products and services was 190 million yuan, up 16.18%, driven by increased income from functional frames and non-medical technical services - Medical services revenue was 170 million yuan, down 9.20%, due to decreased income from medical institutions, including the cessation of atropine sales at the headquarters hospital since the second half of 2024 [2] Service Development and New Products - The medical service segment continues to develop, with the company promoting a community-based professional optical service system, establishing over 490 optical service terminals by the end of 2024 - The revenue from controlled optical terminals exceeded half of the company's total business revenue, although growth is currently under pressure due to the overall market conditions for OK lenses - The company launched new generation contact lenses using high oxygen permeability materials, which are expected to contribute to revenue growth - The acquisition of Jiangsu Duozhi aims to enter the colored contact lens market, leveraging its strong sales channels [3] Profitability and Margin Analysis - The gross margin for core business in 1H25 was 34.2%, down 6.9 percentage points year-on-year - The net profit margin attributable to shareholders was 28.7%, down 11.7 percentage points year-on-year - The non-recurring net profit margin was 24.8%, down 7.2 percentage points year-on-year - The significant decline in net profit is attributed to lower gross margins from newly consolidated subsidiaries and a notable increase in selling and administrative expenses [3] Earnings Forecast and Valuation - The company has adjusted its EPS forecasts for 2025 and 2026 down by 12.3% and 8.9% to 0.61 yuan and 0.68 yuan, respectively - The current stock price corresponds to a P/E ratio of 31.6 for 2025 and 28.6 for 2026 - The target price is maintained at 19.2 yuan, corresponding to a P/E of 31.3 for 2025 and 28.4 for 2026, which is in line with the current stock price [4]

Group 1 - The company is expanding its cross-border e-commerce operations, focusing on daily eye health products [2] - Malaysia has already initiated the process for selling these products, while other Southeast Asian countries are in preparation [2] - The main products include orthokeratology lenses, scleral lenses, and care products, which are classified as medical devices requiring local registration before sales [2]