Core Viewpoint - The company reported strong mid-year performance for 2025, with significant revenue and profit growth driven by both domestic and international business expansion, as well as product upgrades in high-value segments [1][2]. Financial Performance - For the first half of 2025, the company achieved revenue of 1.08 billion, an increase of 11.1% year-on-year; net profit attributable to shareholders was 270 million, up 30.7% [1]. - The gross margin for H1 2025 was 41.0%, an increase of 1.8 percentage points, while the net profit margin was 25.2%, up 3.8 percentage points [1]. - Product-wise, standard lens revenue was 510 million, up 20%, with a gross margin of 33.6%; functional lens revenue was 380 million, up 8.8%, with a gross margin of 40.6%; customized lens revenue was 180 million, down 4.9%, with a gross margin of 61.9% [1]. Product and Sales Growth - The company sold 9.3 million units in H1 2025, a 7.5% increase, with an average product price of 23.3 yuan, up 3.3% [1]. - The growth in standard and functional lens revenue was attributed to the promotion of high-refractive and multifunctional lenses, leading to continuous product structure upgrades [1]. Regional Performance - Domestic revenue reached 360 million, a 19.0% increase, while overseas revenue was 730 million, up 7.5% [2]. - In Asia, revenue was 300 million, up 23%; in Europe, it was 170 million, up 6%; in the Americas, it was 220 million, down 2% [2]. - The company is expanding overseas production capacity, with a customized production line in Japan expected to start in H2 2025 and a new production base in Thailand also set to begin construction in H2 2025 [2]. XR Business Development - The company is making progress in its XR business, including AR and AI glasses, with ongoing collaborations with both domestic and international technology and consumer electronics companies [2]. - The number of overseas projects is increasing, with a shift in focus from product functionality and technical validation to scaling production [2]. Profit Forecast - The company maintains its profit forecast, expecting net profits of 560 million, 670 million, and 790 million for 2025-2027, corresponding to PE ratios of 35X, 29X, and 25X [3].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5]. Core Viewpoints - The company's revenue for the first half of 2025 reached 1.08 billion, representing an 11.1% year-on-year increase, while the net profit attributable to shareholders was 270 million, up 30.7% year-on-year [1]. - The improvement in profitability is attributed to the orderly expansion of both international and domestic businesses, stable sales of high-value-added products, and effective cost reductions from automated production line upgrades [1]. - The company is actively promoting high refractive index and multifunctional lenses, leading to a continuous upgrade in product structure and a notable increase in gross margin [2]. Revenue Breakdown - For the first half of 2025, revenue from standard lenses was 510 million, up 20% year-on-year, with a gross margin of 33.6%, an increase of 2.8 percentage points [2]. - Revenue from functional lenses was 380 million, up 8.8% year-on-year, with a gross margin of 40.6%, also an increase of 2.8 percentage points [2]. - Custom lens revenue was 180 million, down 4.9% year-on-year, but with a gross margin of 61.9%, which increased by 2.4 percentage points [2]. - Total sales volume reached 9.3 million pieces, a 7.5% increase year-on-year, with an average product price of 23.3 yuan, up 3.3% [2]. Regional Performance - Domestic revenue was 360 million, a 19.0% increase year-on-year, with a focus on high-end differentiated products to enhance market share [3]. - Overseas revenue was 730 million, up 7.5% year-on-year, with significant growth in Asia (23% increase) while revenue from the Americas decreased by 2% [3]. - The company is expanding overseas production capacity, with a new customized production line in Japan expected to start in the second half of 2025 [3]. XR Business Development - The company is making steady progress in its XR business, collaborating with both domestic and international technology and consumer electronics companies [4]. - The number of overseas projects is increasing, with some key projects transitioning from product functionality verification to scaling up production [4]. - Domestic collaborations have also progressed, with some key projects already delivering products and receiving positive feedback from end users [4]. Profit Forecast - The report forecasts net profits attributable to shareholders for 2025, 2026, and 2027 to be 560 million, 670 million, and 790 million respectively, corresponding to PE ratios of 35X, 29X, and 25X [5].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5]. Core Viewpoints - The company's revenue for the first half of 2025 reached 1.08 billion, representing an 11.1% year-on-year increase, while the net profit attributable to shareholders was 270 million, up 30.7% year-on-year [1]. - The growth in performance is primarily driven by the orderly expansion of both international and domestic businesses, with stable sales of high-value-added products and effective cost reductions from automated production line upgrades [1]. - The company is actively promoting high refractive index and multifunctional lenses, leading to a continuous upgrade in product structure and a notable increase in gross margin [2]. Revenue Breakdown - For the first half of 2025, revenue from standard lenses was 510 million, up 20% year-on-year, with a gross margin of 33.6%, an increase of 2.8 percentage points [2]. - Revenue from functional lenses was 380 million, up 8.8% year-on-year, with a gross margin of 40.6%, also an increase of 2.8 percentage points [2]. - Custom lens revenue was 180 million, down 4.9% year-on-year, but with a gross margin of 61.9%, an increase of 2.4 percentage points [2]. - Total sales volume reached 93 million pieces, a 7.5% increase year-on-year, with an average product price of 23.3 yuan, up 3.3% [2]. Regional Performance - Domestic revenue was 360 million, up 19.0% year-on-year, with a focus on high-end differentiated products to enhance market share [3]. - Overseas revenue was 730 million, up 7.5% year-on-year, with significant growth in Asia (23% increase) while revenue from the Americas decreased by 2% [3]. - The company is expanding overseas production capacity, with a new customized production line in Japan expected to start in the second half of 2025 [3]. XR Business Development - The company is making steady progress in its XR business, collaborating with both domestic and international technology and consumer electronics companies [4]. - The number of overseas projects is increasing, with some key projects transitioning from product functionality verification to scaling up production [4]. - Domestic collaborations have also progressed, with some key projects already delivering products and receiving positive feedback from end users [4]. Profit Forecast - The report forecasts net profits attributable to shareholders for 2025-2027 to be 560 million, 670 million, and 790 million, respectively, with corresponding price-to-earnings ratios of 35X, 29X, and 25X [5].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Viewpoints - The company expects a year-on-year increase of no less than 30% in net profit attributable to shareholders for the first half of 2025, driven by strong sales growth of high refractive index and functional products, leading to an increase in average selling prices [1]. - The company is one of the few manufacturers capable of producing resin lenses with a refractive index of 1.74, and its C2M model effectively ensures the delivery efficiency of customized glasses [1]. - The company plans to invest approximately $4 million to build an automated resin lens production line in Japan, aimed at enhancing its production capacity for high-end customized lenses and improving supply chain resilience [2]. - The new production line is expected to increase annual production capacity by 20% compared to existing facilities and will help mitigate risks associated with trade tensions between China and the U.S. [2]. - The company is actively engaging with leading global technology and consumer electronics firms in its XR (Extended Reality) business, preparing for potential mass production of AR and AI glasses [3]. - The establishment of a national-level R&D center will further strengthen the company's innovation capabilities and project management [3]. Summary by Sections Financial Performance - The company forecasts a net profit of no less than 271 million yuan for the first half of 2025, reflecting a robust growth trajectory [1]. - Revised profit forecasts for 2025-2027 are 560 million, 670 million, and 790 million yuan, respectively, with corresponding P/E ratios of 31X, 26X, and 22X [4]. Production and Supply Chain - The new Japanese production line is expected to enhance the company's ability to respond to customer needs in the Asia-Pacific region and improve overall production cost efficiency [2]. - The diversified production base is anticipated to strengthen the company's resilience against geopolitical uncertainties and currency fluctuations [2]. Research and Development - The company is committed to continuous investment in R&D, focusing on innovative products with varying refractive indices and functionalities [3]. - The establishment of an XR R&D center is part of the company's strategy to enhance its technological capabilities and foster collaboration with industry leaders [3].