Shanghai Conant Optical Co (2276) investor relations material

Executive summary

• Revenue rose 11.1% year-over-year to RMB1,084.2 million for the six months ended 30 June 2025, driven by both domestic and international sales growth and a higher proportion of high-value, high-margin lenses, boosting gross margin.

• Net profit increased 30.7% year-over-year to RMB272.9 million, attributed to product mix optimization, productivity gains, and cost reductions from automation upgrades.

• Gross profit increased 16.2% to RMB444.3 million, with gross margin improving to 41.0% from 39.2% due to a higher proportion of high-margin lenses.

• Interim dividend of RMB0.15 per share (tax inclusive) proposed, up from RMB0.12 in the prior year.

• The company completed a major share placement in January 2025, raising HK$827.9 million to fund R&D and production for smart glasses and XR headsets.

Financial highlights

• Standardised, multifunctional, and customised lenses all saw revenue and margin growth, with total sales volume up 7.5% year-over-year to 93.1 million pieces.

• Standardised lenses gross margin rose to 33.6%, multifunctional lenses to 40.6%, and customised lenses to 61.9%.

• Other income and gains grew 7.8% to RMB29.2 million, mainly from additional funds raised and higher bank interest income.

• Administrative expenses decreased 1.3% to RMB93.7 million; finance costs fell 37.3% to RMB3.0 million.

• Earnings per share increased to RMB0.59 from RMB0.50 year-over-year.

Outlook and guidance

• Plans to increase R&D, promote product innovation, and further automate production, with new production lines in Japan and Thailand to boost overseas capacity.

• Focus on high-end, high-margin products and expanding XR (AR/AI glasses) business through global collaborations.

• Net proceeds from share placement to be fully deployed by end of 2026 for smart glasses and XR product development.