Opcon Vision 2025 Annual Report Analysis: Net profit attributable to parent company down 16.20% year-over-year; net cash flow from financing activities plummeted 126.30%

Interpretation of Core Profitability Metrics

Operating Revenue: Up slightly by 2.62%, with a clear split in structure

In 2025, Aierpu Kangzi achieved operating revenue of RMB 1.861 billion, up 2.62% year over year. Revenue remained on a modest growth track, but the growth rate slowed. By product segment, revenue from the core hard contact lenses business was RMB 740 million, down 2.90% year over year. This was driven by weak demand for premium consumption, diversion by competitors, and intensifying market competition. Revenue from nursing products was RMB 242 million, down 5.99% year over year, mainly due to promotional activities to promote the company’s own nursing products, which lowered overall revenue. Meanwhile, revenue from other vision-related products such as frame lenses and technical services was RMB 422 million, up 19.49% year over year; non-hard-lens products became the main driver of revenue growth. Medical revenue was RMB 362 million, down slightly by 0.35% year over year.

Net Profit Attributable to the Parent: Down 16.20% YoY, with profit under pressure

In 2025, the company’s net profit attributable to shareholders of the listed company was RMB 480 million, down 16.20% year over year. Net profit attributable to the parent company after excluding non-recurring gains and losses was RMB 409 million, down 16.79% year over year, showing that the profitability performance was clearly weaker than the revenue growth rate. The decline in profit was mainly influenced by multiple factors: (1) gross margin fell 1.00% year over year, with a reduced share of high-gross-margin hard-lens revenue; (2) the increase in period expenses significantly eroded profit; (3) impairment losses on assets rose 34.11% year over year, with an increase in goodwill impairment provisions; and (4) non-recurring gains and losses fell 12.58% year over year.

Earnings Per Share: Falling in line with net profit

Basic earnings per share were RMB 0.5370 per share; earnings per share after excluding non-recurring items were RMB 0.4568 per share. Both decreased by about 16.20% year over year, consistent with the decline in net profit attributable to the parent company, reflecting an overall downturn in the company’s profitability.

Interpretation of Period Expenses

In 2025, total period expenses were RMB 705 million, up 13.77% year over year. Expense pressure became an important driver behind the decline in profit.

Selling Expenses: Up 12.86%, with marketing spending increased

Selling expenses were RMB 521 million, up 12.86% year over year. The main reasons were that the company increased the allocation of sales staff and technical support staff, and at the same time carried out various promotional activities to respond to market competition, including launching inclusive products and bundle discounts, which drove a rigid increase in selling expenses.

Administrative Expenses: Up 17.91%, with increased amortization of equity incentives

Administrative expenses were RMB 129 million, up 17.91% year over year, mainly due to an increase in amortization expenses year over year associated with the restricted stock incentive plan. The cost of equity incentives created a certain drag on profit for the period.

Financial Expenses: Up 42.88%, with lower interest income

Financial expenses were RMB 12 million, up 42.88% year over year. The main reason was that interest income from bank deposits decreased during the period, while interest expense increased somewhat, causing financial expenses to shift from net income in prior years to net outflow.

R&D Expenses: Up 3.76%, with investment staying on an upward trajectory

R&D expenses were RMB 44 million, up 3.76% year over year. The company continued to invest in R&D. During the reporting period, it launched new products such as super–high oxygen permeability corneal shaping lenses and scleral lenses. R&D investment supported product upgrades, but the growth rate was lower than that of selling and administrative expenses.

R&D Personnel Overview

At the end of the reporting period, the company had 97 R&D personnel, down 14.16% from 113 at the end of the previous year. The proportion of R&D personnel to total employees fell from 3.16% to 2.59%. In terms of education structure, the number of R&D personnel with bachelor’s degree or above also declined. Specifically, the number of PhD holders decreased from 3 to 2, master’s degree holders decreased from 12 to 9, and bachelor’s degree holders decreased from 63 to 52. Although the number of R&D personnel decreased, the company’s R&D investment still grew. During the full year, it obtained 10 invention patents, 3 utility model patents, and 5 design patents. R&D output remained fairly stable, and its reserve of core technologies continued to expand.

Cash Flow Interpretation

Operating Cash Flow: Steady improvement, with ongoing “cash-generating” capability

Net cash flow from operating activities was RMB 730 million, up 6.60% year over year, higher than the revenue growth rate. This was mainly because cash received from sales of goods increased, and because cost and expense controls led to a decline in various tax payments. Operating cash flow remained steady, reflecting that the company’s core business still has strong cash-generating ability.

Investing Cash Flow: Turned from negative to positive, with improved wealth-management income and expenses

Net cash flow from investing activities was RMB 13.24 million; in the same period last year it was RMB -693.66 million, showing a significant improvement year over year. This was mainly due to an increase in the net cash flow from wealth-management investments during the period. The company adjusted its wealth-management strategy, and the recovery of investment returns was relatively favorable. At the same time, spending on purchasing and constructing fixed assets decreased compared with the previous year, causing investing cash flow to change from net outflow to net inflow.

Financing Cash Flow: Net amount fell sharply by 126.30%, with increased debt repayment and dividend payments

Net cash flow from financing activities was RMB -657.37 million, down 126.30% year over year. The main reasons were that the repurchase under bond pledge agreements in the single consolidated asset management plan decreased during the period, and meanwhile the company’s spending on repaying debt and distributing dividends increased significantly, leading to an expanded net outflow in financing cash flow.

Risks the Company May Face

Industry Policy Risk

The state is promoting efforts to reduce the cost of using corneal refractive molding lenses. Some public hospitals have lowered retail prices. Also, the scope of centralized volume-based procurement for corneal refractive molding lenses may expand. Although the current impact on the company’s performance is limited, it may further compress product profit margins in the future, resulting in negative impacts on revenue and profit.

Market Competition Risk

The number of registered brands for corneal refractive molding lenses is increasing, and market competition is intensifying. At the same time, competitors such as low-concentration atropine, soft myopia defocus-reducing contact lenses, and functional frame eyeglasses continue to divert market share in the adolescent myopia prevention and control segment. If the trend of weak demand for premium consumption continues, it will continue to affect the company’s operating performance.

Regional Concentration Risk

The East China region remains the company’s core source of revenue, accounting for more than 50%. If the business environment in that region undergoes major adverse changes—such as policy adjustments, intensifying competition, and so on—it will have a significant impact on the company’s overall performance.

Financial Risk

First, there is the risk of fluctuations in gross margin. As competition intensifies, the gross margin of high-gross-margin products such as corneal refractive molding lenses may decline. Second, there is the risk of goodwill impairment. The goodwill balance formed through the company’s prior acquisitions is relatively large. If the acquired target companies do not perform as expected, the company will face a large amount of goodwill impairment, which would erode profit for the current period.

Internal Control and Management Risk

The number of the company’s subsidiaries continues to increase, which puts higher demands on management capabilities. If management standards cannot keep up with the expansion pace of subsidiaries, issues such as declines in operating efficiency and loss of cost control may arise.

Compensation of Executives and Board Members (Directors/Supervisors/Senior Management)

During the reporting period, the chairman Tao Yuequn’s total pre-tax remuneration received from the company was RMB 983,000. The general manager is兼任 by Tao Yuequn, and the compensation is the same as that of the chairman. Vice general managers Shi Xianmei, Dong Guoxin, Xiao Yongzhan, Zhu Zhe, and FU ZHIYING (Fu Zhiying) had pre-tax remuneration of RMB 605,600, RMB 627,500, RMB 755,700, RMB 667,900, and RMB 532,900 respectively. The chief financial officer Wei Lizhi’s pre-tax remuneration was RMB 567,900. Overall, the compensation of directors, supervisors, and senior management is tied to the company’s performance, and the core management team’s compensation remains within a reasonable range.

Click to view the full text of the announcement>>

Disclaimer: The market involves risks; investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is only for reference and does not constitute personal investment advice. If there are any discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

A wealth of information, precise analysis—available on the Sina Finance app

责任编辑：小浪快报