Behind Opcon Vision’s Performance Decline: Core Product “Cooling Off,” Goodwill Impairment Weighs on Results

China Economic Journalists Su Hao and Lu Zhikun Beijing Report

(Exterior shot of Opcon Vision Building, company website/photo)

Recently, the leading “OK mirror” company Opcon Vision (300595.SZ) has released its 2025 performance report.

Financial data shows that in 2025, Opcon Vision achieved operating revenue of 1.86B yuan, a year-on-year increase of 2.62%. However, in stark contrast to this slight revenue growth, the company’s net profit attributable to the parent was 480 million yuan, down 16.20% year-on-year; non-recurring net profit was 409 million yuan, down 16.79% year-on-year.

This is the second consecutive year that Opcon Vision’s net profit attributable to the parent has declined by double digits (a 14.16% decrease in 2024). Beneath the seemingly steady “micro-growth” appearance, the core product growth has been sluggish, profit margins are narrowing, expenses are high, and the shadow of goodwill impairment is gradually overshadowing this former “ten-bagger stock.”

In response to the reasons for the company’s performance decline and subsequent boosting measures, China Business Journal reporters recently sent written inquiries and made phone calls to Opcon Vision, but as of press time, no response has been received.

High-margin products “not selling”

Opcon Vision’s core product, corneal reshaping lenses (commonly known as “OK mirrors”), has long been praised for its extremely high profit margins. The 2025 annual report shows that the company’s rigid contact lenses (mainly OK mirrors) maintained a gross profit margin of around 89%. However, this high-margin product is facing sluggish sales growth.

From the revenue structure perspective, in 2025, rigid contact lenses generated 740 million yuan in revenue, a decrease of 2.90% year-on-year. This marks the second consecutive year of negative growth for this segment—2024 saw its first decline, and the downward trend continued in 2025.

In terms of proportion, rigid contact lenses accounted for 47.03% of the company’s total revenue in 2023, dropping to 39.75% in 2025. This also means that although OK mirrors still maintain strong profitability, their role as the company’s “cash cow” is quietly being challenged.

Opcon Vision attributes the decline in core product revenue in its annual report to three pressures: weak high-end consumer demand, intensified market competition, and diversion by competing products.

First, weak high-end consumption is an objective macroeconomic constraint. Corneal reshaping lenses are relatively costly, with a single pair typically priced between 8,000 and 15,000 yuan, making them a typical high-end medical device. In 2025, domestic high-end consumption remained sluggish, directly affecting consumers’ willingness to purchase. This cautious consumer sentiment has had a direct impact on Opcon Vision, which targets the mid-to-high-end market.

Second, the competitive landscape has fundamentally changed. By the end of 2025, the number of registered brands for domestic corneal reshaping lenses continued to increase, evolving from an early “monopoly” to a “battle among many.” Domestic manufacturers such as Haohai Shengke and Aibo Medical, as well as numerous imported brands, are now sharing this previously dominated market.

Additionally, competitors such as low-concentration atropine, soft defocus contact lenses, and functional frame glasses have entered the market for myopia control among teenagers, reshaping the market share. Among these, the impact of functional frame glasses is particularly notable.

Opcon Vision openly admits in its annual report that since 2023, defocus frame glasses, benefiting from their non-medical device attributes, loose promotional restrictions, widespread dispensing outlets, and lower product prices, have seen rapid sales growth, diverting some potential users of corneal reshaping lenses.

On the expense side, in 2025, Opcon Vision’s sales expenses reached 521 million yuan, a 12.86% increase, far exceeding revenue growth. The company explains this mainly results from an increase in sales and technical support staff, as well as various promotional activities. Meanwhile, management expenses rose 17.91% to 129 million yuan, mainly due to increased amortization of restricted stock incentive expenses.

Goodwill impairment sounds alarm bells

If sluggish core business growth is an overt problem, then the risk of goodwill impairment is an invisible “time bomb.”

The 2025 annual report shows that Opcon Vision’s goodwill on the books soared from 561 million yuan at the beginning of the year to 884 million yuan at year-end, an increase of 57.63%. This surge is closely related to the company’s recent external acquisitions.

In July 2025, Opcon Vision acquired a 75% stake in Suqian Shangyue Qicheng Hospital Management Co., Ltd. for 334 million yuan, with an assessed appreciation rate of 771.49%. While this high-premium acquisition brought ophthalmic hospital and clinic resources, it also planted the seeds for goodwill impairment risks.

In 2025, Opcon Vision recognized impairment provisions totaling 74.99 million yuan, directly reducing net profit attributable to the parent by nearly 69.56 million yuan. Among these, goodwill impairment losses amounted to 39.97 million yuan, accounting for 53.3% of the total impairment provisions. This huge impairment directly dragged down the company’s current profit.

The company states in its annual report that most of the invested enterprises are in the ophthalmology and optometry sectors. Although the industry is long-term optimistic, “there will still be phases of weak consumption and sales bottlenecks, leading to some invested companies’ operational performance not meeting expectations, resulting in goodwill impairment.”

Meanwhile, considering that the recovery of the ophthalmic consumer market has fallen short of expectations and that core products face competitive pressures, if future acquisition targets fail to meet performance commitments, further goodwill impairments are likely. The 884 million yuan of goodwill thus poses a potential risk to Opcon Vision’s financial security.

“Breakthrough” in optometry services

Faced with growth bottlenecks in core business, Opcon Vision has not been idle. In recent years, the company’s large-scale layout of “community-based optometry services” has been gradually taking over the growth baton.

As of the end of 2025, Opcon Vision had established over 500 community-based optometry service outlets, mainly providing eye health checks, vision correction, myopia prevention and control management, and visual function training. In 2024, the revenue from its optometry service outlets first exceeded half of the company’s total revenue, and this proportion continued in 2025.

From the annual report data, the medical service segment (mainly including optometry services) achieved revenue of 362 million yuan, a slight decrease of 0.35% year-on-year. Considering the decline in rigid contact lens revenue, the steady performance of the service segment has played a buffering role. Additionally, revenue from other optometry products and technical services, such as frame glasses, increased by 19.49% year-on-year, reflecting the company’s efforts to transition into a “product + service” integrated solution provider.

However, this transformation still faces challenges. The gross profit margin of optometry services is much lower than that of OK mirrors. While growth in service revenue can support overall revenue, it struggles to offset profit pressures, which explains why the company’s revenue hit a new high while net profit declined.

On the product side, Opcon Vision is attempting to build new competitive barriers through technological upgrades. The company launched a new generation of corneal reshaping lenses with the highest oxygen permeability (DK value 185, DV185, AP185), as well as scleral lenses and other high-end products. Meanwhile, in response to weak high-end consumption, the company introduced affordable corneal reshaping lenses and package discounts to cover a broader price-sensitive customer base. Whether technological upgrades can reverse the downward trend remains to be seen. Although the new ultra-high oxygen permeability OK mirror has obvious material advantages, its higher price point still faces resistance in a sluggish consumption environment.

(Editors: Cao Xueping; Review: Tong Haihua; Proofreading: Liu Jun)