CONANT OPTICAL(02276): The impact of the US tariff policy is manageable, with limited overall revenue impact on the company.

CONANT OPTICAL (02276) has released an announcement, and the recent adjustment of US tariff policies has attracted widespread market attention. As a globally distributed manufacturer and service provider of resin eyeglass lenses, the company has always adhered to the principle of high transparency towards customers and investors. Therefore, the company now announces the assessment and response strategies of the Board of Directors regarding the impact of the US tariff policy adjustment: The US market has low sensitivity to end prices, with minimal actual impact on company products. Resin eyeglass lens products in the US fall under the scope of medical insurance coverage, and the industry markup rate is high (with the end retail price being several times the factory price). Consumers have limited sensitivity to end prices, and the market demand for resin lens products as medical devices is relatively stable. The Board of Directors believes that the actual impact of tariff costs being passed on to end consumers is minimal. The global supply chain structure of resin eyeglass lens products is stable, with limited alternatives. Currently, the main production sites for resin lenses are located in China and Southeast Asia, and US customers will find it difficult to find alternative supply sources of the same scale in the short term. The company's production bases in China and Japan have mature production capacity and can effectively guarantee the supply needs of the company's customers. The impact of the US tariff policy is controllable, with limited overall revenue impact on the company. Based on the conservative estimation of the Board of Directors and considering the most cautious scenario, assuming the company bears 50% (i.e., 17%) of the additional tariff, combined with the percentage of the company's overall revenue accounted for by the US market last year (i.e., 13%), the preliminary estimation of the direct impact on annual revenue is approximately 2.2%. Rapid growth in markets outside the US effectively offsets risks. The Board of Directors believes that in the fiscal year ending December 31, 2025, the company's markets outside the US, including domestic business, will maintain strong growth momentum. Therefore, the marginal impact of the US tariff policy on overall revenue is expected to be lower than 2.2%. Optimization of cost structure through global capacity coordination. The company actively utilizes the collaborative network of factories in China, Southeast Asia, and Japan, to flexibly allocate capacity according to policy and market demand, further enhancing the resilience of the supply chain and achieving cost efficiency optimization. First quarter business performance for 2025 Reviewing the performance of the company in the first quarter of 2025, with the continuous development of the company's product R&D and production departments, the company's revenue has been maintained at a high level, and the number of customer orders meets the company's expectations. The company expects the first quarter performance to remain satisfactory. The company has always responded to market fluctuations with a global perspective, continuously improving risk resistance through diversified layouts and technological upgrades. We will closely monitor policy trends, maintain transparent communication with partners, and ensure service stability and long-term value delivery.