Driven by consumer electronics products, the optical industry is developing rapidly, and the effects of the company's product restructuring have been evident. The three industries of lenses, lenses, optical instruments, and precision components have gone hand in hand. Among them, optical processing already accounts for 80% of the main business revenue, making it one of the major companies in the world's optical parts processing industry. The company's main customers are multinational companies such as Canon, Kodak, and Fujineng. The lenses and lenses it produces are mainly digital cameras, camera phones, projectors, etc. The cash flow situation is relatively good. The net operating cash flow continued to grow from 57 million yuan in 2001 to 113.45 million yuan in 2005. The company's lens production capacity has reached 11 million lenses per month. There are thousands of lens specifications, a business cycle of about 3 months, an average price of about ten yuan per piece, and a gross margin of around 27%. This business is at an absolute leading level in China, and is expected to develop steadily in the future. In the future, the company tends to increase its business development efforts for lenses and optical components. Technically, lens design is very difficult, but gross margin is as high as 50%. If this work makes a breakthrough in 2007 or 2008, it is expected to drive explosive growth in the company's performance. The company is cleaning up the relevant institutions and assets left over from entering the digital camera field before. Eleven sales companies have been liquidated, and currently 3-4 subsidiaries are still being processed. The divestment of non-performing assets is beneficial to the company's future development, but short-term inventory handling and equity transfers may affect the company's current earnings. Earnings per share for 2006 are expected to be 0.18 yuan, 2007 is 0.28 yuan, and the closing price on October 16 is 5.38 yuan. Corresponding to dynamic price-earnings ratios of 30 times and 19 times, respectively, the optical industry has huge room for development. The investment rating is “increase in holdings” in the short term and “increase in holdings” in the long term. Risk factors: Consumer electronics products are very competitive, and the update rate is about 3-6 months. Supporting manufacturers must adapt to the pace of OEMs, otherwise they face the risk of being eliminated. Furthermore, in the long run, companies cannot completely avoid the negative impact of exchange rate appreciation on performance.