Mao Lai Optics recently released its Q3 report. For the first three quarters of 2026, the company reported total operating revenue of 719 million yuan, up 42.86% YoY. However, net profit attributable to parent was only 10.78 million yuan, a sharp decline of 76.41% YoY, dragging net margin down to 1.5%—a clear illustration of revenue growth without corresponding profit growth.

Quarterly data suggest that the profit pressure is beginning to ease. In Q3, the company generated revenue of 292 million yuan, up 58.26% YoY, while quarterly net profit attributable to parent reached 24.19 million yuan, up 87.02% YoY. From a quarterly perspective, since the first SP8-related machine entered mass production and delivery in June, recognition of semiconductor metrology and inspection orders has been feeding into revenue at an accelerating pace.

Pressure on earnings quality, however, remains hard to avoid. In the first three quarters, gross margin stood at 43.52%, down 8.87 percentage points YoY, while total selling, administrative, and financial expenses amounted to 188 million yuan, accounting for 26.21% of revenue.

In a recent survey, the company explained that a phased increase in R&D projects, material preparation for new products, and a higher proportion of low-margin products weighed on gross margin in the short term. As new products complete validation and parts localization advances, gross margin is expected to gradually recover.