Mao Yuanchang Glasses IPO in Hong Kong: The actual controller opened a store in Northwest at age 13. Who has been pocketing the industry's "huge profits"?

On April 2, the time-honored Chinese eyewear company with more than 160 years of history—Zhejiang Maoyuan Chang Eyewear Co., Ltd. (hereinafter referred to as “Maoyuan Chang”)—submitted its prospectus to the Hong Kong Exchanges and Clearing Limited, aiming to list on the Main Board of the Hong Kong Stock Exchange.

This century-old Hangzhou brand was founded in 1862, but its controlling shareholder is a Zhejiang Ruian businessman who made his way through the Northwest; at age 13, he opened an eyewear shop in Lanzhou, Gansu. After 31 years of starting from scratch, at age 43, he obtained the National Level-2 Optometrist professional qualification certificate through study at a vocational college.

Under Jin Zengmin’s control, Maoyuan Chang’s gross margin indeed meets the “excessive profits” level commonly held in public perception. In 2025, the company’s gross margin reached as high as 61.10%, but unexpectedly, its net profit margin for the same year was only 15.52%. In 2024, the company’s net profit margin fell even further to single digits—so who ended up taking those “excessive profits” in the eyewear industry?

An eyewear merchant who started his business at 13 takes over a century-old brand

Maoyuan Chang is a Hangzhou eyewear brand founded in 1862. In 2006, it was recognized by the Ministry of Commerce as a “time-honored Chinese brand.” The brand has deep heritage. With the opportunity for restructuring in 2012, Jin Zengmin, from Wenzhou, became the controlling shareholder. He is not “Zhejiang capital” in the traditional sense, but rather an eyewear merchant from Lanzhou, Gansu.

Born in September 1973, Jin Zengmin is from Ruian, Zhejiang. At a very young age, he ventured alone into the far Northwest (according to materials selected by the Hangzhou Net Good Person Awards). At age 13 (in 1986), in Lanzhou he rented a storefront and opened a store called “Keda Eyewear.” This marked the official start of Jin Zengmin’s entrepreneurial career.

Jin Zengmin’s entrepreneurial story also has another version. According to the Zhejiang Business Journal, Jin Zengmin once said, “When I was young, our family was poor. When I was 16, my mother said that since I wasn’t doing well in my studies, she told me to go out and make a living.”

In 1996, Jin Zengmin founded Lanzhou Keda Eyewear Optical Co., Ltd. (hereinafter referred to as “Lanzhou Keda”). After that, Keda Eyewear became a regional eyewear retail chain in the Lanzhou area. Lanzhou Keda Eyewear has since reshaped its brand to “Lanke da Eyewear.”

Jin Zengmin, who established himself in Lanzhou, returned to his hometown. In 2011, Jin Zengmin and Huang Chuanshang, a fellow Ruian native, agreed to jointly participate in the public auction of Maoyuan Chang Eyewear (then known as Hangzhou Maoyuan Chang Eyewear Co., Ltd.) on the Hangzhou Property Rights Exchange, at the time for 75% of the state-owned equity.

Ultimately, after 11 rounds of bidding, RuiBiao Group Co., Ltd., representing Jin Zengmin and Huang Chuanshang, beat the other two bidders and became the winning bidder at a price of RMB 79.00 million. After that, when a friend passed away, Hangzhou Dashengchang—fully owned by Jin Zengmin—acquired the target equity. At this point, Maoyuan Chang Eyewear was jointly controlled by Jin Zengmin and Hangzhou Industrial Assets Management and Investment Group Co., Ltd. (now called Hangzhou Industrial Investment).

On August 13, 2012, this transaction was completed with the industrial and commercial change. From then on, the equity structure of Maoyuan Chang Eyewear changed to Jin Zengmin holding 75%, and state-owned capital holding 25%. A businessman who started out in the Lanzhou eyewear retail market officially became the actual controlling shareholder of the century-old brand “Maoyuan Chang.”

After the acquisition was completed, Jin Zengmin did not stop consolidating. In August 2020, he established a new listed entity, “Zhejiang Maoyuan Chang Eyewear Co., Ltd.,” and injected the related businesses of Maoyuan Chang Eyewear. In December 2021, he also merged 100% equity of “Lanzhou Keda,” which he had founded earlier, thereby realizing the integration of the two regional brands and forming today’s “Maoyuan Chang Eyewear” as it makes a push for a Hong Kong listing.

Jin Zengmin serves as the Chairman of the Board, Executive Director, Chief Executive Officer, General Manager, and the actual controlling shareholder of Maoyuan Chang Eyewear. Among the company’s five executive director seats, Jin Zengmin, his wife Peng Meiliu, and his son JinLei sit together. Peng Meiliu is also the company’s Chief Financial Officer, and JinLei concurrently serves as the Product Director. As of the last practicable date, Jin Zengmin, through direct or indirect shareholding, controls a total of 78.38% of the voting rights.

“Excessive profits” eroded by rent, labor, and more

From 2023 to 2025, Maoyuan Chang’s revenue was RMB 272 million, RMB 250 million, and RMB 265 million, respectively. Company-owned stores are the absolute fundamental base, but revenue is not stable; during the same period, revenue from company-owned stores was RMB 207 million, RMB 185 million, and RMB 196 million, respectively.

It is worth noting that the number of franchised stores declined from 205 to 194, but total revenue from the franchising business increased from RMB 59.4080 million to RMB 65.8400 million. Its proportion rose from 21.80% to 24.80%.

The decline in the number of franchised stores led to a drop in revenue from wholesale eyewear, but revenue increased against the trend; the answer lies in franchise management fees. The company’s franchise management fees increased from RMB 2.358 million in the prior year to RMB 10.2150 million in 2025, a year-on-year increase of 333.20%. The reason is that beginning in 2025, the company started charging a uniform 6% management fee to its 165 franchised stores within Zhejiang Province.

On the profit side, in the perception of most consumers, eyewear is an “excessive profits” industry, and Maoyuan Chang shows a side that differs from the common perception. From 2023 to 2025, the company’s gross profit margins were 58.30%, 57.10%, and 61.10%, respectively. However, during the same period, Maoyuan Chang’s net profit margins were only 13.64%, 7.21%, and 15.52%, respectively—especially in 2024, when the net profit margin fell to single digits.

The root cause of the low net profit lies in high and rigid expenses. Taking 2024 as an example, the company’s revenue was RMB 250 million, while selling expenses were as high as RMB 105 million, with a selling expense ratio of 42.02%. Of that, employee costs accounted for 16.99% of revenue, and depreciation of right-of-use assets and property fees accounted for 13.75%. In addition, in 2024, to promote brand upgrades, Maoyuan Chang held launch events; marketing expenses rose further as well.

In short, the “excessive profits” in eyewear are diluted layer by layer at the factory or wholesale stage by rent, labor, and marketing, which together lead to the large gap between gross profit and net profit. In 2025, the company’s net profit margin rebounded to 15.52%, mainly due to a surge in franchise management fee income and marketing activities returning to normal.