Yunqi Capital Applauds STAAR Surgical’s Strong Third Quarter Results and Reiterates That the Proposed Sale to Alcon Should Be Terminated

Yunqi Capital Limited (together with its affiliates and the funds it advises, “Yunqi Capital”), an investment management firm and 5.1% shareholder of STAAR Surgical Company (“STAAR” or the “Company”) (NASDAQ:STAA), today released the following letter to the Board of Directors of STAAR after reviewing STAAR’s third quarter earnings press release and Alcon Inc.’s (SIX/NYSE:ALC) November 4, 2025 investor presentation.

The text of the letter to the Board is as follows:

November 6, 2025

STAAR Surgical Company
25510 Commercentre Drive
Lake Forest, CA 92630

Dear Members of the Board:

I congratulate the Board on STAAR Surgical’s strong results for the third quarter ended September 26, 2025, released after market closing on November 5, 2025. We are especially encouraged to see that STAAR has demonstrated not only operational momentum but also cost discipline progress – beating cost guidance while strengthening its cash position – precisely the combination that positions the Company to capture the full value of its growth trajectory. Reported operating expenses were $59.4 million; excluding $5.9 million of merger-related costs with Alcon, the underlying run rate was $53.5 million – annualizing to $214 million and beating prior guidance of $225 million. While these savings are welcome, they represent only the beginning of STAAR's efficiency potential. Separately, the Company's balance sheet strengthened sequentially, with cash, cash equivalents, and investments rising to $192.7 million from $189.9 million at the end of the second quarter, despite ongoing merger expenses.

STAAR’s robust third quarter results provide just the latest support for our view that STAAR’s operational and financial challenges have reflected temporary headwinds rather than structural weaknesses. The results demonstrate our longstanding view that there is solid and accelerating demand for the Company’s ICL technology in China, and around the world, and that recent challenges affecting the Company’s business in China stemmed from short-term distributor inventory adjustments. The Company itself was making these points to shareholders until not long before it announced the proposed merger with Alcon.