2019 Annual Results Corporate Presentation

March 2020

Sunny Optical Technology (Group) Company Limited舜宇光學科技（集團）有限公司(Incorporated in the Cayman Islands with limited liability)(Stock Code：2382.HK)

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Disclaimer

The information contained in this presentation is intended solely for your personal reference. Suchinformation is subject to change without notice, its accuracy is not guaranteed and it may notcontain all material information concerning Sunny Optical Technology (Group) Company Limited(the “Company”). The Company makes no representation regarding, and assumes no responsibilityor liability for, the accuracy or completeness of, or any errors or omissions in, any informationcontained herein.

In addition, the information contains projections and forward-looking statements that may reflect theCompany’s current views with respect to future events and financial performance. These views arebased on current assumptions which are subject to various risks and which may change over time.No assurance can be given that future events will occur, that projections will be achieved, or thatthe Company’s assumptions are correct. It is not the intention to provide, and you may not rely onthis presentation as providing, a complete or comprehensive analysis of the Company's financial ortrading position or prospects.

This presentation does not constitute an offer or invitation to purchase or subscribe for anysecurities or financial instruments or to provide any investment service or investment advice, and nopart of it shall form the basis of or be relied upon in connection with any contract, commitment orinvestment decision in relation thereto.

1. Financial Highlights

2. Operation Review

4. Q&A Session

5. Appendix

Agenda

3. Future Outlook

Financial Highlights

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OpticsExpert inFinancial Highlights

2018 2019 ChangeFor the year ended 31 December(RMB mn)

Revenue 25,931.9 37,848.7 +46.0%

Gross Profit 4,913.1 7,750.7 +57.8%

Profit Before Tax 2,851.3 4,550.3 +59.6%

Income Tax Expense (338.6) (531.0) +56.8%

Effective Tax Rate (%) 11.9 11.7 -0.2ppt

Net Profit 2,512.7 4,019.4 +60.0%

Earnings per Share – Basic (RMB cents) 227.9 364.8 +60.1%

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2018 2019

Operating Expenses Analysis

20172017 2018 2019For the year ended 31 December(RMB mn)

(as % of revenue)

(as % of revenue)

(as % of revenue)

Revenue 22,366.3 100.0% 25,931.9 100.0% 37,848.7 100.0%

Total Operating Expenses 1,762.2 7.8% 2,006.1 7.8% 3,138.3 8.3%

• Selling and Distribution Expenses 205.1 0.9% 209.9 0.8% 278.6 0.7%

• R&D Expenditure 1,168.2 5.2% 1,362.3 5.3% 2,209.3 5.9%

• Administration Expenses 388.9 1.7% 433.9 1.7% 650.4 1.7%

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OpticsExpert inSolid Financial Position

2017 2018 2019

As at 31 December/ for the year ended 31 December

Current Ratio (Times) 1.5 1.9 1.8

Operating Cash Inflow (RMB mn) 2,436.3 3,567.9 4,661.6

Cash and Cash Equivalents (RMB mn) 3,339.5 7,248.6 7,601.1

• Pledged Bank Deposits (RMB mn) 140.3 214.7 6.1

• Financial Assets at Fair Value through Profit or Loss (RMB mn) 1,952.3 4,759.6 5,662.8

• Bank Balances and Cash (RMB mn) 1,246.9 2,274.3 1,932.2

Net Cash per Share (RMB cents) 183.1 154.3 212.6

Gearing Ratio (%) 8.6 24.3 17.2

ROE (%) 38.8 27.1 31.6

Capital Expenditure (RMB mn) 1,765.5 2,617.4 3,167.9

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1.3%

79.5%

19.2%

1.2%

23.2%

Revenue and Gross Profit Margins By Business Segments

Revenue by Business Segments Gross Profit Margins by Business Segments

(RMB mn)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2017 2018 2019

OpticalComponents

OptoelectronicProducts

OpticalInstruments

For the year ended 31 December

22,366.3

1.3%

79.5%

19.2%

25,931.9

1.2%

75.6%

23.2%

37,848.7

0.7%

76.0%

23.3%

44.0%

13.1%

43.2%41.5%

8.4%

40.5%

45.2%

9.3%

41.3%

0%

10%

20%

30%

40%

50%

OpticalComponents

OptoelectronicProducts

OpticalInstruments

2017 2018 2019

For the year ended 31 December

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6%5%

4%

2019

85%

6%4%

1%

4%

2018 2017

84%

6%4% 1%

5%

Revenue Breakdown byProduct Applications

For the year ended 31 December

87%

5%2% 1%

5%

Handset Related Products

Vehicle Lens Sets

Digital Camera Related Products

Optical Instruments

Other Products

Operation Review

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634

958

1,521

0

200

400

600

800

1,000

1,200

1,400

1,600

Number of Authorized Patents by Business Segments

Focus on Patent LayoutStrengthen Competitive Advantage

As at 31 December

2017 2018 2019

242267

125

432 440

86

715659

147

0

100

200

300

400

500

600

700

800

OpticalComponents

OptoelectronicProducts

OpticalInstruments

2017 2018 2019

Number of Authorized Patentsof the Company

As at 31 December

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• The R&D of ultra-large image size (1/1.5” and1/1.3”) handset lens sets has been completed

• The R&D of 10-time optical zoom handset lenssets has been completed

• 64-mega pixel large image size (1/1.7”) handsetlens sets have achieved mass production

• Ultra-miniaturized head (head size is 1.865 mm)handset lens sets have achieved massproduction

• 5-time optical zoom handset lens sets haveachieved mass production

• The R&D of the front view, side view and rearview vehicle lens sets (which are all 8-megapixel) applied to L4 autonomous driving hasbeen completed and obtained mass productionorders

• The R&D of 10-time optical zoomhandset camera modules has beencompleted

• 5-time optical zoom handset cameramodules have achieved massproduction

• Ultra-large image size (1/1.3”)handset camera modules haveachieved mass production

• Ultra-large aperture (FNo.1.4)handset camera modules haveachieved mass production

• The R&D of 8-mega pixel front-viewvehicle modules has been completed

• The R&D of laser confocalscanning microscope has beencompleted

• The first domestic 60-timeapochromatic oil-immersionobjective with a numericalaperture of 1.4 has achievedmass production

• The R&D of pathological sectionscanner has been completed andobtained batch sales

Optical Components

Optical Instruments

Significant Achievements in R&DBuild Hi-Tech Barriers

Optoelectronic Products

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Continental“Excellent Supplier in Optical

Component Category”

Dahua“Excellent Supplier Award”

OFILM“Core Supplier Award”

Huawei“Excellent Quality Award”

LG Electronics“Excellent Supplier”

Lenovo“Excellent Supplier Award”

“Partner Award”

CIOE“Technology Innovation Award”

Constituent Stock of

“Hang Seng China Enterprise Index”

“Institutional Investor”All-Asia Technology/Hardware

MSCI ESG rating “BB”

Awards and Recognitions

“Best Corporate Governance”“Best Investor Relations Program”

“Most Honored Company”

“Best ESG SRI Metrics”

Panasonic“Excellent Supplier”

Xiaomi“ Best Strategic Cooperation Award”

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608,074

950,888

1,343,173

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2017 2018 2019

(Unit: k)

Maintain Global No. 2 of Market Share Strive for Domestic No.1

Shipment Volume of the Company’s Handset Lens Sets

Shipment Volume of the Company’s 6P and above Handset Lens Sets

For the year ended 31 December

182,370

314,060

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2018 2019

For the year ended 31 December

(Unit: k)

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31,891

39,949

50,102

0

10,000

20,000

30,000

40,000

50,000

60,000

2017 2018 2019

For the year ended 31 December

(Unit: k)

Maintain No.1 Position in Global MarketFurther Capture the Market Share

Shipment Volume of the Company’s Vehicle Lens Sets

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461

31,459

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2018 2019

324,831

423,331

540,493

0

100,000

200,000

300,000

400,000

500,000

600,000

2017 2018 2019

For the year ended 31 December

Solidate the Leading Position in PRC Market Further Cooperate with Overseas Clients

Shipment Volume of the Company’s Handset Camera Modules

Total Shipment Volume of the Company’s Periscope Modules and Large Image Size Modules

(Unit: k)

For the year ended 31 December

Large image size refers to 1/1.7” and above

(Unit: k)

Future Outlook

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• Single Camera• Dual-Camera• Triple-Camera• Multi- Camera

Distinct Upgrade in Handset CamerasBroad Application Prospects

Upgrading Specifications of Rear Cameras

• High Resolution• Large Image Size• Ultra-wide Angle• Large Aperture• Telephoto Lens Sets• Video Lens Sets• …

Upgrading Specifications of Front Cameras

• Miniaturized Head• Ultra-thin Lens Sets• Front Auto Focus • Biological Recognition• …

• Diffuser• Diffractive Optical

Element• Collimating Lens Sets• …

Increasing Number of Cameras

Picture Video 3D Sensing

More Key Components Appliedto Emerging Optical Fields

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Display Related:

Head-up Display

Smart Headlights

Key Optical Components

Optical Solutions

LiDAR Related:

Key Optical Components

Optical Solutions

Vehicle Cameras Related:

Vehicle Lens Sets

Vehicle Modules

Solutions

Rapid Progress of Autonomous DrivingHuge Potential in Optical Applications

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Display

Positioning

Recognition

Inspection

Market Opportunities

Smart Eye

Drone

Smart Retail

Smart Medical

AR/VR

Precision Industry

Robot

Q & A SessionInvestor Relations Contacts：Sunny Optical Technology (Group)

Company Limited

Email: jfma@sunnyoptical.comjasmine@sunnyoptical.comchris@sunnyoptical.com

Tel: +852-3568 7038

+86 (574)-6253 4996

Media Relations Contacts：Porda Havas International Finance

Communications Group

Email: sunnyoptical@pordahavas.com

Tel: +852-3150 6788

Appendix

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19842007

200320041995

2008

2012

2013

2014

2015

2016

2018

2019

Established and entered into the optical industry

Entered into the field of image digitization

Commenced production of handset camera modules

Enhanced R&D and production capacity of handset lens sets

Possessed plastic aspherical lens technology

Entered into the field of vehicle lens sets

Listed on the Main Board of the Hong Kong Stock Exchange

Set up Sunny Instruments Singapore PTE. Ltd. in Singapore to commence the R&D and production of optical measuring instruments

Set up subsidiaries in the US and South Korea

Invested in MantisVision Ltd. to make the strategic layout of 3D imaging business

Successfully placed 97,000,000 new shares and raised net proceeds of approximately HK$770 million

Entered into a series of Strategic Cooperation Agreements with Konica Minolta Optical (Shanghai) Co., Ltd.

Set up Zhejiang Sunny Optical Intelligence Technology Co., Ltd. in Hangzhou

Set up Sunny Optical (Zhejiang) Research Institute Co., Ltd. in Hangzhou

Issued US$600mn five-year bonds

Established new production bases in India and Vietnam

Set up a subsidiary in Germany

Milestones

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100.0%

35.47% 64.53%

Shareholding Structure

Sun Ji (1)

Sun Xu Public

Sunny Optical Technology

(1) The Sunny Group Employee Offshore Trust is a trust which holds the entire issued share capital of Sun Ji Limited. Mr. Wang Wenjian, together with TMF Trust (HK) Limited, is one of the two trustees and one of the beneficiaries of the Sunny Group Employee Offshore Trust.

* As at 31 December 2019

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228.2

318.1

725.1

623.0

798.5

0

100

200

300

400

500

600

700

800

900

2015 2016 2017 2018 2019(Proposed)

763.5

1,271.6

2,914.1 2,512.7

4,019.4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2015 2016 2017 2018 2019

Investment Highlights

OUTSTANDING PERFORMANCE IN NET PROFIT

FINAL DIVIDENDS PAYOUT RATIO AT 20%-30% OF THE PROFIT FOR THE YEAR ATTRIBUTABLE

TO OWNERS OF THE COMPANY

Net Profit Dividends

For the year ended 31 December For the year ended 31 December

(RMB mn) (RMB mn)