Sunny Optical Technology : Announces 2022 Annual Results Mar 20, 2023

To: Business Editors

(For Immediate Release)

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)

Sunny Optical Technology Announced 2022 Annual Results

Improving Market Share under Challenging Circumstances

Consolidating Dominant Position in the Industry

Revenue Proportions of Vehicle and VR/AR Related Products Continuously Increasing

Financial Summary (For the year ended 31 December)

	2022	2021	YoY Change
Revenue (RMB million)	33,196.9	37,496.9	-11.5%
Gross Profit (RMB million)	6,605.0	8,736.2	-24.4%
Net Profit (RMB million)	2,474.1	5,055.9	-51.1%
Basic Earnings per Share (RMB cents)	220.3	456.5	-51.8%

(20 March 2023, Hong Kong) Sunny Optical Technology (Group) Company Limited ("Sunny Optical

Technology" or the "Company", together with its subsidiaries, the "Group"), (stock code: 2382.HK), a global-leading integrated optical components and products producer, today announced its annual results for the year ended 31 December 2022.

For the year ended 31 December 2022, the Group's revenue was approximately RMB 33,196.9 million. The gross profit was approximately RMB6,605.0 million. The gross profit margin was approximately 19.9%. The net profit was approximately RMB2,474.1 million. The basic earnings per share was approximately RMB220.3 cents.

The Board of Directors has proposed a final dividend of HKD0.500 per share (equivalent to approximately RMB0.439 per share) for the year ended 31 December 2022.

In 2022, facing the rapid-changing political and economic situation, the impact of the normalized pandemic and fierce competition in the market, the Group consolidated its leading position in the industry by strengthening and expanding the existing advantageous businesses, and further increasing the market share; enhancing investments in new businesses continuously and taking over strategic control point in the industry; improving refined management and devoting to continuously improving the operational quality; and further deepening human resource development and corporate culture building.

Sunny Optical Technology Announced 2022 Annual Results

Press Release‧P.2

With the gradual easing of the chip shortage in the supply chain, the further increase of adoption rate of ADAS and the gradual increase in the level of autonomous driving, for the year ended 31 December 2022, the shipment volume of vehicle lens sets of the Group increased by approximately 16.1% to approximately 78,909,000 units as compared to that of last year, still enjoying the global No.1 market share; the shipment volume of vehicle modules increased significantly compared to that of last year. Meanwhile, the revenue related to the optical parts increased significantly as the projects of vehicle LiDAR and HUD have been in mass production gradually. Therefore, for the year ended 31 December 2022, the revenue of Sunny Optical Technology's vehicle related products was approximately RMB4,107.7million, representing an increase of approximately 38.7% as compared to that of last year. The revenue of the vehicle related products contributed approximately 12.4% of the Group's total revenue, approximately 4.5 percentage points higher as compared to that of last year.

In the VR/AR market, although the business operations of upstream and downstream enterprises have been affected due to inflation, increasingly fierce industry competition and other factors in 2022, but as the VR/AR industry layout gets clearer, the industry has advanced to a strategic window phase. "New Products, New Technologies, and New Scenarios" has driven the VR/AR industry explore ahead and open a new product cycle. In addition, the Group keeps up with the industry-leading customers in the global market, with the diversified layout of the product mix and leading technical advantages, the revenue related to the VR/AR products for the year ended 31 December 2022 was approximately RMB2,061.6 million, representing an increase of approximately 53.3% as compared to that of last year. It contributed approximately 6.2% of the Group's total revenue, approximately 2.6 percentage points higher as compared to that of last year.

Continuously affected by the weak demand in the global smartphone market and de spec of smartphone cameras, the Group's handset related businesses faced a severe challenge. For the year ended 31 December 2022, the shipment volume of handset lens sets of the Group decreased by approximately 17.2% to approximately 1,192,629,000 units as compared to that of last year. The shipment volume of handset camera modules of the Group decreased by approximately 23.3% to approximately 516,639,000 units as compared to that of last year. The Group has continued to strengthen its business cooperation with domestic and international customers, expand revenue sources and reduce costs while increasing efficiency and thus maintained its global No. 1 position in terms of handset lens set and handset camera modules' market shares.

Mr. Ye Liaoning, Chairman of the Board of Directors, said, " Looking forward to 2023, the Group will continue to face grave challenges such as slow recovery of the global economy, weak consumption demand and more intensified competition. However, development trend of the global economy will not change, which will stick to digital economy and green economy. This will bring new growth potentials and development opportunities to the optoelectronic industry. The rapid development of autonomous driving will promote the adoption of multi-sensor and huge market potentials will appear in VR/AR, robotic vision and other emerging industries. As such, 2023 will continue to be a year of challenges and opportunities. The Group will also explore and seize business opportunities based on the following three principles, so as to achieve the sustainable business development by tapping new potential in mature businesses; seeking opportunities in emerging industries, focusing on quality while expanding the volume. Looking forward, the Group will stick to its strategic position, continue to be innovation-driven, enhance the awareness of crisis, expand revenue sources and reduce costs thoroughly and further deepen the construction of sustainable development capability to constantly enhance its comprehensive competitiveness, provide more quality products and services to top global high-tech enterprises, advance the improvement of corporate growth and value."

Sunny Optical Technology Announced 2022 Annual Results

Press Release‧P.3

~ End ~

Company Profile:

Sunny Optical Technology (Group) Company Limited is a global-leading integrated optical components and products manufacturer. The Group is principally engaged in the design, R&D, manufacture and sales of optical and optical-related products. Such products include Optical Components (such as vehicle lens sets, optical parts of vehicle LiDAR, VR positioning lens sets, handset lens sets, glass spherical lenses for digital cameras and other optical components), Optoelectronic Products (such as vehicle modules, VR Pancake modules, VR visual modules, handset camera modules and other optoelectronic modules) and Optical Instruments (such as intelligent inspection equipment and microscopes). The Group focuses on the application fields of optoelectronic-related products, such as vehicles, VR/AR, robots and handsets, which are combined with optical, electronic, algorithm and mechanical technologies.

Issued by Porda Havas International Finance Communications Group for and on behalf of Sunny Optical Technology (Group) Company Limited.

For further information, please contact:

Porda Havas International Finance Communications Group

Ms. Kelly Fung	[phone]
Ms. Ivy Lu	[phone]
Ms. Cherry Liiang	[phone]

Fax: [phone]

[e-mail]@[e-mail]