Sunny Optical Technology : Announces 2021 Annual Results Mar 22, 2022

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 2021 Annual Results

Leveraging Technological Advantages

Consolidating Leading Positions in the Markets

Net Profit Increased 2.3% to RMB5,055.9 million

Proposed a Final Dividend equivalent to HKD1.118

Financial Highlights (For the year ended 31 December)

	2021	2020	YoY
	(RMB million)	(RMB million)	Change
Revenue	37,496.9	38,001.8	-1.3%
－ Optical Components	8,776.1	9,181.1	-4.4%
－ Optoelectronic Products	28,333.5	28,494.3	-0.6%
－ Optical Instruments	387.3	326.4	+18.7%
Gross Profit	8,736.2	8,697.9	+0.4%
Net Profit	5,055.9	4,940.3	+2.3%
Basic Earnings per Share (RMB cents)	456.5	445.8	+2.4%

(22 March 2022, 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 2021.

For the year ended 31 December 2021, the Group's revenue was approximately RMB37,496.9 million, representing a slight decrease of approximately 1.3% compared to that of last year. The gross profit was approximately RMB8,736.2 million, representing an increase of approximately 0.4%. The gross profit margin was approximately 23.3%, which was approximately 0.4 percentage point higher. The net profit was approximately RMB5,055.9 million, representing an increase of approximately 2.3%. The basic earnings per share increased by approximately 2.4% to approximately RMB456.5 cents. The Board of Directors has proposed a final dividend of approximately RMB0.910 (equivalent to HKD1.118) per share for the year ended 31 December 2021.

Sunny Optical Technology Announced 2021 Annual Results

Press Release‧P.2

In 2021, facing the rapid-changing market landscape, fierce industrial competition and the impact of the normalized pandemic, the Group responded actively and maintained a leading position in the industry through the following aspects:

1. devoted in the R&D and application of new technologies, accelerated the iteration in the development of new products and new specifications, challenged and took the "commanding height" of the industry;
2. enhanced refined management, realised distinct division of duties and clear workflow under a common goal and thereby improved the quality of operation;
3. increased investment in new businesses, firmly grasped the development opportunities in the emerging markets and rapidly developed the growth points of new businesses; and
4. enhanced the internal incentive mechanism and further practised the core value of "Create Together".

For the year ended 31 December 2021, the global market share of Sunny Optical Technology's three major products, namely handset lens sets, vehicle lens sets and handset camera modules, were all the global No.1.

In handset lens sets, impacted from the weak demand in the global smartphone market, the downgrade in specification of terminal configurations, the restrictions on the supply chain and other unfavorable factors, the shipment volume growth of handset lens sets of the Group were under certain pressures. During the year under review, the Group's shipment volume of handset lens sets amounted to 1,439.5 million units, representing a slight decrease of approximately 5.9% compared to that of last year. However, the Group continued to promote the optimisation of the customer structure and enhance R&D and process and technological capabilities, thus consolidating the global No.1 position in terms of the market share.

In vehicle lens sets, although the tight supply of chips severely restricted the global automobile sales growth, the adoption rate of vehicle lens sets continuously increased benefiting from the development of autonomous driving. During the year under review, the shipment volume of vehicle lens sets amounted to 67.98 million units, representing an increase of approximately 21.0% compared to that of last year, further consolidated its global No. 1 position in terms of market share.

In handset camera modules, under the impact of the weak demand for smartphone market, the downgrade in terminal configurations, the lower proportion of high-end products and other unfavorable factors, the Group surmounted the challenges, overcame heavy pressures and further expanded the shares in domestic and foreign famous customers. During the year under review, the shipment volume of handset camera modules amounted to 673.7 million units, representing an increase of approximately 13.6% compared to that of last year, achieved a good shipment growth and occupied the global No. 1 position in terms of the market share.

Sunny Optical Technology Announced 2021 Annual Results

Press Release‧P.3

Mr. Ye Liaoning, Chairman of the Board of Directors, said, "Looking forward to 2022, it is foreseeable that the global economic recovery might still face difficulties, and the international environment will be intricate and complicated, hence the consumer demand will be likely to remain weak. The development of relevant industries is not optimistic and some enterprises will face huge operation pressures. However, as digital economy and green economy gradually become the main engines to the global economic growth, they 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 be appeared in VR/AR, robotic vision and other emerging industries. As such, short-term pressure also serves as the driving force and the Group will remain confident on the future development. It will continue to strengthen and expand the existing advantageous businesses and constantly expand the market share. Meanwhile, it will actively increase the investment in emerging businesses to take over the "commanding height" of the industry. It will also further strengthen technological innovation and improve operation and management to achieve high quality and sustainable development.

~ 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 sale of optical and optical-related products. Such products include optical components (such as glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets and other various lens sets), optoelectronic products (such as handset camera modules, 3D optoelectronic products, vehicle modules and other optoelectronic modules) and optical instruments (such as microscopes and intelligent inspection equipment). The Group focuses on the application fields of optoelectronic-related products, such as handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems and VR /AR, 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]

[e-mail]

Fax: [phone]