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

2020 Annual Results Corporate Presentation

March 2021

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The information contained in this presentation is intended solely for your personal reference. Such information issubject to change without notice, its accuracy is not guaranteed and it may not contain all material informationconcerning Sunny Optical Technology (Group) Company Limited (the “Company”). The Company makes norepresentation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or anyerrors or omissions in, any information contained herein.

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

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financialinstruments or to provide any investment service or investment advice, and no part of it shall form the basis of orbe relied upon in connection with any contract, commitment or investment decision in relation thereto.

Disclaimer

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Agenda

Financial Overview

Operation Review

Q&A

Appendix

Outlook

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2

3

5

4

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Financial Overview

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Outstanding Financial Performance

2019 2020 ChangeFor the year ended 31 December(RMB mn)

Revenue 37,848.7 38,001.8 +0.4%

Gross Profit 7,750.7 8,697.9 +12.2%

Profit Before Tax 4,550.3 5,642.9 +24.0%

Income Tax Expense (531.0) (702.6) +32.3%

Effective Tax Rate (%) 11.7 12.5 +0.8ppt

Profit for the Year Attributable to Owners of the Company 3,991.3 4,871.8 +22.1%

Earnings per Share – Basic（RMB cents） 364.8 445.8 +22.2%

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Well-controlled Operating Expenses

2018 2019 2020

For the year ended 31 December(RMB mn)

(as % of revenue)

(as % of revenue)

(as % of revenue)

Revenue 25,931.9 100.0% 37,848.7 100.0% 38,001.8 100.0%

Total Operating Expenses 2,006.1 7.8% 3,138.3 8.3% 3,531.2 9.3%

• Selling and Distribution Expenses 209.9 0.8% 278.6 0.7% 313.5 0.8%

• R&D Expenditure 1,362.3 5.3% 2,209.3 5.9% 2,499.1 6.6%

• Administration Expenses 433.9 1.7% 650.4 1.7% 718.6 1.9%

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Expert in OpticsSolid Financial Position

2018 2019 2020

Current Ratio (Times) 1.9 1.8 1.9

Operating Cash Inflow (RMB mn) 3,567.9 4,661.6 7,160.0

Cash and Cash Equivalents (RMB mn) 7,248.6 7,601.1 11,560.3

• Pledged Bank Deposits (RMB mn) 214.7 6.1 3.4

• Financial Assets at Fair Value through Profit or Loss (RMB mn) 4,759.6 5,662.8 8,480.2

• Bank Balances and Cash (RMB mn) 2,274.3 1,932.2 3,076.7

Net Cash per Share (RMB cents) 154.3 212.6 511.8

Gearing Ratio (%) 24.3 17.2 16.8

ROE (%) 27.1 31.6 29.4

Capital Expenditure (RMB mn) 2,617.4 3,167.9 2,798.4

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85%

6%

2% 1%

6%Handset Related Products

Vehicle Lens Sets

Digital Camera Related Products

Optical Instruments

Other Products

Diversified Business Portfolio

Revenue Breakdown by Product Applications

87%

5%2%

1%

5%

20192018 2020

For the year ended 31 December

84%

6%

4% 1%5%

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41.5%

8.4%

40.5%45.2%

9.3%

41.3%42.8%

12.6%

39.2%

0%

10%

20%

30%

40%

50%

Optical Components Optoelectronic Products Optical Instruments2018 2019 2020

Good Gross Profit Margins Performance

Gross Profit Margins by Business Segments

For the year ended 31 December

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Operation Review

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R&D Completed Mass Production Achieved

• Continuous zoom handset lens sets• 8P high-resolution handset lens sets• Free-form handset lens sets • Millimetre-scale ultra-macro shooting handset

lens sets• 2-mega pixel hybrid front-view vehicle lens

sets

• 100-mega pixel large image size handset lens sets

• Super-small distortion wide-angle (115°) handset lens sets

• Pure glass 8-mega pixel front-view vehicle lens sets with glass aspherical lenses

• Continuous zoom handset camera modules • Sensor-shift handset camera modules• Front-view, side-view and rear-view vehicle

modules which are all 8-mega pixel

• Gimbal stabilization handset camera modules• Handset camera modules with MOBⅡ &

MOCⅡ packaging technique

• High-precision and high-speed switchable laser scanning confocal microscope

• Ultra-wide field of view (30mm) high magnification objective (20X and 60X), whichis first innovated in China

Develop Advantageous Businesses In-depthFurther Enhance Market Competitiveness

Optical Components

Optoelectronic Products

Optical Instruments

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Emerging Businesses

• Achieved breakthroughs in 6-inch, 8-inch wafer nano-imprint technology of DOE• Completed the R&D of single-color AR diffractive waveguide• Completed the R&D of megapixel lens sets of vehicle smart headlights • Achieved the mass production of diffusers

• Completed the R&D of structured light system applied to smart door locks • Completed the R&D of ToF-related algorithm of sweeping robot and the development of binocular

solution, and achieved delivery• The face live detection solution has obtained the Bank Card Test Center enhanced-level

certification• The face scan payment solution has obtained the WeChat testing certification

• Completed the R&D of immunofluorescence screening equipment for peripheral blood and achieved sales

• Completed the R&D of a digital pathology remote consultation platform

Increase R&D Investment in Emerging BusinessesBuild High-Tech Barriers

Optical Components

Optoelectronic Products

Optical Instruments

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958

1,521

2,096

0

500

1,000

1,500

2,000

2,500

2018 2019 2020

Equipped with professional management team, actively conducts the layout of intellectual property rights.

In 2020, 575 new authorized patents were added, including 187 invention patents.

As at 31 December 2020, 3,212 patents are pending approval, mainly related to the fields of smartphones, vehicle imaging and sensing systems, security surveillance, AR/VR and robotic vision.

Focus on Patent Layout Strengthen Competitive Advantages

Number of Authorized Patents

As at 31 December

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182,370

314,060

377,806

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2018 2019 2020

950,888

1,343,173

1,529,757

0

400,000

800,000

1,200,000

1,600,000

2018 2019 2020

(Unit: k)

Improve both Quality and QuantityFurther Increase Market Share

Shipment Volume of the Company’s Handset Lens Sets

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

(Unit: k)

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

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39,949

50,102 56,174

0

10,000

20,000

30,000

40,000

50,000

60,000

2018 2019 2020

Maintain Leading Position as Global No.1Further Raise Technological Barriers of Products

Shipment Volume of the Company’s Vehicle Lens Sets

(Unit: k)

For the year ended 31 December

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423,331

540,493 592,878

0

100,000

200,000

300,000

400,000

500,000

600,000

2018 2019 2020

461

31,459

60,927

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2018 2019 2020

* Large image size modules refer to modules with 1/1.7” and above image size

Consolidate the Leading Position in ChinaCooperate In-depth with International Customers

Shipment Volume of the Company’s Handset Camera Modules

(Unit: k) (Unit: k)

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

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

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Yuyao Chengxi Production Base

Global LayoutEnhance Large-scale High-end Manufacturing Capabilities

Production Base R&D Center

Henan

Guangdong

Zhejiang

Shanghai

India Vietnam

South KoreaChina

U.S.A

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Awards and Recognitions

Sunny Optical Intelligence was awarded the “Excellent Supplier Award” by Ecovacs Robotics Co., Ltd.

Included in “Fortune China Top 500 list” for the sixth consecutive year

Awarded the “The Most Remarkable Investor Relations Recognition (Hang Seng Index Category)” at “Quam IR Awards 2019”

Awarded the “Best TMT Company” at the 5th

“Golden Hong Kong Stocks Awards”

MSCI ESG ranking raised from “BB” to “BBB”Included in “Hang Seng China Enterprises Index”, “Hang Seng Tech Index” and “Hang Seng Corporate Sustainability Benchmark Index”

Sunny Zhejiang Optics was awarded the “Best Quality Award” and “Pandemic ‘War’ Delivery Partner Award” by Weifang Goertek Electronics Co., Ltd.

Ranked 1ts in the “Best Investor Relations Program” “Best CEO” for the fifth consecutive year, and awarded the title of “Most Honored Company” among all-Asia Technology/ Hardware companies by the US magazine, Institutional Investor

Sunny Automotive Optech was awarded the “2019 Quality Operation Award” by Huizhou Desay SV Automotive Co., Ltd.

The subsidiary in India of Sunny Opotech was awarded the “2020 Best Delivery Award” by OPPO MOBILES INDIA PRIVATE LIMITED

Sunny Zhejiang Optics was awarded the “Best Delivery Award” by Vivo Mobile Communication Co., Ltd.

Sunny Zhejiang Optics was awarded the “2020 Strategic Partner Award” by Q Technology Limited

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Outlook

20

Expert in OpticsContinuous Upgrade Trend of Smartphone Cameras

Main Camera

• Large image size

• Miniaturized size• Differentiated functions

(dual OIS collaborate / super resolution / variable aperture)

Telephoto

• 5X/10X periscope• Continuous optical zoom

periscope (large angle stabilization with prism / sensor-shift stabilization)

Front Camera

• Under-screen camera• Extreme small head lens

set• Differentiated functions

(wide-angle / autofocus)

Others

• Portrait module• Macro shooting / depth

module

• ……

3D (ToF)

• D-ToF

• I-ToF

Wide-angle

• Video (high frame rate application / free-form lens set)

• Large angle gimbal stabilization

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Rapid Progress of Autonomous Driving Huge Potential in Optical Applications

• Cameras, LiDAR and smart headlights make the cars to "see" and communicate with the world better

• “Display" + “Interaction" functions improve driving safety and entertainment interaction

Vehicle Camera Related Products

Vehicle Lens Sets

Vehicle Modules

Solutions

Display Related Products

Key Optical Componentsin Head-up

Display

Key Optical Components

in Smart Headlights

Solutions

LiDAR Related Products

Key Optical Components

Solutions• • •

• • • • •

• • • • •

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Object Recognition

Facial Recognition

Gesture Recognition

Eyeball Tracking

Attitude Recognition

Facial Expression Recognition

Seize the New Opportunities in the MarketTake the Lead in the Industry

Obstacle Avoidance

Scene Rebuilding

Map-building Navigation

Module

Module combined with SDK

AI

VR

Drone

AR

Panoramic Camera

SweepingRobot

Service Robot

Smart TV

Smart Door Lock

Unmanned Supermarket

Facial Scanning Payment TerminalInspection

Smart Eye

Display

Positioning

Recognition

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Q&A

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Appendix

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Expert in OpticsMilestones

1984• Established

and entered into the optical industry

1995• Entered

into the field of image digitization

2003• Commenced production of

handset camera modules

2004• Enhanced R&D and

production capability of handset lens sets

• Possessed plastic aspherical lens technology

• Entered into the field of vehicle lens sets

2012• Set up

subsidiaries in the US and South Korea

2013• 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.

2015• Set up Zhejiang

Sunny Optical Intelligence Technology Co., Ltd. in Hangzhou

2018• Issued

US$600mn five-year bonds

2007• Listed on the

Main Board of the Hong Kong Stock Exchange

2014• Make the

strategic layout of 3D imaging business

2016• Set up Sunny

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

2019• Established new

production bases in India and Vietnam, producing handset camera modules and vehicle lens sets respectively

• Set up a subsidiary in Germany

2020• Set up a production base in

Vietnam, mainly producing handset camera modules

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Dividends

Dividends

318.1

725.1 623.0

798.5

974.0

0

200

400

600

800

1,000

2016 2017 2018 2019 2020

(RMB mn)

For the year ended 31 December

(proposed)

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Expert in OpticsShareholding Structure

(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 ofthe Sunny Group Employee Offshore Trust.

* As at 31 December 2020

100.00%Sun Ji (1)

35.47%Sun Xu

64.53%Public

Sunny Optical Technology

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Expert in OpticsInvestor Relations Contacts

Investor Relations Contacts：

Sunny Optical Technology (Group) Company Limited

iroffice@sunnyoptical.comjasmine@sunnyoptical.comchris@sunnyoptical.com

+86 (574)-6253 4996+852-3568 7038

No.27-29, Shunke Road, Yuyao, Zhejiang Province, PRC

Room 2304-5, 23/F., Henley Building, 5 Queen's Road Central, Hong Kong

Media Relations Contacts:

Porda Havas International Finance Communications Group

sunnyoptical@pordahavas.com

+852-3150 6788