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Optics

Expert in

2017 Annual Results

Announcement

Corporate Presentation

March 2018

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Optics Expert in Disclaimer

The information contained in this presentation is intended solely for your personal reference. Such

information is subject to change without notice, its accuracy is not guaranteed and it may not

contain all material information concerning Sunny Optical Technology (Group) Company Limited

(the “Company”). The Company makes no representation regarding, and assumes no responsibility

or liability for, the accuracy or completeness of, or any errors or omissions in, any information

contained herein.

In addition, the information contains projections and forward-looking statements that may reflect the

Company’s current views with respect to future events and financial performance. These views are

based 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 that

the Company’s assumptions are correct. It is not the intention to provide, and you may not rely on

this presentation as providing, a complete or comprehensive analysis 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 financial instruments or to provide any investment service or investment advice, and no

part of it shall form the basis of or be relied upon in connection with any contract, commitment or

investment decision in relation thereto.

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Optics Expert in

Financial Highlights 1

Review of Operations & Development Strategies 2

Open Forum 3

Appendix 4

Agenda

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Optics

Expert in

Financial Highlights

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Optics Expert in Financial Highlights

(RMB mn) For the year ended 31 December

Revenue 14,611.8 22,366.3 +53.1%

Gross Profit 2,680.1 4,802.8 +79.2%

Profit Before Tax 1,446.4 3,318.3 +129.4%

Income Tax Expense (174.8) (404.2) +131.2%

Effective Tax Rate 12.1% 12.2% +0.1 ppt

Profit for the Year Attributable to

Owners of the Company 1,270.8 2,901.6 +128.3%

Basic Earnings per Share (RMB cents) 117.6 266.8 +126.8%

Change 2016 2017

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Optics Expert in Operating Expenses Analysis

(RMB mn) For the year ended 31 December

(as % of revenue) (as % of revenue) (as % of revenue)

Revenue 10,696.2 100.0% 14,611.8 100.0% 22,366.3 100.0%

Total Operating

Expenses 854.0 8.0% 1,179.5 8.2% 1,762.2 7.8%

• Selling and

Distribution

Expenses

95.0 0.9% 153.9 1.1% 205.1 0.9%

• R&D

Expenditure 502.1 4.7% 694.4 4.8% 1,168.2 5.2%

• Administrative

Expenses 256.9 2.4% 331.2 2.3% 388.9 1.7%

2015 2016 2017

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Optics Expert in

For the year ended 31 December

Current Ratio (Times) 1.6 1.4 1.5

Operating Cash Inflow (RMB mn) 1,701.5 1,615.5 2,436.3

Cash and Cash Equivalents (RMB mn) 2,096.6 2,754.7 3,339.5

• Pledged Bank Deposits (RMB mn) 129.6 101.0 140.3

• Financial Assets Designated as at Fair Value

through Profit and Loss (RMB mn) 1,708.3 2,027.5 1,952.3

• Bank Balances and Cash (RMB mn) 258.7 626.2 1,246.9

Net Cash per Share (RMB cents) 131.6 171.2 183.1

Gearing Ratio (%) 8.9 7.8 8.6

ROE (%) 19.9 25.9 38.8

Capital Expenditure (RMB mn) 411.2 972.7 1,765.5

7

Solid Financial Position

2015 2016 2017

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Optics Expert in

营业额按业务部门分析

Revenue Breakdown

80% 83% 85%

6% 6%

6% 5% 5% 4% 2% 2% 1% 7% 4% 4%

0%

20%

40%

60%

80%

100%

2015 2016 2017For the year ended 31 December as % of total revenue

for different products based on applications

Revenue Breakdown by Product Applications

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

2015 2016 2017

For the year ended 31 December as % of total revenue

for different business segments

21.2%

76.8%

2.0%

10,696.2

20.2%

78.0%

1.8%

14,611.8

19.2%

79.5%

1.3%

22,366.3 （RMB mn）

Revenue Breakdown by Business Segments

- Total Revenue

Optical Components Optoelectronic Products

Optical Instruments Digital Camera Related Products

Handset Related Products

Other Products

Vehicle Lens Sets

Optical Instruments

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Optics Expert in

Revenue and Gross Profit Margins

by Business Segments

Revenue by Business Segments Gross Profit Margins by Business Segments

（RMB mn）

For the year ended 31 December

2,268.5

8,216.7

211.0

2,955.6

11,403.2

253.0

4,301.8

17,771.0

293.5

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Optical Components OptoelectronicProducts

Optical Instruments

2015 2016 2017

35.1%

9.6%

39.8%

10.5%

40.4%

44.0%

13.1%

43.2%

0%

10%

20%

30%

40%

50%

Optical Components OptoelectronicProducts

Optical Instruments

2015 2016 2017For the year ended 31 December

37.5%

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Optics

Expert in

Review of Operations &

Development Strategies

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Optics Expert in Significant Achievements in R&D

Hi-tech Barriers

2015 2016 2017

Optical

Components

Optoelectronic

Products

Optical

Instruments

11

• The R&D on automatic industrial testing microscope first applied to 12-inch ultra-large wafer testing in China has completed

• 17 categories 42 kinds of standard water testing application scheme has completed

• “The objective lens of Microscope” has obtained a national invention patent

• Top grade ion-chromatography with self-designed and manufactured suppressor and eluent generator was released for the first time in China

• 20-mega pixel, wide-angle, OIS, dual-camera and PDAF camera modules have commenced mass production

• Iris recognition handset camera modules for mobile payment have commenced mass production

• The R&D on 23-mega pixel handset lens sets has completed

• The R&D on high-resolution handsets lens sets equipped with large aperture, large pixel size, and wide angle have completed

• 13-mega pixel(ultra-thin), 13-mega pixel (OIS ) handset lens sets have commenced mass production

• 16-mega pixel, 16-mega pixel(ultra-thin), 16-mega pixel(OIS) handset lens sets have commenced mass production

• The R&D on iris recognition handset lens sets and dual-camera lens sets have completed

• 10-mega pixel above dual-camera handset lens sets have commenced mass production

• 13-mega pixel with wide angle handset lens sets have commenced mass production

• 16-mega pixel with large aperture (FNo.1.8) handset lens sets have commenced mass production

• 10-mega pixel above handset lens sets with 6 pieces of plastic aspherical lenses (“6P”) have commenced mass production

• VR/AR lenses and lens sets have undergone mass production

• New packing technology of COB has

completed R&D and commenced mass production

• Ultra-thin front dual-camera modules of handset without bracket has commenced mass production

• 10-mega pixel above dual-camera modules of handset have commenced mass production

• New TOF module, structured light module and binocular stereo camera have commenced mass production

• The R&D on high sensitivity miniaturized flame ionization detector and electron capture detector for gas chromatograph have completed

• “Digital Workshop for the Smart

Manufacturing of Optoelectronic

Camera Modules” has been successfully

selected into “2016 Comprehensive

Standardization and New Mode

Application in Smart Manufacturing

Project” of MIIT

• The LED i nv e r t f l uo r e s ce nc e m i c r o s c o p e s with a u t o m a t i c fluorescence switch first applied in China in l i fe science field have commenced mass production

• The automatic production line solution of automotive camera modules has commenced mass production

• The equipment of IRCF defect inspection and IRCF module defect inspection based on AI have commenced mass production

• The R&D on periscope-style tiny optical zoom modules and periscope-style dual camera modules with high magnification optical zoom function has been completed

• 16-mega pixel with FNo.1.65 handset camera modules have started mass production

• 3D structured-light products have been completed R&D and commenced batch production

• The qualification of automotive camera modules has been obtained by a globally renowned Tier 1 client

• A variety of high-end large aperture handset lens sets with 6 pieces plastic aspherical lenses have commenced mass production

• The R&D on handset lens sets with 7 pieces plastic aspherical lenses has been completed

• Hybrid handset lens sets have commenced mass production

• A variety of 20-mega pixel tiny handset lens sets have commenced mass production

• 16-mega pixel with FNo.1.65 handset lens sets have commenced mass production

• VR fresnel lenses have commenced mass production

Obtained 634 Patents

223 New Patents Added

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Optics Expert in Awards and Recognitions

Panasonic

“Best Delivery Supplier Award”

VIVO

“Innovation Award” and

“Quality Award”

Bosch

“Global Supplier Award”

Hikvision

“Strategic Partner Award”

“Hang Seng Index”

Constituent Stock

Forbes

Ranked 17th in “Top 50 Listed

Companies in Asia”

Huawei Technologies “Core Partner

Award”、Huawei Consumer BG “Best

Collaboration Partner Award”

Sony

“Quality Contribution

Award”

ZF Group

“Global Best

Supplier Award”

Ranked Top three among Technology/Hardware Companies of the

2017 “Best CEO”, “Best CFO”, “Best IR Professional”, “Best IR

Company”, “Best Analyst Day” and the “Best Website” again by

Institutional Investor, and “Most Honored Company”

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Optics Expert in

8.1%

19.8% 18.3%

9.1%

28.9%

47.6%

0%

10%

20%

30%

40%

50%

2015 2016 2017

8-mega pixel handset lens sets

10-mega pixel above handset lens sets

301,556

379,241

608,074

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2015 2016 2017

For the year ended 31 December

Shipment Volume of the Company’s

Handset Lens Sets

Shipment Volume Proportion of the Company’s

Handset Lens Sets by Pixels

For the year ended 31 December

Continue to Gain Global Market Share

Strive for Domestic No.1 and Global No.2

(Unit : k)

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Optics Expert in Maintain No.1 Position in Global Market

Further Expand

For the year ended 31 December

16,516

22,622

31,891

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2015 2016 2017

(Unit: k)

Shipment Volume of the Company’s Vehicle Lens Sets

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Optics Expert in

For the year ended 31 December

228,057

269,861

324,831

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2015 2016 2017

(Unit: k)

For the year ended 31 December

Shipment Volume of the Company’s

Handset Camera Modules

Shipment Volume Proportion of the Company’s

Handset Camera Modules by Pixels

20.0% 22.4%

20.5%

31.3%

60.7%

64.5%

0%

10%

20%

30%

40%

50%

60%

70%

2015 2016 2017

8-mega pixel handset lens sets

10-mega pixel handset lens sets

Solidify Leading Position in Domestic Market

Further Capture Overseas Clients

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Optics Expert in

PDAF

VR 20MP

OIS

Iris Recognition Modules

AR

3D Scanner

Basic Modules

System Solutions

Terminal Applications

Software Algorithms

TOF Modules

Unmanned Aerial Vehicle

3D Smartphone

Smart Home Sensing Device

Smart Optical System Solution Provider

Basic Optical

Components

Dual-Camera Modules

Automotive Camera Modules

AR Modules

Structured-light Modules

VSN Surround Vision Camera

Depth Camera Gesture Interaction Device

2K/4K Camera

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Optics

Expert in

Open Forum IR Contacts

Sunny Optical Technology (Group) Company Limited

Email: jfma@sunnyoptical.com/

jasmine@sunnyoptical.com/

chris@sunnyoptical.com

Tel: +86 (574) 6253 4996/

+852-3568 7038

Media Relations Contacts：

Porda Havas International Finance Communications Group

Email: sunnyoptical@pordahavas.com

Tel: +852-3150 6788

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Optics

Expert in

Appendix

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Optics Expert in Milestones

Entered into

the field of

image

digitization

Established and entered

into the optical industry

2004

2008 2012

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. 1984 1995

2007

2013

CREATE A WORLD-RENOWNED

OPTOELECTRONIC COMPANY Successfully placed

97,000,000 new shares

and raised net proceeds

of approximately HKD

770 million

Entered into a series of

Strategic Cooperation

Agreements with Konica

Minolta Optical Products

(Shanghai) Co., Ltd

2014

Invested in MantisVision Ltd.

to make the strategic layout

of 3D imaging business

2003

2015

Newly set up Zhejiang Sunny

Optical Intelligence Technology

Co., Ltd. in Hangzhou,

responsible for the R&D,

marketing and sales of

intelligent optics products

2016

Set up Sunny Optical

(Zhejiang) Research

Institute Co., Ltd. in

Hangzhou

2018

Issued

US$600mn

five-year bonds

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Optics Expert in

Sunny Optical

100.0%

35.47%

Sun Xu 64.53%

Public

Shareholding Structure

Sun Ji (1)

(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 2017

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Optics Expert in

440.9 561.3

763.5

1,271.6

2,914.1

0

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017

Investment Highlights

132.7 170.0

228.2

318.1

725.1

0

100

200

300

400

500

600

700

800

2013 2014 2015 2016 2017

(RMB: mn)

Net Profit

For the year ended 31 December

(RMB: mn)

Dividends

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

THE YEAR ATTRIBUTABLE TO OWNERS OF THE COMPANY CONTINUED GROWTH IN NET PROFIT

For the year ended 31 December （proposed）