#1SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED 舜宇光學科技(集團)有限公司 (于开曼群岛注册成立的有限公司) (股份代号:2382.HK) Corporate Presentation Investor Day June 2023#2Disclaimer 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. 2#3Agenda 1 Company Overview 2 Market Trends and Opportunities#4Company Overview#5What we look like in our eyes An optical expert focusing on optics for almost 40 years Achieve high performance growth by seizing the opportunity of image digitalization Global R&D and sales centers and production bases layout Diversified business portfolio International customer base Great potential in the emerging business market "Create Together" Global No.1 market share in handset lens set, handset camera module and vehicle lens set respectively Comprehensive patent layout Solid financial position Dedicated to be an industry leader in ESG management 5#6Development Process Traditional Optics 1984-2004 Camera lens Cameras lens sets Microscopic instruments Projector lens sets Scanner lens sets Handset lens sets Modern Optics 2004-2014 Handset cameras module Vehicle lens sets Infrared lens sets Security lens sets Intelligent Optics 2014- Fresnel lens Vehicle camera module Sweeping robot SLAM module Smart headlamp AR HUD Pancake module 0090 1000 6#7R&D Center and Production Base Production Base R&D Center U.S.A estay NDIA CONGTYNY POTERIT SUNNY DPOTICH VIETNAM.CO.JD China - India Henan Shanghai Zhejiang Guangdong South Korea Vietnam Yuyao Chengxi Production Base! Yuyao Yangming Production Base Yuyao Lanjiang | Production Basei 7#8S舜宇光学科技集团有限公司#9Market Trends and Opportunities -Handset Lens Sets#10Smartphone (Full Screen)-Lens Main Upgrading Trends -Main Camera 1/1.56 Lens trends Large image size 1/0.98" 1/1-22 1/1.28 Flagship image chip will continue to be 1/1" for next 2~3years Core tech Status 1/1.3" -1/1.4" is popular with high-end image chip Large aperture Glass molding application MP ✓ Multi-stop aperture design MP F1.4 • Aperture tends to become larger ✓ Large diameter MP lens process Variable aperture Multi-stop aperture Ultra low reflective coating MP 10#11Smartphone (Full Screen)-Lens Main Upgrading Trends -Tele Camera Lens trends ★ Resolution improvement Core tech Status Sensor format and aperture upgrade High-end MP periscope design Shape change ✓ Lens side cut tech MP prism in the middle prism in the back LENS ✓ Cut surface ink tech MP LENS Groups test MP equipment Tele with macro Inner focus The equipment make a pair by code MP LENS LENS 11#12Smartphone (Flip & Clamshell)-Lens Main Upgrading Trends 68 San Francisco Lens trends Core tech Status Miniaturization Lens ultra-thin MP design Lens ultra-thin MP process Lighter & thinner ✓ Barrel cut & Lens MP cut Ultra low reflective coating MP 12#13Strategic Goal for Handset Lens Sets Business Ensure global No.1 market share, continue to optimize customer structure and product mix Design/simulation capabilities Molding (forming) capability Coating capability Equipment development and testing capabilities 01 Marketing • Deepen the route of "Lean Manufacturing and Intelligent Manufacturing" 20 Technology • Ensure delivery capability of 03 high quality • Implement product strategy of "Ding Tian Li Di" () Further increase customer satisfaction 02 Firmly adhere to the "Innovation- Driven" technology route Enhance the core competitiveness of "3 high" products (high spec, quality and added values) 13#14Thanks!#15SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED 舜宇光學科技(集團)有限公司 (于开曼群岛注册成立的有限公司) (股份代号:2382.HK) Investor Day Corporate Presentation-Sunny Automotive Optech June 2023#16Rapid Progress of Autonomous Driving & Huge Potential in Optical Applications ADAS LiDAR In-cabin CMS Surround- view Rear-view welcome Head-up Display Projection Headlamp Ground Projection Unit 16#1740% 35% curve 700 Sunny vehicle ens sets shipments growth cu 600 500 400 Attractive Opportunity in Global Automotive Camera Market Global Vehicle Lens Sets Market Forecast Market Volume (KK unit) 900 Viewing Sensing (front/in-cabin/surround sensing) Growth of Sunny vehicle lens sets shipment Sunny sensing lens sets ou shipments growth 2022Y Lens Sets Maker Share of Automotive Cameras YOY Growth (%) Y2021 Y2022 Y2023 (Forecast) Viewing+Sensing Growth of global vehicle lens sets market volume Growth of Sunny sensing lens sets shipment Sunny 34% Sunny 38% Global vehicle lens sets market volume increased by 4.9% Sunny vehicle lens sets shipments increased by 16.1% Global sensing lens sets market volume increased by 17.8% Sunny sensing lens sets shipments increased by 27.2% In-cabin lens sets market CAGR 41% Sunny 31% 30% 25% Lens Sets Maker Share of Sensing Cameras 20% 12% 15% 300 Global vehicle lens sets market volume 200 growth curve 100 10% 7% 5% Sunny 55% Sunny Sunny 56% 57% 0% 0 -5% Y18 Y19 Y20 Y21 Y22 1Y23 Y24 Y25 Y26 Y27 Y28 Y29 Y30 Y31 Y32 Y33 Y34 Y35 (Source: TSR Automotive Camera Market Analysis 2021~2022) . With the gradual easing of the supply shortage of automobile chips and the further improvement of ADAS penetration rate, the overall market of global vehicle lens sets in 2022 increased by 4.93% as compared to that of 2021Y. In the next 10 years and more, the vehicle lens sets market will continue to improve and sustain the growth. Sunny's business growth rate has outpaced the global level for 5 consecutive years. Sunny' s growth is more than 3 times of the market growth rate in 2022 and maintains global No.1 market share, which is still rising. With the development of intelligent driving and the rise of DMS, CMS and other market segments, the demand for sensing camera market continues to grow. Among them, in-cabin application growth is the most obvious one and will maintain high growth rates of more than 40% in the next 5 years. Sunny further consolidates the industry leading edge in the high-end ADAS sensing lens sets market with a global market share of more than 50%, continues to make efforts in in-cabin camera products and will increase global market share continuously in the future. 17#18Cooperating with New EV & Maintaining a Leading Market Share • Sunny maintains good cooperation with global new EVs and has been the No.1 in terms of the vehicle lens sets shipment among the global new EVs. Y2022 Vehicle Lens Sets Shipment in Global EVs Others 21% Vehicle Lens Sets from EVs Y2022 Sunny's Vehicle Lens Sets Shipment in Global EVs ~40% Sunny Others (Source: Sigmaintell) 18#19Continuous Micro-innovations & Technology Accumulation • • In the increasingly competitive market, Sunny carries out continuous R&D and innovation in high-end ADAS sensing lens sets and enhances market competitiveness by making technology breakthrough in hybrid ADAS vehicle lens sets (glass and plastic). Sunny is the first company to achieve mass production of hybrid ADAS vehicle lens sets all over the world which wins great recognition from market and customers for more than 10 years and supplied to the world's major well-known automobile brands. 1M/2M/3M hybrid ADAS vehicle lens sets: already in mass production; 5M hybrid ADAS vehicle lens sets: completed the R&D; 8M hybrid ADAS vehicle lens sets: achieved technological breakthrough 1MP (1P inside) SOP 1MP (2P inside) SOP 1MP (3P inside) SOP 2MP (2P inside) SOP 2MP (3P inside) SOP 3MP 5M (2P inside) SOP 8M Y2012 Y2016 Y2017 The world's first hybrid ADAS vehicle lens sets SOP Y2019 Y2021 Y2022 Y2023 The cumulative shipment of hybrid ADAS vehicle lens sets 30KK+( (Updated on Dec 31. 2022) 19#20Attractive Opportunity in Global Automotive LiDAR Market Global Automotive LiDAR Market Forecast Market Volume (KK unit) 20 15 10 5 0 Automotive LiDAR Market Volume: 2022Y Forecast Automotive LiDAR Market Volume: 2021Y Forecast Automotive LiDAR Market Revenue: 2022Y Forecast Automotive LiDAR Market Revenue: 2021Y Forecast (2022Y-2027Y Market Scale) CAGR 73% Sunny LiDAR Business Growth Market Revenue (100 million Market revenue forecast curve-old version Market revenue forecast curve new versio \) Sales Revenu e 350 300 ིི ྣ ྣ ལྤ ༔ ནྲྀ ིི ཋ 。 200 150 100 400 Growt Sunny's supply in the vehicle models equipped with LiDAR released in the global market 40%+ Tramming Reving Scanning Transcr Module Module Module Module Modale Transceiver Lens Mechanical MEMB 3D Flach 200% Sunny корис Window Semele Layer Muhple Layer Glass Plas (with VB Laver Polygon Glass Glaz Metal-patching Molding Molding Micro-nano Components Diffusor Macro Lens Array Y2021 Y2022 Y2023 Y2024 Y2025 Y2026 Y2027 Y2028 Y2029 Y2030 Y2031 Y2032 (Source: Yole LiDAR Market and Technology Report 2022) Y2021 Y2022 Sunny LiDAR Product Portfolio • The differentiation of the LiDAR market was intensifying and market players faced a new round of reshuffle in 2022. Due to the change of the external environment, the growth rate of global LiDAR market is expected to slow down in recent years but will still have a broad growth prospects in the next 10 years and sustain growth at a highly CAGR of 73% in the next 5 years. • Focusing on LiDAR optical components & assembly and module business, Sunny LiDAR transceiver module, LiDAR lens, LiDAR window, LiDAR polygon (glass) have been in mass production and supplied in the major new EV brands and traditional OEM's models. Sunny's LiDAR business revenue increased by approximately 200% as compared to that of 2021Y. More than 20 projects will be in mass production in 2023Y~2024Y and the revenue will continue to grow in the future. 20#21Attractive Opportunity in Global Automotive HUD Market Global HUD Market Forecast Market Volume (KK unit) Market Revenue (100 million \) Global AR-HUD Market Forecast Market Volume (KK unit) Market Penetration Rate (%) 60 272 300 5.0 10% 50 by 24.2%; 40 2022Y HUD market increased Sunny HUD revenue increased by 90%. 255 (2022Y~2027Y Market Scale) 8.9% 4.5 9% 229 250 CAGR 7.7% 210 4.0 8% 46% 6.9% 187 3.5 200 7% 6.0% 165 158 3.0 6% 5.0% 135 30 150 2.5 5% 108 3.8% 97 20 10 0 11 2.0 3.2% 4% 100 2.7% 2.5% 1.5 More than 500K 3% 1.7% 1.0 50 2% Commenced mass production 0.5 1% 0 0.0 0% Y2021 Y2022 Y2023 Y2024 Y2025 Y2026 Y2027 Y2028 Y2029 Y2030 Y2021 | Y2022 I Y2023 Y2024 Y2025 Y2026 Y2027 Y2028 Y2029 Y2030 TFT DLP (Source: Guotai Junan Securities HUD Forecast 2022) LCOS LSM HUD Market Revenue AR-HUD Market Volume- AR-HUD Penetration Rate • With the increase of intelligent driving adoption rate and the continuous expansion of HUD adoption by automakers, more and more independent brands consider AR-HUD as the main selling point of intelligent cabin. The market penetration rate of AR HUD will continue to rise in the future. • Focusing on HUD core optical engines, Sunny accelerates the R&D and market promotion of new HUD products cooperating with the core manufacturers of the industrial chain, realizing the diversified layout of technical solutions (TFT/DLP/LCOS/LBS). Sunny has obtained multiple DLP PGU projects from OEMs which will commence mass production this year. 21#22Advanced HUD Product Layout & Outbreak in Differentiation • Sunny LBS module with laser light source and MEMS technology solves the problems (contrast/size/cost) of traditional PGU, provides customers with better AR-HUD performance and will make technical reserve for future holographic projection application. TFT Solution DLP Solution PGU Backgr ound. light Polariz er GI Polarize Filter LBS Solution DLP Chip Optics Mirrors Optics LEDs Optics Projection Lens DLP PGU(3020) DLP PGU(5530/462*) LCOS PGU LBS PGU LCOS Solution Core Optical Components Screen LCO5 Light Engine Projection lens MEMS Red LCOS Polarizing beam splinter Laser driver GB Lasers panel Green LCOS panel COLOR COMBINER Blue LCOS panel Integrat or Illumination lens UV/IR filter Lamp Projection Lens Freeform Mirror Freeform Mirror Diffuser (Plastic) (Glass) 22 222#23Attractive Opportunity in Global Automotive Lighting Market Global Projection Headlamp Market Forecast Market Volume (KK unit) 250 Global Ground Projection Unit Market Forecast Market Volume (KK Market Revenue (100 million unit) \) 14 (2022Y-2027Y Market 12.6 Market Revenue (100 million \) Projection Headlamp (10K- 1KKPixel) 700 15 Projection Headlamp (100 Pixel) 200 600 Market Volume: KK Revenue AGR 588 Market Revenue: 100 million \ 12 65% 500 12 150 100 50 H 96 0 Y2021 Y2022 301 235 168 Y2023 Y2024 Y2025 467 396 400 0 Y2026 300 6 200 3 100 2.6 1.4 0.7 3.9 5.5 10 8.5 8 6 4 2 0 0 0 Y2027 2021Y 2022Y 2023Y 2024Y 2025Y 2026Y 2027Y (Source: Yole Lighting for Automotive Market and Technology Report 2022) Headlamp is developing from traditional lighting to intelligent and pixel lighting with the development of automobile intelligence. In addition to projection headlamp, the rise of ground projection unit market has become a new focus in the industry. Focusing on global leading automotive lighting customers, Sunny has obtained the right to mass produce headlamp product (10K pixel) from global TOP lighting enterprise which will be applied in Daimler models. Sunny has also obtained multiple projects such as 1KK smart headlamp projection module/projection lens and static ground projection unit. 23#24• Mastering Advanced Automotive Lighting Technology Ground projection unit starts to carry the functions of safe driving and intelligent driving besides personalized decoration with the development of intelligent driving market. It will be an information interaction medium to interact with other transportation participants to improve the vehicle visibility and active safety. European and Chinese regulations greatly promote the development of ground projection unit market standardization. Sunny actively grasps the industry opportunities and has completed three ground projection units with different technical principles, continues to empower customers. Ground Projection Unit Mounting Position and Projection Position Side window Ground Projection Unit Products and Applications Grill Headlamp Roo Ground projection unit Ground projection Vehicle projection Trun k (MLA solution) unit (GOBO solution) Ground projection unit (DOE solution) B pillar Chassis Rear light Long and narrow light Welcome light Welcome logo Dynamic welcome light Chassi S Rearview mirror Regulation: "Automobile Road Lighting Devices and Systems" "Automobile and Trailer Optical Signal Devices and Systems" 5000 Projection sketch for turn signal projectors Front contour area 00 Rear contour areal 3000 ance Steering assistance Reverse assistance Outline Kick Zebra Window Informati indication assistance crossing projectio assistance n on interactio n Projection sketch for position lamp and side lamp Projection sketch for reverse assistance lamp 24#25Thanks!#26SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED 舜宇光學科技(集團)有限公司 (于开曼群岛注册成立的有限公司) (股份代号:2382.HK) Investor Day Corporate Presentation-Sunny SmartLead June 2023#27. EEA Development & the Decoupling Trend between Software and Hardware Due to the increase in intelligence level, the EEA (electronic and electrical architecture) is rapidly developing from ECU towards DCU, accelerating the decoupling trend between software and hardware products. Vehicle companies define and purchase the vision camera modules directly, breaking the traditional pyramid supply chain model that the Tier1 binding software and hardware. Traditional Tier1 leverages its expertise in system integration and software algorithm capabilities to release more cooperation opportunities of vision camera module. EEA Evolution ECU Electronic Control Unit Product Evolution DCU ETHERNET DATA SPINE (Multi Domain Controller) Front sensing integrated machine Surround view system Driving and parking domain controller Cockpit control unit https://blog.cdn.net/weixin 42229104 MDC (Multi Domain Controller) Cockpit and driving integrated controller 27#28Trends in the Automotive Systems and Module Market • • In 2022, global car sales reached to 79.4 million units, with an average of three cameras per vehicle. In 2040, the average number of cameras will be expected to exceed ten units per vehicle; With the rapid iteration of intelligent driving, high value-added Sensing camera module and View+Sensing camera module will replace the View camera module, the market value of camera module will rise over RMB100 billion. Trends of Automotive Camera System Market Scale Trends of Automotive Camera Module Market Scale x 2.3 Y2030Forecast Revenue-31Billion US$ Y22 Revenue 14Billion US $ Sensing Camera View 65% Sensing Camera 68% V+S Camera View Camero The above value scale for inhicle camaras is calcular/anal as the combat value scale of cama Y2022 146 mn units Y2022 USD14 bn 22% x 1.8 Y2030 258 mn units Y2030 USD31 bn Y'2040Forecast Revenue=55Billion US$ Sensing Camera 1,200,000 View camera module. View+sensing camera module Sensing Camera module. 1,000,000 800,000 V+S Camera 62% Vie Camer 35% (Source: 2022 TSR Report) Y2040 395 mn units Y2040 UDS55 bn 600,000 400,000 200,000 (K pcs) 0 Y18 Y19 Y20 Y21 22 Y23 Y24 Y25 CAGR=10% Y26 Y27 Y28 Y29 Y30 Y31 Y32 Y33 Y34 Y35 Y36 Y37 Y38 Y39 Y40 Y2022 239 mn pcs Y2022 USD5 bn Y2030 456 mn pcs Y2030 USD10.5 bn (Source: 2022 TSR Report) Y2040 1.277 bn pcs Y2040 USD24 bn 28#29SmartLead's Business Exploration Path in Automotive Module Business development: Serving Tier1, OEM; Relying on domestic business to train and expand global business layout Positioning exploration: The module business hardly affects the existing lens business. Entered as Tier2, trained in Japanese, and quickly responded through ecological binding Business exploration: Optoelectronic background experience is more suitable for entering the automotive vision module business 2015 2016 Surround view system 2M DVR MP 2017 2018 Passed Tier1 system audit 1.3M SVM MP Japanese 0.3M surround view module 2019 mobileye An Intel Company Layout ADAS module product line (upgrade from 1.3M to 8M) Layout of in-cabin module product line 1.3M SVM shipments exceeding 1 mn units Business restructuring, 2020 地平线 Hi Ronates NVIDIA Design-win projects more than 20 2021 Passed Japanese OEM system audit Passed the audit of domestic traditional OEMS and new car makers 8M module with Horizon platform achieves world first MP 8M module with Mobileye platform achieves world first MP In-cabin module MP World's first MP of 8M sensing modules Strengthen the ecological cooperation with computing power and chip platforms 2022 Passed Korean Tier1, OEM audit Passed German Tier1, OEM audit Passed British OEM audit 3M SVM MP 3M E-mirror MP Carlog MP 8M sensing module shipments exceed 1 mn units Efficient delivery Mass production with quality Technology leadership Group layout, exploring products and business models focusing on automotive modules Optoelectronic industry background 29#30SmartLead's Product Layout in Automotive Modules • • Layout 4 types of visual module product lines based on the application scenarios and product characteristics of intelligent driving and intelligent cabin Increase investment in new products and technologies and will launch more automotive optoelectronic solutions in 2023 Intelligent Driving Intelligent Cabin Sensing Camera module Resolutio 1M 1.7M 3M 2M 5M 8M n (1280*720) (1820-940) (1920*1080) (1920 (2880 186 (3840216 Single v V ป Dual Surround Sensing Resolution E-Mirror CMS Sensing+Viewing Camera module 2M (1920*1080) V 1536) 0) 3M V V (1920-1536) V 0) √ 技术 Viewing Camera module Resolutio 1M 2M n (1280*720) (1920*1080) (1920*1536) 3M others Surround View ป Rear V View Carlog In-Cabin Camera module Resoluti on VGA (720 480) 1M (1280*720) DMS OMS TOF 2M 5M (1920 1080) (2592-1944) H 30#31SmartLead's Partners in Automotive Modules • Collaborate with 10+ domestic and foreign Tier1 customers with independent R&D and OEM models Collaborate with 20+ domestic and foreign OEMs, focus on independent R&D and adapt in advance through ecological cooperation with platforms, shorten R&D cycles and accelerate landing of product innovation 1 ■China 2 Tier 1 Customers 7 3 Japan ■ Korea ■Germany Chinese Tier1 is mainly system integrator, no module design and development, manufacturing capabilities Japanese, Korean and German Tier1 have independent R&D, production and manufacturing capabilities in modules (We cooperate with 8 of the top 10 new force vehicle manufacturers in terms of sales volume) Global OEM Customers 1 3 ■New Forces in Car Manufacturing Chinese OEM Customers ■China 4 ■ Japan ■ Korea ■Germany 4 11 ■ Britain ■Joint venture brand ■ Traditional independent brands Completely developed and manufactured by our company Completely developed and manufactured by our company Module OEM The R&D cycle of vehicle models has been significantly shortened and the iteration speed has been accelerated Ecological cooperation mmobileye An Intel Company 地平线 Horizon Robotics NVIDIA ArcSoft® Thunder Soft Potential customer opportunities Has been connected to many top-tier OEM projects in Germany, the United States and Japan Early adaptation to accelerate product implementation 31#32• SmartLead's System, Site and Equipment Support Business Development Manufacturing management system • al al a ar • System certification IATF 16949 ISO26262 ASPICE L2 • TISAX System requirements form different car manufacturers in Japan, Korea, Germany and the UK Clean workshop and high precision equipment MES System ERP System PLM System SRM System SMT COB assembly line COB Line (MP) SMT Line Assembly Line • Factory @1,000/ @10,000 dust-free grade Core equipment self-developed Factory planning 6920m 6.6M COB 组测 • 办公室 6920m 6.6M 组测 办公室 4500m SMT 5.5M 成品仓库 物料仓库 4500m² 2.7M 综合实 验室 报检和IQC/ 物流方向 产线人员方向 Digital factory based on full traceability management Overseas factories 32 32#33• • · SmartLead's Product Technology Direction and Layout Continuously deploying the visual sensing hardware technology and building a moat with new product technology innovation Layout on controller to build automotive systematic hardware solutions Layout on general technology and capability, improve manufacturing and management, and pave the way for overseas factory expansion Intelligent Driving Higher resolution 8M 17M Intelligent Cabin Higher resolution 2M D 5M 8M Visual sensing hardware tech. Camera thermal management Camera water mist management Camera cleaning management Transmission technology RGB-D depth detection solution Different wavelength camera solutions Localization program CMS system Ultra-miniaturization Highly integrated Large angle DOMS RGB-IR processing technology Anti-Red exposure 3D technology Controller Related Core ECU board Highly reliable assembly Highly accurate and efficient calibration Combined with XR products Co-simulation Platform ISP tunning capability Fully automated Digital construction 33#34Thanks!#35SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED 舜宇光學科技(集團)有限公司 (于开曼群岛注册成立的有限公司) (股份代号:2382.HK) Perception and Interaction From XR to Robots Corporate Presentation-Sunny Optical Intelligence June 2023#36Display 52.9% Computing Optical and Memory Related Chips 19.6% 15.2% Others 12.3% *Data from: WellsennXR Optical Related Costs > 15% 36#37Sunny XR business Layout VR Optical Fresnel Pancake Perception and Interaction Head Localization VST RGB Face and Eye Depth Tracking AR Optical Optical Waveguide AR Machine 37#38XR Perception and Interaction Solution Evolution Path High Natural Interaction Degree Low Quest2 (2020) With handles 4 cameras P Apple Vision Pro (2023) Without handles 12 cameras +1 structured light+1 TOF+2 IR Magic Leap 2 (2022) Handles with cameras 9 cameras total Quest Pro (2022) Handles with cameras 16 cameras total HTC VIVE (2015) 1 camera, Outside In Interaction Efficiency High 38#39Vision Perception and Interaction ⚫ Vision Pro VST 6 DoF Facial Tracking and Gesture Downward cameras IR illuminators Side cameras Gesture DON GUNNE 600 Multi Cameras and DToF combination to achieve more accurate gesture recognition and occlusion relationship presentation, help users to feel a natural interactive experience without a handle LiDAR Scanner TrueDepth camera IR cameras LED illuminators TED WOLD Depth Cameras (DTOF+ Structured Light) perception 3D modeling and spatial Stereo and DToF cameras combination to modeling 3D space, realizing the natural integration of virtual projection image and rendering space, and can also shoot 3D pictures and videos Facial 3D reconstruction Eye Tracking With structured light, the face is scanned by the head display to create a virtual face matching the real face, which increases the sense of reality when many people communicate online 39#40Sunny 3D Vision Process 3D Vision START 2010 Posture recognition product MP Gesture recognition product MP Space mapping product MP AR headset Facial recognition product MP product MP 2015 Structured Light Stereo Camera Stereo TOF Camera Structured Light Obstacle avoidance product MP TOF 40#41Vision Perception and Interaction • Robots Structured Light TOF h Stereo Camera People01 Distance 3m 人物 01 People02 Distance 7.5m People03 Distance 8.5m 人物 03 ● 距离8.5米 距离3.0米 沙发01 距离2.5米 Sofa Distance 2.5m 沙发02 (距离3.5米 人物02 距离7.5米 Sofa Distance 3.5m 41#42Vision Perception and Interaction Robotic Markets Emotional Satisfaction Companion Robot (~2kk) Educational Robot (~2kk) Food Delivery Robot (~200k) Mower Robot (-1kk) ( ། Hotel Robot (~200k) Vacuum Robot (-20kk) Commercial Cleaning Robot (-100k) Logistics Delivery Robot (-200k) AMR and Mechanical Arm (~1kk) prime Efficiency Improvement 42#43Thanks!#44SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED 舜宇光學科技(集團)有限公司 (于开曼群岛注册成立的有限公司) (股份代号:2382.HK) Investor Day Corporate Presentation-Sunny Opotech June 2023#452023 Overall Smartphone Market Key Words and Countermeasures ➤ Affected by slow global economic recovery, continued inflation, rising unemployment rate, and lengthened product replacement cycle, the 2023 overall smartphone demand has declined continuously. The Company expected that 2023 global smartphone shipment will decline by 6.3% to 1.10 billion units compared to 2022, 6.6% decrease compared to the original forecast in Jan 2023. 2023 China smartphone shipment will decline by 5.1% to 260 million units compared to 2022, 5.5% decrease compared to the original forecast at the beginning of 2023. ➤ Due to the intensive market competition and the smartphone camera continues to de-spec, the smartphone makers are facing profit declines or even losses in the hardware, resulting in higher cost pressure. Foldable smartphone shipment is growing significantly, up by 29.4% YoY, with demand for urgent module miniaturization; Flagship smartphones focus more on the experience of better image performance. 45#462023 Overall Smartphone Market Key Words and Countermeasures Targets: thrive in business breakthroughs and continue to improve profitability With the technology advantage and product innovation, Sunny leads the camera imaging technology in both flagship and foldable phones, where it helps to increase the domestic customer cooperation stickiness, further expand overseas customer business. Develop and expand product lines in XR Camera/Module/FATP business by leveraging expertise in optical technology, and speed up the strategic planning and development in new business Road mapping of the core actuator component (including OIS) enables unibody integration for VCM, lens, and module to further strengthen system level assembly skills and customization capability. Continue to promote the construction of factory digitalization and intelligentization; Further enhance the global supply capability by larger-scale operation of international benchmark factories in Vietnam and India Give full play to the advantages of scale, and continuously improve the cost competitiveness of products 46#47Upgrading Trends of Next Gen Camera Continuous Variable Aperture Fold Tele w/ Large Image Format Fold Tele w/ Large Aperture Sensor Shift OIS The large aperture allows more incoming lights to the sensor and improves the capturing speed. The continuous adjustable aperture enhances the overall image quality in different scenarios. Miniaturized AF Molding packaging technology enables compact layout in a limited height space to achieve high image quality for a large sensor tele product. Internal AF AOA technology enables lens lead design for periscope w/ large aperture. This greatly improves the light input and image quality. D-TOF Sensor shift OIS allows high precision, fast respond time and low power consumption for 3- axises optical OIS. Miniaturized AR Light Engine VCM & lens unibody-design can realize dimension reduction, target for foldable phones for a greater image quality. AOA technology enables the single lens element movement, it greatly improves near focus quality and focusing speed together w/ power consumption reduction. Upgraded from iToF to dTOF for longer effective detective distance, lower power consumption. More suitable for smartphone and XR. Molding Packaging technology enables industry smallest size 0.4cc Micro LED full color optical engine and 0.35cc for monochromatic light engine. 47#48Core Platform Technologies Molding Packaging I | High-precision Optical Assembly High-precision Actuating Advantage: Module height reduction > 0.37mm, XY inner shrinkage > 0.8mm compared with normal COB packaging; ②30% module dimension reduction on the AR light engine packaging, more suitable for XR application Sunny Capability: 1 Continuing MP for large sensor tele modules Developed MOC IV, the first innovative industry technology for chip w/ flip bonding process ③Developed ultra-thin side wall packaging w/ wafer level manufacturing design to satisfy XR module size requirement. Advantage: Multiple optics alignment at sub-micron level with contemporary adjustment of the key optical performance indicators including Peak, Tilt, FC etc.; breakthroughs of the optical system's assembly tolerance, and enable the MP of complex optical systems of camera module Sunny Capability: ① MP of Lens-element focus, G+P hybrid lens etc. 2 MP of 1/1" and other extremely large sensor; 3 MP of Fno1.4 and other larger aperture; lens of large aperture 4 Delivered the miniaturized color Micro LED light ④ Developed tele camera with multiple groups engine with 0.4cc. Developed 0.35cc monochromatic AR light engine. Advantage: Integrated design of Actuator-Lens-Module to enable smaller size, better performance, less component, competitive cost etc., boosting the continuous innovation of module design & manufacturing. Sunny Capability: Integrated design capability of optical, mechanical and electronic systems; Over 355 patents, MP for OIS actuator, successfully developed variable aperture and AF w/ long stroke, sensor shift OIS is under development ③Highly integrated full-automated assembly line applied for MP. 48#49Process Capability CAT Line (Close Loop Assembly & Testing Line) ①1st industry initiative of fully integrated module assembly & testing line; enable COB- AA-Testing full connected production 1st industry initiative of UMA packaging technology with both optical & mechanical assembly capability which takes lead in industry ③Self-developed intelligent close-loop software system, enabling self-feedback & correction production; Self-developed visual inspection algorithms, coverage rate > 99% in process inspection. 4 Widely applied in mass production. Actuator Line ①1 st actuator automatic line in the industry. Automation range > 90% (20% higher than the current VCM industry automatic level). The core AOI process is with 100% coverage. ②The production line can integrate various modules for different assembly demands such as OIS, AF, sensor shift, and periscope actuator. Enable the flexible production line switch capability. 3 MES digital system management with bi- direction traceability 4 Widely applied in mass production. XR Line 1 Self-developed XR FATP production line and equipped fast line switch capability based on exact product specification. Self-developed high precision assembly process and inspection for AR light engine, with the first AA equipment for AR product in the industry. Including self-developed FOVP, VID and other core detection algorithm to lead the industry ③Equipped mass production capability from optical module to FATP in one-stop delivery. Finished DA Bake Buffer WB thread Gold Buff- Wash HA Bake S-40 Strip UMA Bake Weld check er WLT-Mini Pre-Mini product Frame assembly Af assembly section section Test and clean Bottom ambly Manual Circular Accessories attach Device assembly Device assembly Screws attach 49 49#50Thanks!