Sunny Optical Technology (Group) Company (2382) investor relations material

Executive summary

• Revenue rose 12.9% year-on-year to RMB 43.23 billion in 2025, driven by handset, vehicle, and pan-IoT segments, with record operational results and high-quality growth initiatives.

• Net profit attributable to shareholders surged 71.9% to RMB 4.64 billion, supported by improved margins and a one-time RMB 919 million gain from a share swap transaction.

• Gross profit increased 21.6% to RMB 8.52 billion, with gross margin up to 19.7%.

• Strategic focus on AI integration, premiumization, and expansion into robotics, optical interconnect, and new growth areas.

• Final dividend proposed at HKD120.60 cents per share, raising payout ratio to 25% of attributable profit.

Financial highlights

• Gross margin for 2025 was 19.7%, up 1.4 percentage points year-on-year.

• Operating expense ratio decreased to 11.6%, down 0.8 percentage points from 2024.

• Handset revenue grew 8.6% to RMB 27.32 billion; vehicle revenue up 21.3% to RMB 7.33 billion; pan-IoT revenue grew over 60%.

• XR segment revenue declined 7.1%, but AR smart glasses camera modules revenue surged 800% year-on-year.

• Net cash from operating activities jumped 75.9% to RMB 6.08 billion; capital expenditure grew 29.7% to RMB 2.93 billion.

Outlook and guidance

• 2026 group revenue and operating profit expected to grow by no less than 7%.

• Handset business projected to grow 5%-10% year-on-year in 2026, with gross margin for lenses at 25%-30% and modules at no less than 8%.

• Glass-plastic hybrid HLS revenue forecast to grow over 150%, periscope lens by 40%, periscope module by 20%, and actuator modules by 50% in 2026.

• Vehicle business to be spun off with a public offering not exceeding 15% of shares.

• AR-related XR revenue projected at RMB 2 billion in 2026, with mass production of new products expected in 2027.