董事會策略及發展委員會職權範圍 SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED （ 舜 宇 光 學 科 技（ 集 團 ）有 限 公 司 ） ("Company"「本公司」) Terms of reference of the Strategy and Development Committee ("Committee") of the board (the "Board") of directors ("Directors" and each a "Director") of the Company SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED （ 舜 宇 光 學 科 技（ 集 團 ）有 限 公 司 ） Terms of reference of the strategy and development committee of the Board of Directors 委員會主席由董事會委任。 本公司董事（「董事」及各為一名「董事」）會（「董事會」）策略及發展委員會（「委員會」）職權範圍 1 Adopt ...

SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED （ 舜 宇 光 學 科 技（ 集 團 ）有 限 公 司 ） SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED （ 舜 宇 光 學 科 技（ 集 團 ）有 限 公 司 ） ("Company"「本公司」) Terms of reference of the Audit Committee ("Committee") of the board (the "Board") of directors ("Directors" and each a "Director") of the Company 本公司董事（「董事」及各為一名「董事」）會（「董事會」）審核委員會（「委員會」）職權範圍 1 Adoption of the Terms of Reference Terms of reference of the audit committee of the Board of Directors 董事會審核委員會職權範圍 採納職權範圍 These terms of refer ...

Core Viewpoint - Sunny Optical Technology is expected to achieve a revenue of 41.085 to 43.915 billion yuan for the year, representing a year-on-year growth of 7.3% to 14.7% [1][6] - The net profit is projected to be between 3.263 to 3.810 billion yuan, with a year-on-year increase of 20.9% to 41.2% [1][6] - Adjusted net profit is forecasted at 3.770 billion yuan [1][6] Revenue and Profit Forecast - The consensus forecast for revenue ranges from 41.085 to 43.915 billion yuan, with an average estimate of 42.732 billion yuan, indicating an 11.6% year-on-year growth [3][8] - The net profit forecast is between 3.263 to 3.810 billion yuan, with an average estimate of 3.628 billion yuan, reflecting a 34.4% year-on-year increase [3][8] - The adjusted net profit is consistently estimated at 3.770 billion yuan across various forecasts [3][8] Business Segments - In the smartphone-related products segment, Sunny Optical holds the global market share for smartphone lenses, with growth driven by product structure optimization and advancements in new technology [5][10] - The automotive-related products segment shows Sunny Optical leading in global shipments of automotive lenses, with a strong market position and rapid development in automotive module fields [5][10] - Other business areas, particularly XR and IoT, exhibit significant growth potential, leveraging technology reuse and AI capabilities for increased profitability [5][11] Recent Performance Insights - In October 2025, smartphone lens shipments increased by 4.0% month-on-month and 5.7% year-on-year, while smartphone camera module shipments saw a substantial year-on-year growth of 33.2% [6][11] - Automotive lens shipments experienced a remarkable year-on-year growth of 40.3%, indicating strong performance in the smart driving sector [6][11] - The XR product line is gaining traction due to rapid advancements in AI technology, with collaborations with leading global manufacturers for display and interaction products [6][11]

Group 1 - The core point of the article is the recent change in ownership and management of Sunyu Aolai Micro-Nano Optoelectronic Information Technology (Shanghai) Co., Ltd, with GoerTek becoming the new sole shareholder [1] - The original shareholder, Ningbo Sunyu Aolai Technology Co., Ltd, has exited the company [1] - The legal representative of the company has changed from Ye Lianing to Rao Yi [1] Group 2 - Sunyu Aolai Micro-Nano Optoelectronic Information Technology (Shanghai) Co., Ltd was established in January 2021 with a registered capital of 143 million RMB [1] - The company's business scope includes manufacturing optical instruments, optoelectronic devices, and electronic components and electromechanical component equipment [1]

Summary of the Conference Call for Sunny Optical Technology Group Co., Ltd. Industry Overview - The automotive lens market has significant growth potential, with an expected average of 4.3 cameras per vehicle by 2025, and over 10 cameras in new energy vehicles [2][3] - The XR (Extended Reality) sector shows mixed performance, with weak demand in the VR market but strong performance in smart glasses, particularly driven by a major North American client launching four smart glasses in September 2025 [2][5] - The smartphone market is saturated, with expected shipment volumes in 2025 remaining flat or showing low single-digit growth [2][6] Key Points and Arguments Automotive Sector - Sunny Optical's shipments in the automotive market grew nearly 28% from January to November 2025, driven by the increasing demand for Advanced Driver Assistance Systems (ADAS) [3] - The company has developed ADAS products with 17 to 18 million pixels, positioning itself as a technology leader [2][3] - Future trends include miniaturization and self-cleaning features for automotive lenses, with expectations of over 20% revenue growth in automotive lenses and modules by 2025 [2][4] XR Sector - The smart glasses market is expected to see an increase in the number of cameras per device, potentially exceeding 10, as applications and functionalities expand [2][5] - Despite the VR market's underperformance, the XR-related business revenue is expected to remain stable compared to the previous year [2][5] Smartphone Sector - The company is focusing on high-end product lines, anticipating a 5% to 10% revenue growth in smartphone lenses and modules, with average selling prices (ASP) and gross margins improving [2][6] - The ASP is projected to achieve double-digit growth for the year, with module gross margins expected to be between 8% and 10% [6] Collaboration and Strategic Initiatives - Sunny Optical collaborates with GoerTek in the waveguide segment, focusing on AR technology, although the AR market's slow development has not yet translated into significant performance improvements [2][7] - The partnership involves resource concentration through asset swaps and capital increases, with specific roles still under discussion [7] Future Business Guidance - The company is optimistic about future developments across its business segments, although specific guidance is not yet available due to budget considerations [7][8] - The company is exploring emerging automotive business areas such as LiDAR and HUD smart headlights, with a significant project in LiDAR exceeding 1.5 billion RMB in the first half of 2025 [3][8] Production and Supply Chain - The production capacity is primarily domestic, with a focus on improving utilization rates, especially in smartphone modules, which are expected to reach 80-90% in the second half of 2025 [11] - Geopolitical factors have limited impact on production and supply chains, with existing production bases in Vietnam and India allowing flexibility to meet international client demands [12][10] Financial Considerations - The company is considering increasing dividend payouts and share buyback plans, balancing these with R&D investments and operational funding [14] Additional Important Insights - The company has seen a doubling in revenue from wave-speed hybrid lenses in the first half of 2025, indicating strong market demand for high-end products [13] - The company is prepared to respond quickly to expansion needs, with existing facilities ready for equipment procurement [11]

Core Viewpoint - The Hong Kong technology stocks experienced a collective decline, with the Hang Seng Technology Index dropping by 2.5% Group 1: Stock Performance - SenseTime (商汤) fell over 6%, closing at 2.000, down by 0.130 [1][2] - Xpeng Motors (小鹏汽车) decreased by 4.88%, with a latest price of 70.150, down by 3.600 [1][2] - Alibaba (阿里巴巴) saw a decline of 3.77%, trading at 143.000, down by 5.600 [1][2] - JD Health (京东健康) dropped by 3.84%, with a price of 55.100, down by 2.200 [1][2] - Semiconductor Manufacturing International Corporation (中芯国际) fell by 3.71%, closing at 62.300, down by 2.400 [1][2] - Tencent Music (腾讯音乐) decreased by 3.37%, with a latest price of 68.750, down by 2.400 [1][2] - Alibaba Health (阿里健康) dropped by 3.07%, trading at 5.060, down by 0.160 [1][2] - Xiaomi (小米) fell by 3.06%, closing at 40.560, down by 1.280 [1][2] - Huahong Semiconductor (华虹半导体) decreased by 3.05%, with a price of 65.250, down by 2.050 [1][2] - Li Auto (理想汽车) saw a decline of 2.82%, trading at 63.750, down by 1.850 [1][2] - NIO (蔚来) fell by 2.60%, closing at 38.220, down by 1.020 [1][2]

Core Viewpoint - The report by Haitao Securities emphasizes the importance of identifying stocks with potential short-term or long-term performance discrepancies or surprises in AI advancements as a core task for 2026 [1] Group 1: Investment Strategy - The main investment strategy is to focus on value investing in the Hang Seng Technology Index, leveraging volatility from the Hong Kong stock market and short-selling mechanisms [1] - The key to successful operations lies in selecting fundamentally strong companies with sustainable development capabilities [1] Group 2: Recommended Stocks for 2026 - Stocks currently at the bottom or adjusting, with a high likelihood of fundamental reversal in 2026: Meituan, Xiaomi Group (planning next vehicle), BYD Electronics [2] - Stocks expected to benefit from EPS gains and potential valuation uplift: Tencent Holdings, Trip.com Group, JD Health, Lenovo Group [2] - Stocks with controllable elasticity: Alibaba, Baidu Group, SMIC, Hua Hong Semiconductor [2] - AI elastic stocks: Kuaishou, Bilibili, Kingdee International, Horizon Robotics, Xpeng Motors, Yueda Group, NetEase, Sunny Optical Technology, UBTECH [2] - Potential small-cap companies: Inspur Digital Enterprise, Xindong Company, Huiliang Technology [2] Group 3: Individual Stock Insights - Kuaishou, Bilibili, Horizon Robotics, Xpeng Motors, Sunny Optical Technology, UBTECH are highlighted as key stocks with positive outlooks [2] - Inspur Digital Enterprise and Huiliang Technology are noted as quality small-cap stocks with promising prospects [2] - Tencent Holdings is identified as a top pick due to its strong research framework [2] - Alibaba is considered a leading asset in AI technology [2] - Lenovo Group is expected to achieve profitability in its server business next year due to accelerated AIPC penetration [2] - Trip.com Group is positioned well for growth driven by domestic stability and overseas acceleration [2] - JD Health is recognized as a leading player in internet healthcare with a clear growth path [2] - Meituan is noted for its resilience and potential turning point in competitive landscape [2] - Kingdee International's growth is constrained by macroeconomic factors, but AI and overseas expansion provide additional elasticity [2] - Xiaomi Group is expected to see improvements as negative factors gradually clear [2] - SMIC is experiencing an increase in advanced manufacturing proportion and continuous technological breakthroughs [2] - Hua Hong Semiconductor is benefiting from growth driven by computing and consumer electronics [2] - Yueda Group focuses on IP as a core asset, with expectations for further expansion and monetization [2] - NetEase is anticipated to enter a new product cycle with upcoming releases [2] - BYD Electronics is expected to see growth from Apple's foldable phone production and has significant potential in the new energy vehicle and data center sectors [2] - Xindong Company is driven by gaming and Taptap, with expectations for the launch of an overseas version [2]

Core Insights - The top three companies with the highest short positions are Vanke Enterprises (02202), ZTE Corporation (00763), and COSCO Shipping Holdings (01919), with short ratios of 20.57%, 17.63%, and 17.59% respectively [1][2] - The company with the largest increase in short positions is ZTE Corporation (00763), which saw an increase of 1.96% in its short ratio [1][2] - The companies with the most significant decrease in short positions include UBTECH Robotics (09880), ASMPT (00522), and Vanke Enterprises (02202), with decreases of -3.30%, -1.86%, and -1.83% respectively [1][3] Top 10 Short Position Ratios - Vanke Enterprises (02202) has a short position of 20.57%, down from 22.40% [2] - ZTE Corporation (00763) has a short position of 17.63%, up from 15.67% [2] - COSCO Shipping Holdings (01919) has a short position of 17.59%, up from 15.00% [2] Largest Increases in Short Positions - ZTE Corporation (00763) increased its short position from 15.67% to 17.63%, an increase of 1.96% [2] - Leap Motor (09863) saw its short position rise from 2.79% to 4.58%, an increase of 1.79% [2] - OSL Group (00863) increased its short position from 4.31% to 5.89%, an increase of 1.59% [2] Largest Decreases in Short Positions - UBTECH Robotics (09880) decreased its short position from 5.07% to 1.78%, a decrease of -3.30% [3] - ASMPT (00522) saw its short position drop from 6.71% to 4.85%, a decrease of -1.86% [3] - Vanke Enterprises (02202) reduced its short position from 22.40% to 20.57%, a decrease of -1.83% [3]

Core Insights - Citi's report indicates that artificial intelligence glasses are poised to become the next rapidly growing AI edge device, with projected shipments reaching approximately 112 million units by 2030, reflecting a compound annual growth rate (CAGR) of 105% from 2024 onwards [1] - The market size for AI glasses is expected to reach $40 billion by 2030, with a CAGR of 112% during the same period [1] Market Positioning - EssilorLuxottica and Meta are predicted to maintain a leading position in the short term, with a market share of 31% by 2030, down from 90% last year [1] - Google and Apple are expected to capture market shares of 27% and 16%, respectively [1] Component Importance - Optical components are crucial for AI or augmented reality (AR) glasses, potentially accounting for 40% to 70% of the bill of materials [1] - Companies with high exposure to the supply chain or significant optical business are favored, including EssilorLuxottica, GoerTek (002241.SZ), Sunny Optical Technology (02382), OmniVision Technologies (603501.SH), and Conant Optical (02276) [1] Ratings and Price Targets - Citi has initiated coverage on Conant Optical, assigning a "Buy" rating to both Sunny Optical and Conant, with target prices set at HKD 103 and HKD 65, respectively [1]

Core Insights - Citi's report indicates that artificial intelligence glasses are poised to become the next rapidly growing AI edge device, with projected shipments reaching approximately 112 million units by 2030, reflecting a compound annual growth rate (CAGR) of 105% from 2024 onwards [1] - The market size for AI glasses is expected to reach $40 billion by 2030, with a CAGR of 112% during the same period [1] Market Positioning - EssilorLuxottica and Meta are predicted to maintain a leading position in the short term, with a market share of 31% by 2030, down from 90% last year [1] - Google and Apple are expected to capture market shares of 27% and 16%, respectively [1] Component Importance - Optical components are crucial for AI or augmented reality (AR) glasses, potentially accounting for 40% to 70% of the bill of materials [1] - Companies with high exposure in the supply chain or significant optical business are favored, including EssilorLuxottica, GoerTek (002241.SZ), Sunny Optical Technology (02382), OmniVision Technologies (603501.SH), and Conant Optical (02276) [1] Ratings and Price Targets - Citi has initiated coverage on Conant Optical, assigning "Buy" ratings to Sunny Optical and Conant, with target prices set at HKD 103 and HKD 65, respectively [1]