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Sunny Optical 02382
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| Chairman |
Wang Wenjian |
| Issued Capital (Shares) |
1,000M |
| Par Value (HKD) |
0.100 |
| Market Capitalization (HKD) |
1,310M |
| Corporate Profile |
Principally engaged in the production of optical components optoelectronic products and optical instruments.
Business Review - For the year ended December 31 2010
During the year under review the Group¡¦s sales achieved satisfactory growth due to among other things the recovery of the global economy and the efforts contributed by every business segment of the Group. Furthermore as the Group fully implemented ¡§Lean Production¡¨ its product structure and customer portfolios were effective improved allowing the Group to achieve growth above the industry average performance.
In 2010 the Group¡¦s sales revenue was approximately RMB1818.1 million representing an increase of approximately 38.8% as compared with the previous year. Main reasons accounted for such increase included the significant growth in our three major business segments namely optical components optoelectronic products and optical instruments and the smooth operation of several recently established subsidiaries. Among such subsidiaries Ningbo Sunny Automotive Optech Co. Ltd. got rapid business expansion made a greater profit contribution and was granted with government subsidies for its R&D projects. Ningbo Sunny Infrared Technologies Company Ltd. began to generate profit from its infrared lenses and lens sets businesses while Shanghai Sunny Hengping Scientific Instrument Co. Ltd. was granted with several subsidies from the Municipal Government of Shanghai in respect of its mid- and high-ended analytical instruments and realized a break even result for the year.
Our three major business segments namely optical components optoelectronic products and optical instruments have upgraded their respective existing products in R&D so as to maintain their technical leadership in the industries of such products. Meanwhile in order to realize sustainable growth of the Group each business segment also conducted R&D in certain emerging optical application fields. In respect of the optical components business great progress has been made in the technology of manufacturing glass aspheric lenses with several cavities per mold; breakthrough has been secured in the molding of plastic aspheric lens with narrow runway; development for several types of micro-projectors and engines have been accomplished; utility model patents for various lens sets for vehicles have been obtained; automatic production and inspection technology for lens sets was further developed and applied. The Group is well prepared for providing quality products for the international leading handset manufacturers. In respect of optoelectronic products business segment the development of 12-mega pixel handset camera module has accomplished. Security surveillance products have been in the upgrade of R&D process and the market operation model of which was preliminarily established. In respect of optical instruments business segment developments for a number of teaching interactively microscope systems analytical instruments oriented for spectrophotometer gas chromatograph and mass spectrometer and high-end measuring machines have been accomplished. In addition typical sales have been made in areas concerning environmental protection and food safety which laid foundation for further expansion of optical instrument market. Currently the Group owns 109 patents and 55 patents pending for approval.
Optical Components
Driven by the rapid growth of 3G handset smartphone and DSLR markets the demand for high quality lenses and handset lens sets with high resolution surged. By virtue of its outstanding products and technology optical components business segment was well received by the customers. During the year under review with rapid growth in sales the sales revenue of the segment was approximately RMB903.3 million representing an increase of approximately 41.7% as compared with last year. This business segment accounted for approximately 49.7% of the Group¡¦s revenue while approximately 48.7% as for last year.
During the year under review shipment volume of 2-mega pixel (or above) handset lens sets took a larger proportion in the total shipment of handset lens sets of the Group increased from approximately 34.7% of last year to approximately 41.0% for the year under review. Meanwhile the mass production for 5-mega and 8-mega pixel handset lens sets with auto-focus function has been commenced. Our spherical lens production line has been gradually developing mainly oriented for DSLR lenses highlighted with high precision and sophistication propelling us to become the first class supplier for various famous digital camera manufacturers. Our relationship with customers was thus further reinforced and a new direction ¡§New Business of Existing Customers¡¨ was further explored broadening our path for future business development.
Given the proactive market expansion strategy of the segment several new reputable customers were secured this year. We have obtained a qualification of sub-supplier of Nokia the celebrated handset producer during the year under review which was a milestone of entering into the supply chain for the world¡¦s first class handset producers building a strong foothold for winning greater market share in handset lens sets market in the future.
This business segment has obtained 36 patents of which 12 are invention patents 23 are utility model patents and the remaining 1 is exterior design patent. In additions 38 other patents are in the process of application.
Optoelectronic Products
Despite the decrease in average selling price resulted from the fierce competition in handset market through enhancement of its product portfolio and strengthening of market promotion the shipment volume of optoelectronic products business segment still recorded a significant increase as compared to last year and thus recorded an increase in sales. In 2010 the segment realized sales revenue of approximately RMB720.1 million representing an increase of approximately 32.0% as compared to last year. This business segment accounted for approximately 39.6% of the Group¡¦s revenue while approximately 41.7% as for last year.
The shipment proportion of 2-mega (or above) pixel handset camera modules increased to approximately 37.2% of total handset camera modules shipment volume in 2010 from approximately 27.7% of last year. The mass production for 5-mega and 8-mega pixel handset camera modules with auto-focus function has been successfully launched. With the ¡§particleresistant gluing technique for camera modules for handset with high resolution¡¨ which has obtained an invention patent our outstanding high resolution products allowed the Group to maintain its dominant position as the top supplier for domestic 3G handset and smartphone manufacturers. Meanwhile reflow handset camera modules which enjoyed cost advantages and were applicable to front cameras of smartphones commenced the mass production. Furthermore the Optical Finger Navigation module ¡§OFN module¡¨ in this segment which would be vastly applied in handset and computer areas also successfully commenced its mass production.
For this business segment we have already established important partnership with a number of famous customers such as Huawei ZTE Lenovo Coolpad K-Touch Gionee and so on all of which are domestic brand handset manufacturers. This business segment is expected to make more contributions in domestic smartphones in future. Besides the business segment also continues to devote tremendous efforts in entering into first class international handset supply chain.
The business segment also successfully obtained certificate of OHSAS180001. In the same year the Group had invested approximately RMB20 million in Visiondigi (Shanghai) Technology Co. Ltd. (¡§Visiondigi¡¨) thus holding approximately 26% equity interests of the company. Currently security surveillance products developed by the company have already formed products in a series while its market channel requires further establishment.
This business segment has obtained 25 patents of which 3 are invention patents 17 are utility model patents and the remaining 5 are exterior design patents. In additions 7 other patents are in the process of application.
Optical Instruments
During this year with the recovery of industry the demand for optical instruments market emerged. Besides following the increasing demands for domestic scientific research environmental protection and education the market demand for optical analytical instrumental products has also continued to climb up. Meanwhile as the Group proactively promoted this business segment and strived to consolidate its ability in R&D and marketing a significant increase was achieved in this business segment during the year. During the year under review as compared to last year sales revenue recorded by optical instruments business segment increased by approximately 53.8% to approximately RMB194.7 million accounting for approximately 10.7% of the Group¡¦s total sales revenue while 9.6% for last year.
During the year under review optical instruments business segment of the Group achieved a significant breakthrough in terms of R&D of new products and key technology. The business segment has successfully developed EX20/30 biological microscope and SZX7 parallel light path zoom stereo microscope which have commenced mass production and small batch production respectively. At the same time the Differential Interference Contrast (¡§DIC¡¨) technology of this segment achieved great improvement this year which accordingly broadened the application of the Group¡¦s metallurgical microscope enhanced product quality and enlarged product portfolio as well. Moreover in the year under review the Group also entered into an agency agreement with JEOL (one of the world superior scientific instruments producers) pursuant to which the Group became JEOL¡¦s official agent and was entitled to distribute gas chromatographs/quadrupole mass spectrometers in the PRC and responsible for the promotion and sales of gas chromatrographmass spectrometers (Jms-Q1000GC MK11) in the region. It was a remarkable step for the Group in enlarging its product portfolio.
Besides the Group has already disposed of its surveying instrument business from the business segment in January 2010 so as to concentrate its resources and focus on expanding businesses of mid- to high-end microscopes optical measuring instruments and optical analytical instruments.
This business segment has obtained 48 patents of which 1 is invention patent 11 are utility model patents and 36 are exterior design patents. And other 10 patents are in the process of application.
Production
The Group mainly operates four production bases in Yuyao City of Zhejiang Province Zhongshan of Guangdong Province Shanghai and Tianjin in the PRC respectively. In addition the Group has set up offices and production areas in Seoul of Korea and Singapore through its subsidiaries.
In addition the Group will commence the construction plan of its fifth production base in Henan in March 2011 in order to conform with the industrial integration trends and enjoy its advantageous local resources. In 2010 our high-end products series leaped into the front ranks among the industry in the PRC.
Source: Sunny Optical (02382) Annual Results Announcement |
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Copyright 1999-2001 SHK Financial Data Limited
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Last Updated: 5 Oct 2011
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