Sun.King Technology Announces 2020 Annual Results Adhering to “Scientific and Technology Innovation”

(24 March 2021, Hong Kong) Sun.King Technology Group Limited (“Sun.King Technology” or the “Company”, Stock Code: 580.HK; together with its subsidiaries, the “Group”) is pleased to announce the annual results for the 12 months ended 31 December 2020 (the “Period”).

During the Period, the Group recorded revenue of RMB 1.216 billion, down by 12.89% year-on-year. The Group’s profit attributable to owners of the Company decreased by 9.41% year-on-year to RMB 178 million. Net profit after deducting non-recurring gains and losses increased by 11.69% year-on-year to RMB 157 million.In order to give back to the shareholders for their long-term support, the Board of Directors resolved to pay an annual dividend of HK 3 cents per ordinary share.

Significant increase in electrified transportation revenue, outstanding operational resultsachieved in UHVDC power transmission

During the Period, the Group’s sales revenue from electrified transportation increased significantly by 28.31%, while the sales revenue from power transmission and distribution, as well as industrial and others decreased.

According to the breakdown by business segment, sales revenue from power transmission and distribution business amounted to RMB 756 million, down by 12.24% year-on-year. It is worth mentioning that, due to the delivery of batches of orders of the Wudongde Power Station Multi-terminal DC Demonstration Project for Power Transmission in Guangdong and Guangxi(the “Wudongde Project”), the UHVDC transmission projects-“Qinghai-Henan”,“Shaanbei-Wuhan”and“Yazhong-Jiangxi”and the“Yunnan-Guizhou Interconnection” HVDC transmission project,the sales revenue surged 182.00% to RMB 288 million. During the Period, the products delivered has decreased compared with 2019, and the subsequent flexible DC transmission projects has not yet begun to sign orders and deliver. As a result, the Group’s revenue in flexible DC transmission decreased by 42.33% to RMB 390 million.

In electrified transportation, the Group achieved sales revenue of RMB 132 million, an increase of 28.31% year-on-year. During the Period, due to the increase in revenue from the Group’s products in the motor unit sector, the revenue from rail transportation vehicles subsector increased significantly by 39.41% to RMB 130 million.

Regarding industrial and others sector, sales revenue recorded RMB 330 million, representing a decrease of 29.98% year-on-year. During the Period, due to the adverse impact of the COVID-19 epidemic, the Group’s the revenue of the electrical equipment sector decreased slightly by 10.32% to RMB 240 million. However, Due to good performance of products such as laminated busbars in photovoltaic and wind power sectors, the Group’s revenue in the new energy power generation sector increased by 14.85% to RMB 56 million.

Adhere to the development concept of “scientific and technological innovation”, realize fruitful scientific research achievements

In 2020, the Group has achieved remarkable progress and results in its proprietary technology,
IGBT chips and module R&D projects. The first product of the Group, 1200V/200A i20 chip and
1200V/600A ED-Type module was officially released on 28 September 2020.The 1200V/200A i20 chip, embraced by international advanced design concepts of 3D structure design, low-voltage access, narrow platform, optimised P+ layer and enhanced N layer, and adopted advanced industry-leading technologies such as TAIKO ultra-thin base, field stop and laser annealing of anode, has excellent performance.

The 1200/600A ED-Type module, with its unique linear design, dramatically improves the equilibrium of current in the module. World-class supply chain and quality management bring excellent quality to the ED-Type module.

In addition, benefiting from the outstanding technical standards and product quality, the Group has received the first order in the European marine field for solid-state DC switches to provide the 1500V/500A products to European customers. Smart grid 11kV ultra-fast AC switchgears once again awarded an order for the British Smart Grid Technology Demonstration Project. Meanwhile, commutation variable remote intelligent patrol system won the bid of the State Grid “Yazhong-Jiangxi” UHVDC Transmission Project, Zhangbei Renewable Energy 500kV Flexible DC Transmission Demonstration Project. Pulsed power supply achieved outstanding results in both the United States Electricity Fish Barrier Project and the EidgenössischeTechnische Hochschule Zürich (ETH) High Voltage Laboratory Project.

Mr. Xiang Jie, Chairman of Sun.King Technology, said, “In 2020, the Group will have been listed for ten years. It is also a groundbreaking year for Sun King Technology to implement the strategic transformation and step into a new stage of development. Relying on the world-class R&D strength, the Group has made great efforts to build new IGBT products and has made excellent progress. In addition, the Group has made several remarkable and breakthrough achievements in innovative technologies such as solid-state switches, DC support capacitors and smart grid online monitoring system. Looking forward, the Group will continue to promote two business segments: power semiconductors, supporting devices and innovative emerging power technology by relying on scientific and technological innovation. Moreover, the Group will continue to optimize its management system, to improve operational efficiency, to implement sound financial policies and to actively carry out corporate social responsibility, in order to create long-termgrowth in value, and to consolidate and enhance the Group’s leading position in the industry.”