SUMEC International Technology Co., Ltd.(hereinafter referred to as "SUMEC") has thousands of customers in the electromechanical business, covering various industries. Dongguan Yutong Optical Technology Co.,Ltd(hereinafter referred to as "Yutong Optical") is one of these thousands of customers. Although the firm scale is not the largest among all of our customers, it is a very representative one, for its development is China’s private enterprises’s growth history in miniature.

Company Introduction:

Yutong Optical is a high-tech enterprise specializing in the design, research and development, production and sales of optical lenses and other related products. Their products are mainly used in security monitoring equipment, vehicle-mounted cameras, machine vision and other high-precision optical systems. In 2016, 2017 and 2018, Yutong Optical achieved annual revenues of 581 million yuan, 770 million yuan and 998 million yuan respectively, and its profits reached approximately 50.32 million yuan, 69.31 million yuan and 98.07 million yuan respectively.

Interviewee:

Dongguan Yutong Optical Technology Co.,Ltd

General Manager: Jin Yonghong

SUMEC Datianxia: Hello Mr. Jin, thank you for making time for our interview. As we all know, Yutong Optical specializes in the research and development, production and sales of optical lens related products. Could you please give us a detailed introduction of your company’s main business?

Mr.Jin: Sure. Security is our current primary business. In the year of 2018, the global market share of Yutong Optical’s security monitoring lens reached 33%, surpassing the second place by 15.1%. Thereinto, the market share of prime lens reached 36.3%, and for zoom lens, the market share was 19.7%, leading the security monitoring lens industry.

On the one hand, the continuous development of zoom lens has benefited from the market demand, on the other hand, it is also because it is easy to implement automated production and thus form a scale effect. During this process, Yutong Optical constantly introduces advanced equipment from abroad to achieve a high level of automation.

As the market size of the security industry keeps gowing, zoom lens also shows a steady growth. Zoom lens, as the midrange and high-end product among the congeneric products, has a more complex structure. Therefore, Yutong Optical continues to introduce the world’s top optical equipment, improve the competitiveness of our products in the market, and establish our brand advantages. We got to know SUMEC in the process of importing optical equipment, and has forged an indissoluble bond with you ever since.

SUMEC Datianxia: I see. So that is how it is. Could you please go further in detail and share with us how Yutong Optical and SUMEC built this special bond?

Mr.Jin: I remember it’s in the end of the year 2015, when we were planning on establishing our plastic molding division. Back then, Yutong was importing foreign equipment on a large scale for the first time, which involved the negotiation of business clauses with various suppliers, the conclusion of international trade contracts, and the cooperation financial institutions for finacial leasing purposes. Financial leasing companies, equipment suppliers, Yutong Optical, and SUMEC have many detials to confirm and sort out in terms of capital flow, logistics, the circulating of bills, the contract flow, etc. Right at that time, there happened to be many suppliers recommending SUMEC to us at the same time, which was a valid proof of SUMEC’s expertness and its long-term partnerships with major suppliers in the industry. Later on, as the discussions between our team and SUMEC’s sales team unfolded, our earlier impression that SUMEC was professional and efficient, was proved to be correct, and we managed to settle down all the cooperation details very quickly. With the concerted efforts of Yutong Optical, equipment suppliers, financial institutions and SUMEC,all the equipment was delivered to Yutong’s factory at the fastest speed, and thereby, the production efficiency was guaranteed. In addition, SUMEC also provides a diverse package of services ranging from commodity inspection agency, license application, to government subsidy for imported goods, which largely reduces the cost of equipment import. We have truly felt how professional SUMEC is, and therefore has been cooperating with SUMEC to this day.

SUMEC Datianxia: So we have been cooperating for 4 years . We can say we’re good old friends now. During our past few years as business partners, we have witnessed the vigorous growth of Yutong Optical together. Especially last month, we’ve seen that Yutong Optical rang the bell and was listed in Shenzhen Stock Exchange (SZSE). Could you share with us how you became a listed company?

Mr.Jin: Since its founding, Yutong Optical has always insisted on independent research, development and innovation. We have increased investments in research and development, mastered the core technology of the industry, and formed a strong R&D team. As of June 30, 2019, Yutong Optical’s R&D team has 231 technicians and 147 patents.

Our successful path to IPO is not only the recognition of Yutong Optical’s unremitting efforts, but also the encouragement and incentive for our future development. Yutong Opitical will shoulder more profound responsibilities and missions, firmly grasp new opportunities, innovate our technologies, run our business with our feet on solid ground, win the market, and achieve even better performance. Moreover, we will try to maintain our dominant place in the industry, make Yutong Optical a high-quality listed company with high-quality growth pattern, and continue to make contributions to the optical industry in our country.

[Postscript] In the field of mechanical and electrical equipment import agency business, SUMEC has gained rich experience. Thanks to our customers’ trust. We wouldn’t have today’s growth without the support from our customers. As an import agent dedicated to provide omni-directional and multi-perspective services to our customers, nothing makes us happier than seeing the growth of our customers. We sincerely wish every single one of SUMEC’s customer can flourish and thrive!

We will grow together with our customers and never stop moving forward!