Stock Abbreviation: Q TECH
Stock Code: 1478.HK

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Q Technology (Group) Company Limited Announces 2017 Interim Results 2017-08-10

Q Technology (Group) Company Limited
2017 Interim Results Press Release
August 9, 2017

PRESS RELEASE - FOR IMMEDIATE RELEASE


Q TECHNOLOGY (GROUP) COMPANY
LIMITED
(Stock Code:1478
 
Announces 2017 Interim Results
***
Double Wheel Engine drove interim net profit beyond total net profit of 2016
Optimized Product Structure with increased GP Margin & blended average selling price
Results Highlights

(RMB’000)

Unaudited interim results for the six months ended 30 June

 

2017

2016

Change

Revenue

3,604,998

1,727,031

+108.7%

Gross profit

434,428

161,365

+169.2%

Gross profit margin

12.1%

9.3%

+2.8ppts

Net profit

201,784

82,194

+145.5%

Earnings per share (Basic)

RMB 18.4 cents

RMB 8.0 cents

+130.0%

       

Shipment volume of camera modules (K units)

83,188

74,083

+12.3%

Shipment volume of fingerprint recognition module (units)

34,321

1,395

+2,360%

Average unit selling price

RMB 30.7

RMB 22.9

+34.1%

 

(9 August 2017, Hong Kong) Q Technology (Group) Company Limited (“Q Technology” or the "Company", stock code: 1478, or together with its subsidiaries collectively referred to as the "Group"), one of the leading PRC-based camera module and fingerprint recognition module suppliers focusing on mid-to-high end branded smartphones and tablet PCs in the PRC, is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2017 (the “Period”).

 

During the Period, market share of Chinese smartphone brands has been growing steadily. With ever-increasing support and recognition from core clients , both sales volume and sales revenue of the Group achieved rapid growth. Of which, the sales volume of camera modules reached approximately 83,190,000 units, representing an increase of approximately 12.3% as compared with the corresponding period in 2016. The sales volume of fingerprint recognition module reached approximately 34,320,000 units, representing an increase of approximately 23.6 times growth over the corresponding period last year. The sales volume of camera module and fingerprint recognition module reached approximately 117,510,000 units, an increase of approximately 55.7% as compared with the corresponding period last year. Thanks to the significant improvement in camera module product structure and the remarkable growth in sales proportion of dual camera modules, the corresponding growth rate of sales revenue has exceeded that of the sales volume. The sales revenue of the Group grew by 108.7%, from approximately RMB1,727,031,000 of corresponding period in 2016 to to approximately RMB 3,604,998,000 in 2017. Meanwhile, the optimized product structure improved the added value of products, coupled with the appreciation of RMB against U.S. dollar, the gross profit margin of the Group reached 12.1%, representing an increase of 2.8 ppts over 9.3%, in the corresponding period in 2016 and an increase of 4.1 ppts from 8.0% in the second half of 2016. Based on the these remarkable outcomes, the Group recorded a brilliant growth of 145.5% in net profit to RMB201,784,000 during the Period. Basic earnings per share also grew by 130.0% to RMB18.4 cents over the corresponding period last year.

 

During the Period, based on the steady growth of sales volume, camera module business has further achieved a successful structural optimization. According to the market demand for high pixel product, the Group has fully developed mid-to-high end camera modules with 13 mega pixels and above , which recorded an increase of 249.1% growth in sales volume over the last corresponding period and accounted for 43.5% of the total sales volume of camera module (approximately 14.0% in the Corresponding Period). The product structure optimization facilitated the increase in Average Selling Price (“ASP”) of camera modules by 35.5% to RMB30.9 from RMB 22.8 of the corresponding period of last year. Strategic focus for fingerprint recognition modules has been emphasized on seizing larger market share and increasing shipment volume. Fingerprint recognition modules was still able to record a brilliant growth amid the traditional low season of mobile industry in the first half of 2017. During the Period, sales volume of fingerprint recognition module grew to approximately 34.32 million units, representing a 23.6 times growth over the corresponding period last year.

 

During the Period, the Group continued to strengthen and further develop its relationship with quality clients in the overseas area, and successfully built direct cooperation with Huawei on camera module business on the basis of our close cooperative relationships with core clients. This represents the success of the Group in customers relationship management and sales and marketing, and that helps the Group in reducing the risk of client concentration, enhancing the overall market share, and reducing the uncertainties brought by individual sales planning strategies from clients in the future.

 

In terms of Research and Development (“R&D”), the Group is continuously investing resources in improving product design and manufacturing craftsmanship, of which the Group made efforts in promoting miniaturization assembly technology of Molding, which will be put into production within this year to fulfil the design requirement of smartphones with expanded screen-to-body ratio. Additionally, the Group will conduct more advanced research on high-end dual camera modules with 16 mega pixels and higher, particularly on large aperture and wide angle aspects. The Group is also promoting 3D module technologies, especially 3D structural light modules and endeavors to meet clients’ sustained demand towards high-end products.

 

Chairman and Executive Director of Q Technology, Mr. He Ningning said, “Under the double wheel engine which comprises camera module and fingerprint recognition module businesses, the Group’s overall product sales volume kept growing fast in the past six months. The camera module product structure has been significantly optimized, thus its ASP and the gross profit margin have been significantly improved as well. The Group, by leveraging its direct supply relationship with Huawei in camera modules, is working on gaining higher market share. Looking ahead, we will make efforts in optimizing our clientele, strengthening the capabilities in optical design and craftsmanship, improving the ability in providing integration plan for human vision and machine vision, and striving to create greater value for the shareholders.”」

 

 - Ends -

 

About Q Technology (Group) Company Limited

 

Q Technology is a China leading mid to high-end mobile terminal camera module and fingerprint recognition module manufacturer. Q Technology is dedicated to provide machine vision and human vision to mobile terminals, automobile and robots by the persistent pursuit of capabilities in optics, computing vision and deep learning.

 

For enquiries, please contact LBS Communications Consulting Limited:

Joanne Chan   Tel:(852)3679 3671   E-mail:jchan@lbs-comm.com

Stella Chan     Tel:(852)3752 2673   E-mail:schan@lbs-comm.com