Q TECH (01478) Issues Profit Alert, Expects Annual Comprehensive Profit to Increase Approximately 400% to 450%

Stock News01-13

Q TECH (01478) announced that the Group expects its comprehensive profit for the year ending December 31, 2025, to increase by approximately 400% to 450% compared to the comprehensive profit of approximately RMB 279 million for the year ended December 31, 2024.

The Board believes that the anticipated substantial year-on-year growth in comprehensive profit is primarily attributable to the following factors: the Group has consistently and resolutely advanced its "Five-Year (2021-2025) Business Development Strategy Plan," accelerating the business development of intelligent vision products in non-mobile phone sectors. During the year, the rapid development of the global intelligent driving and IoT smart terminal industries has significantly boosted both the demand volume and product specifications for camera modules.

Maintaining strong cooperative relationships with world-leading intelligent driving solution providers, handheld imaging device brands, and other leading IoT smart terminal brands, the Group achieved a doubling in the sales volume of camera modules applied in other fields compared to the same period last year, driving steady year-on-year growth in the Group's operating revenue.

The Group continued to adhere to its business strategy focused on mid-to-high-end camera modules and fingerprint recognition modules, witnessing substantial year-on-year growth in sales volume for periscope camera modules, optical image stabilization (OIS) camera modules, and ultrasonic fingerprint recognition modules. The scale growth of high-end products has effectively enhanced the Group's product value-added.

Simultaneously, the Group vigorously promoted intelligent transformation and digital upgrades, achieving significant progress in operational efficiency, development capabilities, quality assurance, and delivery capabilities compared to the same period. The steady growth in operating revenue, effective improvement in product mix, and optimized internal operations collectively contributed to a marked enhancement in the Group's gross profit margin.

Furthermore, during the year, the Group completed the sale of approximately 51.08% of its equity in the subsidiary Kunshan Q Tech Microelectronic (India) Private Limited (the "Transaction"), from which the Group realized a gain. Additionally, the operating performance of an associate company of the Group improved compared to the same period last year, resulting in the Company recording a share of profit from the associate, whereas a share of loss was recorded in the corresponding period last year.

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