Q TECH (01478) announces profit growth, expecting a year-on-year increase in comprehensive net profit of approximately 200% to 280%.

Q TECH (01478) announced that it is expected that the Group's comprehensive net profit for the year ending December 31, 2024 will increase by approximately 200% to 280% compared to the year ending December 31, 2023, reaching around RMB 83.53 million. The Board of Directors believes that the expected significant year-on-year increase in comprehensive net profit is mainly due to the following factors: (i) in the current year, artificial intelligence has further entered consumer scenarios, and the markets for smart phones, smart driving, and Internet of Things smart terminals continue to perform well. At the same time, the Group's market share for camera modules and fingerprint recognition modules in the above-mentioned markets has increased, leading to an increase in sales volume of relevant products and driving year-on-year growth in revenue; (ii) the Group continues to adhere to its business strategy focused on mid-to-high-end camera modules. The combined sales volume of camera modules with over 32 million pixels used in smartphones and those used in other fields has significantly increased as a percentage of total camera module sales volume. On the other hand, the structure of fingerprint recognition module products has also improved, with the increase in the proportion of high-end products helping to enhance the value-added of the Group's products and further improve gross profit margin; (iii) the recovery in demand and specification upgrades for camera modules and fingerprint recognition modules has improved the Group's capacity utilization rate significantly compared to the same period, helping to improve marginal costs; and (iv) in the current year, the operating performance of a joint venture invested by the Group has improved compared to the same period, leading to a decrease in the loss amount attributable to the Group's joint venture companies.