Q Technology (Group) Company Limited (“Q Tech”) reported unaudited interim results for the six months ended 30 June 2026.

Revenue and Profitability • Turnover rose 12.4% year-on-year to RMB9.92 billion, driven by higher sales of camera modules and LiDAR products across mobile, IoT and automotive segments. • Gross profit slipped 0.4% to RMB651.70 million; gross margin narrowed 0.8 ppts to 6.6% as weaker handset demand, intensified pricing pressure and lower-spec smartphone mix outweighed volume gains. • Net profit declined 10.5% to RMB276.02 million, reflecting the margin squeeze and a RMB38.63 million drop in share of profit from a joint venture and associates. • Basic and diluted EPS were RMB0.232 and RMB0.231 respectively (H1 2025: RMB0.260 and RMB0.259).

Segment Performance • Mobile products remained the core contributor with revenue up 9.1% to RMB7.49 billion; however, the proportion of ≥32-megapixel modules fell 15.2 ppts and average selling price dropped 14.1%. • IoT revenue climbed 13.0% to RMB2.02 billion, supported by robust demand from drones, action cameras and emerging AI smart devices; sales volume jumped 46.9%. • Automotive revenue surged 117.3% to RMB288.41 million on a 65.0% increase in camera and LiDAR shipments alongside new awards from 40 auto brands and seven Tier-1 suppliers. • “Others” contributed RMB130.17 million (up 168.8%).

Cost and Expenses • Cost of sales increased 13.4% to RMB9.27 billion. • R&D expenditure expanded 24.2% to RMB346.66 million as the group intensified investment in automotive, AI/AR glasses and robotics solutions. • Finance costs fell 35.0% to RMB36.16 million owing to a more favourable funding mix. • Net foreign-exchange loss widened to RMB77.67 million due to RMB appreciation versus USD.

Balance Sheet and Cash Flow • Total assets reached RMB19.93 billion; net assets stood at RMB6.35 billion. • Gearing ratio (bank borrowings plus lease liabilities to equity) rose to 96.8% from 65.4% at end-2025 following higher short-term borrowings of RMB6.13 billion. • Net cash used in operations was RMB535.69 million, mainly reflecting settlement of trade payables. • Cash and cash equivalents closed at RMB1.85 billion (31 Dec 2025: RMB2.14 billion); the group added pledged deposits of RMB1.38 billion during the period.

Dividend The board declared an interim dividend of HK$0.15 (≈RMB0.13) per share, payable on or around 23 October 2026 to shareholders on record as of 12 October 2026.

Outlook Management anticipates continued demand growth for intelligent vision systems across smartphones, IoT devices and smart vehicles, while acknowledging near-term headwinds from memory-chip cost inflation and muted handset volumes. Execution of its 2026-2030 strategic plan remains focused on technology leadership, vertical integration and expansion in automotive and emerging AI-driven applications.