Q Technology Revenue Rises 12.4% as Automotive and IoT Businesses Drive Second Growth Curve

HONG KONG, August 24, 2026: Q Technology (Group) Company Limited reported a 12.4% year-on-year increase in revenue for the first half of 2026, supported by strong growth in automotive and IoT products as the company advanced its “second growth curve” beyond smartphones.

The Hong Kong-listed company, trading under stock code 1478.HK, is a global manufacturer of mid-to-high-end camera modules and biological recognition modules for smartphone devices. For the six months ended June 30, 2026, revenue rose to approximately RMB9.92 billion, compared with RMB8.83 billion a year earlier.

Revenue growth was led by higher sales volumes of camera modules and LiDAR products across mobile, IoT and automotive applications. Sales volumes of camera modules for mobile products rose 30.1%, while camera modules and LiDAR products for IoT and automotive applications increased by 46.9% and 65.0%, respectively. Aggregate revenue from camera modules and LiDAR products rose approximately 14.0% year-on-year.

The company’s results showed particularly strong performance in automotive products. Revenue from camera modules and LiDAR products applied to automotive products surged 117.3% year-on-year, reflecting growing demand for intelligent driving and vehicle perception components.

The board recommended an interim dividend of HK$0.15 per share, equivalent to approximately RMB13 cents per share.

Automotive and IoT Businesses Gain Momentum

Q Technology said it continued to advance its Second Five-Year Strategic Plan for 2026 to 2030, expanding its core strategic focus from smartphones to non-handset fields such as IoT and automotive applications.

During the period, sales volume of camera modules and LiDAR products in non-handset fields, including automotive and IoT, increased by approximately 52.3% year-on-year. Their share of total camera module and LiDAR product sales volume rose from approximately 4.2% in the corresponding period last year to 4.9%.

In the automotive sector, Q Technology said the rapid increase in penetration of high-level intelligent driving systems and the official incorporation of LiDAR into mandatory safety standards for intelligent and connected vehicles by China’s Ministry of Industry and Information Technology are pushing automotive perception components into an explosive growth phase.

By the end of the reporting period, the group had established deep cooperation with seven globally leading intelligent driving solution providers, also known as Tier-1 suppliers, and obtained supplier qualification certifications from 40 globally leading automotive brands and new energy vehicle brands.

In IoT, Q Technology said it has become a core camera module supplier for leading global drone and action camera brands. The group is also expanding into frontier IoT areas including agricultural drones, handheld smart imaging devices and AI/AR smart glasses, positioning itself to capture early opportunities in what it described as the AI-driven “era of visual intelligence”.

Smartphone Headwinds Weigh on Margins

While revenue grew, profitability came under pressure from smartphone market dynamics and higher memory chip costs. Gross profit was broadly stable at approximately RMB651.7 million, down 0.4% year-on-year, while gross profit margin narrowed by 0.8 percentage points to 6.6%. Net profit fell 10.5% year-on-year to approximately RMB276.0 million, while basic earnings per share declined 10.8% to RMB23.2 cents.

Q Technology said sharp increases in memory chip prices, including DRAM and NAND, significantly raised material costs for smartphones and led some smartphone brands to curtail product supply. This weighed on global smartphone shipments, slowed camera specification upgrades in low-to-mid-end models and intensified market competition, creating downward pressure on average selling prices and margins for camera modules.

During the period, sales volume of mid-to-high-end mobile phone camera modules with 32 megapixels and above fell approximately 7.0% year-on-year, while the average selling price of mobile phone camera modules declined approximately 14.1%. Sales volume of biological recognition modules also fell 7.9% year-on-year.

Despite these headwinds, Q Technology said it achieved countertrend growth of 30.1% in mobile phone camera module sales volume, supported by customer expansion and lean smart manufacturing capabilities.

AI and Smart Driving Shape Outlook

Looking ahead, the company said short-term pressure from memory chip costs still needs time to be digested, but long-term growth opportunities in the smartphone market remain solid. Q Technology cited the commercial deployment of large AI models, the emergence of “AI Agent” smartphone concepts, stronger demand for high-specification visual perception components driven by on-device AI, and the adoption of foldable smartphones as supporting factors.

At the same time, the company said the trend towards intelligence across automotive and IoT terminals is irreversible.

He Ningning, Chairman and Executive Director of Q Technology, said the company had made encouraging progress in the first half of its Second Five-Year Strategic Plan, including technology upgrades in mid-to-high-end smartphone camera modules, market expansion in IoT and automotive camera modules and LiDAR products, international expansion, intelligent transformation and digital reform in precision manufacturing, vertical supply chain integration and product capability building.

“We are confident in leading the Group to confront challenges ahead in the second half of the year, strive for even better development, and make every effort to advance the realization of targets set out in the ‘Five-Year Strategic Plan’,” he said. “We will continue to adhere to the Group’s vision of ‘Illuminate Things’ and strive to create greater value for the shareholders of the Company.”

Q Technology describes itself as a global manufacturer of camera modules and biological recognition modules. Through its capabilities in optics, computer vision and deep learning, the company aims to become a world-class intelligent vision enterprise, providing machine vision and human vision solutions for mobile terminals, vehicles and IoT smart devices.

For Q Technology, the first-half results show a business navigating smartphone margin pressure while building new growth channels in automotive perception, LiDAR and AI-enabled IoT devices. The company’s second growth curve remains at an early stage by revenue contribution, but the pace of expansion in automotive and IoT suggests that intelligent vision is becoming a broader platform opportunity beyond smartphones.