Q Technology Releases Its Q1 2017 Newsletter

• Significant enhancement of product mix of camera module Segment 
• Strong sales of fingerprint recognition module even in low season

KUNSHAN, China, April 14, 2017 / PRNewswire/ -- Q Technology (Group) Company Limited (Stock code: 1478.HK) released its Q1 2017 newsletter on its company website(www.qtechglobal.com/index.html) on 10 April. Product mix of camera module ("CCM") has shown a significant enhancement during the period, whilst the shipment of fingerprint recognition module ("FPM") was strong even in the traditional low season of the industry.

1. Significant enhancement of the product mix of camera module: Q1 is a traditional low season of components sales of portable smart communication terminals. During the period, the company recorded a total shipment of 36.25 million units of CCM, decreased 39% quarter-on-quarter, and increased 20% year-on-year; in which, the total shipment of 13 mega pixel and above CCM amounted to 17.66 million, surged 464.8% year-on-year, and reached 48.7% of the total shipment of CCM segment, significantly higher than the average of 2016 (i.e. 23.4%). The results echoed the consistent strategy of the management in optimizing the product portfolio, and are expected to impose a positive impact on the ASP.
2. Shipment numbers of FPM remain strong in low season: shipment of FPM totaled 16.03 million units, down by only 3.2% quarter-on-quarter, and surged 44 times year-on-year. The demand of FPM is expected to be strong continuously due to the wide adoption of Chinese branded smartphone manufacturers in their latest models, and will help the Company to achieve the full year shipment target.

The Company reiterate the business guidance of 2017 as follows: (a) the growth of shipment volume of CCM is expected to be no less than 25% over that of 2016, also the proportion of shipment volume for 13M and above is expected to be no less than 40%, (b) the shipment volume of FPM is expected to be no less than 60M, and (c) the capacity for CCM is expected to be expanded to no less than 30M per month and the capacity for FPM is expected to be expanded to be no less than 15M per month by the end of 2017 on a gradual basis. Furthermore, the construction of second phrase of the production base in Kunshan has been completed and proceeded to the stage of decoration. When the whole factory is put into use of production, the production capacity of CCM and FPM can reach 43M/month and 20M/month respectively.

The Company hereby advise that the information contained in this release is only based on the preliminary review of the internal figures of the Group for the first three months of 2017, which have not been audited by the independent auditors and/or the audit committee of the Company and are subject to future adjustment. Shareholders of the Company and potential investors are to be advised to exercise caution when dealing with the shares of the Company.

About Q Technology (Group) Company Limited (Stock Code: 1478.HK)

Q Technology is a leading Chinese manufacturer of mid to high-end mobile terminal camera modules and fingerprint recognition modules. It is one of the first few manufacturers in China to master the know-how in mass producing ultrathin camera modules with resolution over 16 mega pixels, dual camera modules and multi-type fingerprint recognition modules. Q Technology is dedicated to providing machine vision and human vision to mobile terminals by persistent pursuit of capabilities in optics, computing vision and deep learning, and actively expanding its product offerings to new market segments, such as augmented reality (AR), virtual reality (VR) and automobile.

For enquiries, please contact the investor relations team of the Company at:

Richard Fan, E-mail: richard.fan@ck-telecom.com
Louis So, E-mail: louis.so@qtechglobal.com
ChenChen Gao, E-mail: chenchen.gao@qtechglobal.com