11 Aug 2023
Q-Tech reported 1H23 revenue of Rmb5,477m, which decreased 22.8% YoY. 1H23 total CCM shipment decreased 20.2% YoY to 170.0m units with ASP declined 3.8% YoY to Rmb29.4. FPM shipment stayed flat YoY in 1H23 with ASP plunged 28.3% YoY to Rmb7.8. 1H23 GPM narrowed 1.9ppt YoY to 3.4% on 1) weak smartphone market demand led to lower utilization; and 2) RMB depreciation led to increase in raw material cost. 1H23 net profit declined 87.5% YoY to Rmb20.8m, which is below the lower-end of profit alert of 60%-80% YoY net profit drop.