2018 Interim Results& NDR Presentation

The presentation is prepared by “Q Technology (Group) Company Limited” (the “Company”) and is

solely for the purpose of corporate communication and general reference only. The presentation is

not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment

decision for any class of securities of the Company in any jurisdiction. All such information should not

be used or relied on without professional advice. The presentation is a brief summary in nature and

do not purport to be a complete description of the Company, its business, its current or historical

operating results or its future business prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or

implied. The Company specifically disclaim all responsibilities in respect of any use or reliance of any

information, whether financial or otherwise, contained in this presentation.

Content

1. 2018 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H2018

4. Appendix

Camera ModuleSales Volume (Units M)

83.2

1H2017

1H2018

102.9+23.6%

Fingerprint Recognition ModuleSales Volume (Units M)

34.3

1H2017

1H2018

45.3+31.9%

RMB ‘000

1H

YoYChange

2H

HoHChange2018 2017 2017

Sales Volume (units) 148.1KK 117.5KK +26.0% 135.7KK +9.1%

Revenue 3,206,712 3,604,998 -11.0% 4,333,960 -26.0%

Gross profit 39,056 434,428 -91.0% 448,305 -91.3%

Gross profit margin 1.2% 12.1% -10.9pts 10.3% -9.1pts

OPEX ratio 4.6% 5.0% -0.4pts 3.9% +0.7pts

Net profit/ loss -51,288 201,784 -125.4% 234,493 -121.9%

Net profit margin -1.6% 5.6% -7.2pts 5.4% -7.0pts

Basic EPS -4.6 cents 18.4 cents -125.0% 21.4 cents -121.5%

Operating cash flow -278,107 1,226,683 -122.7% 994,830 -128.0%

ROE -2.5% 11.6% -14.1pts 10.9% -13.4pts

4

Start to benefit from the customer mix enhancement and scaled up production. The Company has established solid relationship with top four brands and the contribution from top five customers became more balance

As the cooperation with one big customer in CCM was at preliminary stage, the Group mainly shipping products of low resolution and hinder the progress of product mix improvement

1H 2018 Business Review

Enhancing customer mix and scaling up production for better market positioning

Product specs migration was in transition, awaiting another upgrade cycle

Technology cooperation deepened by vertical

integration

Focus on technology development to improve

competitiveness

For CCM, the procurement of mid-to-low-end dual camera modules switch to “two single module” basis. Also, the 3D sensing modules and triple camera modules take time to be popular

For FPM, the capacitive type FPM has entered into mature stage, the ASP decline is accelerating. Under-glass FPM is just debut on market and is yet to contributed a material profit

Investment in Newmax Technology (3630.TW) begin to show progress, revenue of Newmax has achieved a faster YoY increase since May 2018. Both companies continued to deepen the cooperation in different areas, such as under-glass fingerprint recognition module, 3D structured light module, 3D ToF module and camera module. The Group also helps to improve the marketing of Newmax

Diversified sourcing channels of lens results with cost saving and secured supply

Focus on developing 2nd

generation optical under-glass fingerprint recognition module and 3D structured light module, both new products have successfully obtained key customers’ qualification and will enter into mass production stage in 2H 2018

Focus on developing the abilities in the design and production automation of triple camera module, multiple camera module, periscope camera module, ToF module and automotive camera module 5

Top 5 Customers in order of sales volume: vivo, Xiaomi, Huawei, OPPO, Huaqin

1H2018 Top 5 Customers of Camera Module Business

1H2018 Top 5 Customers of Fingerprint Recognition Module Business

84.4%

15.6%

Top 5 Customers Others

98.6%

1.4%

Top 5 Customers Others

Top 5 Customers in order of sales volume: Huawei, Xiaomi, vivo, OPPO, Huaqin

6

12,403

7,707

10,059

12,259

14,83816,818

15,097 14,541 14,680

20,055

19,855

19,085

15,434

9,124

11,694

15,586 15,418 15,932

17,494

15,031 14,702

15,067

12,92914,038

16,098

10,104

17,567

19,330 20,264

19,485

23,149*

0

5,000

10,000

15,000

20,000

25,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017 2018Sales Volume(K)

7

8

1H 2017

<5M27.7%

8M28.9%

>10M36.3%

Dual Camera7.2%

<5M29.8%

8M17.7%

>10M35.9% Dual

Camera16.6%

1H 20182H 2017

<5M46.5%

8M13.8%

>10M28.3%

Dual Camera11.4%

9

24.926.4

30.5

34.536.4 35.7

33.3

38.441.2 41.6

50.2

54.7

50.3

24.226.7 27.7

30.327.5

25.123.5

21.7 22.725.1

30.9

37.3

25.1

0

10

20

30

40

50

60

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1H 2012 2H 2012 1H 2013 2H 2013 1H 2014 2H2014 1H2015 2H2015 1H2016 2H 2016 1H 2017 2H 2017 1H 2018

Peer A Q Technology Peer A Q Technology

Sales Volume (K)

Average Selling Price (RMB)

10

3

65 285 336

507198

559 910

1,530

4,544

6,2845,723

5,386

4,649

5,997 6,802

5,541 5,946 5,686

7,012 6,790

7,957

10,811

8,151

9,696

3,761 7,536 7,4547,844

8,9809,639 *

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017 2018SalesVolume(K)

11

Revenue decreased by 11.0% year-on-year (YoY), this was mainly due to the YoY decrease in integrated products average selling price (ASP) for the Period by approx. 29.6% to approx. RMB21.6, mainly attributable to: Intensifying market competition and in order to further optimize customer mix and product mix and

expand sales scale, the Group adopted a periodic aggressive price competitive strategy Product specs upgrading was at a transitional period and the price reduction of legacy products was

relatively high, while new products were yet to launch into the market or only small quantities were sold during the Period, thus posing pressure on the ASP

The cooperation period with one big customer in camera module (CCM) was still at early stage and there was a strategical need to sell lower megapixels products to gain their recognition, and thus it affected the improvement of product mix of CCM products

The proportion of coating fingerprint recognition modules (FPM) with relatively lower price to the sales of FPM products further increased, and the optical under-glass FPM had yet to enter into mass production stage during the Period

1,7273,605 3,207

3,264

4,334

2016 2017 1H2018

Revenue

(RMB M)

12

GP Margin down 10.9 pts to 1.2%, mainly due to: Product mix factor: The specs upgrading of CCM and FPM products were at a transitional stage during the Period and the

progress of product mix optimization, such as the proportion of 10M and above CCM and dual camera modules were below expectation, hence the proportion of products with low GPM went up;

Price competition factor：Under the intensifying market competition, the Group periodically adopted aggressive pricing strategies to establish a long-term customer strategic relationship, expand product sales scale as well as gaining market share;

The production capacity of CCM and FPM of the Group increased substantially YoY. However, affected by various factors such as the cooperation stage with customers, project cycle and periodic shortage of certain major components, the capacity utilization was weaker-than-expected and the decrease in ASP had increased the proportion of overall depreciation cost of products, and the weaker-than-expected capacity utilization also led to other related cost increase;

FX factor: The central parity rate of RMB against USD depreciated by approx. 1.3% during the Period, particularly a sharp significant decrease in May and June during the peak production period of materials preparation, whereby a fairly amount of raw materials of the Group were denominated in USD in purchase and settlement, and sales revenue was mostly settled in RMB, which made the cost of production materials settled in USD increased

Gross Profit and GP Margin

161,365 261,072 434,428 448,305 39,056

9.3% 8.0%12.1%

10.3%

1.2%

1H2016 2H2016 1H2017 2H2017 1H2018

(RMB K)

13

1H 2018 net cash outflow of operating activities amounted to approx. RMB 278 million, mainly due to: Gross profit margin decrease YoY during the Period Days of trade and bills receivables lengthened by 9 days from 111 days to 120 days The impact of cut-off point of interim results

Debt-to-Equity ratio increased from 50.2% of year-end of 2017 to 63.5% of 1H 2018, mainly attributable to theincrease of bank borrowings from year-end of last year for the cash need of daily operation and productioncapacity expansion. The Group recorded a bank borrowing balance of approx. RMB 1.078 billion and billspayable of approx. RMB 770 million, approx. 1.848 billion in total. Bank borrowings by the end of 1H 2018increased to RMB 1.298 billion, but the bills payable reduced to approx. RMB 280 million, equal to approx. RMB1.578 billion in total, which has decreased RMB 270 million

Operating Cash Flow

21.4%

50.2%

63.5%

2016 2017 1H 2018

-61,770

1,226,683

-278,107

1H 2016 1H 2017 1H 2018

(RMB K)

Debt-to-Equity Ratio

14

OPEX ratio was approx. 4.6%, a decrease of 0.4pts from the same period last year, mainly due to: R&D expenditure rate stay at stable level of around 3.1% There was a doubtful debt allowance of approx. 26.913 million, booked in the same

period last year and there is no allowance made during the Period The Group is confident to maintain a reasonable OPEX ratio

OPEX Ratio

3.9%5.0% 4.6%

1H 2016 1H 2017 1H 2018

15

64,905

225,505 223,813

1H 2016 1H 2017 1H 2018

(RMB K)

6.3%

11.6%

-2.5%

-4.0%

1.0%

6.0%

11.0%

16.0%

1H 2016 1H 2017 1H 2018

82,194201,784 -51,288

108,561

234,493

2016 2017 1H2018

4.8%

3.3%

5.6% 5.4%

-1.6%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

1H2016 2H2016 1H2017 2H2017 1H2018

(RMB K)

Net Profit Net Profit Margin

Cash and Cash Equivalent Return on Equity

Content

1. 2018 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H2018

4. Appendix

17

Huawei27%

OPPO20%

vivo19%

Xiaomi14%

Others20%

Top 4 = 80%

Huawei21%

OPPO18%

vivo14%

Xiaomi13%

Others34%

Top 4 = 66%

Q2 2017 market share of China smartphone market

Q2 2018 market share of China smartphone market

18

43%

57%

Top 3 Chinese CCM Makers Others

30%

70%

Top 3 Chinese CCM makers Others

1H 2017 aggregated global market share of Top 3 Chinese CCM makers

1H 2018 aggregated global market share of Top 3 Chinese CCM makers

19

0

50

100

150

200

250

2018 2019 2020 2021

Optical UltrasoundUnits (M)

20

0%

20%

40%

60%

80%

100%

2018 2019 2020

Dual Camera Module

Triple or 3D Camera Module

Penetration Rate (%)

Content

1. 2018 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H2018

4. Appendix

22

New Material

New Production

Knowhow

New Technology

Large-scale

Intelligence

Production

Vertical

Integration

23

01

02

0304

05

Benchmark with SLR CameraOffer premium functionalities of SLR

camera such as large aperture, optical zoom and high definition by triple

camera and periscope module design

3D Module Continue to develop the single cam speckle structured light 3D module

(mass production), dual cam 3D structured light module (sample), ToF 3D module (sample), SLAM

Miniaturization of ModuleProducts using production knowhow of MOC, MOB and HOC has entered mass production stage in 1H 2018. Yield rate

improved steadily and strive to lower the cost in 2H 2018

Leading in Optical Under-glass FPM Created technology advantage in the 2nd

generation of optical under-glass FPM design (mass production), target to acquire

more customers and projects in 2H 2018. Moreover, committed to develop half

screen and full screen FPM

Camera Module for Automotive Achieved batch shipments of in-cabin monitoring and gesture recognition

camera module for an domestic cutting-edge automotive brand in July. The Group will endeavor to get Tier 2

supplier qualification of other domestic top tier brands in ADAS, surround view,

in-cabin monitoring module etc.

24

As camera modules become more high-end and customized, the competition of camera module makers become a overall competition involving the whole value chain. Company that integrated major components resources such as lens, VCM, FPCB and connectors could establish advantage

Strengthen the control of core components such as

lens and VCM can make the R&D more focused and

favourable to cost control and production flow

optimization

Cost advantage

Camera modules become more high-end and

customized. The integration of major components

resources make overall planning more effective and shorten the R&D cycle, which

helps to build system products

System integration advantage

One-stop shopadvantage

Provide customers with a complete set of design solution, from design,

sampling, trial production to mass production, customers

only need to work with a single supplier which ensure

confidentiality and increase customer stickiness

25

Single machine Automation + Digitization

Machine-to-MachineSystematic data

SystematicIntelligent

Standard production

procedures

Production system

Equipment system

Testing machine connects

automatically

Management system of

production

Advanced technology,

production knowhow,

Precise production

Intelligence manufacturing

model factory

Dynamic intelligent

manufacturing

Machine judgement

Now

FutureTarget

2018 2019 2020

26

1. By 30 June 2018, the camera module production capacity was approx. 34KK/month, including approx. 8KK/month dual camera. The capacity did not increase significantly as compared with the end of last year, mainly because the higher production standard led to an increased capacity consumption for the same product

2. Capacitive type fingerprint recognition module production capacity was 17KK/month and under-glass fingerprint recognition module production capacity was 2KK/month

3. Capital expenditure spent for 1H2018 was approx. RMB 180 million, and the planned capital expenditure for 2H2018 is expected to be approx. RMB 200-300 million

Optimize product portfolio

Acquire overseas customers

27

Content

1. 2018 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H2018

4. Appendix

Name Title Biography

Mr. FAN Fuqiang

Chief Financial Officer Former Assistant to Chairman of Kunshan Qtech and Served as branch general manager and vice general manager of the corporate department of Heyuan Gao Xin Qu branch of Bank of China

Mr. LIU Tongquan

Deputy General Manager for Production

Served as production manager of Kunshan Giantplus Optoelectronics Technology Co., Ltd.

Mr. HE Ningning

Chairman, Executive Director

Over 20 years of experience in the electrical and electronic industry

Previously worked in Samsung Electro-Mechanics Dongguan Co., Ltd.

Founded Surewheel Asia Pacific Limited, Shenzhen CK and Heyuan CK

Mr. WANG Jianqiang

Executive Director, Chief Executive Officer

Nearly 20 years of experience in the electrical and electronic industry

Previously worked in Samsung Electro-Mechanics (H.K.) Limited

Served as chief financial officer of Shenzhen CK and Heyuan CK

Mr. HU Sanmu

Executive Director, Vice President for Sales

Several years of experience in the electrical and electronic industry

Held various positions in Vtech (Shenzhen) Electronic Limited, Tianjin Amphenol Kae Co., Ltd., and Van Telecom PRC

29

Mr. He Ningningestablished Kunshan QT

One of the few precise components manufacturers with software system background

2007

Started mass production of mobile camera modules

Established COB & COF packaging production line

Became a major supplier of multiple dual-camera projects, mass-produced fingerprint recognition modules and increased market share, and obtained the direct supplier qualification of Huawei camera modules.

Invested in Taiwan lens Company Newmax Technology Co., Ltd. (3630.TW), achieve vertical integration and moving onto 3D imaging and multi-camera development

Achieved a mass production of camera modules ranging from 3 mega pixels to 13 mega pixels

Won core customers including ZTE, Lenovo, Coolpad and TCL

2010-2013Received FPC certification to develop fingerprint recognition modules business

Gradually introduced OPPO, Xiaomi and Huawei as customers and gained the qualification to supply camera modules of all pixels to all customers

2015

2008

The first Chinese company to launch camera modules of 16 mega pixels and 20 mega pixels

Listed on main board of Hong Kong Stock Exchange in December, 2014

20142016-2017

Establishment of production base

Stage of rapid growth

Listed in Hong Kong

Establishment of QT

Two facets development

Strategic transformation

Successfully developed the second-generation under-glass fingerprintrecognition module, and was the first to mass produce 3D front –facing structured light module in China

Continue to expand market share of core customers, accelerate the integration of vertical chains, and achieve synergy

2018

30

31

(RMB M)

638 14112161 2202

4991

7939

2012 2013 2014 2015 2016 2017

(RMB M)

50 163 196102

191

436

7.9%

11.6%9.0%

4.6% 3.8%5.5%

2012 2013 2014 2015 2016 2017

Revenue

Net Profit

Q Technology (Group)

Company Limited

(1478.HK)

Chairman, Executive DirectorMr. HE Ningning

66.39%

Executive Director, Chief Executive Officer

Mr. WANG Jianqiang

0.94%

Executive Director

HU Sanmu

0.17%

Public

Shareholders

32.5%

Shareholder Structure

32