2020 Interim ResultsInvestor Presentation

17 August, 2020

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.

Disclaimer

1. 2020 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H 2020

Contents

RMB‘000

1H

YoY Change

2H

HoH Change2020 2019 2019

CCM sales volume (units) 180.2KK 182.5KK -1.3% 223.5KK -19.4%

FPM sales volume (units) 39.9KK 37.8KK +5.8% 64.2KK -37.8%

Revenue 8,802,020 5,060,945 +73.9% 8,108,733 +8.5%

Gross profit 732,007 415,205 +76.3% 764,667 -4.3%

Gross profit margin 8.3% 8.2% +0.1 pt 9.4% -1.1 pt

OPEX ratio 4.2% 3.7% +0.5 pt 4.3% -0.1 pt

Net profit/loss 335,522 180,833 +85.5% 361,539 -7.2%

Net profit margin 3.8% 3.6% +0.2 pt 4.5% -0.7 pt

Basic EPS 28.8分 15.9 cents +81.1% 31.7 cents -9.1%

Operating cash flow 659,372 954,764 -30.9% 1,444,787 -54.4%

Financial Highlights

4

82202

-51

181336109

234

66

362

2016 2017 2018 2019 2020

1H 2H

(RMB million)

Net profit in past 5 years

➢ For the Period, the revenue of the Group reached a new high over corresponding period, the revenue was approximately RMB 8.80 billion, representing anincrease of approximately 73.9% as compared with approximately RMB 5.06 billion of the Corresponding period. This significant progress is attributable tothe significant optimization of CCM product mix, making the average unit price of camera modules increased significantly by approximately 99.6% year-on-year to approximately RMB 42.8, which drove the CCM sales revenue increased year-on-year by approximately 97.0%.

➢ For the Period, the net profit reached a new high of approximately RMB 335,522K over the Corresponding period, representing an increase of approximately85.5% as compared with approximately RMB 180,833K. Reasons for the growth are (1) revenue increased significantly, while overcoming unfavorable factorssuch as the unmet capacity utilization rate and the cost of epidemic prevention, the gross profit margin reached approximately 8.3%, an increase ofapproximately 0.1 percentage point from approximately 8.2% for the Corresponding Period; (2) The amount of other income/revenue including governmentsubsidies and foreign exchange gain/(loss) was approximately RMB 59,196K, compared with the loss of approximately RMB 29,288K for the Correspondingperiod. However, (3) Newmax Technology, the associated company contributed a profit of approximately RMB 24,979K in the Corresponding period, while itsshare of loss during the Period was approximately RMB 15,386K. After excluding the influence of other income and profit/loss sharing of associates, the netprofit was approximately RMB 296,328K, an increase of approximately 60.4% over the corresponding period.

17273605 3207

5061

88023264

4334 4928

8109

2016 2017 2018 2019 2020

1H 2H

Revenue in past 5 years

(RMB million)

Highlight 1: Revenue and Net Profit Broke Record High

5

+13.9%

Q Tech FPMSales Volume

-12%

-17%

-15%

Global SmartphoneSales Volume

Q1

Q2

1H

VS

-1.8%

-0.9%

-1.3%

Q Tech CCMSales Volume

-3.3%

+5.8%

YoY Change (%)

Highlight 2: CCM and FPM Sales Volume Changes YoY Outperform Smartphone Market

6

Highlight 3: Product Mix Significantly Improved, CCM ASP Broke Record High

≤8M40.5%

10M-24M47.3%

≥32M*12.2%

2H 20191H 2019

≤8M53.2%

10M-24M40.3%

≥32M*6.5%

1H 2020

≤8M26.5%

10M-24M45.3%

≥32M*28.2%

7

50.254.7

50.3

42.5

49.8

55.9

30.9

37.3

25.1 23.0 21.5

28.8

42.8

-20

-10

0

10

20

30

40

50

60

70

80

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1H2017 2H2017 1H2018 2H2018 1H2019 2H 2019 1H 2020

10M and above Peer A ASP Q Tech ASP

(%)ASP (RMB)

Highlight 3: Product Mix Significantly Improved, CCM ASP Broke Record High (Cont d́)

8

Non-under-glass51.7%

Under glass48.3%

2H 20191H 2019

Non-under-glass49.0%

Under-glass51.0%

Non-under-glass44.3%

Under-glass55.7%

1H 2020

Highlight 4: FPM Sales Volume and Product Mix Improved, Market Share Increased

9

0

10

20

30

40

50

60

70

80

90

100

1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020

Unit (m) YoY up 5.8%

Highlight 4: FPM Sales Volume and Product Mix Improved, Market Share Increased(Cont d́)

10

ODM Customers

Cover 4 Major Brands in China

01

02

03

04

05

Branded Customers Android Overseas Customers

Non-Android Overseas Customers

Highlight 5: Cover Major Android Smartphone Brands Worldwide, Customer Mix Further Optimized

11

Labour Cost / Cost of Sales

Depreciation Cost / Cost of Sales

4.8% 4.2% 4.3%6.0%

7.6%5.9%

4.7% 4.3% 4.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020

1.4%1.0%

1.5% 1.6%

2.7%2.1% 2.3%

1.9% 1.9%

0.0%

1.0%

2.0%

3.0%

1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020

Highlight 6: Automation Continues to Deepen, Labour & Depreciation Cost Significantly Optimized

12

• Exclusive supply for famous Chinese smartphone brand

• Asymmetric 360-degree rotation

• Achieves 200% increase in stabilizing angle

• Focuses on improving video shooting stabilizing and low light shooting

• Involves 26 patents that have been applied for and under review

Highlight 7: Exclusive debut of Micro Gimble Stabilizer, Leading the New Optical Image Stabilizing Technology

13

56.0%

48.2%

68.8%

FY2018 FY2019 1H2020

Debt to Equity Ratio

Net cash from Operating Activities

954,764

1,444,787

659,372

1H2019 2H2019 1H2020

(RMB ‘000)

67.3%73.0% 72.2%

FY2018 FY2019 1H2020

Debt to Asset Ratio

51.3%

33.9%

48.9%

FY2018 FY2019 1H2020

Net Debt to Equity Ratio

Highlight 8: Stringent Risk Control Amid Macro Challenges

14

118

128123

1H2019 FY2019 1H2020

Accounts Payable Turnover Days Accounts Receivable Turnover Days

114

109 109

1H2019 FY2019 1H2020

(Days) (Days)

Inventory Turnover Days

3240 37

1H2019 FY2019 1H2020

(Days)

-2.5%

7.8% 10.6%

1H2018 1H2019 1H2020

ROE

Highlight 8: Stringent Risk Control Amid Macro Challenges (Cont d́)

15

1. 2020 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H 2020

Contents

Huge Market Demand

In the AI-driven IoT era, camera is the largest

information acquisition interface

Constant Progress in Visual Technology

Optical tech + math + computing power, promoting

advancement of computer vision, and further

expand camera application

Development TrendThe camera market continues to expand and camera specifications

continue to upgrade

1. Intelligent Visual Industry Development Remains Intact

17

5G Infrastructure(Base Station, AI, Cloud Computing etc.)

Industry Applications

Device

As of July, there are 81 commercial 5Gnetworks operating around the world, withover 90 million users worldwide. Thedevelopment of AI and cloud computingindustries has gradually matured

Industry leaders jointly pointed out thatthe next stage of global 5G is to focus onthe development of industry applications,including education, healthcare, finance,etc., to release 5G network potential, andthe application context continues toincrease

Accounting to MIIT, cumulativeshipments of 5G mobile phones in Chinareached 63.6 million units in the first halfof the year, accounting for 41.5%. GSMApredicts that China's 5G penetration ratewill reach 47% by 2025. By then, thenumber of 5G connections in China willreach 807 million

1. Intelligent Visual Industry Development Remains Intact (Cont d́)

5G Construction is Accelerating, Industry Applications Drive Mobile Phone Replacement needs

18

Automobile Smart Home IoT

• Facial recognition payment

• Drone

• Smart city

• Medical + Education

Mobile/Tablet

• Driving monitoring system

• Surround view System

• Driver assistance system

• Auto Pilot

• Smart appliances

• Face-recognition door lock

• Real-time security monitoring(Children/ Elderly/Anti-theft)

• AR/VR applications

• Real-time 3D video streaming

• Live online / Short video

• 3D online shopping experience

1. Intelligent Visual Industry Development Remains Intact (Cont d́)

Applications of Camera in the 5G Era

19

48M 108M Micro

Gimble Stabilizer

Low-end models(RMB <1000 - 2000)

High-end models(RMB 2000-3500)

Flagship models(RMB 3500-7000)

5X Optical zoom(periscope)

12M40M

iToF Module

48M64M OIS

10X Optical zoom(periscope)

dToF Module

Tele/Macro Wide Angle Depth of Field /3DMain Cam

13M Macro2M (AF)

2X/3XOptical zoom

8M/13M

8M

32M

Bokeh2M (FF)

Bokeh5M (FF)

48M

64M 48M 13M

2. Smartphone CCM Remains the Consumer Focus

Penetration of High-End CCM Go Further Downward to Low-end Smartphone

20

Front facing CCM keywords: module miniaturization, full screen, front 3D

ToF/under-glass ToF, differentiation

Trench

Hole UPC

Pop-up

High screen ratio/full screen

3D/AR Differentiation

➢ Pixel size is getting smaller➢ Chip size within 1/2.65“➢ Small lens module will be the

main trend➢ Under-glass camera

➢ Pixel size is getting smaller➢ Higher resolution for iToF ➢ Support Face ID, facial

recognition payment, AR➢ Gaming application

➢ Gesture recognition, ultra-low power awakening

➢ High frame rate video wide angle camera

➢ Wide angle camera➢ Ultra-wide-angle camera made

by new material

2. Smartphone CCM Remains the Consumer Focus (Cont d́)

CCM Upgrade Keywords (Front Facing)

21

DifferentiationHigh resolution/large chip/ OIS

➢ Trend of increasing chip size remains unchanged

➢ Reduce pixel size and enhance resolution

➢ Increase pixel size to improve black state effect

➢ Design for high pushing power/OIS motor

Rear CCM keywords: high resolution large chip/OIS module, micro gimble

stabilizer (integration of motor and module), wide angle module (video), optical

zoom, differentiation (3D, macro)

Wide angle module

➢ Mid-to-low-end models: standard configuration with large wide-angle model

➢ High-end model: video + wide-angle module

➢ Super stabilizing + large wide-angle module

Optical zoom

➢ 2X/3X vertical optical zoom

➢ 5X/10X periscope continuous zoom

➢ Low cost periscope module design

➢ iToF resolution enhancement➢ dToF becomes mainstream of

rear 3D module➢ Differentiated macro and

ultra-macro applications

2. Smartphone CCM Remains the Consumer Focus (Cont d́)

CCM Upgrade Keywords (Rear)

22

23

Main Body Camera

◆ Surround View Monitoring◆APA Auto Parking◆Blind Spot Detection◆ Lane Change Assistance◆Electronic Rearview Mirror

DMS/OMS Camera◆ Fatigue Tracking◆ Sight Tracking◆Emotion Tracking◆ Face ID◆Behavior Monitoring

02

ADAS Front Camera

◆Signal Light and Sign Recognition◆Pedestrian Recognition◆Collision Warning◆Lane Departure Warning◆AEB Security

01

03

3. Car Camera Modules Develop Rapidly in Pre-installed Market

Three Major Applications for Car Used Camera

IoT Vision

Products

Smart Security

4. IoT Vision Products is Burgeoning

Facial Recognition Payment

Drone

Consumer Robot

Building surveillance cameras, industrialcameras, public transport monitoringsystems

AR glasses, VR glasses

Aerial photography drones, drones for police/agriculture/surveying and other industries

Sweeping robots, parenting/education robots, toy robots

AR/VR Device

Facial recognition payment equipment, attendance machine, facial recognition equipment at public gates

24

Contents

1. 2020 Interim Results Business Review

2. Market Trend Analysis

3. Planning and Outlook of 2H 2020

Continue to Strengthen Core Competitiveness

Build Economic Moats

01

IoT era powered by AI, and the improvement of optical and mathematical technologies, the

camera module becomes the most important interface for information exchange

Background

Mission

Illuminate Things

Corporate Economic Moat 1: Corporate Culture - Mission

27

Q Tech Platform

Best spiritual and material return

Outstanding and self-driving management system

Provide a competitive camera products platform for the best people at the right position to achieve the best performance

Best experience

Benchmark of the industry standard

Corporate Economic Moat 1: Corporate Culture - Vision

28

Customer Experience First

Teamwork and Contribution

Personal Commitment

Refinement of Skill

Core Values

29

Corporate Economic Moat 1: Corporate Culture – Core Values

2018

2020

2017

CCM production capacity: 30KK/monthCCM sales volume: 172KK

4 years CAGR of CCM production capacity is 27.1%

CCM production capacity: 35KK/monthCCM sales volume 264KK

CCM production capacity: 50KK/monthCCM sales volume: 406KK

2019CCM production capacity: 60KK/month

30

Corporate Economic Moat 2: Large-Scale High-end Manufacturing Capability

Expanding the CCM Production Capacity Steadily

31October 2018

Indian project launched

January 2019Subsidiary

registration

April 2019Factory lease

completed

September 2019First trial production

2020 Q2CCM production capacity

2.5KK/month

August 2019Renovation is completed,

Install production equipment

December 2019CCM production capacity

2KK/month

End of 2020Target CCM production capacity

8KK/month

Phase 2 factory

VIVO factory

12KM 5 KM

Airport

15 KM

OPPO factory

Phase 1 factory

Corporate Economic Moat 2: Large-Scale High-end Manufacturing Capability (Cont d́)

Expedite the Expansion of the Indian Manufacturing Base to Demonstrate International Competitiveness

Process

Digitalization

Manufacturing

Automation

Intelligent Control32

Corporate Economic Moat 2: Large-Scale High-end Manufacturing Capability (Cont d́)

Continue to Improve the Industrial 4.0 Mass Production Infrastructure

Miniaturization Front and Rear Cam 3D Sensing

Rear Cam Periscope Optical Zoom

Rear Cam Large Chip/Hi-resolution

01

03

02

04

05Micro Gimble Stabilizer 33

Corporate Economic Moat 3: Industry-leading Product Technology Capability

5 Main Focuses of Mobile Phone Camera Module Technology

Flagship

Differentiation

Low cost• Strong closed-loop AF/OIS• 5X periscope optical zoom

• Microscopic imaging module• Multispectral module• Flexible drive• SWC lens material• Light field camera

• Micro gimble stabilizer • Extra large chip product• dToF 3D sensing• Continuous optical zoom• Sensor multi-axis stabilizer

34

Corporate Economic Moat 3: Industry-leading Product Technology Capability (Cont d́)

New Technology Planning for Mobile Phone Cameras

2018

2019

2020

2021

➢ Set up a dedicated department

➢ Production line completed

➢ Production capacity 0.5KK/year

➢ Obtained qualifications from over four car manufacturers

➢ Tier1 and Tier2 dual-line development model

➢ Mass production for passenger and commercial vehicle ADAS products and commercial vehicle DMS products

➢ Target production capacity increased to 2KK/year

➢ High-end simulation laboratory➢ With OMS, DMS, ADAS, AVM

products R&D capability anddeliver DMS and ADAS productsin small batches to domesticcommercial vehicle brand

➢ Production capacity 1KK/year

➢ Strive to obtain more Tier1 qualifications from domestic automakers and JV automakers, and obtain international Tier1 supporting qualifications

➢ New OMS, DMS,ADAS, AVM Projects➢ Mass production of pre-installed

DMS and OMS projects ➢ Expansion of passenger and

commercial vehicle ADAS project

Initial StageSkills

BuildingMass

ProductionAcceleration

35

Corporate Economic Moat 3: Industry-leading Product Technology Capability (Cont d́)

Accelerate the Development of Automotive Camera Module Business

Technical Capabilities/

Qualified

Mass Production

Major Customers

Drone Robot

Products

Pre-researchcooperation

Top tier China internet company

Facial-Recognition Payment

• 3D module

• Periscope module

• Obstacles avoidance module

• 3D structured light module

• 3D ToF module

• Ultra wide-angle module

• Obstacles avoidance module

World’s leading drone brands

Top tier overseas/China

robot brands

36

Corporate Economic Moat 3: Industry-leading Product Technology Capability(Cont d́)

Entering IoT Camera Modules Market Quickly

37

02

01

Promote ToF and FOD technical advantages

Expand RGB lens production capacity

04

03

Accelerate customer expansion

Accelerate technologydevelopment

Improve Long-Term Competitiveness

1,648,824

3,472,336

1,121,415

2018 2019 1H2020

Revenue

(NT$ ‘000)

Net Profit

-310,677

506,592

-186,277

2018 2019 1H2020

(NT$ ‘000)

Corporate Economic Moat 4: Promote Vertical Integration

Newmax Continues to Enhance Long Term Core Competitiveness

38

FPCB(Related Parties)

Lens(Associate: Newmax)

VCM(Related Parties)

Connector(Related Parties)

Corporate Economic Moat 4: Promote Vertical Integration

Strategic Collaboration of Core Components Related Companies

39

Operation Targets of 2020

2020 Target(Original)

➢ The sales volume of CCM modules increased by no less than 20% year-on-year, of which 10M and above products will account for no less than 60%, while high-end products as 32M and above will account for no less than 25%

➢ Production capacity of CCM will be no less than 60KK/month by end of 2020

2020 Target(Revised)

➢ The sales volume of CCM modules ranges from -5% to +5% year-on-year, of which 10M and above products will account for no less than 60%, while high-end products as 32M and above will account for no less than 25%

➢ Production capacity of CCM will be no less than 60KK/month by end of 2020