Palantir Technology(01478.HK)Annual revenue growth of 29.3% to 20.877 billion yuan, profit surged 435.2% year-over-year

Q Technology (01478.HK) announced its annual results for the year ending December 31, 2025. The group’s revenue was approximately RMB 20.877 billion, a year-on-year increase of about 29.3%; net profit was approximately RMB 1.494 billion, a year-on-year increase of about 435.2%. Basic and diluted earnings per share for the year were approximately RMB 1.257 and RMB 1.251, respectively. A final dividend of 40.0 HK cents per share is proposed.

The announcement states that the main reasons for profit growth are: (i) revenue increased by approximately 29.3% compared to the previous year; (ii) gross profit margin improved by about 1.7 percentage points; and (iii) disposal of part of the Indian Q Technology equity recorded an after-tax gain of approximately RMB 811,556,000.

Revenue growth was mainly due to: (i) in 2025, the sales volume of camera modules used in non-smartphone fields such as automotive and Internet of Things (IoT) increased by approximately 111.0% year-on-year, leading to a 171.2% increase in revenue from these non-smartphone camera modules, which accounted for about 26.9% of the group’s camera module revenue, a significant increase from the previous year; (ii) the sales volume of periscope camera modules increased by approximately 256.4% year-on-year, and together with the rapidly growing non-smartphone camera modules, the average selling price of camera modules increased by about 19.7% compared to the previous year, effectively increasing the revenue from camera modules; and (iii) in 2025, sales volume of biometric modules increased by approximately 25.8% year-on-year.

The group’s annual gross profit was approximately RMB 1.618 billion, a growth of about 64.3% from the previous year; gross profit margin was about 7.8% (compared to about 6.1% last year). The main reasons for the improvement in gross profit margin are: (i) in 2025, the group continued to focus on mid-to-high-end camera modules and accelerated the development of camera modules for automotive and IoT applications. Sales volume of camera modules for automotive and IoT increased by about 111.0% year-on-year, and periscope camera modules increased by about 256.4%. The good development of high-end products improved capacity utilization, reduced marginal costs, and increased product added value, further enhancing gross profit margin; (ii) in 2025, sales volume of biometric modules increased by about 25.8% year-on-year, with significant improvement in capacity utilization, helping to improve the gross profit margin of biometric modules.