Quectel(SH:603236)2022-09-29 08:26Group 1: Business Development - The company promotes a strategy of full industry, full platform, and full coverage, leading to positive growth across various business lines, including modules, ODM, antennas, cloud platforms, and smart cities [2] - The overseas business growth rate is higher than domestic, with a gradual recovery expected in the second half of the year [2] - The company has a diverse customer base across various sectors, including smart transportation, smart energy, financial payments, smart cities, wireless gateways, smart agriculture, environmental monitoring, smart industry, and smart healthcare [2] Group 2: Research and Development - The company's R&D budget is submitted from multiple dimensions, including departments and product lines, without specific allocation to downstream industries [3] - The IoT industry is experiencing a decline in 2G usage, a slowdown in 3G, and growth in 4G and 5G usage, indicating a positive outlook for future developments [3] - The company has invested significantly in the development of SIP packaging technology, which enhances integration, miniaturization, and flexibility while reducing production costs [3] Group 3: Financial Performance - The company's gross margin has been positively influenced by changes in regional structure, with overseas sales accounting for approximately 52% in the first half of the year, compared to about 60% previously [4] - The increase in high-end products, such as smart modules and 5G, contributes to the growth of gross margin [4] - The company has seen an improvement in operating cash flow due to increased inventory levels in response to upstream supply constraints and a backlog of payments to suppliers [4] Group 4: Market Outlook - The company is expanding production capacity overseas, with operations in Brazil and Malaysia, and plans to start production in Mexico by the end of the year [4] - Long-term growth in overseas demand is expected, driven by trends in intelligence and connectivity [4] - The company has established eight R&D centers globally, with significant personnel increases in the Guilin center this year [4]