Focaltech fingerprint recognition chip has been certified by Xiaomi and OV, and annual shipments will exceed 50 million

On April 26, Dontech held a shareholder exchange meeting. Dontech Chairman Hu Zhengda said at the meeting that global mobile phone shipments this year may decline compared to last year. He is conservative about the mobile phone market and expects that customers' purchasing power in the second quarter will not be too strong. He hopes that the market will pick up in the second half of the year.

Hu Zhengda said that due to the impact of the epidemic lockdown, the Russia-Ukraine war and other factors, the mobile phone and laptop computer markets have not yet recovered, and the supply chain inventory level is relatively high, so the company's shipments have been slightly delayed. Regarding gross profit margin, Hu Zhengda believes that the semiconductor supply chain has a long production cycle and a slow cost response, and the reflection is expected to continue until the end of this quarter, but the overall gross profit margin is still within a controllable range.

In addition, Dontech has previously signed long-term contracts with suppliers and customers, respectively, and is optimistic that shipments will remain at a considerable level throughout the year. In terms of price, according to the terms of the contract signed by both parties, customers only guarantee the quantity, not the price.

Dontech is also actively diversifying its products and applications. Its fingerprint recognition products have been certified by Xiaomi, vivo, OPPO and other manufacturers. They are mainly capacitive type and have started shipping in the first quarter. It is expected that the annual shipment volume will reach 50 million to 60 million units.