That is correct. I remember when Questyle first showed us the QP2R and explained dropping the line out. USB-C can transmit an analogue line out audio signal. This is exactly how the HB2 works. It has no DAC in it, the RCA analogue output just passes on the line out from the USB-C connection on the QP2R. This maintains the best S/N ratio because as you reduce volume on the QP2R it decreases SNR performance.
It is not true to assume that a USB-C output has to use a DAC. Here's how one site explains it...
'Analog audio can be converted with an onboard DAC and amplifier inside your phone then sent out through the port to a
passive set of headphones or an adapter. For this to work, the device needs to support whats called "audio accessory mode" and the headphones or adapter are just "dumb" connections that pass along the signal.'
The problem I'm grappling with is, where to find to the correct connector! Many listed have a DAC built-in but it is unclear to me that, with the QP2R set to analogue out mode, if they automatically by-pass the DAC, as in 'audio accessory mode'. I will try to find one I know works and share here. If you find one before me please share too.