Huacan Optoelectronics said that the main reason for the decline in the first three quarters of 2012 and the year-on-year decline was that due to the impact of increased market competition, the unit price of chip sales fell more than expected, while the capacity expanded by the company was not fully formed and released during the same period. In the first half of the year, although the number of chips sold exceeded the number of production warehousing, it was also higher than the same period of last year, but the sales revenue and gross profit still declined, and the net profit was significantly lower than the same period last year.
In addition, in the third quarter, the unfavorable factors affecting performance in the first half of the year still existed, and market competition further intensified. Although the company's multi-faceted efforts, the third quarter operating profit has increased significantly compared with the previous quarter, but due to the government subsidies received less non-operating income, net profit is still lower than the first two quarters.
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