Huacan Optoelectronics expects to decline its profit in 2013 by approximately 16 million to 22 million

On January 28th, Huacan Optoelectronics released its 2013 annual results forecast, which is expected to decline in the same direction. During the reporting period, the net profit attributable to shareholders of listed companies decreased by approximately 74.81%-81.68%, the profit was about 16 million yuan to 22 million yuan, and the profit for the same period last year was 87.336 million yuan.

For the reasons for the change in performance, Huacan Optoelectronics said that in 2013, the demand for LED chips continued to grow. However, the consequences of irrational price competition in the market led to the low price of chips, which was a year-on-year decline. The phenomenon was particularly prominent in the first half of the year. Therefore, although the company's chip sales volume has significantly exceeded last year, the sales amount has not increased correspondingly, and the net profit is lower than the previous year's level. In the second half of the year, as the market demand accelerated, the price of the chip narrowed down. The company's sales, product gross profit, operating profit and other indicators showed a quarter-on-quarter rebound. The Suzhou subsidiary's investment expansion in the second half of 2012 was effective until the beginning of the fourth quarter of 2013. Some of the production capacity of the Suzhou subsidiary began to be released. The company's production capacity was tight and the supply shortage to customers was improved.

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