Huacan Optoelectronics estimates that the net profit in the first half of 2012 will drop by 3 to 40%.

On July 12, Huacan Optoelectronics released the first half of 2012 performance forecast, and the expected results are the same decline. The net profit attributable to shareholders of listed companies in the first half of 2012 was 35 million to 40 million yuan, down 34.6%-42.8% from the same period of the previous year.

For the reasons for the decline, Huacan believes that due to the intensification of market competition, the unit price of chip sales has decreased more than expected, while the capacity expanded by the company has not been fully formed and released during the same period, resulting in the number of chips sold in the first half of the year exceeding the number of production warehousing. Higher than the same period last year, but sales revenue and gross profit still fell, net profit is significantly lower than the same period last year.

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