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Huacan Optoelectronics said that the main reason for the decline in the first three quarters of 2013 and the year-on-year decline was that the LED chip market experienced a significant decline in price compared with the same period last year after the irrational price competition in the previous year.
Huacan Optoelectronics said that despite the impact, although the number of chip sales has significantly exceeded the same period last year, sales revenue and gross profit still declined. In the third quarter, the market price of LED chips gradually stabilized, and demand continued to rise. The company actively utilized production capacity, improved processes, and reduced product manufacturing costs. As a result, sales volume increased significantly, and operating profit rebounded. However, due to the immediate launch of the Suzhou subsidiary project, the third quarter was mainly in the stage of equipment installation and commissioning. The administrative expenses such as personnel and R&D increased significantly. The net profit of the combined reporting period still declined.
Huacan Optoelectronics said that the impact of non-recurring gains and losses on the company's net profit in the first three quarters of 2013 was about 84 million yuan. 
Huacan Optoelectronics estimates that the net profit in the first three quarters will drop by 7-8 percent over the same period.
Huacan Optoelectronics released the results forecast for the first three quarters of 2013. The company estimates that the net profit attributable to shareholders of listed companies is about 8 million yuan to 12 million yuan, down from the same period of the previous year's 4,209,170 yuan: 71.49%-80.99% .