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Huacan Optoelectronics said that the price competition of LED chips in the first quarter is still fierce, and the unit price of products continues to fall. Affected by this, although the number of chip sales exceeded the same period last year, sales revenue and gross profit still declined.
In response to the fierce competition in the market, the company made some product specification adjustments in the first quarter, which objectively caused the decline in sales of some products. The wholly-owned subsidiary established in Zhangjiagang, Suzhou, has invested in special process development for the use of new 4-inch production lines and other equipment and technologies. 
On April 3, Huacan Optoelectronics released the Q1 performance forecast. During the reporting period, the company's net profit attributable to shareholders of listed companies decreased by about 24%-46% compared with the same period of the previous year, and the profit was about 15 million yuan to 20 million yuan.