Huacan Optoelectronics revised its 2013 results last year, profits fell 70%

On April 16, Huacan Optoelectronics (300323) issued an announcement to amend the performance, and revised the 2013 net profit from 180.64 million yuan to -861.66 million yuan, from profit to loss, the basic earnings per share from 0.06 yuan to -0.03 yuan. In addition, operating profit and total profit were substantially revised, which was 35% and 76% lower than the figures released in the previous performance report.

On February 27th, Huacan Optoelectronics released the “2013 Annual Results Express”, which stated that the net profit attributable to shareholders of listed companies in 2013 was 180.64 million yuan, the operating profit was -921.13 million yuan, and the total profit was 4429.97 million yuan.

Huacan Optoelectronics revised its performance, saying that the audited by the accounting firm, the net profit attributable to shareholders of the listed company was -86.666 million yuan, which was reduced by 148% compared with the performance report. The operating profit was -1.24 billion, which was listed in the performance report. The figure is reduced by 35%; the total profit is 10.2695 million yuan, which is 76% lower than the number listed in the performance report.

The performance has dropped sharply. Huacan Optoelectronics explained that the main reasons for this adjustment are as follows: First, Huacan Optoelectronics (Suzhou) Co., Ltd., a wholly-owned subsidiary, purchased 8 sets of 32 MOCVD equipments for installation and commissioning in 2013, including 4 groups of 16 In the same year, Taiwan transferred to fixed assets, and the management of the company included it in the construction in progress (equipment). However, the accounting firm believed that it should be included in the current profit and loss. Therefore, the construction in progress was reduced by RMB 9.545 million. Second, the management of the company believed that In 2013, the development of the 4-inch GaN-based high-brightness LED epitaxial growth technology and the development project of the 4-inch GaN-based LED chip processing technology in the parent company were in line with the capitalization conditions, so the related expenses were included in the development expenditure, but the accounting firm considered the above. The expenditures of the two R&D projects are classified as more reasonable in the research stage and should be included in the current profit and loss. Therefore, the development expenditure is reduced by 10.7252 million yuan; and other accounting errors are adjusted to 9.895 million yuan.

In this regard, Huacan Optoelectronics said that after the company's self-examination, the reason for the difference in this performance report was caused by the deviation of the company's financial personnel's understanding of the construction projects and development expenditures. The company's board of directors apologized to investors.

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