For the main reason for the decline in profits, Huacan believes that due to the intensification of market competition, the unit price of chip sales has decreased more than expected, while the capacity of the company's expansion 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. It was also higher than the same period last year, but sales revenue and gross profit still fell, and net profit was significantly lower than the same period last year.
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