Net profit halved, intraday drop exceeded 6%, Huahong Group responded to the acquisition of Huali Micro: completion will be next year.

On the evening of November 6th, the third quarter report released by Huahong Company showed that the net profit attributable to shareholders for the first three quarters was 251 million yuan, a year-on-year decrease of 56.52%. The company stated that the changes in net profit were mainly due to the ramp-up phase of new production lines, high fixed costs such as depreciation, power, and labor costs, as well as increased research and development spending. It is worth noting that the net cash flow generated from operating activities in the first three quarters increased by 129.58% compared to the same period last year. Regarding the fluctuations in the company's stock price, a person contacted Huahong Company as an investor and explained that the increase in net cash flow was mainly due to normal business transactions, and not an increase in accounts receivable management or prepayments. The individual believed that the recent stock price fluctuations were due to market behavior. As for the progress of the company's acquisition of Huali Micro, the aforementioned contact person said, "It will be completed next year."