Why did Q2 net profit decline compared to the previous quarter? Deming Li's response

On July 16, DeMingLi once again hit the limit down, with two consecutive days of limit down trading. In response to market concerns about the quarter-on-quarter decline in the company's second quarter net profit, DeMingLi stated that the second quarter net profit was affected by various factors: first, expenses have increased, including R&D investment, provisions for capacity construction, and increased stock payment expenses; second, the company continues to be optimistic about the future industry outlook, actively increasing strategic reserves to support rapid business expansion, with sufficient inventory reserves; third, customer expansion investment has increased, with enterprise storage, embedded storage, memory and other businesses still in the accelerated expansion stage, with long certification cycles for such products, significant early-stage adaptation testing costs, and increased R&D and sales expenses. The corresponding investment during the business expansion period will gradually performance. The above investments are all part of a long-term strategic plan, and have begun to gradually contribute positively starting in the second quarter, laying a solid foundation for the company's future performance.