净利润腰斩，千亿芯片巨头盘中跌超6%，公司回应

Core Points - The stock price of Huahong Company (688347.SH) dropped over 6% on November 7, closing at 122.85 CNY per share, with a market capitalization of 144.5 billion CNY, losing over 4 billion CNY in value compared to the previous trading day. Despite this, the stock has increased over 160% year-to-date [2] Financial Performance - In Q3, Huahong Company reported revenue of 4.566 billion CNY, a year-on-year increase of 21.10%, while net profit attributable to shareholders was 177 million CNY, a decline of 43.47%. For the first three quarters, total revenue reached 12.583 billion CNY, up 19.82%, with net profit down 56.52% to 251 million CNY [2] - The decline in net profit is attributed to the ramp-up phase of new production lines, high fixed costs such as depreciation, power, and labor, as well as increased R&D expenditures [2] - Operating cash flow for the first three quarters increased by 129.58% year-on-year, primarily due to normal business operations rather than changes in accounts receivable or prepayments [2] Strategic Developments - The newly appointed Chairman of Huahong Company, Bai Peng, stated that Q3 sales revenue reached a record high of 635.2 million USD, aligning with guidance expectations, and the gross margin was 13.5%, exceeding projections [3] - The company is actively pursuing an acquisition of Shanghai Huahong Microelectronics Co., which will enhance production capacity and diversify its technology platform. The acquisition process is ongoing, with completion expected next year [3] - Huahong Company's main business involves the development and application of embedded/non-volatile memory, power devices, analog and power management, and logic and RF technologies, providing wafer manufacturing services [3]