On July 16, Demingli fell to a standstill again, falling “one word” for two consecutive days. In response to market concerns about the month-on-month decline in the company's net profit in the second quarter, Demingli responded that the net profit performance in the second quarter was affected by various factors: first, there was an increase in the cost side, including increased R&D investment, increased calculation due to capacity construction, and increased share payment expenses; second, the company continued to be optimistic that the boom in subsequent industries would continue to improve, actively increase strategic reserves to support rapid business expansion, and sufficient inventory strategic reserves; third, the company's enterprise-level storage, embedded storage, memory and other businesses are still in the accelerated expansion stage. Investment is large, and R&D expenses and sales expenses have also increased. The corresponding investment during the business expansion period needs to be gradually realized. The above investments are all long-term strategic layouts, and have gradually produced positive contributions since the second quarter. The future will lay a solid foundation for the release of the company's performance.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.