HC Semitek projected it will be incurring heavy losses from January 1 to March 31, according to a Chinese media Securities Time report.

The company reckons net loss will range between RMB 13.5 million (US $2.16 million) to RMB 18.5 million for 1Q15. During the same period last year, the company reported a net profit of RMB 14.54 million.

The company's quarterly revenue was impacted by the Chinese Lunar New Year holidays in February. Operation size, debt asset ratio greatly increased during the period, including its R&D, salary and other management costs. The company’s expenditures also surged compared to the same period last year. Hence, even though the company’s revenues and gross profit margin had grown compared to the same period last year, the company still accrued operational losses.

HC Semitek’s losses in 1Q15 can be countered by the non-recurring gain of RMB 23.46 million it earned from the same period last year. The company projected it would still have a non-recurring gain of RMB 81.54 million for the fiscal year of 2015. Company operations are expected to return to norm after spring, and the company’s profitability will improve in March. HC Semitek estimated revenue performance will rebound in 2Q15.

The company has resumed trade on the China bourse today.