Suddenly, the real controller of San 'an Optoelectronics was investigated

Sanan Optoelectronics (600703) announced on the evening of March 22 that the company received a notice from Fujian Sanan Group Co., Ltd. on March 21, 2026. Fujian Sanan Group Co., Ltd. recently received a notice issued by the National Supervisory Commission that the company’s actual controller Lin Xiucheng was detained and investigated. Since July 10, 2017, Lin Xiucheng has not held any position in the company.

The announcement stated that at present, the company's production, operation and management are in normal condition. The company has a complete organizational structure and standardized governance system, and will continue to operate in accordance with laws, regulations and related systems such as the Company Law, the Shanghai Stock Exchange Stock Listing Rules, the Code of Corporate Governance for Listed Companies and the Articles of Association. The above matters will not have a significant impact on the company's production and operations.

It is understood that Sanan Optoelectronics recently released its 2025 performance forecast. According to preliminary calculations by the company's financial department, the company is expected to achieve a net profit attributable to shareholders of listed companies in 2025 of a loss of 200 million to 300 million yuan; it is expected that the net profit attributable to shareholders of listed companies in 2025, excluding non-recurring gains and losses, will be a loss of 750 million to 850 million yuan.

Regarding the reasons for the performance loss, the announcement disclosed that during the reporting period, the company's proportion of high-end LED products further increased. Although the revenue scale and profitability of the integrated circuit business increased year-on-year, the filters and silicon carbide business in integrated circuits still had a greater drag on the company's profits; at the same timeAt that time, the government subsidies received by the company decreased year-on-year; R&D expenses increased year-on-year; the adjustment of the difference between the provisional sales price of precious metal scrap and the price trend of the Shanghai Gold Exchange resulted in a decrease in investment income; in accordance with the provisions of the "Accounting Standards for Business Enterprises", the provision for depreciation of inventories whose net realizable value is lower than the cost increased year-on-year. Previously, Sanan Optoelectronics was also involved in a lawsuit with South Korea. In early February 2026, the China International Economic and Trade Arbitration Commission issued a ruling that Hubei Sanan Optoelectronics Co., Ltd. and Quanzhou Sanan Semiconductor Technology Co., Ltd., both subsidiaries of Sanan Optoelectronics, need to pay a total of approximately 327 million yuan in equipment price, interest and compensation to Taiwanese semiconductor equipment manufacturer Whit Technology. The dispute stems from the equipment sales contract signed by the two parties between 2020 and 2021. Sanan Optoelectronics failed to pay the subsequent remaining price after paying the deposit.

However, Sanan Optoelectronics disputed the ruling. The relevant person in charge of the company responded that the fundamental reason for refusing to pay the remaining price was that the equipment supplied by Huite Technology had serious quality problems. According to Sanan's description, the equipment had problems such as missing hardware parts, software freezes, and failure to capture wafers. It did not meet the technical specifications and production capacity standards agreed in the contract, resulting in the company not accepting the equipment. Sanan Optoelectronics stated that equipment quality problems have had a major impact on its production operations, resulting in production capacity ramp-up being blocked, yield rates stagnating, and even being unable to meet the order demands of many major international customers, resulting in significant order losses and loss of goodwill. The company has made it clear that it willThe company has recently filed an arbitration claim for serious economic losses caused by equipment quality problems. As a leading company, Sanan also frequently spreads good news in the display field. For example, on March 11, Sanan Optoelectronics revealed its latest progress in the Micro LED field on an interactive platform. The company stated that it has carried out in-depth cooperation with Tsinghua University, China Mobile and other entities in the fields of Micro LED optoelectronic devices and high-speed optical communications to jointly promote the research and development and application verification of related technologies. What attracts even more attention to the market is that the Micro LED light source devices produced by the company have excellent performance, and samples have been sent to leading domestic and foreign companies for module assembly verification. It is reported that Sanan Optoelectronics has also built a deep "moat". It is reported that the company has laid out more than 400 domestic and foreign patents in Micro LED materials and devices. In the technology-intensive track of compound semiconductors, patents are not only a reflection of technical strength, but also an important bargaining chip for future participation in global competition.

Last year, Sanan Optoelectronics planned to jointly acquire 100% of Lumileds Holding B.V.'s equity in cash with foreign investor Inari Amertron Berhad, for a transaction consideration of approximately US$239 million. The joint acquisition has been approved successivelyWith the antitrust review in China and Turkey, as well as the foreign direct investment review by the relevant Italian authorities, the target equity acquisition has made phased progress at the regulatory level. This move is seen as a key step in further enhancing the company's global presence in the compound semiconductor business.