Opening limit-down! LED chip leader Sanan Optoelectronics' actual controller placed under detention

Source: Xinhua Finance

Xinhua Finance Beijing, March 23 — The leading LED chip manufacturer Sanan Optoelectronics’ stock opened with a limit-down, closing at 14.89 yuan per share, with its market value shrinking from over 80 billion yuan to 74.29 billion yuan. This LED chip giant is currently embroiled in a controversy involving its actual controller being detained and under investigation.

According to the company’s announcement on the evening of March 22, Sanan Optoelectronics received notice from its major shareholder, Sanan Group, on March 21 that the National Supervisory Commission had issued a notice regarding the detention and investigation of Sanan Optoelectronics’ actual controller, Lin Xiucheng. Since July 2017, Lin Xiucheng has not held any position within the company.

Sanan Optoelectronics stated that its production and operations are normal and that the above matters will not significantly impact the company’s business.

Regarding its ownership structure, currently, the controlling shareholder of Sanan Optoelectronics is Xiamen Sanan Electronics Co., Ltd., a subsidiary of Sanan Group, holding 24.33% of shares. The actual controller is Lin Xiucheng, who owns 10.72%. Chairman Lin Zhiqiang is Lin Xiucheng’s eldest son; Vice Chairman and General Manager Lin Kechuang is Lin Xiucheng’s son-in-law; and Director and Vice General Manager Lin Zhidong is Lin Xiucheng’s younger son. Lin Xiucheng’s family still maintains dominant control over Sanan Optoelectronics.

Reviewing Sanan Optoelectronics’ recent financial reports, from 2022 to 2024, the company has experienced “increased revenue but declining profits,” with net profit attributable to shareholders decreasing for three consecutive years, and non-recurring profit and loss turning negative for three years in a row, accumulating losses exceeding 1.9 billion yuan.

Sanan Optoelectronics is a leading Chinese LED chip enterprise. In recent years, it has actively expanded into third-generation semiconductor business. The net profit attributable to shareholders in 2025 is expected to lose between 200 million and 400 million yuan, with non-recurring net profit attributable to shareholders expected to lose between 750 million and 850 million yuan.

Regarding the reasons for the projected loss in 2025, Sanan Optoelectronics stated that although the proportion of high-end LED products has further increased and both revenue and profitability of the integrated circuit business have improved year-on-year, the filter and silicon carbide segments within the integrated circuit division still significantly drag down overall profits. Additionally, government subsidies have decreased year-on-year; R&D expenses have increased; and sales of precious metal waste at the provisional prices, which differ from the Shanghai Gold Exchange prices, have led to reduced investment income.

Editor: Ding Jing

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